Australian Broker Call

Citi rates ALX as Neutral (3) -

Atlas Arteria's takeover process remains active after IFM lodged two supplementary bidder's statements and extended its offer period to June 25 from June 18.

Citi notes regulatory approval conditions have now been satisfied, leaving investor acceptances as the key outstanding hurdle.

With no substantial shareholder notices filed despite IFM's obligation to disclose each 1% increase in effective ownership, the broker believes investors are holding out for a higher offer.

The target's supplementary statement also highlighted IFM's capacity to improve its bid. The broker expects any meaningful increase in acceptances is likely to require a revised offer price.

Neutral rated. Target price $4.80.

Target price is $4.80 Current Price is $5.08 Difference: minus $0.28 (current price is over target).
If ALX meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.67, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates AOV as Neutral (3) -

Citi expects parts distributor Bapcor to face increased competitive risk following Bunnings' ((WES)) expansion into the automotive category, the broker suggests after attending Wesfarmers' investor day. 

The analyst is increasingly concerned the move could pressure Autobarn's market position and sales growth.

For Amotiv, the analyst notes brands such as Narva and Hayman Reese supply Bunnings, but cautions any expansion of that relationship needs to be carefully managed. 

The concern is that favouring Bunnings too heavily could strain relationships with larger existing retail customers and create the risk of product de-ranging or deletion.

The broker sees the evolving competitive landscape as a key area to monitor for both Bapcor and Amotiv. The latter is Neutral rated with a $6.70 target.

Target price is $6.70 Current Price is $6.13 Difference: $0.57
If AOV meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.39, suggesting upside of 49.4% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates APA as Buy (1) -

On the back of media reports citing robust growth in data centres and concerns around the energy grid being destabilised by rising data demand, Citi sees potential opportunities for APA Group.

While the Federal Government has been pushing for data centre operators to underpin renewable energy power, there is also the probable need for the grid to have more backup power reserves.

The analyst views APA's contract power generation as a potential beneficiary. Gas-powered plants can be used as a backup source. Similar trends have been apparent in the US market.

Citi retains a Buy rating with a target of $11.10.

Target price is $11.10 Current Price is $10.55 Difference: $0.55
If APA meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.37, suggesting downside of -13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates AUB as Buy (1) -

Ord Minnett assesses the offer from US insurer Amwins for Steadfast Group will mean a partial closure of the valuation gap with AUB Group, as it implies a takeover value of $40 a share compared with the failed bid for AUB Group in December 2025 of $45 a share.

Despite a rally in the stock, the broker believes it remains undervalued and retains a Buy rating.

Ord Minnett suggests the bid for Steadfast may be a sign of the bottoming of insurance broker share prices in the current cycle and supports the view there is long-term value on offer. Target is $33.37.

Target price is $33.37 Current Price is $28.70 Difference: $4.67
If AUB meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $32.33, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates BAP as Sell (5) -

Citi reports Bapcor faces increased competitive risk following Bunnings' ((WES)) expansion into the automotive category, the broker suggests after attending Wesfarmers' investor day.

The analyst is increasingly concerned the move could pressure Autobarn's market position and sales growth.

For Amotiv, the analyst notes brands such as Narva and Hayman Reese supply Bunnings, but cautions any expansion of that relationship needs to be carefully managed.

The concern is that favouring Bunnings too heavily could strain relationships with larger existing retail customers and create the risk of product de-ranging or deletion.

The broker sees the evolving competitive landscape as a key area to monitor for both companies. Bapcor is Sell rated with a 40c target.

Target price is $0.40 Current Price is $0.46 Difference: minus $0.06 (current price is over target).
If BAP meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.41, suggesting downside of -6.8% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates BHP as Neutral (3) -

UBS suggests incoming BHP Group CEO Brandon Craig will inherit a streamlined portfolio. He is expected to focus on organic growth in copper and potash while maintaining operational discipline.

The broker forecasts attributable copper production will rise to 2.0Mt by FY35 from around 1.4Mt in FY26, driven by projects including Escondida, Copper SA and Jansen.

While management views metallurgical coal as core, UBS highlights investor concerns over Queensland's royalty settings and the need for continued investment.

Neutral rating and $60 target retained.

