0044 GMT - Steadfast keeps its bull at Macquarie, where analysts estimate that the proportion of strata payments going to distribution remains well below levels that attracted regulatory attention in other industries. They tell clients in a note that, while a lack of disclosure makes it hard to be sure, about 22%-31% of customer payments go to distribution. They point out that this compares with about 80% of tire-and-rim insurance premiums that went to distribution before regulators focused on the product several years ago. Macquarie keeps an outperform rating and A$6.80 target price on the stock, which is flat at A$5.63. (stuart.condie@wsj.com)

0032 GMT - Xero may look to base its next chief financial officer in the U.S. despite its investors being largely located in Australia and New Zealand, Citi analyst Siraj Ahmed says. He tells clients that the impending change of CFO is no surprise given the turnover in senior management since Sukhinder Singh Cassidy became CEO of the cloud-accounting software provider. Ahmed thinks that the timing of the long-serving Kirsty Godfrey-Billy's departure is curious given Xero appears to be re-engaging in M&A, but he sees no risk to near-term performance. Citi has a buy rating and A$158.20 target price on the stock, which is up 0.4% at A$148.45. (stuart.condie@wsj.com)

0018 GMT - Australian bank valuations and fundamentals suggest that their stocks are unlikely to keep outperforming as the local economy slows and interest rates decline, Macquarie analysts write in a note. They tell clients that they see material downside risk to bank shares, which are currently trading 30%-40% above their historical price-to-earnings. With the Fed cutting interest rates, they remind readers of their previous analysis that bank margins are likely to fall by 5-9 basis points with each 1 percentage point reduction in interest rates. There are additional headwinds including from term deposits, they add. (stuart.condie@wsj.com)

0007 GMT - Nielsen's latest U.S. wine sales data is overall positive for Treasury Wine Estates despite what could be increased promotional pressure on prices of its 19 Crimes brand, Goldman Sachs analysts write in a note. They tell clients that, while 19 Crimes prices for the four weeks through Sept. 7 were down 6% on a year earlier, volumes were down just 5% on-year, compared with 15% in the prior four-week period. Excluding its recent DAOU acquisition, they say that Treasury seems to be slowing the rate at which it is losing U.S. market share. GS has a buy rating and A$15.20 target price on the stock, which is at A$11.23 ahead of the open. (stuart.condie@wsj.com)

0915 GMT - M&C Saatchi improved margins and robust performance will boost investor confidence in the company, Peel Hunt analysts Jessica Pok and Melanie Yang write in a note. The U.K. advertising group delivered strong progress for the 1H period with three out of five segments growing, providing diversification, the analysts say. Additionally, growth in the U.S., Europe and the Middle East offset continued weakness in Australia and the U.K., they add. The U.K. brokerage raises its target price to 210 pence from 192 pence, and upgrades its recommendation to add from hold. Shares are up 3% at 197.00 pence.( najat.kantouar@wsj.com)

(END) Dow Jones Newswires

September 19, 2024 00:56 ET (04:56 GMT)