Australian Broker Call

Citi rates A2M as Sell (5) -

Citi considers the announcement of policy measures by China to support its three-child policy to be positive for infant milk formula (IMF) stocks generally. However, the broker is cautious about potential upside for a2 Milk, given a growing preference for domestic IMF brands.

The potential birth rate increase may also be skewed to lower tier cities, which are typically dominated by domestic IMF brands and there are fewer women of childbearing age, points out the analyst. Citi reiterates its Sell rating and $6.05 target price.

Target price is $6.05 Current Price is $6.95 Difference: minus $0.9 (current price is over target).
If A2M 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 $6.43, suggesting downside of -6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

Credit Suisse rates ALX as Outperform (1) -

Atlas Arteria reported toll revenue that was up 57% on 2020 in the June quarter, albeit down -14% versus 2019. Credit Suisse lowers traffic growth forecasts for the company's assets and reduces dividend forecast by -4.8% for 2021.

The target is reduced to $7.00 from $7.20. Outperform rating retained.

Target price is $7.00 Current Price is $6.23 Difference: $0.77
If ALX meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.33, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates ALX as Neutral (3) -

APRR traffic was down -17% in the first half from the same period in 2019, which was a lesser drop than expected. Vaccinations are doing their bit. Greenway in the US remains soft but the trend is improving, the broker notes. Work-from-home may prolong the recovery.

A combination of APRR recovery and a lower French tax rate should push yields to 8% by 2024, the broker estimates, but concession life is running down and new opportunities are begging.

Target rises to $6.22 from $5.82, Neutral retained.

Target price is $6.22 Current Price is $6.23 Difference: minus $0.01 (current price is over target).
If ALX meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.33, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates ALX as Hold (3) -

Morgans believes a key risk has been removed from first half results on August 26, as second quarter toll revenue was stronger than anticipated. The broker marginally reduces its target price to $6.33 from $6.35 and retains its Hold rating.

The analyst believes the current share price is striking the right balance between an attractive distribution outlook versus a likely decay in valuation of the APRR toll road, as its concession expiry approaches in 2035.

The broker estimates APPR represents around 85% of the company's valuation.

Target price is $6.33 Current Price is $6.23 Difference: $0.1
If ALX meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.33, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates ALX as Neutral (3) -

Atlas Arteria sustained a decline in toll revenue of -14% in the June quarter compared with 2019. Traffic declined -19%. Meanwhile APRR traffic declined by -17% in the quarter although traffic recovered over May and June after April was affected by lockdowns in France.

UBS reduces its 2021 distribution forecasts to $0.30 from $0.31. As the EU health plus system allows quarantine-free travel for fully vaccinated individuals, and a third of France is fully vaccinated, the broker envisages reduced risk to forecasts.

The Neutral rating is under review. Target is $5.75.

Target price is $5.75 Current Price is $6.23 Difference: minus $0.48 (current price is over target).
If ALX meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.33, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates AOF as Accumulate (2) -

While Ord Minnett forecasts the acquisition of a new, A-Grade office building in Beenleigh, Queensland will be accretive to funds from operations (FFO), it is surprised by the transaction.

This is due to the recent divestment of 241 Adelaide Street, Brisbane, and also the transaction reduces available liquidity to under $30m, explains the broker. It was expected the company would reinvest its capital into existing assets.

Ord Minnett maintains the Accumulate rating and raises its target price to $2.43 from $2.40.

Target price is $2.43 Current Price is $2.32 Difference: $0.11
If AOF meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates BHP as Overweight (1) -

If media reports of an exit from the Petroleum business are true, Morgan Stanley estimates a demerger or divestment would likely lead to a multiple expansion for the group.

It's also felt there would be narrowing of the discount between the UK and Australia listings, explains the broker. Overweight rating. Target price $51. Industry view: Attractive. 

Target price is $51.00 Current Price is $49.89 Difference: $1.11
If BHP meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $50.53, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Ord Minnett rates BHP as Buy (1) -

As per media speculation, a move to exit the Petroleum division would not surprise Ord Minnett, given growing investor ESG pressure. There's still considered a window to achieve appropriate asset valuations, before the global energy transition moves further along.

