0418 GMT - The average-revenue-per-user growth implied by Xero's New Zealand price rises is slightly higher than Citi analyst Siraj Ahmed had anticipated. Ahmed tells clients in a note that the price rises of between 5% and 8% across Xero's various plans should translate to ARPU growth of about 6%. Once March 2024's price increase in Xero's so-called partner edition is included, he forecasts an 8% on-year rise in fiscal 2025 ARPU. The price rises are smaller than those pushed through last year, he notes. Citi has a buy rating and A$158.20 target price on the stock, which is up 1.7% at A$128.10. (stuart.condie@wsj.com)

0329 GMT - Continued strength in Australian new vehicle sales should bode well for ARB Corp.'s local aftermarket operations, Ord Minnett analyst James Casey tells clients in a note. He writes that the 5.1% rise in May sales should assist fiscal 2H profit at the unit, which has accessories targeted at three of the four best-selling vehicles in Australia. Casey expects ARB's sales and earnings to keep growing at above-average levels, supported by demand for accessories, store expansion and an increased presence in offshore markets. Ord Minnett keeps a buy rating and A$44.00 target price on the stock, which is down 0.5% at A$38.41. (stuart.condie@wsj.com)

0250 GMT - Computershare keeps its bull at UBS, where analyst Scott Russell sees the share-registry provider benefiting from recent strong capital-markets activity in the U.S. and Europe. Russell points out that several components of the Australia-listed company's revenue have a high degree of correlation to such activity. As such, he thinks that Computershare's natural earnings skew toward the June half will be even more pronounced in this fiscal year. He tells clients in a note that he also sees support for Computershare's EPS coming from the recent acquisition of BNY Mellon's Canadian corporate trust business. UBS lifts the stock's target price 3.2% to A$32.00 and keeps a buy rating. Shares are up 1.5% at A$27.07. (stuart.condie@wsj.com)

0222 GMT - Treasury Wine Estates' fiscal 2024 guidance for its Americas unit allays market concerns about the stability of its U.S. premium portfolio, according to Morgan Stanley analysts. They welcome the specific guidance for the region, with Treasury flagging premium Americas revenue broadly in line with the prior year. The analysts write in a note that US$20 million in revenue synergies from the 2023 acquisition of the DAOU brand look very achievable, and note that no synergies are included in company guidance. MS has an overweight recommendation and A$14.50 target price on the stock, which is up 1.5% at A$12.175. (stuart.condie@wsj.com)

0152 GMT - Temple & Webster may moderate marketing expenditure as a percentage of sales from its current elevated levels, Citi analyst James Wang says. He tells clients in a note that there is a certain dollar level beyond which the returns from marketing expenditure become uneconomic. Wang sees a step-down in marketing spending as a key driver of what he expects to be the online furniture retailer's margin expansion over the next two fiscal years. He moderates his earnings forecasts to reflect a more gradual increase in profitability, trimming his target price by 8.3% to A$11.00. Citi keeps a buy rating on the stock, which is up 0.5% at A$9.52. (stuart.condie@wsj.com)

0001 GMT - Iron-ore demand may be softening, but Macquarie expects supplies from big Australian producers to be especially strong this month as the likes of BHP and Fortescue seek to meet their FY goals. The combined shipments for Rio Tinto, BHP and Fortescue have rebounded so far this quarter, with production in May approaching full capacity, Macquarie analysts say. "Looking ahead, the June month for [Western Australia] iron ore miners since 2016 has consistently outperformed the annual production rate by 9%," they say. They expect that trend to continue, with Fortescue needing to ship at an annualized rate of 242 million metric tons to hit its 192 million-197 million ton guidance for its FY ended June and BHP, requiring a rate around 260 million tons to hit its own 282 million-294 million target, the analysts say. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2338 GMT - Mineral Resources' sale of a stake in its Onslow haul road is "price positive and a vote of confidence" in the project, Citi analyst Kate McCutcheon says in a note. Morgan Stanley Infrastructure Partners undoubtedly conducted extensive due diligence on the project, in which it agreed to buy a 49% interest for A$1.3 billion, she says. "The other positive is MIN now has a 'little black book' of possible partners to help fund their gas ambitions," McCutcheon says. Mineral Resources ended Wednesday at A$69.55/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2336 GMT - IDP Education's annual earnings guidance points to a significant deterioration in 2H conditions for the student-placement provider, E&P Financial analyst Entcho Raykovski says. He tells clients that the Australian company's expectation for flat underlying earnings over the 12 months through June implies that 2H earnings fell by 30% on-year. With restrictive global migration policies set to continue, Raykovski warns in a note that market downgrades for IDP's fiscal 2025 earnings outlook are likely to be larger than the average 9% cut he expects analysts will make to their fiscal 2024 forecasts. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 06, 2024 00:51 ET (04:51 GMT)