Australian Broker Call

Citi rates A2M as Upgrade to Neutral from Sell (3) -

Citi raises its target for a2 Milk Co to $6.70 from $5.85 and upgrades to Neutral from Sell after analysing May 2026 New Zealand sea and airport freight data.

While the broker's FY27 earnings (EBITDA) forecast sits -17% below consensus, it's felt investors may be willing to look through near-term challenges if progress in rebuilding market share is demonstrated.

Management still faces work to restore distribution channels and reinvest in its brand, Citi suggests, but evidence of market share gains could improve sentiment towards the stock.

Separately, Citi notes today's ASX release stating Chinese regulators approved the transfer of two infant formula registrations to the a2 brand.

At first glance, the broker considers this announcement particularly positive given the regulatory uncertainty surrounding such approvals.

The registrations allow a2 to expand its China-label product range, reduce reliance on birth-rate-driven demand and lessen supply-chain dependence on Synlait Milk ((SM1)), Citi explains.

Citi believes the approvals support longer-term market share growth and could eventually contribute more than NZ$100m in additional annual sales by FY30.

The broker also expects a special dividend of NZ$300m to be announced shortly. 

Target price is $6.70 Current Price is $6.71 Difference: minus $0.01 (current price is over target).
If A2M meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.27, suggesting upside of 21.6% (ex-dividends)

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: 0.6

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

Ord Minnett rates ACF as Buy (1) -

Acrow has announced a fully underwritten institutional equity raising of $70m with a further share purchase plan of $10m to help de-leverage the company's balance sheet.

Management expects net debt to decline to $146m from $165m at the end of FY26 with net debt/earnings (EBITDA) to fall to 1.8x from 2.4x, Ord Minnett points out.

The company is also seeking to acquire Ausgroup for $27m, composed of $22.79m cash and scrip of $6.75m on a EV/EBITDA multiple of 4.1x pre-synergies, the broker explains.

The announcement is viewed positively as debt levels have been an issue for Acrow and Ausgroup seems like a good add-on acquisition.

Target price lifts to $1.30 from $1.20. No change to Buy rating.

Target price is $1.30 Current Price is $0.93 Difference: $0.37
If ACF meets the Ord Minnett target it will return approximately 40% (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 ALL as Buy (1) -

North American gaming revenue remained resilient in May, Citi highlights, with US gross gaming revenue rising around 2.5% year-on-year despite signs of a weakening consumer.

A generally steady performance across key gaming titles from both Aristocrat Leisure and Light & Wonder is noted, supported by a broad pipeline of recently released content.

Most notably, Aristocrat's Monopoly has become the top-performing premium leased title in the market, the analyst observes, with its installed base expanding rapidly.

Citi remains positive on both Aristocrat and Light & Wonder, citing solid operating trends and attractive valuations, and retains Buy ratings on both stocks.

The target for Aristocrat Leisure is $61.00.

Target price is $61.00 Current Price is $54.95 Difference: $6.05
If ALL meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $63.33, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Buy (1) -

Citi continues to favour business-focused Australian banks over retail lenders, arguing recent housing policy changes are likely to have a more pronounced impact on mortgage growth than on business lending.

The broker expects mortgage credit growth to slow sharply to around 3.5% from 7%, reflecting changes to negative gearing and capital gains tax. Business credit growth is forecast to moderate to 5% from 10% but still outpace housing.

The analysts also highlight strong investment in digital infrastructure and AI-related projects as ongoing supports for business lending.

The broker prefers Buy-rated ANZ Bank and National Australia Bank (Neutral), while retaining a Sell rating on CommBank. Westpac is rated Neutral.

The unchanged target for ANZ Bank is $39.25.

Target price is $39.25 Current Price is $35.03 Difference: $4.22
If ANZ meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $34.52, suggesting downside of -2.1% (ex-dividends)

The company's fiscal year ends in September.

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 BHP as Neutral (3) -

BHP Group has increased the expected capital cost of the second stage of its Jansen potash project in Canada to -US$6.9bn from -US$4.9bn.