The broker highlights the division consumes a disproportionate share of capital expenditure, and believes an exit would makes sense strategically, though only at a fair valuation. Ord Minnett's Buy rating and $60 target price are unchanged.

While the analyst prefers a trade sale, it would likely be an in-specie distribution though it's still expected to be at least two years away.

Target price is $60.00 Current Price is $49.89 Difference: $10.11
If BHP meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $50.53, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Citi rates BPT as Neutral (3) -

Fourth quarter production missed Citi's estimate by -4% due to compressor downtime in the Cooper basin. Despite this, revenue was a 5% beat on higher condensate sales volumes and higher realised pricing. The broker retains its Neutral rating and $1.36 target price.

Production numbers for FY21 have been reported at 25.6mmboe versus previous guidance of 25.2-25.7mmboe. Earnings (EBITDA) are
expected at the top end of the $850-900m guidance range, in-line with Citi's estimate.

Target price is $1.36 Current Price is $1.21 Difference: $0.15
If BPT meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates BPT as Outperform (1) -

Beach Energy posted better than expected June quarter production and revenue, and management expects FY21 earnings to come in towards the top of the guidance range.

FY22-23 will be very capex-heavy, the broker notes, mainly driven by work at Otway and Waitsia, but Beach has exposure to rising east coast gas prices, with more than 75% of sales uncontracted or set for repricing by FY23.

The broker questions Seven Group's ((SVW)) ongoing commitment to its Beach stake, given the company has taken a controlling interest in Boral ((BLD)), leaving Beach as a small (and ESG unfriendly) part of Seven's portfolio.

Target falls to $1.60 from $1.75, Outperform retained.

Target price is $1.60 Current Price is $1.21 Difference: $0.39
If BPT meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

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

After a fourth quarter production report, Morgan Stanley notes the Western Flank production decline continues though the overall valuation is beginning to look attractive, at an around -30% discount to valuation.

Revenue for the quarter was $421m versus the broker's estimate of $415m, and management guided to FY21 earnings (EBITDA) at the top-end of its previous guidance of $850-$900m, in-line with expectations.

Equal-weight retained. Target is $1.50. Industry view: Attractive.

Target price is $1.50 Current Price is $1.21 Difference: $0.29
If BPT meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates BPT as Add (1) -

Morgans highlights gas production in the fourth quarter increased 8% quarter-on-quarter (qoq), driven by increases in the Otway and Perth basins, offsetting declines in the Cooper Basin. FY21 production reached 25.6mmboe, in-line with the analyst's forecast.

Realised oil prices increased 10% qoq though sales only increased 5% from weaker volumes in the Cooper Basin. As total sales increased 7% qoq, management increased guidance to the top end of the earnings (EBITDA) guidance range.

Given the recovery in oil prices seen in the last half, Morgans believes there is less upside for the oil-linked gas contracts in FY22, and therefore lowers average realised gas prices forecasts by -5%.

The broker retains its Add rating and lowers its target to $1.77 from $1.86.

Target price is $1.77 Current Price is $1.21 Difference: $0.56
If BPT meets the Morgans target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates BUB as Sell (5) -

Citi considers the announcement of policy measures by China to support its three-child policy to be positive for infant milk formula (IMF) stocks. However, the broker is cautious about potential upside for Bubs Australia given a growing preference for domestic IMF brands.

The potential birth rate increase may also be skewed to lower tier cities, which are typically dominated by domestic IMF brands, and there are fewer women of childbearing age, points out the analyst. Citi reiterates its Sell rating and $0.35 target price.

Target price is $0.35 Current Price is $0.50 Difference: minus $0.15 (current price is over target).
If BUB meets the Citi target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -1.0

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

Credit Suisse rates CIM as Upgrade to Outperform from Neutral (1) -

First half results were below Credit Suisse forecasts at the revenue line while underlying net profit was in keeping with estimates. Improved trading conditions characterised the half-year with new work accelerating to above pre-pandemic levels.

Project momentum appears to be building and the broker suspects this will continue into the second half. Yet, in NSW, while the state government committed to recommence construction activities from July 31, a two-week extension of the ban could further affect net profit by -$15-20m, the broker estimates.

Credit Suisse upgrades to Outperform from Neutral and raises the target to $23.60 from $21.90.

