Australian Broker Call

Shaw and Partners rates 3DA as Buy (1) -

Shaw and Partners highlights Amaero International's "alignment" with Trump administration policies is expected to offer growth opportunities for the company, particularly in re-shoring materials production, defense, and manufacturing supply chains.

The analyst explains Amaero International, as a critical minerals supplier, is well-positioned for the defense sector and fills "key gaps" in advanced materials required for America-first policies.

Shaw and Partners anticipates a valuation re-rating in FY25 from the C103 qualification in Dec 2024, including an offtake and preferred supplier agreement, commencing commercial sales of C103, scaling revenue, commissioning Atomizer #2, and securing a US government grant, among other milestones.

Shaw and Partners retains a Buy, High-Risk rating on Amaero International with a target price of $0.60.

Target price is $0.60 Current Price is $0.35 Difference: $0.25
If 3DA meets the Shaw and Partners target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates A2M as Buy (1) -

Citi triggers a "downside catalyst watch" for a2 Milk Co ahead of the AGM, based on a recent visit to China.

The broker's trip included visits to nearly 10 supermarkets and mother and baby stores. The analyst highlights China label now accounts for over 50% of a2 Milk Co's total infant milk formula sales, up from around 25% in FY20.

Citi observed Stage 1 and Stage 2 400g trial tins are widely available and suggests disruptions are unlikely to pose an issue for the company. Stage 2 and Stage 4 formula tins appear to be "underperforming," with discounting following a delayed impact from the birth rate.

Compared to previous trips, fewer brands were available, suggesting consolidation due to the registration regime, Citi notes.

Buy rated with a $7.04 target.

Target price is $7.04 Current Price is $5.28 Difference: $1.76
If A2M meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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 ALL as Buy (1) -

Citi expects Aristocrat Leisure to report EBITDA of $2,102m on Nov 13.

The analyst points to increased slots industry growth in the Americas, with the upcoming launch of Phoenix Link expected to drive further growth in Class III gaming operations.

Digital, social casino is anticipated to remain flat, while RAID shows some signs of stability. The broker is also looking for the announcement of the sale of the ex-social casino digital games portfolio.

Citi believes the Trump administration will provide a backdrop of pro-growth policies favourable to Aristocrat Leisure and expects ongoing market share growth in gaming and interactive.

The broker raises EBITDA estimates by around 2%-3% for FY25/FY26, respectively, reflecting stronger US organic growth. Target price increases to $74 from $59.

Citi believes there are "sufficient reasons" to remain positive and retains a Buy rating.

Target price is $74.00 Current Price is $64.41 Difference: $9.59
If ALL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $63.80, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Macquarie rates ANZ as Underperform (5) -

Macquarie highlights ANZ Bank's 2H24 results fell below expectations. Looking to FY25, the broker forecasts around 1% revenue growth for the bank, below the expected growth of peers at approximately 1.7%.

Management emphasised during the results the bank will focus on ANZ Plus and the integration of Suncorp Bank, though no financial guidance was provided.

The analyst believes the market will seek fiscal evidence of acquisition benefits before assigning higher valuation multiples.

Macquarie raises the FY25 EPS forecast by 1%. Target price remains at $26.50.

Underperform rating maintained.

Target price is $26.50 Current Price is $32.13 Difference: minus $5.63 (current price is over target).
If ANZ meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.35, suggesting downside of -15.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Morgan Stanley rates ANZ as Underweight (5) -

While ANZ Bank’s FY24 pre-provision profit slightly missed the consensus forecast, there were no major surprises for Morgan Stanley, and management commentary was upbeat.

The analysts believe the current valuation discount to other major banks will persist, given modest revenue growth and an uncertain earnings outlook for institutional banking.

Near-term headwinds are also expected from the Suncorp Bank integration and ANZ Plus migration. The broker's Underweight rating is retained, and the target rises to $27.80 from $27.50. Industry view: In Line.

Target price is $27.80 Current Price is $32.13 Difference: minus $4.33 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.35, suggesting downside of -15.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Morgans rates ANZ as Downgrade to Reduce from Hold (5) -

After reviewing FY24 results, Morgans considers ANZ Bank’s share price overstretched relative to valuation and fundamentals and downgrades to Reduce from Hold.

A lack of additional capital management also disappointed the analyst.

While 2H earnings missed expectations, with cash EPS down by -10%, the broker acknowledges the Suncorp Bank acquisition may have skewed results.

The final dividend was held flat with 5% additional franking, notes Morgans. The FY24 and FY25 dividend forecast remains at $1.66 until the payout ratio aligns with the target range.

The target falls to $25.29 from $26.13.