Target price is $60.00 Current Price is $60.20 Difference: minus $0.2 (current price is over target).
If BHP meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $59.23, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates CCL as Buy (1) -

Bell Potter reiterates its forecasts, with current revenue drivers implying $44m in earnings. This is consistent with the guidance provided by Cuscal in February, with 45% of profit expected to be realised in the second half.

APRA data are still showing high single-digit growth across certain bank clients and Cuscal grew issuing transactions by 7% in the first half. A similar outcome is expected in the second half, supported by Indue.

Recent "pockets" of above-system growth are likely to persist, the broker adds. Total volume growth of 11% is expected in FY26 with consistent growth in debit card transactions from large card issuers. Buy rating. Target is steady at $5.80.

Target price is $5.80 Current Price is $4.94 Difference: $0.86
If CCL meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates CEN as Outperform (1) -

Macquarie notes the New Zealand government's decision to progress procurement of an LNG import terminal, in the face of tightening indigenous gas supply.

This decision is expected to improve energy security (a positive for Contact Energy) and provide a lower-emissions alternative to ageing coal-fired generation.

The broker suggests imported LNG pricing of around NZ$28/GJ will support higher wholesale electricity prices and underpin long-term fixed-channel pricing growth of around 1.5% per annum.

The analyst assumes wholesale prices at the upper end of Contact Energy's guidance range and sees earnings support from structurally higher dry-year firming costs and resilient retail pricing.

Macquarie resumes coverage after a period of restriction with an Outperform rating and a target of NZ$10.91, down from NZ$11.20 prior.

Current Price is $8.14. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates CGS as Buy (1) -

Cogstate has briefed investors on its core clinical trials business. Bell Potter found little in the way of new financial information as the presentation was about qualitative aspects, including channel partnerships with Medidata and increased use of the company's central rating capabilities.

The company has also been winning more work in new indications such as narcolepsy and psychiatry. The broker reviews the clinical stage drug development in narcolepsy and concludes the orexin market is a US$30-40m contract opportunity for Cogstate in the next 3-4 years.

Partnership benefits are also continuing. No changes to forecasts. A Buy rating is maintained. Target is $3.20.

Target price is $3.20 Current Price is $2.79 Difference: $0.41
If CGS meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates CLW as Buy (1) -

Charter Hall Long WALE REIT announced the completion of a debt refinancing with a new $2bn secured debt platform, transitioning away from unsecured debt, Citi highlights.

The debt tenor has risen to 4.3 years from 2.7 years. The analyst points to interest cost savings, as the weighted average credit margin has declined by around -20bps to 1.2%.

This is expected to offset some of the impact of higher interest rates on earnings.

Citi believes the REIT is offering value at current levels, with 52% of rents tied to CPI, a lower debt margin, and an implied 7.4% distribution yield, while trading at a -26% discount to NTA.

Target price is $4.10 Current Price is $3.58 Difference: $0.52
If CLW meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates CLW as Sell (5) -

Charter Hall Long WALE REIT's announced $2bn of debt refinancing strengthens the balance sheet, observes UBS, and reducing debt margins by around -20bpts.

Consequently, FY27 earnings accretion of approximately 2% is forecast.

The new secured debt platform also improves covenant headroom and alleviates concerns around potential breaches while retaining transaction flexibility, the analysts explain.

Despite these benefits, little EPS growth across FY27-FY28 is anticipated as higher borrowing costs offset rental growth. It's felt lower interest rates and bond yields are required for sustained outperformance,

The broker's target rises to $3.45 from $3.35. Sell rating retained.

Target price is $3.45 Current Price is $3.58 Difference: minus $0.13 (current price is over target).
If CLW meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.82, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates DVP as Buy (1) -

Develop Global has achieved several development milestones, Bell Potter observes. A final investment decision has been made for Sulphur Springs and Pioneer Dome developments, with the company expecting to deliver first production for the latter by the December quarter this year.

The $105m debt facility with Trafigura has been refinanced and increased by around $500m in a senior secured debt.

Trafigura will also purchase 1.25mt of copper and zinc concentrate from Sulphur Springs with prices based on CIF China basis.

At Pioneer Dome, it will purchase up to 750,000t of spodumene DSO with pricing based on a formula linked to lithium carbonate prices, product grade and lithia recovery from DSO to spodumene concentrate.

Incorporating the production scenario and updated economics, Bell Potter increases FY27 EPS estimates by 54%. Buy rating and $7.10 target maintained.