Target price is $23.60 Current Price is $19.85 Difference: $3.75
If CIM meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $24.90, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates CIM as No Rating (-1) -

Cimic Group 's first half profit beat the broker by 4% and FY guidance has been reiterated. The infrastructure pipeline is now starting to flow again, the broker notes, following covid delays.

The broker is currently on research restrictions.

Current Price is $19.85. Target price not assessed.

Current consensus price target is $24.90, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates CIM as Buy (1) -

On the basis of historical half-year earnings skews and positive momentum in the business, 2021 net profit guidance of $400-430m continues to appear conservative to Ord Minnett.

The broker assesses a solid first half result, as work in hand and margins bounced back strongly from a soft 2020. The second-highest level of new work was secured since 2015, on a half-year basis. The broker retains its Buy rating and lifts its target to $30 from $29.

Target price is $30.00 Current Price is $19.85 Difference: $10.15
If CIM meets the Ord Minnett target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $24.90, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates CIM as Neutral (3) -

First half results were firm with the highlight being a 10% increase in work in hand to $33bn. Growth was driven by a 20% increase in infrastructure construction as project awards improved following a period of pandemic-related delays.

Asian operations remained a net drag on conversion rates, nonetheless. The company has reiterated FY21 guidance for net profit in the range of $400-430m.

Neutral maintained. Target is reduced to $21.10 from $23.00.

Target price is $21.10 Current Price is $19.85 Difference: $1.25
If CIM meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $24.90, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates CPU as Upgrade to Outperform from Neutral (1) -

Credit Suisse anticipates the Computershare share price could double in the next 3-5 years and upgrades to Outperform from Neutral.

Earnings are expected to increase on the back of the CTS acquisition and associated synergies, as well as from higher margin income as cash rates are increased.

Cost reductions are also expected amid modest organic growth. Higher interest rates are a major part of the broker's investment view and yet, even without these, Credit Suisse finds a case for 10% growth in earnings per share per annum. Target is raised to $23.20 from $13.90.

Target price is $23.20 Current Price is $15.60 Difference: $7.6
If CPU meets the Credit Suisse target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $17.90, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates EDV as Initiation of coverage with Neutral (3) -

Macquarie initiates coverage of Endeavour Group with a Neutral rating and $6.40 target, but warns the current covid situation offers risks. Under Woolworths ((WOW)) it was swings and roundabouts last year as bottle shop sales surged to offset hotel closures.

Woolworths rather neglected its hotels, and particularly gaming rooms, last year as the focus was on supermarkets, so the broker sees upside potential in Endeavour being able to refresh its existing network and expand its footprint.

But at current gearing, a 22x forward PE and ongoing covid uncertainty, the broker remains cautious.

Target price is $6.40 Current Price is $6.46 Difference: minus $0.06 (current price is over target).
If EDV meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.30, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Morgan Stanley rates GPT as Underweight (5) -

Heading into August results, Morgan Stanley believes major mall owners are challenged, with recent lockdowns presenting
possible downside risks to funds from operations (FFO) forecasts.

Having said that, the analyst notes Vicinity Centres is trading at near-lows since early November 2020 (pre-vaccine), so there may be tactical upside on a mean reversion trade.

The analyst forecasts retail net operating income (NOI) for 2021 of around $280m, or circa -14% lower than pre-covid levels, including portfolio changes. Underweight rating and target of $4.37 are retained. Industry view is In-Line.

Target price is $4.37 Current Price is $4.73 Difference: minus $0.36 (current price is over target).
If GPT meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.75, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates KGN as Outperform (1) -

The trading update has implied a deceleration in sales growth in the June quarter. Credit Suisse observes elevated inventory has contributed to a material lift in costs as storage costs increased and a higher level of promotional activity was required to reduce stock levels.

The broker revises FY21 forecast to align with the update, easing back on gross margin assumptions and forecasts for Mighty Ape. Profitability of Mighty Ape has improved yet warehousing costs and marketing expenditure have weighed heavily on the rest of the business.

Valuation continues to support an Outperform rating and the broker reduces the target to $15.21 from $17.93.

