0450 GMT - Analysts are unlikely to make large changes to forecasts for REA Group's fiscal 2025 operating expenses despite the Australian real-estate advertiser's better-than-expected outlook, Jarden analyst Tom Beadle says. Beadle acknowledges that REA's guidance for high single-digit cost growth is better than the average analyst forecast of 10%, but points out that any growth is coming off a slightly higher base. He tells clients in a note that fiscal 2024 operating expense growth of 18% was at the top end of REA's guidance, and ahead of the average analyst forecast of 16%. Jarden has a last-published underweight rating and A$161.00 target price on the stock, which is up 6.6% at A$201.95. (stuart.condie@wsj.com)

0444 GMT - RBC Capital Markets analyst Wei-Weng Chen sees a lot to like in Life360's 1H result, with earnings well ahead of expectations. He tells clients in a note that the tracking-app developer's revenue was largely in line with analysts' forecasts, but that Ebitda was 29% ahead of his expectations, and 52% ahead of the average analyst forecast. Operating cashflow was another highlight, while the company added a record number of net new users in the June quarter. RBC has a last-published outperform rating and A$18.00 target price on the stock, which is up 17% at A$17.44. (stuart.condie@wsj.com)

0139 GMT - ANZ's adjustments to its capital ratio are a positive development, say Morgan Stanley analysts in a note. The Australian major lender expects an improvement of around 30 basis point in its CET1 ratio from changes to mortgage risk weights and amendments to APRA's capital framework. This follows its July announcement that completion of Suncorp Bank acquisition would reduce its CET1 ratio by around 105bp, around 18bp less than expected in May. "These adjustments provide ANZ with more capital flexibility and increase the probability that it announces another buyback after it completes the current A$2 billion on-market buyback," MS says. It has an underweight call on the stock as it sees ANZ with a weaker near-term earnings outlook than its peers. (alice.uribe@wsj.com)

0125 GMT - AMP, which is becoming a more focused wealth and bank operator, presents a compelling case for investors, say Morgan Stanley analysts in a note. The firm is trading on around 10.5X underlying FY 2025 price-to-earnings and offering a more than 30% FY 2023-2025 compound annual growth rate. MS highlights that AMP is achieving consistently on costs, revenue margins, and flows, while reducing one-offs and presenting a clearer path to breakeven in advice. From this, the investment bank reckons there could be a re-rating, and raises the stock to overweight from equalweight. It also increases the target price 15% to A$1.48. AMP rises 1.0% to A$1.29. (alice.uribe@wsj.com)

0115 GMT - Initial impressions of QBE's 1H FY 2024 are weak, say Macquarie analysts in a note. Still, details around the general insurer's underlying trends provides the investment bank with more confidence, it adds. Some confidence-boosters include the fact that lower gross written premium guide is due to faster run-off of the North America mid-market unit. For the 1H result overall, Macquarie sees that the combined operating ratio was in line with both its and Visible Alpha's expectations.(alice.uribe@wsj.com)

0105 GMT - QBE's stock remains inexpensive, but there is probably not enough in its 1H results to spur a re-rating in the near term, say UBS analysts in a note. On the results more broadly, UBS notes a small earnings miss, with a modest pullback on FY 2024 guidance. Repricing in 2Q shows a clear slowdown versus prior periods, says UBS, which alongside portfolio exits explains gross written premium growth guidance for the FY being reduced to around 3% from "mid single digits." Positively, UBS likes the reinsurance deal QBE announced Friday, which covers US$1.6 billion of reserves at a cost of US$85 million. (alice.uribe@wsj.com)

0024 GMT - Charter Hall Long WALE REIT's A$50 million share buyback sends a positive signal to investors, but it may not have been the company's best move. The buyback is small in the context of Charter Hall Long WALE REIT's A$2.58 billion valuation, and will only boost operating EPS by around 1%, Macquarie says. "Further, completion would increase balance sheet and look-through gearing 1 percentage point, and therefore we believe it would be prudent to continue to manage gearing given ongoing asset value uncertainty," the bank says. (david.winning@wsj.com; @dwinningWSJ)

0020 GMT - REA Group's fiscal 2025 operating-expense guidance is lower than Citi analyst Siraj Ahmed had expected. REA's outlook for high single-digit growth in group operating expenses is lower than both Ahmed's 11% forecast, and the average analyst forecast of 10%. This should help offset the impact on Ebitda forecasts from higher depreciation and amortization, Ahmed tells clients in a note. REA's fiscal 2024 core net profit was about 1% lower than Ahmed had expected. Citi has a last-published buy rating and A$221.00 target price on the stock, which is up 3.3% at A$195.85. REA is 61% owned by News Corp., which owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. (stuart.condie@wsj.com)

0020 GMT - Macquarie isn't downbeat about the toll review taking place in New South Wales state and how it could impact Transurban. It thinks the negotiations between Transurban and the NSW government is an opportunity to release capital in assets like the M2, Eastern Distributor, and M7 roads in Sydney via concession adjustments or get upfront compensation for any macro changes. "At worst, we see the outcome as neutral," Macquarie says. "More plausibly it will be a minor positive, and a reduction to the risk perception." (david.winning@wsj.com; @dwinningWSJ)