Target price is $7.10 Current Price is $6.10 Difference: $1
If DVP meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates GQG as Accumulate (2) -

GQG Partners delivered a May update on its funds under management with monthly outflows appearing to stabilise in the $1.5-$2bn range. Morgans notes the investment performance remains highly volatile. Forecasts for FY26-FY27 EPS are lowered by -1-5%.

While acknowledging the outlook is challenging, as outflows persist given the fund manager's underweight position in AI and technology, FUM has remained broadly stable.

The broker suspects any shift in market sentiment could mean the stock re-rates from depressed levels.

Accumulate retained. Target is reduced to $1.64 from $1.92.

Target price is $1.64 Current Price is $1.45 Difference: $0.19
If GQG meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.87, suggesting upside of 28.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates HLO as Hold (3) -

Helloworld Travel has downgraded FY26 EBITDA guidance to $57-$62m and expects to pay a final dividend similar to the first half dividend of five cents, representing a 7% fully franked yield.

The company has experienced strong forward bookings from July and expects travel demand to normalise within 60-90 days of a resolution to the Middle East conflict.

Helloworld Travel now holds a 20% stake in Webjet Travel ((WJL)) and Ord Minnett's recent analysis suggests it could pay up to $0.65 a share and still generate shareholder value from a "merger".

Unchanged Hold rating and the target is lowered to $1.51 from $1.63.

Target price is $1.51 Current Price is $1.39 Difference: $0.12
If HLO meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates NCK as Neutral (3) -

Post Wesfarmers' Investor Day, Citi views the rollout of K Home (Kmart) as potentially increasing competition for Nick Scali in the Australian and New Zealand markets.

In turn, this may impact management's new store rollout plans from FY28.

Equally, with consumers becoming more value focused, and K Home targeting the lower end of the market, the broker points out Nick Scali may be more affected, as the Plush brand is positioned relatively higher.

Neutral rated. Target $14.15.

Target price is $14.15 Current Price is $15.22 Difference: minus $1.07 (current price is over target).
If NCK meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.36, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates NWH as Buy (1) -

UBS highlights NRW Holdings' growing earnings visibility, with work-in-hand potentially reaching $7.2bn after recent contract awards and an active tender pipeline of around $11.8bn supporting further growth.

The broker forecasts FY26 revenue of $4.17bn and earnings (EBITA) of $280m, both within guidance.

Despite the expected completion of the Fimiston project in October 2026, UBS sees upside from additional contract wins.

Stronger growth is also expected across the RCR Mining Technologies (RCR), DIAB Engineering (DIAB) and Electrical, Mechanical, Instrumentation and Technology (EMIT) divisions. The latter division provides data centre build exposure.

UBS retains a Buy rating and lifts its target to $7.95 from $7.00.

Target price is $7.95 Current Price is $6.93 Difference: $1.02
If NWH meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.11, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates PPS as Buy (1) -

Praemium will transition to new core technology over the rest of 2026, developed from the capabilities acquired from Technotia in January. The technology is intended to improve the customer experience including enhanced user interface.

This is not expected to affect the $9m in cost savings in FY27 from personnel reductions. Ord Minnett expects around $6m of the savings will be recognised in expenses equating to 19% EBITDA growth in FY27. No changes are made to the Buy rating and $1.05 target.

Target price is $1.05 Current Price is $0.73 Difference: $0.32
If PPS meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates SDF as Downgrade to Hold from Buy (3) -

Steadfast Group has received a takeover bid from a consortium led by American insurers distributor Amwins. The bid, at $6 a share, is around a 50% premium to recent trading levels and the board intends to recommend accepting the offer subject to no superior bid emerging.

The transaction, to be implemented by a scheme of arrangement, provides eight weeks of due diligence with a potential extension to August 20. This follows previous bids from the consortium that were rejected.

The broker points out, without the current bid, the chances of realising value for the company at $6 a share in the near future appear remote. Rating is reduced to Hold from Buy and the target raised to $6.00 from $5.55.

Target price is $6.00 Current Price is $5.38 Difference: $0.62
If SDF meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 7.3% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates SDF as Buy (1) -

Steadfast Group has received a non-binding indicative cash offer of $6.00 per share from a consortium comprising AmWINS Group and Dragoneer Investment Group, representing a 52% premium to the undisturbed share price.

