0158 GMT - Citi analyst Samuel Seow sees a potentially worrying sign for Qantas in Flight Centre's 2H update. He tells clients in a note that the travel agent observed that 2H international airfares in Australia were down 13% on year. That compares with an average analyst forecast of a 10% on-year fall in Qantas's 2H international revenue per average seat kilometer. Seow stresses that the comparison isn't like-for-like but thinks the difference is worth flagging for those waiting on the airline's results. He also points out that analysts generally expect the decline in Qantas's international revenue per seat kilometer to moderate to 6% in 1H FY 2025. Citi has a neutral rating and a A$5.85 target price on Qantas shares, which are up 0.5% at A$5.95. (stuart.condie@wsj.com)

0140 GMT - Karoon Energy's new capital returns policy points to a 4%-5% dividend yield for investors in the Australian explorer, Wilsons analysts write in a note. They tell clients that the absence of capex and cashflow considerations in the policy offers shareholders a more transparent way to determine payouts. Overall, they see the policy as a positive development. The US$25 million share buyback announced at the same time is a positive additional return, they add. Wilsons keeps an overweight rating on the stock and is reviewing its A$2.90 target price. Shares are up 2.2% at A$1.835. (stuart.condie@wsj.com)

0127 GMT - Karoon Energy shareholders should receive at least US$50 million for 1H 2024 under the Australian energy explorer's new capital returns policy, Citi analyst James Byrne says. He tells clients in a note that the figure is appropriate and signals that the company is focused on shareholder returns rather than empire building. Byrne would have considered anything less than US$50 million as insufficient, while returns close to US$100 million would have been too aggressive and would limit investment capacity. Citi has a last-published buy rating and A$2.75 target price on the stock, which is up 0.6% at A$1.805. (stuart.condie@wsj.com)

0125 GMT - Macquarie's 1Q FY 2025 trading update likely reads worse than the market expects, says UBS analyst John Storey in a note. It sees implied net profit after tax  performance for 1Q FY 2025 was down compared with the same time last year. "The divisional commentary and short term outlook we think reads okay. Macquarie potentially have a few aces up their sleeve, which could cushion the impact of this worse than expected update," says UBS. It notes that the banking unit's result was aided by lower credit impairment charges, though net interest margin continues to compress. UBS reckons the "market will need to place a lot of trust on Macquarie's 2H FY 2025 number." Macquarie is down 3.9% at A$200.55. (alice.uribe@wsj.com)

0109 GMT - Private health insurance in Australia remains attractive after the pandemic, with claims inflation remaining "remarkably" low, according to UBS's latest PHI survey. "This is delivering both volume growth and margin benefits across the industry, which runs contrary to market concerns for the sustainability of PHI [private health insurance] profitability," says the investment bank. The consumer survey reveals multi-year highs in perception amongst under 35s, which UBS expects to underpin participation and policy growth into FY 2025. It reckons the tailwinds supporting private insurers are more durable than market expectations and retains a positive view on the sector. It maintains buy calls on Medibank and Nib. (alice.uribe@wsj.com)

0108 GMT - Clarity around the tax impacts of KKR's offer for Perpetual's wealth-management and corporate trust businesses is the next key catalyst for the stock, says UBS analyst Shreyas Patel in a note. He reckons the market seems to be pricing in a large capital gains tax payable and a favorable deal outcome could see relief in the stock into the company's Aug. 29 results. Still, UBS thinks that Perpetual's 4Q update revealed a disappointing quarter for the asset-management unit. Assets under management came in at A$215 billion, down 5% quarter on quarter missing UBS's estimates by 5%. "This was largely driven by larger-than-expected outflows," says the investment bank. (alice.uribe@wsj.com)

0030 GMT - Flight Centre's performance is seen positively by its bull at Wilsons despite lower-than-expected total transaction value at the Australian travel agent. Wilsons analysts tell clients in a note that, while total transaction value for fiscal 2024 fell slightly short of their forecasts, an in-line profit performance means that margin was wider than they had expected. They explain that lower international airfares were behind the total transaction value miss. Wilsons keeps an overweight recommendation and A$28.96 target price on the stock, which is down 0.1% at A$21.89. (stuart.condie@wsj.com)

2324 GMT -- The Reserve Bank of Australia is coming under increasing pressure not to raise interest rates at its next policy meeting, despite lingering concerns that inflation is proving stubborn. Deloitte Access Economics warned in its latest business outlook that a further hike in the official cash rate would "crush" what remains of consumer and business confidence while also offsetting any benefits of income tax cuts delivered at the start of the month. Separate warnings have also emerged this week that unemployment could gap higher if rates are nudged up again. (james.glynn@wsj.com)

2314 GMT - Perpetual's asset management flows for FY 2024 are worse than what Morningstar analyst Shaun Ler was expecting, he says in a note, adding that the company's worsening net outflows contrast with other active managers and wealth platforms. Still, he sees that fee compression was less than expected, and there may be further room to reduce costs, also, redemptions are likely to moderate as investor appetite for risk assets continues to improve. "We believe the market currently under appreciates these points," says Morningstar. It expects underlying net profit after tax at the group level to increase at very low single digits over the four years to fiscal 2028. (alice.uribe@wsj.com)

2313 GMT - Details Perpetual is likely to disclose at its FY 2024 result in August are needed to work out whether the stock is worth an investment, says Citi analyst Nigel Pittaway in a note. He reckons that the Australian financial company's results should include details of the estimated net proceeds from its scheme implementation deed with a KKR affiliate and its key ATO tax rulings. "Although some investors will undoubtedly wish to speculate on the outcome before time, this is vital information for assessing whether the stock is worth investing in," says Citi. It keeps its neutral call on the stock, saying that currently, it looks that the business to be left, if the SID proceeds, is "struggling somewhat." (alice.uribe@wsj.com)

(END) Dow Jones Newswires