0014 GMT - Investors should derive some comfort from the performance of QBE's North America unit in 1H, say Citi analysts in a note. Elsewhere in the result, Citi sees it to be "broadly in line if not slightly ahead," and points out that it was helped by favorable catastrophe outcomes. Still, some of this was offset by the Baltimore Bridge collapse. "At first take, we see this as a solid result which should be modestly supportive for the stock price," says Citi. QBE is down 3.3% to A$15.79. (alice.uribe@wsj.com)

0005 GMT - Reasons to get more positive on Mirvac versus bearish are balanced right now, says Morgan Stanley. Mirvac's FY 2025 earnings guidance missed consensus hopes by some 10%, and signals a profit decline of A$80 million-A$100 million, analyst Lauren A. Berry says. "There is a case to be more positive on Mirvac for investors willing to look through to FY 2026," MS says. "However, we do not believe FY 2025 is a breeze to achieve." Mirvac's guidance includes development profits that haven't been secured yet. Also, residential sales could be volatile depending on timing of interest rate moves, MS says. It has an equal-weight call on Mirvac. (david.winning@wsj.com; @dwinningWSJ)

0002 GMT - Charter Hall Long WALE REIT's earnings guidance miss is likely down to the timing of asset sales, says Morgan Stanley. Charter Hall Long WALE REIT announced some A$684.5 million of asset sales on June 21, which has lessened concerns around its gearing, even if some deals were done at big discounts to book value. In a note, analyst Simon Chan says Charter Hall Long WALE REIT's expectation of operating EPS of 25.0 Australian cents in FY 2025 was an around 5% miss to consensus forecasts. But he also notes that some A$300 million of asset sales haven't been settled yet. MS retains an equal-weight call on Charter Hall Long WALE REIT. (david.winning@wsj.com; @dwinningWSJ)

2343 GMT - The savage share-price drop that greeted Audinate's fiscal 2025 guidance helps attract a new bull to the audio-visual tech provider. Jefferies analyst Wei Sim raises his recommendation on the stock to buy from hold, telling clients in a note that he doesn't think that the current headwinds facing the company are structural. His conversations with industry experts confirm that Audinate's Dante is still the leading professional audio protocol, and that development in video is on track. He also adds that Audinate tends to be conservative with its guidance. Jefferies cuts its target price 39% to A$11.00. Shares are at A$8.75 ahead of the open. (stuart.condie@wsj.com)

2335 GMT - The pace of furniture retailer Nick Scali's store rollout continues to underwhelm Citi analyst Sam Teeger. He tells clients in a note that the Australian company delivered a solid fiscal 2024 result against a backdrop of challenging conditions, which demonstrates good execution and the strength of its business model. Yet he points out that expansion of the store network is a key driver of growth, and tells clients in a note that a shortage of available sites and elevated interest rates are dampening this activity. Citi has a buy rating and A$17.30 target price on the stock, which is at A$14.82 ahead of the open. (stuart.condie@wsj.com)

2313 GMT - Arcadium Lithium thinks forecasts for global lithium supply from 2026 are too high, with Bell Potter also confident that the market will improve over the medium term. Subdued lithium pricing is having an impact in curbing supply. Arcadium Lithium has paused its Galaxy spodumene project in Canada and deferred some brine expansions in Argentina. According to Bell Potter, Arcadium Lithium believes Chinese lepidolite and African spodumene operations cannot keep expanding at rates of recent years. Meantime, fundamental demand for lithium remains strong. Global volumes of electric vehicles and plug-in hybrid electric vehicles rose 20% on year in 1H, analyst Stuart Howe says in a note. Bell Potter retains a buy call on Arcadium Lithium. (david.winning@wsj.com; @dwinningWSJ)

2304 GMT - AMP's 1H FY 2024 results is evidence that AMP is executing on its turnaround, say Jefferies analysts Simon Fitzgerald and William Richardson in a note. This prompts them to reaffirm Jefferies's "buy" rating on the stock. "Whilst turnarounds carry risk, a large part of AMP's growth in the near term relates to cost reductions, given significant changes in the business in recent years," they say. As AMP works to close the final chapter on its advice unit, Jefferies says cost reductions look to be sustainable, while also seeing that the North platform is "beginning to stand on its own, with improving growth prospects." Jefferies raises its target price 17%, to A$1.55. AMP was last up 13%, to A$1.28. (alice.uribe@wsj.com)

0521 GMT - Australian major banks are generally looking to keep their CET1 ratios at 11.5% or higher, says E&P Capital analyst Azib Khan in a note. He notes an announcement from ANZ Thursday that is in line with this, with the lender saying improvement in its pro-forma CET1 ratio provides it with more of a buffer above the 11.5% level. "While this provides more comfort around the post-acquisition capital position, we are not expecting capital management in addition to the A$2 billion on-market buy-back currently underway," says E&P. ANZ recently acquired Suncorp's banking unit. (alice.uribe@wsj.com)

(END) Dow Jones Newswires

August 09, 2024 01:00 ET (05:00 GMT)