** Analysts at Macquarie lift PT on Australian diversified miner South32 S32.AX by 2% to A$4.5 and maintain "out-perform" rating on stock

** Brokerage reiterates its preference for South32 among Australian miners; says firm benefits from not having exposure to iron-ore

** PT hike is driven by aluminium and alumina price cuts offset by long-term copper and zinc price upgrades - Macquarie

** Brokerage adds lower alumina price impacts to earnings for S32 were offset by foreign exchange benefits to costs, especially with South African rand

** Long-run copper price increases also helped S32 - Macquarie

** Brokerage adds a renegotiation of power supply at Mozal aluminium business for S32 could help derisk views on the asset's longevity

** Sale of Cerro Matosa could also help yield some cash whilst more importantly, lower closure liabilities - Macquarie

** Stock up 3.8% YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))