Target price is $15.21 Current Price is $11.56 Difference: $3.65
If KGN meets the Credit Suisse target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates LLC as Neutral (3) -

As part of its simplification strategy, Lendlease has sold its non-core Services business to Service Stream, at a price in line with the broker's valuation. Given already low gearing, the sale should provide more balance sheet capacity for investments/developments.

But gearing has been low for a while following other sell-downs, and little has been forthcoming, the broker notes. There is upside risk at the upcoming result from any announced cost-out, but downside from continued delays in progress on the urban regeneration pipeline.

Target rises to $11.55, Neutral retained.

Target price is $11.55 Current Price is $11.67 Difference: minus $0.12 (current price is over target).
If LLC meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.24, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

In what Morgan Stanley considers a mild positive, Lendlease has entered into an agreement to sell its Services business for $310m. It's felt deployment of capital (rather than access to capital) and development profits in FY22 and FY23 are currently more relevant.

Equal-weight rating and $13 target. Industry view: In-line.

Target price is $13.00 Current Price is $11.67 Difference: $1.33
If LLC meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $13.24, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates LRK as Buy (1) -

Fourth quarter results were ahead of Ord Minnett's expectations. Key takeaways from the result included net sales for the year of $12.95m (8% ahead of estimates), and the company is seeking to borrow to further improve purchasing prices for raw materials.

Additionally, the company expects to fund its inventory build through operating cash flows from FY22 onwards, explains the broker. Ord Minnett retains its Buy rating.

The  analyst is comfortable in raising its target price to $5.41 from $3.98, given the company's premium price point and high net sales gross margins. Additionally, there's considered to be substantial whisky under maturation and significant forecast sales growth.

Target price is $5.41 Current Price is $4.50 Difference: $0.91
If LRK meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates LVH as Add (1) -

Morgans assesses a generally positive fourth quarter update, with a better cashflow performance and ending cash position than anticipated. Operating cash flow of $1.83m was a record, despite a material ramp in marketing spend, explains the anlayst.

While the longer term growth profile is unchanged, the broker downgrades FY22 and FY23 direct sourcing (DS) revenue by circa -11% and -4%. Increased near term investment into the DS opportunity also sees an increase in the estimated cost profile by around 5%.

The broker maintains its Add rating and $0.53 target price.

Target price is $0.53 Current Price is $0.34 Difference: $0.19
If LVH meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates NTO as Overweight (1) -

Nitro Software has launched a standalone e-Signing solution, featuring unlimited eSigning, charged per user per month. Morgan Stanley notes that sign users increased nearly 10x in 2020 with greater than 1m signatures. This has been eclipsed in the first six months of 2021. 

Morgan Stanley retains an Overweight rating. Target is $3.70. Industry view: In-line.

Target price is $3.70 Current Price is $3.22 Difference: $0.48
If NTO meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Credit Suisse rates OSH as Upgrade to Neutral from Underperform (3) -

The Santos disclosure of a proposal to acquire Oil Search has meant merger prospects have eventuated. Credit Suisse observes the market is now pricing in a 4% premium to the offer.

The broker envisages logic to the merger because of cost synergies, the alignment in PNG and a more diversified portfolio run by better regarded Santos management.

The main risks, in the broker's view, are that the board of Oil Search may not engage seriously, particularly if it has high value expectations and Santos may be reluctant to materially increase the offer.

Credit Suisse upgrades to Neutral from Underperform on valuation grounds and as the M&A potential is now more tangible. Target is raised to $3.86 from $3.61.

Target price is $3.86 Current Price is $4.04 Difference: minus $0.18 (current price is over target).
If OSH meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.50, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

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

After the rejection of Santos' ((STO)) merger proposal of 63% Santos and 37% Oil Search, by Oil Search, Morgan Stanley thinks a proposed indicative ratio more like 59% Santos and 41% Oil Search would reflect a fairer deal.

This implies an around 32% premium, using the Santos share price close on 24 June 2021, explains the broker. Equal-weight. Target is $4.50. Industry view: Attractive.

Target price is $4.50 Current Price is $4.04 Difference: $0.46
If OSH meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.50, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Citi rates PRU as Buy (1) -

Citi assesses a strong June quarter, with the Yaouré processing ramp-up ahead of expectations, and FY21 group production guidance exceeded estimates, with costs in-line. The broker retains its Buy rating and lifts its target price to $1.75 from $1.70.