UBS notes the proposal values the company at around $7.7bn and reflects lower sector valuation multiples amid a softer insurance pricing cycle. It's believed private ownership could accelerate acquisition-led growth and deliver revenue synergies.

The proposal is subject to due diligence and regulatory approvals, with the board intending to recommend the scheme if acceptable terms are reached.

UBS retains a Buy rating and target of $6.00.

Target price is $6.00 Current Price is $5.38 Difference: $0.62
If SDF meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates SIG as Outperform (1) -

Sigma Healthcare has confirmed preliminary discussions regarding a potential acquisition of Boots UK, following media reports suggesting an enterprise value of around $14bn.

This implied valuation appears above most global peers, Macquarie believes. It's felt the attractiveness of any transaction will depend on Sigma's ability to unlock additional value.

This extra value could derive from operational improvements, business structure changes and leveraging Chemist Warehouse's retail model, the analyst explains.

While acknowledging investor concerns around a large offshore acquisition, the broker remains positive on Sigma's domestic earnings outlook, supported by Health & Beauty growth trends and operating leverage.

Unchanged Outperform rating and $3.50 target.

Target price is $3.50 Current Price is $2.76 Difference: $0.74
If SIG meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.6

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates TPW as Neutral (3) -

Post Wesfarmers' Investor Day, Citi believes there is likely to be more competition for Temple & Webster than previously expected following the launch of new products in the home sector.

The analyst points to Kmart's recently launched third-party marketplace, which has generated positive results, with furniture reportedly performing particularly well.

The broker expects more bricks-and-mortar retailers to open their own marketplaces, including Baby Bunting ((BBY)), Woolworths Group ((WOW)), Myer Holdings ((MYR)) and JB Hi-Fi ((JBH)).

Temple & Webster is Neutral rated with a $5.60 target.

Target price is $5.60 Current Price is $5.08 Difference: $0.52
If TPW meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.84, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates TTX as Speculative Buy (1) -

Tetratherix has completed a placement of $15m at $6 a share to fund expansion of its production facility and Morgans updates its modelling to reflect the new capital.

The broker also takes a more optimistic stance regarding US FDA approval for dental/orthopaedic products, increasing the probability of success to 85%.

The company has reported positive results from independent studies supporting its Tetramatrix drug delivery platform which showed the polymer can safely carry and protect fragile drugs when delivered through the nose.

New patents have also been announced to strengthen intellectual property, covering specific drug/polymer combinations. Morgans retains a Speculative Buy rating, continuing to be impressed with the scalability of the platform. Target is raised to $7.15 from $6.84.

Target price is $7.15 Current Price is $5.52 Difference: $1.63
If TTX meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates VCX as Neutral (3) -

Citi attended a site tour of Chatswood Chase Sydney, where Vicinity Centres showcased its newly redeveloped luxury-anchor retail asset.

The analyst was impressed by the quality of the physical presentation and the calibre of the tenant line-up, which includes Tiffany & Co, Omega, Hermes, Rolex, Chanel, Gucci, Cartier and Burberry.

The centre is aiming to offer a more relaxed luxury experience relative to the CBD, with valet parking, VIP in-store suites and a dedicated food and beverage precinct.

Traffic is currently above pre-development levels, the broker highlights. The affluent North Shore catchment and improved tenant mix are expected to be structurally positive for Vicinity Centres.

Neutral rated. Target $2.70.

Target price is $2.70 Current Price is $2.56 Difference: $0.14
If VCX meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates WES as Sell (5) -

At the Wesfarmers Investor Update, Citi notes Bunnings has continued to gain market share from Woolworths Group ((WOW)) and Coles Group ((COL)) across the household and pets sectors.

Expansion into auto is also flagged as potentially pressuring Super Cheap Auto ((SUL)).

Management is also expanding into branded white goods over the next year, which could affect both Harvey Norman ((HVN)) and JB Hi-Fi ((JBH)), although the market positioning is likely to be in the value segment.

Officeworks is expanding into smart home, wearables and gaming, while Kmart is launching the K Home concept, which is expected to impact Ikea.

The analyst believes earnings growth over the next five years will be generated from lower quality, lower multiple businesses, and this is expected to de-rate the relative multiple for the stock.

The sales base is also emphasised as becoming more cyclical through housing exposure and could be adversely impacted by a worsening housing market. Sell rated with a $69 target.

