0442 GMT - Optus's mobile price rises are positive for its Australian rivals' postpaid operations, Jarden analysts say. They think that the A$3/month hike imposed by Singapore Telecommunications-owned Optus across most of its postpaid plans will help both Telstra and TPG Telecom. They observe that TPG has gone more than 12 months without raising prices in an attempt to compete on value. As for Telstra, they expect price rises late in the current fiscal year to support a modest lift in fiscal 2026 average revenue per postpaid user. The Jarden analysts point out in a note to clients that mobile industry returns remain, in their view, sub-economic. (stuart.condie@wsj.com)

0433 GMT - Telix Pharmaceuticals' Australia-listed stock looks materially undervalued to UBS analysts given the strength of its therapeutic pipeline. They point out that the stock has been trading below what they calculate to be the combined valuation of Telix's Illuccix, Gozellix, Pixclara and Zircaix products, all of which are either approved for use in the U.S. or stand a good chance of being approved. The scientific and clinical failure that the valuation implies is highly unlikely, they write in a note to clients. With no obvious need to raise external funds and a U.S. manufacturing base, UBS keeps its buy rating and A$36.00 target price on Telix. Shares are up 7.0% at A$24.78. (stuart.condie@wsj.com)

0305 GMT - While Woodside's 40% sell-down in the Louisiana LNG infrastructure is broadly neutral for its net present value, it offers timely de-gearing of the company's balance sheet against a weakening macroeconomic backdrop, Citi analyst Paul McTaggart says in a note. "It helps reduce funding pressure for WDS's other growth projects, though it also introduces longer-term exposure to potential cost overruns," says McTaggart. He reckons it might not be the only deal Woodside signs for the megaproject. "The transaction also increases the likelihood of a HoldCo sell-down, and with the Bechtel drop-dead date looming in May, we expect further announcements in the near term," he says. Citi has a neutral rating on Woodside and lowers its target price to A$20.50 from A$24.00 previously. Woodside is up 2.0% at A$19.64/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0258 GMT - Cochlear's bulls at Jefferies see the stock as relatively cheap compared with historical levels as the hearing-implant maker gears up to release a new model. Jefferies analysts tell clients in a note that the fiscal 2026 release of a new implant could lead to further market-share gains, while the release of a new off-the-ear processor should also lead to growth in Cochlear's accessories unit. With Cochlear currently not affected by U.S. tariffs, they reckon that the stock offers good value at its current 24% discount to its 10-year average price-to-earnings. Jefferies has a buy rating and A$308.00 target price on the stock, which is up 0.2% at A$253.89. (stuart.condie@wsj.com)

0151 GMT - A deepening stock-market rout is likely to put more pressure on funds under management at Australian-based investment manager Platinum into 4Q FY2025, say Goldman Sachs analysts Julian Braganza and Brian Kim. Platinum's FUM at March 31 was A$10.3 billion, down from A$11.1 billion at Dec. 31, and markets have deteriorated further this month, they say. "Markets remain uncertain," say Braganza and Kim. "It is unclear what additional cost out levers PTM has to offset income pressure." They reiterate a sell rating on Platinum's stock, which has almost halved from a November peak. GS's target on Platinum is cut to A$0.56, from A$0.65 previously. The stock is down 1.8% at A$0.55.(rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0103 GMT - It is unclear what impact U.S. import tariffs might have on capex for Woodside's Louisiana LNG infrastructure development, in which Stonepeak has struck a deal for a 40% stake, say Goldman Sachs analysts Henry Meyer and Isaac Brooke. There is a risk that Woodside may end up having to cover extra costs related to the new duties, the analysts say in a note. "We understand that Louisiana LNG is located within a Foreign Trade Zone that could be exempt from paying tariffs until goods enter the U.S. from the zone," they say. "Though, for Louisiana LNG, the tariffs may only be deferred until the project becomes operational." GS has a neutral rating and A$24.50 target on Woodside, which is unchanged at A$19.25/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0051 GMT - Data-center operator NextDC and infrastructure investor Infratil have become a lot more compelling with the recent drop in their share price, Jefferies analyst Roger Samuel says. He reckons that data-center demand is still strong despite near-term uncertainty that includes reports of Microsoft halting lease discussions on server farms. Samuel suggests that any earmarked capacity not taken up by Microsoft may be taken up by other hyperscale customers, most likely Oracle. He adds that feedback from Jefferies' recent U.S. data-center conference suggested that rents are still growing. Shares in NextDC and Infratil are down 33% and 23%, respectively, so far in 2025. (stuart.condie@wsj.com)