Management flagged a company dividend policy/share buyback review ahead of the financial reporting period.

Target price is $1.75 Current Price is $1.54 Difference: $0.21
If PRU meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates PRU as Outperform (1) -

Perseus Mining produced a record 103,000 ounces of gold in the June quarter to total 329,000 ounces in FY21. Yaoure stood out, with 37,000 ounces. Guidance for the first half of FY22 is set at 225-255,000 ounces.

Credit Suisse observes the diversification strategy is paying off while capital allocation remains centred on organic growth. The broker believes the company can declare a maiden dividend at the upcoming results. Outperform retained. Target rises to $1.80 from $1.40.

Target price is $1.80 Current Price is $1.54 Difference: $0.26
If PRU meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates PRU as Outperform (1) -

While Perseus Mining's June quarter production was in line with forecast, Yaoure continues to beat expectations. Solid first half guidance and a target of 500kozpa of production over FY22 is well ahead of the broker's previous estimates.

Yaoure will not only increase net production but serve to reduce net costs, hence its ramp-up should lead to positive share price momentum, the broker suggests.

Target rises to $1.70 from $1.60, Outperform retained.

Target price is $1.70 Current Price is $1.54 Difference: $0.16
If PRU meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates RHC as Upgrade to Buy from Accumulate (1) -

Following a period of research restriction, Ord Minnett moves to a Buy recommendation from Accumulate, with a target price of $72.50, down from $73.50 previously. The broker cuts the FY22 EPS forecast by -7% to allow for the Australian lockdowns.

Ord Minnett feels the company is unlikely to have given up on its Spire Healthcare offer, given its typically patient approach.

As vaccination rates in the UK and France are close to world-leading, the analyst is hopeful for a period of elevated activity in the months ahead.

Target price is $72.50 Current Price is $64.26 Difference: $8.24
If RHC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $70.28, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates S32 as Buy (1) -

After a modest miss on June quarter production, Citi anticipates FY21 results will likely be challenging. However, FY22 is expected to be much improved, with South African Coal gone and forecast pricing improved. The broker retains its Buy rating and $3.50 price target.

In the June quarter, aluminium production was impacted by load shedding in South Africa, and met coal was impacted by challenging strata conditions at the Appin colliery.

Target price is $3.50 Current Price is $2.84 Difference: $0.66
If S32 meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Credit Suisse rates S32 as Outperform (1) -

The company has achieved record output of alumina and manganese and Credit Suisse notes there was no indications of any damage or outage as a result of the recent riots in South Africa.

Nevertheless, the broker observes the cost deflation that was the hallmark of 2020 has disappeared and the company is warning of higher input and labour costs for its alumina operation.

On a positive note, received aluminium prices were higher than expected and this offset the cost related to alumina. Outperform rating maintained. Target is $3.80.

Target price is $3.80 Current Price is $2.84 Difference: $0.96
If S32 meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Macquarie rates S32 as Outperform (1) -

South32's June quarter production numbers were weak, the broker suggests, with solid results in manganese and alumina offset by weak coal and base metals production. Covid has driven a delay to the Taylor pre-feasibility study, and an impairment will be taken on Illawarra.

That said, earnings momentum remains solid thanks to strong pricing for coal, manganese and aluminium, suggesting an 18% free cash flow yield at current spot.

Outperform retained, target falls to $3.40 from $3.50.

Target price is $3.40 Current Price is $2.84 Difference: $0.56
If S32 meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Morgan Stanley rates S32 as Overweight (1) -

The fourth quarter revealed record production at Worsley Alumina, with the asset producing around 9% ahead of Morgan Stanley's forecast, enabled by improvement initiatives in the calcination circuit.

Aluminium and Manganese were in-line with the broker's estimates, while metallurgical coal was a -16% miss on Illawarra production, driven mainly by paring back of operations.

The paring back was due to uncertainty associated with the Dendrobium Next Domain (DND) project and the future of the asset. Overweight rating. Target is $3.45. Industry view: Attractive.

Target price is $3.45 Current Price is $2.84 Difference: $0.61
If S32 meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Morgans rates S32 as Hold (3) -

Morgans assesses a good end to FY21, with fourth quarter results coming in ahead of estimates at Worsley, Cerro Matoso and Cannington. Strong volumes are considered to have helped in containing costs across the business.