This new level is well above investor expectations for a worsening of between -US$1bn-US$1.5bn, according to Citi.

The higher estimate reflects industry-wide cost inflation and additional labour costs associated with the two-year commissioning delay announced in August 2025, the analysts explain.

The revised cost outlook has resulted in a -US$2.3bn impairment charge against the carrying value of the project, although assumptions for operating costs and potash prices remain unchanged, Citi notes. First production from Jansen Stage 1 remains on track for mid-2027.

Target $66. Neutral.

Target price is $66.00 Current Price is $61.40 Difference: $4.6
If BHP meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $59.57, suggesting downside of -2.2% (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: 0.2

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

Ord Minnett rates BHP as Hold (3) -

Ord Minnett notes the second stage of Jansen potash project development capex has been upgraded to US$6.9bn from prior guidance of US$4.9bn.

The increase is more than expected even against an inflationary global backdrop. Positively, BHP Group reiterated nameplate capacity for Jansen of 4.36m tonne per annum and an operating margin (EBITDA) of over 65% on unit costs of US$114-US$130/tonne.

Group capex guidance for FY27 stands at US$11bn with Jansen's second stage costs skewed to the later construction, according to the broker.

The target price is lowered to $53 from $54 with no change to Neutral rating. EPS estimates are largely unchanged.

Target price is $53.00 Current Price is $61.40 Difference: minus $8.4 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $59.57, suggesting downside of -2.2% (ex-dividends)

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

Morgan Stanley rates CHC as Overweight (1) -

Morgan Stanley caught up with several REITs over the last two weeks for an operational update ahead of the June 30 blackout period.

Charter Hall is due to announce FY26 results on August 20. Management confirmed the gross equity inflows of $1.7bn in the five-months to May might appear slower than 1H26 but recent acquisitions have yet to be included.

Expenses are anticipated to be lower in FY27 but may rise if earnings upgrades come forth over the year.

Target is $26.89. Overweight. Industry View: In-Line.

Target price is $26.89 Current Price is $23.27 Difference: $3.62
If CHC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $24.27, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Morgan Stanley rates CNI as Overweight (1) -

Morgan Stanley caught up with several REITs over the last two weeks for an operational update ahead of the June 30 blackout period.

Centuria Capital is due to announce FY26 results on August 27. The analyst notes the capital raising target for the World Square Office Fund is around $270m, highlighting the institutional side is going well while direct investors are slower to express interest.

The broker believes the profit recognition for World Square is "fluid" and could come over FY26 and FY27.

Management continues to have an acquisition strategy focused on larger assets with $1bn-plus a target for FY27.

Target $2.35. Overweight rating. Industry View: In-Line.

Target price is $2.35 Current Price is $2.18 Difference: $0.17
If CNI meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting downside of -7.6% (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

Morgan Stanley rates DXS as Underweight (5) -

Morgan Stanley caught up with several REITs over the last two weeks for an operational update ahead of the June 30 blackout period.

Dexus is due to report FY26 results on August 20 and management reiterated trading profits and performance fees will be nearly zero in FY27. Capex is expected to be lower in FY26 than FY25, with FY27 moving back up to FY25 levels.

Some 13% of its Office portfolio leases are due to expire in FY27 with scope for the portfolio to experience some "downtime", the analyst states.

Underweight. Target slips to $6.46 from $6.47. Industry view: In-Line.

Target price is $6.46 Current Price is $5.82 Difference: $0.64
If DXS meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.75, suggesting upside of 16.4% (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

Ord Minnett rates EOS as Speculative Buy (1) -

Electro Optic Systems has secured a US$124m order for its Slinger counter-drone remote weapon system from UAE-based Generation 5 Holding, significantly strengthening revenue visibility, Ord Minnett notes.

The contract lifts the company's forward order book to around $875m, effectively covering 100% of the broker's forecast defence revenue for the second half of FY26 and all of FY27-FY28.

Management has also signed a conditional joint venture with Generation 5 to develop a next-generation high-energy laser weapon and manufacture existing products in the UAE for the Middle East and North Africa market.

