The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1832 ET - Vehicle-parts distributor Bapcor has much work to do but has probably reassured the market on the relative defensiveness of its core trade segment, UBS analyst Tim Piper says. He tells clients in a note that confidence looks to be growing that Bapcor's trade segment is positioned to benefit from a rebound in after-market activity following a period of relatively subdued demand. Retail and specialist-wholesale segment conditions are more challenging, but Piper points out that Bapcor is positioning one retail business for divestment, and that one wholesale business has already been sold. UBS is unrated on Bapcor. Shares are flat at A$5.15. (stuart.condie@wsj.com)

1800 ET - Eagers Automotive's 2H performance looks strong to UBS analyst Tim Piper given tough vehicle retailing conditions in Australia. Piper also reckons that Eagers' margin resilience looks especially good compared with the performance of the company's peers. He tells clients in a note that Eagers' scale, exposure to Toyota and hybrids, and distribution agreement with China's BYD all helped to differentiate the company from its rivals. Piper thinks the share-price surge that followed the release of its annual result is probably a short squeeze, but that Eagers's positive outlook has likely reassured investors that downside risk is now limited. UBS lifts its target price 40% to A$14.80 and stays neutral on the stock, which is at A$14.99 ahead of the open. (stuart.condie@wsj.com)

1758 ET - Dicker Data's bull at UBS sees upside risk to his sales forecasts from a recovery among Australia's small- and medium-sized enterprises. Analyst Apoorv Sehgal tells clients in a note that he currently sees the computer hardware and software wholesaler recording 7% annual sales growth across 2025. This is supported by demand for new AI-capable PCs and follows the pickup in spending by small- and medium-sized businesses seen in the most recent December quarter. Sehgal sees stable cost margins through 2025, although there might be some potential for leverage. UBS lifts its target price 2.0% to A$10.20 and keeps a buy rating on the stock, which is at A$8.41 ahead of the open. (stuart.condie@wsj.com)

1730 ET - Life360's track record suggests the tracking-app developer's 2025 outlook is likely to prove conservative, Goldman Sachs analysts reckon. They point out Life360 is typically conservative when setting initial guidance, which suggests upside to the company's current expectation of US$450 million-US$480 million in annual revenue and US$65 million-US$75 million in adjusted Ebitda. They like Life360's ability to lift active users in the December quarter, a period that is typically softer due to seasonal factors. GS lifts its target price 8% to A$27.00 and keeps a buy rating on the company's Australia-listed stock, which is at A$23.30 ahead of the open. (stuart.condie@wsj.com)

1723 ET - Deterra Royalties is likely to spend less cash reducing its debt load, and more on investor returns, according to UBS analyst Lachlan Shaw. In a note, Shaw says UBS no longer expects Deterra will deleverage its balance sheet as fast as possible. That follows a higher 1H payout ratio, at nearly 75% of profit. Deterra also has a longer revolver maturity than previously assumed and its Trident gold royalty is better than expected, covering net interest costs comfortably, says Shaw. Consequently, UBS now expects a 75% payout near term, in line with the 1H dividend and above a prior payout ratio of 50%, he says. Yet a revised, higher cost of capital prompts a cut in UBS's target on Deterra to A$4.20/share, from A$4.90 previously. It retains a buy rating. Deterra ended Friday at A$3.59. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1721 ET - Dividends could soon be on the table from life insurer Noble Oak, reckons Barrenjoey. Noble Oak beat expectations with 1H underlying net profit growth of 11%, reflecting improved margins in Strategic Partners and Genus. "Noble Oak is now at a tipping point where policy cash flows turn positive in coming years," says analyst Nick McGarrigle. That means it won't need to raise capital to fund growth from its existing businesses and could start paying dividends. "A 30-50% payout implies a 4-7% fully franked yield for FY 2026," says Barrenjoey, which isn't yet ready to assume dividends in its model. (david.winning@wsj.com; @dwinningWSJ)

1716 ET - Investors now understand and have priced in Bellevue Gold's operational difficulties of 2024, says Barrenjoey, upgrading the miner to neutral, from underweight. Bellevue Gold's share price has declined some 35% since July, underperforming the gold price and the ASX Gold Index, and analyst Daniel Morgan thinks operational delivery will be the key debate over the next 12 months. Investors will look for evidence that the mine turned the corner on both mining volumes and grade. "We think there are signs of improvement in development meters which should, with a lag, lead to better mining outcomes in 2025," Barrenjoey says. (david.winning@wsj.com; @dwinningWSJ)

1713 ET - TPG Telecom's accelerating decline in post-paid mobile subscribers keeps Goldman Sachs analysts bearish on the stock. They are positive on what they say was strong cash generation across 2024, but tell clients in a note that the Australian company's weak 2H post-paid performance is a concern. It looks especially bad given that it came at a time when rivals had lifted their prices, the analysts add. Goldman Sachs keeps a sell rating and A$4.20 target price on the stock, which is at A$4.63 ahead of the open. (stuart.condie@wsj.com)

1708 ET - Australia house prices rose in February as investors responded to news of the first cut in official interest rates since 2020, snapping a recent market downturn. CoreLogic's national home value index posted a 0.3% rise in February versus January, after a retreat that lasted three months. The February rise was subtle, but broad based, with every capital except Darwin recording a rise in values. Along with the modest rise in values, there has also been an improvement in auction clearance rates, while regional housing conditions continued to show a stronger growth trend relative to the capital city counterparts in February, CoreLogic adds. (james.glynn@wsj.com; @JamesGlynnWSJ)

1706 ET - Service Stream's renewal of a key contract with NBN Co. helps to persuade Ord Minnett to upgrade the stock to buy, from hold. Service Stream says the contract is worth A$1.9 billion over an initial five years. "Confirmation of the agreement de-risks the near-term earnings outlook/forecasts," analyst Ian Munro says. Service Stream appears to have now re-signed all major and material customer agreements that were scheduled to roll over within the medium term, Ord Minnett says. "With more evidence of top line growth and margin expansion in the Utilities segment, and steady growth in the Transport segment, the earnings trajectory for Service Stream is positive for the second half and into FY 2026," Ord Minnett adds. (david.winning@wsj.com; @dwinningWSJ)

1701 ET - The biggest near-term bottleneck for rare-earths miner Lynas is the market, says UBS analyst Dim Ariyasinghe. In a note, Ariyasinghe says UBS is not concerned about Lynas's balance sheet. Rather, "focus remains on the market and, with it, Lynas's ability to increase capacity utilization." Prices are improving, albeit more slowly than UBS would have liked, says Ariyasinghe. Next, the market will be watching China's 1H production quota, which is expected within weeks. UBS has a buy rating and A$7.95/share target on Lynas. The stock ended Friday at A$6.79. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1652 ET - Supply Network loses a bull in Ord Minnett despite an upbeat 1H result featuring an 18% rise in sales and more market share gains. Ord Minnett downgrades Supply Network to accumulate, from buy, citing the stock's strong share-price performance recently. Despite that downgrade, analyst James Casey remains confident that Supply Network is on a pathway to more growth. "We forecast double-digit EPS growth in the next three years," says Ord Minnett. "We also expect further improvement in Supply Network's return on capital employed in FY 2025 and FY 2026, as the company leverages recently opened facilities and branches." Supply Network's share price is up some 25% since late November. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

March 02, 2025 18:32 ET (23:32 GMT)

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