However, an impairment at Illawarra and a post-sale write-down for South African Energy Coal of -US520m and -US$160m, respectively, are set to drag on the FY21 result, points out the analyst.

The broker maintains its Hold rating and lowers its target price to $3.15 from $3.25.

With some recent share price weakness, Morgans is on the lookout for an attractive entry point.

Target price is $3.15 Current Price is $2.84 Difference: $0.31
If S32 meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

Ord Minnett rates S32 as Buy (1) -

Ord Minnett assesses June quarter production was solid, with manganese and Cannington beating estimates, Illawarra missing and aluminium and alumina in-line. Realised prices were estimated to be generally higher than expected.

The broker highlights a resource update for the Hermosa operation showed higher-grade though smaller in size. Also, an impairment charge of -US$728m was reported for Illawarra, with the Dendrobium mine extension plans looking likely to be shelved.

Ord Minnett maintains its Buy rating and increases its target price to $3.80 from $3.70.

Target price is $3.80 Current Price is $2.84 Difference: $0.96
If S32 meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

UBS rates S32 as Buy (1) -

June quarter production was in line with guidance. The company will recognise a -$728m impairment to Illawarra after the Dendrobium extension project was blocked. The resource at the Taylor deposit is trimmed by around -7%.

UBS considers the risk/reward for the company's commodities more attractive than for peers, with upside to manganese balanced by downside to aluminium. The broker expects South32 will keep returning cash to shareholders. Buy rating and $3.50 target retained.

Target price is $3.50 Current Price is $2.84 Difference: $0.66
If S32 meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.51, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.9

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

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

Heading into August results, Morgan Stanley believes major mall owners are challenged, with recent lockdowns presenting
possible downside risks to funds from operations (FFO) forecasts.

Having said that, the analyst notes Scentre Group is trading at near-lows since early November 2020 (pre-vaccine), so there may be tactical upside on a mean reversion trade.

The analyst's 2021 net operating income (NOI) forecast is $1.78bn, or circa -9% below undisturbed rent. The Equal-weight rating and $2.98 target are retained. Industry view: In-line.

Target price is $2.98 Current Price is $2.55 Difference: $0.43
If SCG meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Macquarie rates SFR as Outperform (1) -

Sandfire Resources has upgraded the resource estimate for the A4 copper deposit at the Motheo project in Botswana. The broker responds by lifting its mining rate expectation to incorporate a larger resource at A4, driving a 10% increase to its life-of-mine forecast.

Given the resource upgrade exceeded expecatation, the broker now incorporates the full expanded production case into its forecast. The project now accounts for around 30% of net present value, so ramp-up milestones will be a key catalyst.

Outperform retained, target rises to $10.20 from $10.00.

Target price is $10.20 Current Price is $6.37 Difference: $3.83
If SFR meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $7.63, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates SFR as Overweight (1) -

Morgan Stanley believes the 34% increase to the A4 satellite deposit, at a robust 1.4% copper grade (higher than the Motheo grade of 1.0%), should help underpin a Motheo processing hub strategy.

Further expansion to the still open A4 deposit, plus potential new regional discoveries could add further value, points out the broker.  Overweight maintained. Target is $8.25. Industry view: Attractive.

Target price is $8.25 Current Price is $6.37 Difference: $1.88
If SFR meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $7.63, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates SGP as Neutral (3) -

Credit Suisse considers the Halcyon acquisition a net positive. The initial yield on the acquisition is tight but given the company's low cost of debt the transaction remains accretive.

The broker also considers this a step in the right direction in terms of growing annuity-style income and providing incremental development returns.

Credit Suisse raises FY21-22 estimates for earnings by 0.7% and 3.2%, respectively, to reflect the acquisition. Target rises to $4.51 from $4.42.

Target price is $4.51 Current Price is $4.37 Difference: $0.14
If SGP meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates SHL as Neutral (3) -

Macquarie sees substantial covid earnings (testing) for Sonic Healthcare in the second half FY21 and continuing into FY22. But then things become less certain.

Testing rates in Australia are increasing with the latest outbreak but they are easing in the US and Germany.