0038 GMT - AGL Energy would benefit if Australia's federal government follows through on its election promise to subsidize household batteries, Macquarie analysts say. They tell clients in a note that the policy would favor AGL by creating demand in the middle of the day, reducing peak pricing. They also point out that, while batteries reduce grid-energy consumption, home storage encourages the uptake of electric vehicles and broader electrification. There are also earnings benefits from energy suppliers' expansion of the virtual power plants created by a network of home batteries, they add. Macquarie keeps an outperform rating and A$12.29 target price on the stock, which is up 1.0% at A$10.18. (stuart.condie@wsj.com)

0025 GMT - Brambles' bull at UBS gives four reasons for the global pallet giant's continued status as his relative pick of Australian transport stocks. Analyst Andre Fromyhr acknowledges that a U.S. or global recession would be negative for Brambles, but nonetheless retains a buy rating on the stock. He tells clients in a note that Brambles' large exposure to consumer staples mean that its volumes should prove relatively resilient. Lumber is currently exempt from U.S. tariffs, which is helpful to Brambles' input costs, and Fromyhr points out that a softAustralian dollar should help support valuation. Finally, valuation multiples are not stretched, he adds. UBS keeps a A$22.80 target price on the stock, which is up 0.55% at A$19.93. (stuart.condie@wsj.com)

2350 GMT - Breville keeps its buy rating at Goldman Sachs, where analysts see its premium product positioning as a helpful shield against the potential impact of U.S. tariffs. About 49% of the Australian small-appliance maker's revenues come from the Americas and the GS analysts acknowledge that a large step-up in tariffs on its sourcing markets could have a material earnings impact. They trim their sales, earnings and profit forecasts for the next three years on weaker U.S. earnings, but add that Breville has lower price elasticity than rivals given its premium product positioning. They also see new market launches including in China as positive medium-term catalysts. GS cuts its target price 14% to A$35.00. Shares are at A$25.32 ahead of the open. (stuart.condie@wsj.com)

2339 GMT - Guzman Y Gomez's bulls at Wilsons are encouraged by the Australian fast-food operator's reference to accelerating sales growth at both the start and end of its trading day. Analysts James Ferrier and Declan Carroll tell clients in a note that the company has strong operating leverage available in the breakfast and post-9 pm slots as customer and transaction numbers grow. They remain attracted to Guzman Y Gomez's domestic unit economics following what they say was strong 3Q comparable sales growth. Wilsons retains an overweight rating on the stock and is reviewing its A$42.47 target price. Shares are at A$30.00 ahead of the open. (stuart.condie@wsj.com)

2332 GMT - Technology One gets a new bull following the stock's 25% fall in value over the past two months. Bell Potter analyst Chris Savage raises his recommendation on the Australian enterprise-software provider to buy from hold, telling clients in a note that he sees next month's first-half result announcement as a potential catalyst. Savage expects a strong result including a 19% rise in pre-tax profit and annual recurring revenue in excess of the company's A$500 million target. He also anticipates guidance for something like 14%-18% growth in full-year profit, adding that Technology One has a history of exceeding its outlook. Target price falls 4.9% to A$29.00. Shares are at A$24.59 ahead of the open. (stuart.condie@wsj.com)

2249 GMT -- Australian stock futures are pointing to an opening bounce following the S&P/ASX 200's worst day since March 2020. ASX futures are up by 0.75% ahead of Tuesday's session, suggesting that the benchmark index should claw back some of the ground lost in Monday's 4.2% drop. The ASX 200 is down 10% so far in 2025 and deep in correction territory. Ahead of the open, payments provider Zip announced a buyback of its beaten-down stock, fast-food operator Guzman Y Gomez said it expects to beat it FY profit forecast, and uranium miner Deep Yellow deferred a final investment decision on its Tumas Project. U.S. stocks were mostly weak again. The DJIA lost 0.9% and the S&P 500 fell 0.2%. The Nasdaq Composite edged 0.1% higher. (stuart.condie@wsj.com)

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April 08, 2025 01:00 ET (05:00 GMT)

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