Ord Minnett raised its target price to $11.45 from $11.00 and retained a Speculative Buy rating.

Target price is $11.45 Current Price is $10.66 Difference: $0.79
If EOS meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 GLF as Buy (1) -

The analysts at Citi came away positive following a pre-blackout meeting (prior to upcoming results) with Gemlife Communities. Strong demand, limited construction cost inflation and encouraging signs of recovery in Victoria were noted.

Enquiry levels remain robust at more than 2,000 homes per month, supported by strong sales in Queensland and the launch of a new Victorian community, the broker observes.

Construction costs have deteriorated by only around -$10,000 per lot, or -1.25% of the average settlement price, while management reported no discernible impact from recent housing policy changes.

Citi raises its FY27 and FY28 earnings forecasts by 6% and 3%, respectively, and increases its target price to $5.50 from $5.25 and retains a Buy rating.

Target price is $5.50 Current Price is $4.75 Difference: $0.75
If GLF meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 16.0% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

UBS rates GLF as Buy (1) -

UBS believes it is too early to become bullish on large residential A-REITs, highlighting past housing downturns have indicated residential A-REITs do not recover until consecutive months of improving clearance rates and the meeting of house price expectations.

UBS economists expect a -3%-5% reduction in house prices over the next 12 months, which means the time to start weighing up long positions for these stocks could be in the fourth quarter of 2026.

As a result the broker prefers buying land lease operators such as Gemlife Communities, retaining a Buy rating and $5.40 target.

Target price is $5.40 Current Price is $4.75 Difference: $0.65
If GLF meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Morgan Stanley rates GMG as Overweight (1) -

Morgan Stanley caught up with several REITs over the last two weeks for an operational update ahead of the June 30 blackout period.

Goodman Group is due to report FY26 results on August 20. Management expects to have customers in place for most, if not all, the data centres currently denominated as work in progress, the analyst details, by June 2027.

A data centre around 1GW could also be approved soon in western Melbourne with the group waiting for power to be secured.

The target price is $36.15. Overweight rated. Industry view: In-Line. No change to earnings forecasts.

Target price is $36.15 Current Price is $31.50 Difference: $4.65
If GMG meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $34.73, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Morgan Stanley rates GPT as Overweight (1) -

Morgan Stanley caught up with several REITs over the last two weeks for an operational update ahead of the June 30 blackout period.

GPT Group is due to announced FY26 results on August 17. The analyst points to more challenging inflows/asset sales since October 2025 with domestic investors concerned over interest rate rises and global investors, the Middle East war.

Management had expected more divestments and capital raisings in the office sector by now, which may result in further compression of cap rates.

Re interest rate costs, hedging rolls off in 2027 and declines to 52% from 77%.

Target $5.83. Overweight. Industry view: In-Line.

Target price is $5.83 Current Price is $4.98 Difference: $0.85
If GPT meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.45, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in December.

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 IEL as Underperform (5) -

IDP Education updated FY26 guidance for adjusted earnings (EBIT) of around $122m which sits within previous guidance, Macquarie points out, noting the update included higher net cost reductions at $30m versus $25m in the prior update.

Management also indicated further cost reductions for FY27 to "more than offset natural cost inflation". The analyst now assumes another $10m in cost savings in FY27 with potential for total cost savings of around $60m in FY27.

Such an outcome would lower overheads to less than 34% of revenue by FY28.

EPS forecasts are lowered by around -11% for FY28 due to the election cycle but upgraded by 3.1% for FY26 and trimmed by -4.7% for FY27.

Target price slips to $2.30 from $2.35. No change to Underperform rating.

Target price is $2.30 Current Price is $2.56 Difference: minus $0.26 (current price is over target).
If IEL meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.23, suggesting upside of 78.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

Morgans rates IEL as Buy (1) -

IDP Education provided better-than-expected cost reductions in its latest update and further reductions are expected in FY27. Morgans comments the update underpins its recent upgrade.

The broker is "willing to look through a cyclically depressed valuation" as the business becomes a "leaner" market leader, underpinned  by structural demand and ongoing product development. FY26 adjusted EBIT is expected to be around $122m, up 2.5%.