The broker thus retains a Neutral rating while lifting its target to $38.75 from $37.55, noting upside risk were Sonic to use its windfall for acquisitions.

Target price is $38.75 Current Price is $40.07 Difference: minus $1.32 (current price is over target).
If SHL meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.16, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates SSM as No Rating (-1) -

As part of its simplification strategy, Lendlease has sold its non-core Services business to Service Stream, at a price in line with the broker's valuation. Service Stream is now diversified across utilities. telcos and transport, the broker notes.

The acquisition will be funded by a mix of debt and an equity raise 90cps. As the broker is involved, it is currently on research restriction.

Current Price is $0.96. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates SYR as Underweight (5) -

Production at Balama of 29kt was 8% above Morgan Stanley's estimate and is expected to ramp to an initial 15ktpm rate (the broker projects 45kt in the third quarter). Underweight. Target is $0.80. Industry view: Attractive.

A tight container shipping market led to weaker sales, explains the analyst, while the weaker price was from higher fines sales. It's believed the financial investment decision (FID)  for Vidalia active anode material (AAM) is on-track for second half 2021 completion.

Target price is $0.80 Current Price is $1.14 Difference: minus $0.34 (current price is over target).
If SYR meets the Morgan Stanley target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.23, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Credit Suisse rates TWE as Neutral (3) -

Credit Suisse is modelling a -32% drop in sales for the June half as the half year is cycling the period prior to China imposing tariffs.

The broker anticipates "flattish" earnings amid strong growth in price per case and cost reductions as the Chinese operations are scaled back.

The broker retains its Neutral rating and $11.30 target.

Target price is $11.30 Current Price is $11.86 Difference: minus $0.56 (current price is over target).
If TWE meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.94, suggesting downside of -8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates VCX as Underweight (5) -

Heading into August results, Morgan Stanley believes major mall owners are challenged, with recent lockdowns presenting
possible downside risks to funds from operations (FFO) forecasts.

Having said that, the analyst notes Vicinity Centres is trading at near-lows since early November 2020 (pre-vaccine), so there may be tactical upside on a mean reversion trade.

The analyst forecasts FY22 net operating income (NOI) of $761m, around -13% below the pre-covid baseline, adjusted for asset sales and contracted rent increases.

Underweight rating. The target is $1.59. Industry view: In-line.

Target price is $1.59 Current Price is $1.49 Difference: $0.1
If VCX meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.64, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates WSP as Buy (1) -

Ord Minnett feels the strong rate of growth in net new customers underwrites its FY22 forecasts for Whispir, as these new customers land and expand on the company's platform. The Broker maintains its Buy rating and lifts its target price to $4.30 from $4.25.

New customer wins were diversified across A&NZ, Asia and the US businesses, indicating to the analyst traction in all three key markets. It's believed the US continues to be an early though massive opportunity and results are beginning to materialise.

Ord Minnett expects product investment to drive expanding usage amongst existing customers over time. It's noted DHHS Victoria are using the platform to facilitate parts of the covid-19 vaccine rollout, including vaccine communications and post-vaccination surveys.

Target price is $4.30 Current Price is $2.83 Difference: $1.47
If WSP meets the Ord Minnett target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates Z1P as Buy (1) -

In response to today's trading update, Citi analysts report they saw a positive Q4 trading update from Zip Co, with transaction volumes achieved in Australia and the US both better-than-expected.

Citi suspects the subsequent weakness in the share price might be related to the absence of any insights into whether there is, or has been, corporate interest in the business.

Target $10.25. Buy.

Target price is $10.25 Current Price is $7.58 Difference: $2.67
If Z1P meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $8.56, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

UBS rates Z1P as Sell (5) -

Zip Co has today released its Q4 trading update and UBS, upon initial assessment, finds volume numbers are substantially below its forecasts for both Australia (-10%) and the US (-15%).

The analysts do concede the reported growth is high in absolute terms, but metrics such as total transaction volumes equally missed expectations.

Also: Quadpay is to be rebranded as Zip in the US and Canada from mid-August. UBS has long been on Sell, and hasn't changed its rating today. Target $5.60.

Target price is $5.60 Current Price is $7.58 Difference: minus $1.98 (current price is over target).
If Z1P meets the UBS target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.56, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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