0257 GMT - It looks like a2 Milk performed well during China's annual 618 shopping event, Citi analyst Sam Teeger says. He tells clients that the Australia- and New Zealand-listed infant-formula provider placed No. 3 to Nestle and Aptamil in maternal-and-child category sales on online retailer Pinduoduo. It was also No. 4 in infant-formula brands on Tmall, which Teeger views as reasonably positive despite a fall of two places from a year earlier. Citi has a A$7.85 target price and a buy rating on a2's Australia-listed stock, which is up 0.75% at A$6.69. (stuart.condie@wsj.com)

0239 GMT - Baby Bunting keeps its bull at Morgans following its trading and strategy updates, although analyst Alexander Mees warns that the baby-goods retailer still has much to prove. Mees raises his profit forecast for FY 2025 by 40% and FY 2026 by 21% to reflect the retailer's stabilizing sales and plan to improve margins in part through a greater focus on exclusive brands. He tells clients in a note that the management's FY 2025 gross-margin target looks ambitious but keeps an add rating on the stock. The target price is raised by 13% to A$1.80. Shares are up 8.8% at A$1.60. (stuart.condie@wsj.com)

0055 GMT - Jefferies expects Paladin Energy to have a cash position of US$1.0 billion by FY 2028, sufficient to develop the Patterson Lakes project in Canada that it will own following a takeover of Fission Uranium. Analyst Mitch Ryan expects Paladin to seek project-level financing and offtake deals to help fund Patterson Lakes, and also use cash flow from its Langer Heinrich mine in Namibia. "Excess cash generated will be available for further capital management on our estimates, although we do not factor dividends or buybacks in our valuation," Jefferies says. The bank cuts its price target by 6.8% to A$17.00/share. Paladin is up 0.2% at A$12.44 today. (david.winning@wsj.com; @dwinningWSJ)

0055 GMT - UBS's more positive outlook on the Australian consumer prompts it to turn bullish on Universal Store Holdings. It notes the youth-focused clothing retailer's share price has fallen some 15% since April 11 when it pivoted to a neutral call. That's despite several attractions, including a strong balance sheet and a customer that is more resilient to economic headwinds. "Despite downside risk to consensus near term, after becoming more constructive on the Australian consumer and given the strong medium-term earnings growth outlook, we upgrade Universal Store to buy," analyst Jarrod Chisholm says. UBS highlights that Universal Store's PE discount to peer Accent has widened beyond its historical average. (david.winning@wsj.com; @dwinningWSJ)

0040 GMT - Recent transactions point to heightened risks to office valuations, prompting Citi to cut its earnings forecasts for Charter Hall. Citi highlights Dexus's recent sale of 5 Martin Place, Sydney, at a 6.1% cap rate, while 255 George Street sold at a 6.5% cap rate in April. Those deals lead analyst Suraj Nebhani to predict 15% downside to office valuations, compared to a prior forecast of 10% downside. He reduces EPS estimates for Charter Hall by 5% for FY 2025 and by 2% for FY 2026. "Despite near-term pressure, we do see Charter Hall as an attractive opportunity in the REIT sector given strong track record of funds management, and leveraged to a recovery in broader commercial real estate markets over the next 12-18 months, as interest rates normalize," Citi says. (david.winning@wsj.com; @dwinningWSJ)

0007 GMT - Baby Bunting's strategy day leaves Citi analyst Sam Teeger slightly more positive on the stock. The baby-goods retailer says 58% of its existing store network has a pressing need for refurbishment, and Teeger thinks that addressing this could lift sales by about 10%. This represents an A$11 million Ebitda opportunity, equivalent to 22% of what he forecasts for fiscal 2024. There would be further upside if Baby Bunting refurbishes the whole network, he tells clients in a note. He is uncertain about the strength of returns from proposed smaller stores, but likes the idea of Baby Bunting monetizing its in-store and digital assets. Citi raises its target price 13% to A$1.79 and stays neutral on the stock, which is up 7.8% at A$1.585. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 28, 2024 00:58 ET (04:58 GMT)