While visa restrictions have tightened across all four key destination markets, underlying demand for international study is still supported by Asian demographics, the broker adds. Buy rating. Target is raised to $3.45 from $3.15.

Target price is $3.45 Current Price is $2.56 Difference: $0.89
If IEL meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 78.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

UBS rates INA as Buy (1) -

UBS believes it is too early to become bullish on large residential A-REITs, highlighting past housing downturns have indicated residential A-REITs do not recover until consecutive months of improving clearance rates and the meeting of house price expectations.

UBS economists expect a -3-5% reduction in house prices over the next 12 months, which means the time to start weighing up long positions for these stocks could be in the fourth quarter of 2026.

As a result the broker prefers buying land lease operators such as Ingenia Communities, retaining a Buy rating and $4.80 target.

Target price is $4.80 Current Price is $4.20 Difference: $0.6
If INA meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting upside of 16.5% (ex-dividends)

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 KAR as Upgrade to Neutral from Underperform (3) -

Macquarie upgrades Karoon Energy to Neutral from Underperform post the selloff in the shares after last week's guidance downgrade,

The share price currently infers a oil price of around US$69.6/bbl down from US$74/bbl on June 16, the analyst points out.

Karoon is due to announce its 2Q2026 quarterly update on July 23. Macquarie is forecasting 1.47MMboe production which is some 4.3% above consensus and revenue of US$138.7m, 14% above consensus.

The broker emphasises the energy producer is very sensitive to the oil price with "significant leverage". 

Karoon remains a 2027 story, the report concludes. No change to target price of $1.50.

Target price is $1.50 Current Price is $1.44 Difference: $0.06
If KAR meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 30.4% (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: 0.4

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

UBS rates LIC as Neutral (3) -

UBS economists expect a -3%-5% reduction in house prices over the next 12 months, which means the time to start weighing up long positions for these stocks could be in the fourth quarter of 2026.

As a result the broker prefers buying land lease operators but points out Lifestyle Communities is fully exposed to the weaker Victorian housing market.

UBS notes the appearance of Hometown Australia on the share register, now at 13.2%, has sparked takeover speculation, yet argues the appeal against an adverse legal finding on its DMF clauses would hamper the ability of Lifestyle Communities to progress any negotiations.

Neutral rating and $5.50 target.

Target price is $5.50 Current Price is $5.02 Difference: $0.48
If LIC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 12.7% (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 LNW as Buy (1) -

North American gaming revenue remained resilient in May, Citi highlights, with US gross gaming revenue rising around 2.5% year-on-year despite signs of a weakening consumer.

A generally steady performance across key gaming titles from both Aristocrat Leisure and Light & Wonder is noted, supported by a broad pipeline of recently released content.

Citi remains positive on both Aristocrat and Light & Wonder, citing solid operating trends and attractive valuations, and retains Buy ratings on both stocks.

The target for Light & Wonder is $149.

Target price is $149.00 Current Price is $128.34 Difference: $20.66
If LNW meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $188.00, suggesting upside of 49.9% (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: 1.0

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

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

Morgan Stanley caught up with several REITs over the last two weeks for an operational update ahead of the June 30 blackout period.

The broker observes no material changes in inquiry or investor demand have been observed since the May budget although Mirvac Group indicated June quarter sales were unlikely to be at the same level as the March quarter.

The company has confirmed it intends to provide settlement guidance for FY27 at the results on August 19 and is likely to enter FY27 with more contracts on hand than at the start of FY26.

Green Square is going through the revised planning process and the build-to-rent component, once approved, could be transferred/sold into the BTR fund, unlocking profits in FY27.

Equal-weight rating and $2.05 target. Industry View: In-Line.

Target price is $2.05 Current Price is $1.77 Difference: $0.285
If MGR meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.99, suggesting upside of 13.5% (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

UBS rates MGR as Neutral (3) -

UBS believes it is too early to become bullish on large residential A-REITs, highlighting past housing downturns have indicated residential A-REITs do not recover until consecutive months of improving clearance rates and the meeting of house price expectations.

