0345 GMT - Tyro Payments looks fairly priced to Morgan Stanley analysts, who admit to wondering where valuation multiples will settle as revenue growth slows but profitability improves. The analysts tell clients in a note that the payment-terminal provider's full-year result was solid and that its earnings guidance helps in reducing risks around the outlook given the backdrop of cautious consumer spending. However, they point out that the Australian company expects just 10-14% Ebitda growth in its 2025 fiscal year, compared with 32% in the year just ended. MS has a last-published equal-weight rating and A$1.30 target price on the stock, which is down 5.9% at A$1.035. (stuart.condie@wsj.com)

0339 GMT - BHP, the world's No. 1 miner and top exporter of steelmaking coal, won't join the running for rival Anglo American's Australian metallurgical coal assets, according to its CEO. Mike Henry tells reporters BHP is not interested in Anglo's Grosvenor and Moranbah North mines, located next to the Goonyella Riverside mine BHP owns with Mitsubishi. Anglo plans to sell the coal mines as part of a restructuring announced as it fended off a bid from BHP in May. While BHP was seeking to buy Anglo, the mining giant highlighted Anglo's metallurgical coal assets as complementary to its own. "We've been clear that we want to grow to pursue our primary growth in copper and potash," says Henry, adding that Australia's Queensland state is also too risky for investments after local officials sharply raised royalty rates. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0339 GMT - Bendigo and Adelaide Bank's 2H result and outlook commentary showed higher investment spend and cost growth for the Australian regional lender, say Morgan Stanley analysts in a note. They reckon this is likely to weigh on consensus earnings estimates and also limits "potential for further share price outperformance in the near-term." Still, MS is encouraged by better lending momentum and forecasts revenue growth of around 5% in FY 2025. "In our view, margin management remains a key investment driver for Bendigo." (alice.uribe@wsj.com)

0322 GMT - Corporate Travel Management's nearly 50% drop in market value has made the stock too cheap to ignore for Citi analyst Samuel Seow. He still can't say why the travel-services procurer's U.S. operations continue to underperform but reckons that any risks are worth taking. Seow tells clients in a note that the U.S. business travel environment is improving and should also benefit from the Australian dollar's strength relative to the greenback. The stock's price-to-earnings ratio is at a 40% discount to its long-term average, he adds. Citi resumes coverage of the stock with a buy rating and A$13.50 target price. Shares are down 0.2% at A$11.61. (stuart.condie@wsj.com)

0322 GMT - The CEO of BHP, the world's No. 1 miner by value, takes an upbeat view on major customer China, where he says some steel-intensive industries are growing at a healthy rate and the beleaguered housing market should find support from government measures. "The property sector, of course, is in focus and we need to recognize that the property sector is weak," Mike Henry tells reporters. "The government has put in place some policies that we think are going to aid the property sector in the year ahead." In its FY results announcement, BHP said the effectiveness of recently announced pro-growth policies will be key for China hitting its official 5% growth target. "A number of the sectors in the economy that drive steel demand are actually performing quite healthily currently," including shipbuilding and auto manufacturing, he adds. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0301 GMT - Collins Foods keeps its bull at Morgans despite the fast-food franchiser's soft start to its new fiscal year. Morgans' analysts cut their EPS forecasts for the next three fiscal years by about 25%, 22% and 18%, respectively, after Collins's sales updates suggested that cost-conscious consumers are swapping takeout for groceries. Soft sales and continued cost inflation remain meaningful headwinds but the analysts say they wouldn't be surprised if cost inflation moderates and margins expand faster and sooner than expected. Morgans cuts its target price 15% to A$11.00 and stays overweight on the stock, which is down 0.4% at A$7.61. (stuart.condie@wsj.com)

0138 GMT - Bendigo and Adelaide Bank's transformation program has advanced, but proof of higher returns are still needed, says UBS analyst John Storey in a note. Still, he sees the Australian regional lender's investment to drive profitable lending growth via digital infrastructure and its lending platform is starting to feed into group return metrics. "Its lower cost retail deposit franchise remains a strength," says UBS. "We also think Up Bank, the size of this client base, and low cost to originate is a differentiator." UBS keeps its sell rating seeing that delivery on costs and return on equity expansion could slow in a lower interest rate environment. (alice.uribe@wsj.com)

0115 GMT - Bendigo & Adelaide Bank's incoming CEO, Richard Fennell, is likely to face many challenges, says Barrenjoey analyst Jon Mott in a note. He reckons substantial spending will be required given the rapid changes in digital banking, and heightened competition will pressure the Australian regional lender's net interest margin as the credit cycle normalizes. Still, for its FY 2024 results, Bendigo's outgoing CEO left the lender in good shape with investment in core technology "paying off," Mott says. However, ongoing investment will be required to keep pace with Macquarie and the major lenders, Mott says and remains neutral on the stock, seeing that it's not cheap.(alice.uribe@wsj.com)

0107 GMT - BHP's lucrative iron-ore business is expected to remain a cash cow that can be used to fund copper growth and support capital returns, even if prices for the steelmaking ingredient fall to $80-$100/metric ton, Jefferies analysts say. The company, which "has been more aggressive than its peers in pursuing opportunistic M&A," is also "well positioned to benefit from higher prices for copper and met coal (although Queensland royalties are problematic)," the analysts say in a note. They reiterate a buy rating and A$53 target on BHP, which is up 2.0% at A$41.65/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0059 GMT - Lovisa's recent trading performance disappoints investors, with the costume jewelry retailer's stock falling 16% today. Lovisa said total sales rose 12.7% in the first eight weeks of FY 2025, a slower run rate than the 18.7% growth implied by consensus forecasts for 1H. At the same time, Jarden analyst Ed Woodgate says Lovisa's net addition of eight new stores suggests a slower rollout than the market had hoped for. Jarden, which has a buy call on Lovisa, says the market should ultimately focus on better unit economics with gross margins in FY 2024 stronger than expected and its cost of doing business also better. (david.winning@wsj.com; @dwinningWSJ)