Target price is $69.00 Current Price is $83.39 Difference: minus $14.39 (current price is over target).
If WES meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $78.80, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates WES as Downgrade to Neutral from Outperform (3) -

After attending Wesfarmers investor day, Macquarie highlights an increasing focus on digital initiatives. These include artificial intelligence, omni-channel capabilities, loyalty integration and retail media, to drive customer engagement and growth.

The broker sees retail media as a particularly attractive opportunity for Bunnings, leveraging its large customer base and high foot traffic.

Growth across Bunnings, Kmart and Officeworks is expected via category expansion and improved space productivity.

Commentary notes Health and Lithium are also entering a phase of stronger earnings contribution.

Macquarie raises its target to $85.00 from $84.00 but downgrades to Neutral from Outperform, citing limited valuation support and a lack of near-term earnings catalysts.

Target price is $85.00 Current Price is $83.39 Difference: $1.61
If WES meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $78.80, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates WES as Equal-weight (3) -

Wesfarmers outlined how AI and digital initiatives are being deployed across customer engagement, merchandising, pricing, inventory management and supply chains at its Investor Day.

Morgan Stanley views productivity improvements from AI adoption as a key earnings lever across the group.

Bunnings is expected to drive growth through expansion into adjacent categories including smart home, appliances, pets, automotive and rural, despite a softer housing backdrop.

The broker also highlights Mt Holland operating at nameplate capacity, strong revenue growth at Priceline and an improving outlook for WesCEF.

Equal-weight rated with a target of $78.70. Industry View: Cautious.

Target price is $78.70 Current Price is $83.39 Difference: minus $4.69 (current price is over target).
If WES meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $78.80, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates WES as Hold (3) -

Wesfarmers has provided a strategy briefing, describing how it plans to exploit AI and leverage data to accelerate long-term sales and earnings growth at Bunnings, Kmart and Officeworks.

Ord Minnett notes Bunnings has indicated it is not suffering significant supply-chain disruptions from the war in the Middle East and business is proving resilient.

Kmart, trading under the Kmart and Target brands, is intent on doubling earnings over the next 5-10 years while Officeworks will undergo a restructuring to incorporate a wide range of technology and grow private-label sales.

The divisions of chemicals, energy and fertilisers are expected to benefit from a surge in ammonia prices from the September quarter while the lithium refinery ramp up will take the spotlight after spodumene production hits nameplate in FY26.

Ord Minnett makes minor changes to estimates and reiterates a Hold rating while raising its target to $75 from $70.

Target price is $75.00 Current Price is $83.39 Difference: minus $8.39 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $78.80, suggesting downside of -6.6% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates WES as Neutral (3) -

Wesfarmers used its Strategy Briefing Day to highlight growth, digitalisation and productivity initiatives across the portfolio.

UBS notes opportunities to expand addressable markets, leverage omni-channel capabilities and use artificial intelligence to drive sales and earnings, prompting upgrades to the broker's FY26 and FY27 EPS forecasts.

Growth drivers include category expansion at Bunnings, Kmart's ambition to double sales and earnings (EBIT) over time, and ongoing development of the WesCEF and Health businesses.

While UBS is increasingly confident in the long-term growth outlook, the broker believes Wesfarmers' resilient earnings profile and strong return prospects are already reflected in the valuation.

Target rises to $84.00 from $81.00. Neutral rating retained.

Target price is $84.00 Current Price is $83.39 Difference: $0.61
If WES meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $78.80, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Bell Potter rates WTC as Buy (1) -

Bell Potter suspects it is proving more difficult than previously anticipated for WiseTech Global to migrate some of the remaining 5% of customers, representing around 30% of CargoWise revenue, across to CargoWise Value Packs.

The broker has thus slightly reduced its revenue forecasts for CargoWise, given the transition is expected to provide a boost to revenue via transaction-based pricing, when it eventuates.

Commentary suggests there is some risk the company may have to provide greater incentives for the customers to shift.

The broker downgrades FY26 and FY27 revenue forecasts by -1% and -2%, respectively. Multiples applied in the P/E ratio and EV/EBITDA valuations are also reduced.

Buy rating retained. Target is lowered to $71.75 from $78.75.

Target price is $71.75 Current Price is $38.05 Difference: $33.7
If WTC meets the Bell Potter target it will return approximately 89% (excluding dividends, fees and charges).

Current consensus price target is $75.79, suggesting upside of 104.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources