0247 GMT - Capital tops a list of risks for mining and metals companies in 2025 in an EY industry. EY says miners face increased scrutiny from investors on how they spend cash, as companies seek to balance shareholder returns with new investment in minerals needed for the energy transition. Tough financing and macroeconomic conditions are also making it more difficult for miners to raise capital despite a positive outlook for critical minerals demand, EY says. The survey found companies are also concerned about environmental stewardship, geopolitics and resource depletion, EY says. The survey is based on 353 responses from senior mining and metals leaders in organizations above $1 billion in revenue. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0049 GMT - Qantas bull Jefferies isn't too concerned about the deepening alliance between Qantas chief competitor Virgin Australia and Qatar Airways. The Middle Eastern carrier aims to take a 25% stake in Virgin Australia, which has also announced it will start flights from Australia to Doha. Jefferies analysts Anthony Moulder and Amit Kanwatia concede the arrangement could negatively impact Qantas international earnings in fiscal 2026. But they note the extra capacity would simply replace pre-Covid flights to the Middle East that haven't returned. They also see a declining impact after Qantas begins direct flights from Australia's east coast to London in fiscal 2027 via its Project Sunrise. Jefferies expects Qantas stock to rise to A$7.98/share, up from A$7.05/share in recent trade. (mike.cherney@wsj.com; @Mike_Cherney)

0047 GMT - Embattled casino operator Star Entertainment could sell more assets to shore up its balance sheet against multiple ongoing headwinds, Macquarie analysts say. They expect another A$100 million of cost reductions in FY 2026 on top of the A$100 million already announced, and see potential for asset sales beyond the A$300 million so far identified. They tell clients in a note that Star has attractive assets that can, and probably will, be monetized. Macquarie assumes that Star will be fined A$350 million for alleged breaches of money-laundering law and continued volume challenges from mandatory carded play at its Sydney and Brisbane casinos. Macquarie cuts its target price 47% to A$0.24 and keeps a neutral rating on the stock, which is up 0.9% at A$0.2775. (stuart.condie@wsj.com)

0026 GMT - IDP Education's bear at Jefferies sees nothing in Australia's latest student-visa data to shift their negative view of the student-placement provider. Analyst Wei Sim observes that visa lodgments for August were down 23% on year, with higher-education lodgments down 16%. He tells clients in a note that grant rates for primary applicants also continued to be below long-term averages, at 91.5%. The 10-year average is 92%, he adds. Jefferies has an underperform rating and A$13.00 target price on the stock, which is down 0.1% at A$15.93. (stuart.condie@wsj.com)

0019 GMT - Westpac's current valuation appears to count on the seamless execution of its long overdue infrastructure overhaul, according to Jefferies analyst Matthew Wilson. He says that ANZ looks like a much better bet. Wilson tells clients in a note that Westpac is trading at a 30% premium to ANZ despite its smaller rival having persistently invested in technology and architecture to support its retail banking aspirations. By contrast, Westpac has only applied what Wilson calls digital lipstick and now needs to remedy problems caused by more than two decades of underinvestment and short-termism. Jefferies has an underperform rating on Westpac and a buy rating on ANZ. (stuart.condie@wsj.com)

2338 GMT - Qoria keeps its bull at Jefferies following the Australian cyber-security tech provider's acquisition of data analytics firm Octopus BI. Analyst Wei Sim lifts his revenue forecasts by 2% for FY 2025 and 5% for FY 2026, and sees both cross-sell and up-sell opportunities for Qoria on this and previous acquisitions. He tells clients in a note that Qoria's A$30 million capital raise also cuts debt and associated interest costs, moving him to trim his adjusted loss forecasts. Jefferies keeps a buy rating and A$0.60 target price on the stock, which is at A$0.405 ahead of the open. (stuart.condie@wsj.com)

2325 GMT -- Australia's WiseTech Global is expensive but should retain support due to its strong growth outlook and a lack of high-quality global software alternatives on the local bourse, Bell Potter analyst Chris Savage says. He tells clients in a note that a backdrop of falling interest rates is also helpful, pointing out that the logistics software provider's enterprise value is about 67 times his fiscal 2025 Ebitda forecast. There are no potential negative catalysts for the stock that he can see. Bell Potter raises its target price 15% to A$132.50 and keeps a hold rating on the stock, which is at A$137.46 ahead of the open. (stuart.condie@wsj.com)

0516 GMT - Rio Tinto's aluminum business sets the world No. 2 miner apart from rivals, with aluminum demand expected to enjoy tailwinds from the energy transition, Jefferies analysts say. "Rio's exposure to aluminum is underappreciated by the equity market, in our view, and rarely comes up in our discussions," the analysts say in a note. Aluminum should be supported by many of the same demand drivers as popular energy transition metal copper, and benefit from demand as a copper substitute at times when prices for the red metal are high, they say. Jefferies reiterates a buy rating on Rio Tinto. It has a A$147 target on the company's Australian stock, which is down 2.5% at A$125.85. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

October 02, 2024 01:00 ET (05:00 GMT)