0053 GMT - BHP recorded a strong set of annual results, according to RBC Capital Markets analyst Kaan Peker, who reckons the miner's FY report "highlights the consistency of the business, good margins and returns through the cycle." He reckons the continued shift to growth in copper adds to the stock's investment case. Most FY 2024 fiscal measures are in line with consensus, he says, with a beat on underlying profit and an in-line dividend. Free cash flow "came in marginally better, translating to a better net debt (circa US$1 billion beat), which is a positive," he says. BHP is up 2.0% at A$41.665/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0052 GMT - An interesting detail in Woodside Energy's 1H result is what the company expects as a return from its planned $900 million acquisition of Tellurian, which owns the Driftwood LNG project in Louisiana. Citi analyst James Byrne highlights a slide in Woodside's presentation on how Driftwood can achieve a 12% internal rate of return. "However, this appears reliant on debottlenecking," Citi says. "We question this because a bottleneck on a plant in front-end engineering and design is unknowable." Citi has a neutral call on Woodside. (david.winning@wsj.com; @dwinningWSJ)

0052 GMT - It may take investors another six to 12 months to get comfort in Australian private health insurer Nib's earnings base, says Barrenjoey analyst Andrew Adams in a note. Nib's FY 2024 result shows that earnings have been significantly distorted in recent periods, due to both the pandemic and accounting changes, Adams says, seeing that management is "less willing than peers to provide analysis and comfort around the true underlying earnings base." Barrenjoey's analysis finds that claims are tracking back in line with historical trends, and covered by premium rate increases across all divisions, which it thinks means the margins should stabilize or improve from here.(alice.uribe@wsj.com)

0046 GMT - The early performance of Woodside Energy's new Sangomar oil field in Senegal impresses UBS analyst Tom Allen. Woodside brought on Sangomar in its 1H and today said that it had recently achieved a peak gross production rate of 100,000 barrels per day. "The key question remains on the flow rate supporting plateau production," says UBS. It estimates that to be 72,500 bbl/d from 2025. UBS has a neutral call on Woodside.(david.winning@wsj.com; @dwinningWSJ)

0045 GMT - BHP's fiscal 2024 results are credit positive, says Moody's Ratings analyst Saranga Ranasinghe, highlighting an increase in the miner's underlying Ebitda and operating cash flow despite higher unit costs. "The group's ongoing portfolio evolution combined with its decarbonization efforts will require high capital spending" but Moody's expects BHP "will carry out its major development spending in line with its net debt targets and conservative capital allocation framework," she says. BHP is up 2.3% at A$41.78/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(MORE TO FOLLOW) Dow Jones Newswires

0043 GMT - Woodside Energy's decision to maintain an 80% payout ratio with its 1H dividend is a vote of confidence in its outlook, RBC Capital Markets says. Woodside's policy is to pay out 50%-80% of underlying profit as dividends, and it has been at the top end of that range in recent periods. However, its gearing rose to 13.3% in 1H and it has two big deals in the works for Tellurian and a Texas ammonia project. "Importantly, the Scarborough joint venture sell down is delivering cash that improves Woodside's balance sheet," analyst Gordon Ramsay says. LNG Japan bought 10% of Scarborough for $910 million, while the sale of a further 15.1% to JERA for $1.4 billion is due to close in 2H. (david.winning@wsj.com; @dwinningWSJ)

0035 GMT - Top miner BHP's FY remarks have "a heavy emphasis on copper as BHP pivots more," says Citi analyst Paul McTaggart. The miner's Oak Dam resource points to the potential for its South Australia copper business over time, while more detail on Chilean copper output is provided albeit broadly known by the market, he says. McTaggart reckons the FY result is broadly neutral for the share price, with underlying earnings and its payout in line with expectations. BHP is up 2.3% at A$41.78/share, leading Australian mining stocks higher. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0033 GMT - Nib's above-system policy growth in its core Australian residents unit is a bright spot in its FY 2024 results, says Jefferies analysts in a note. Still, while strong policy growth was achieved across all insurance segments, claims also grew over the period. Nib said that as part of its results disclosures that it continues to expect medium-term claims inflation to return to prepandemic levels, but that efficiency and behavioral change could offset some of this. Jefferies reckons that private health-insurance growth in Australia is likely to moderate for the industry as a whole, although tempered by public health waitlists and health prioritization. Jefferies upgrades the stock to buy from hold. (alice.uribe@wsj.com)

0008 GMT - NIB's FY 2024 result disappoints Citi analyst Nigel Pittaway, who has doubts the market will have much confidence in the company in the short term, despite looking inexpensive. He says in a note that NIB's core Australian residents unit claims inflation is running above industry levels with the health insurer "relying on history to support its view it can close the gap." The situation looks similar in New Zealand, Pittaway says, adding that NIB's international unit's top-line growth looks set to slow. "We expect investors will require more evidence NIB has claims inflation under control before being prepared to meaningfully buy the story," Citi says.(alice.uribe@wsj.com)

(END) Dow Jones Newswires

August 27, 2024 00:59 ET (04:59 GMT)