UBS economists expect a -3-5% reduction in house prices over the next 12 months, which means the time to start weighing up long positions for these stocks could be in the fourth quarter of 2026.

As a result the broker prefers buying land lease operators such as Gemlife Communities and Ingenia Communities.

UBS believes Mirvac Group should benefit from recent housing policy changes, although this is likely a medium-term story and deteriorating housing sentiment currently will weigh on market pricing and turnover, particularly for apartments.

No change in Neutral rating and $1.97 target price.

Target price is $1.97 Current Price is $1.77 Difference: $0.205
If MGR meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.99, suggesting upside of 13.5% (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

Citi rates MTS as Sell (5) -

Metcash today reported FY26 underlying net profit of $268.8m, in line with guidance, while first-half FY27 trading has produced mixed results across its divisions, Citi initially assesses. A final dividend of 9.5 cents was declared, above the broker's 9 cent forecast. 

Within the segments, Food sales are tracking weaker than consensus expectations, Liquor is in line while Hardware is tracking ahead, the analyst notes.

The trading update for the first seven weeks of 1H27 showed softer momentum in supermarkets, with sales growth of 0.7% compared with consensus expectations for 1.7% growth in FY27, the broker highlights.

Liquor is tracking steadily at 1.3%, broadly in line with consensus, and both Food and Liquor improved in June after a soft May.

Hardware sales rose 5.8%, well ahead of Citi and consensus expectations of 3.2% growth for FY27, although it's thought trading conditions remain challenging and retail margins are still under pressure.

The broker also highlights a -$10m earnings headwind from the completion of the accelerated tobacco excise program.

Sell. Target $2.80.

Target price is $2.80 Current Price is $3.18 Difference: minus $0.38 (current price is over target).
If MTS meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.24, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in April.

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 PLS as Neutral (3) -

PLS Group has approved -$175m of pre-final investment decision spending for its P2000 expansion, covering long-lead processing equipment, detailed engineering, early works and infrastructure, Citi observes.

Most of the expenditure was already contemplated in the June 2024 feasibility study, aside from road infrastructure, the analyst explains.

After incorporating additional items such as power, mining equipment, camp facilities and port infrastructure, the broker expects total project capex to rise to around -$1.8bn at the final investment decision in the December quarter.

First ore remains targeted for mid-2029. 

Neutral rating and $5.25 target for PLS Group.

Target price is $5.25 Current Price is $5.88 Difference: minus $0.63 (current price is over target).
If PLS meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.95, suggesting upside of 7.2% (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 PPE as Buy (1) -

The PeopleIN business is benefiting from improving conditions across its remaining operations following the sale of its healthcare businesses, with Ord Minnett forecasting 18% growth in second-half earnings (EBITDA).

The broker sees earnings stabilising in the Food and Agriculture division as labour numbers in the Pacific Australia Labour Migration scheme level out. Exposure to meat processing and related markets are seen as offering further growth opportunities.

Demand for engineering, trades and labour remains strong, particularly in Queensland infrastructure markets where skills shortages are expected to persist through 2030, the analysts explain.

Ord Minnett retains a Buy rating and lifts its target price to $1.03 from $1.02.

Target price is $1.03 Current Price is $0.71 Difference: $0.32
If PPE meets the Ord Minnett target it will return approximately 45% (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

Morgan Stanley rates RGN as Underweight (5) -

After visiting several REITs over the last two weeks, Morgan Stanley offers some updates ahead of the June 30 blackout period.

Region Group is due to report FY26 results on August 18. Management highlighted costs are now under control particularly for shopping centres where expenses are tied to labour costs.

Negotiations for supermarket leases in the most recent cases have resulted in an uplift in base rent, the analyst states. The REIT is also actively managing its interest expenses.

Target price $2.30. Underweight retained. Industry View: In-Line.

Target price is $2.30 Current Price is $2.42 Difference: minus $0.12 (current price is over target).
If RGN meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.44, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

Citi rates RRL as Neutral (3) -

Regis Resources has revived its McPhillamys Gold Project. This comes after the release of a revised pre-feasibility study based on an alternative tailings strategy that avoids land covered by the August 2024 Section 10 declaration, Citi explains.

The broker observes the updated plan reinstates a 1.89Moz Ore Reserve. It also benefits from State Significant Infrastructure status for both the Integrated Waste Landform and water pipeline, materially reducing permitting risk, the analyst assesses.

Citi believes McPhillamys is once again a credible growth project with robust economics and a clearer development pathway. A final investment decision is targeted for the first half of 2028.

Neutral. Target $8.10.

Target price is $8.10 Current Price is $6.94 Difference: $1.16
If RRL meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $8.56, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.7

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

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

Morgan Stanley caught up with several REITs over the last two weeks for an operational update ahead of the June 30 blackout period. Stockland will deliver its results on August 19.

Inquiries from home buyers have been up in May after a softer April and Stockland has confirmed that, while there has not been an influx of investors seeking new buildings, there has not been a collapse in sales either.

The broker suspects the company is likely to commence FY27 with around 4000 lots of pre-sales scheduled for settlement by June 2027, also noting that every release in Queensland and Western Australia is still selling out, except the high price-point product, which signals its forecast for 7500 settlements in FY27 can comfortably be met.

Equal-weight rating and $4.90 target. Industry View: In-Line.

Target price is $4.90 Current Price is $4.30 Difference: $0.6
If SGP meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.75, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

UBS rates SGP as Neutral (3) -

UBS believes it is too early to become bullish on large residential A-REITs, highlighting past housing downturns have indicated residential A-REITs do not recover until consecutive months of improving clearance rates and the meeting of house price expectations.

UBS economists expect a -3-5% reduction in house prices over the next 12 months, which means the time to start weighing up long positions for these stocks could be in the fourth quarter of 2026.

As a result the broker prefers buying land lease operators such as Gemlife Communities and Ingenia Communities.

UBS believes Stockland is well-placed as a residential developer to benefit from changes to capital gains tax although this is likely a medium-term story. Neutral rating and $4.95 target maintained.

Target price is $4.95 Current Price is $4.30 Difference: $0.65
If SGP meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.75, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

Morgan Stanley rates WBC as Underweight (5) -

Morgan Stanley points to Australian mortgage growth, excluding RAMS, annualised at around 8.5% for 1H26, with a similar rate anticipated for 2Q26.

The average monthly run rate of 27k since the Budget sits some -10% below a year ago, down around -18% on 2Q26 and circa -23% on 1Q26.

Westpac has highlighted further downside will be limited, with growth across the system easing to around 4.5%. The analyst stresses a more cautious outlook and expects the growth rate to ease to around 4% in 1H27 and 3% in 2H27.

Management flags loan growth is anticipated to slow to around 5%-6%, led by the SME sector, the broker states.

The bank's earnings are expected to remain "resilient" in 2H26, but the analyst doesn't see upside surprises.

The Underweight rating and $31.50 target are unchanged. Industry view: Cautious.

Target price is $31.50 Current Price is $35.01 Difference: minus $3.51 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.85, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.7

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

Citi rates WDS as Neutral (3) -

Citi's third-quarter commodity outlook argues the recent Iran-US memorandum of understanding is a significant step towards normalising flows through the Strait of Hormuz.

The agreement reduces geopolitical risk premiums and leaves oil prices increasingly exposed to weaker underlying fundamentals, the analysts assess.

The broker recommends selling oil and gas rallies driven by geopolitical tensions, seasonal demand or weather-related disruptions.

Citi forecasts oil prices will ease to US$60-$65/bbl by the March quarter of 2027 as global markets move into surplus.

Outside energy, Citi remains constructive on aluminium and copper, while highlighting cocoa and sugar as preferred agricultural exposures due to supply constraints and potential El Nino-related risks.

Neutral. Target $29.50 for Woodside Energy.

Target price is $29.50 Current Price is $29.03 Difference: $0.47
If WDS meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $29.94, suggesting upside of 4.2% (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: -0.3

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