Target price is $25.29 Current Price is $32.13 Difference: minus $6.84 (current price is over target).
If ANZ meets the Morgans target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.35, suggesting downside of -15.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Ord Minnett rates ANZ as Hold (3) -

Following ANZ Bank's FY24 result, where the 2H mirrored peer outcomes, Ord Minnett lowers its EPS forecast for FY26 by -3% due to higher cost expectations but raises the FY27 forecast by 2%, leaving the $27.50 target unchanged.

The broker believes the ANZ Plus rollout is critical as the retail banking sector remains highly competitive. Approximately 1m customers have already joined, with management planning to migrate an additional 4m ANZ and 1m Suncorp customers starting mid-2025.

Ord Minnett retains a Hold rating.

Target price is $27.50 Current Price is $32.13 Difference: minus $4.63 (current price is over target).
If ANZ 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 $27.35, suggesting downside of -15.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

UBS rates ANZ as Downgrade to Neutral from Buy (3) -

ANZ Bank is downgraded to Neutral from Buy by UBS as the share price has reached the broker's target price of $32.

The bank reported FY24 results meeting expectations, with diversification supporting the earnings profile. The 2H24 results suggest to the analyst a quicker-than-forecast integration of Suncorp Bank, which may yield stronger results from the acquisition.

UBS lifts EPS estimate by around 3% for FY25 and lowers FY26 EPS by -2%. Net interest margin assumptions are lowered by -2bps FY26 from continued competition in an expected lower interest rate environment.

Target price is $32.00 Current Price is $32.13 Difference: minus $0.13 (current price is over target).
If ANZ meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.35, suggesting downside of -15.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Macquarie rates APA as Outperform (1) -

Macquarie details the potential for APA Group to acquire Zenith Energy.

The analyst highlights the strategic rationale behind the expansion, noting Zenith would represent a "step change" in EBITDA and cash flows by 6%, though the current expected valuation multiple would significantly exceed APA Group's EBITDA valuation.

The broker emphasises an equity issue would likely be necessary to fund the Zenith acquisition, requiring a much lower valuation to avoid making the takeover earnings-dilutive.

The possibility of Pilbara asset sales is suggested to reduce the capital burden of the purchase.

The broker’s EPS forecasts decrease by -3.5% in FY25 and -3.3% in FY26 due to Part 23 releases for East Coast Gas and an increased share issuance from the dividend reinvestment program.

Outperform rating retained. Target price declines to $8.13 from $8.23.

Target price is $8.13 Current Price is $6.80 Difference: $1.33
If APA meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $7.91, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Bell Potter rates AVH as Speculative Buy (1) -

Bell Potter notes EBIT losses for Avita Medical are trending lower each quarter, decreasing by -$1.8m to -$13.8m in Q3, following 28% sequential growth in revenues.

The analysts suggest the automated device provides an excellent platform for increased penetration across all accounts and wound types, proving popular with both existing and new users.

The broker highlights accounts have more than doubled from 12 months prior, with 23 new hospital accounts added in Q3 and a further 60 potential accounts identified.

The target rises by $1.00 to $4.60. Speculative Buy.

Target price is $4.60 Current Price is $3.50 Difference: $1.1
If AVH meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Morgans rates AVH as Add (1) -

Avita Medical’s management reiterated FY24 guidance following 3Q results in line with Morgans’ forecasts.

The analyst noted a positive tone from management on a recent conference call regarding growth prospects in FY25, supported by the anticipated launch of Recell GO Mini and Cohealyx, pending regulatory clearances.

The Add rating and $4.56 target are maintained.

Target price is $4.56 Current Price is $3.50 Difference: $1.06
If AVH meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Macquarie rates CCP as Outperform (1) -

Macquarie observes quarterly earnings from US companies PRA and Encore for insights into the US debt ledger market concerning Credit Corp.

The broker notes PRA is "taking advantage of strong US portfolio supply and attractive pricing." Encore reported "US market supply continues to grow to record levels," raised earnings guidance, and projected annual collections growth of around 15%.

Macquarie makes no changes to earnings forecasts for Credit Corp.

Target price increases to $19.62 from $18.01 due to an improved valuation and outlook for the US purchased debt ledger market.

Target price is $19.00 Current Price is $18.04 Difference: $0.96
If CCP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $19.83, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates CSL as Buy (1) -

Citi highlights CSL's competitor Grifols reported strong Ig and albumin revenue growth for the September quarter, which exceeded the analyst's and consensus forecasts for CSL's 1H25.

Grifols' Ig sales advanced 16.6%, higher than Takeda's September quarter growth of 10.6%. The broker expects CSL's 1H25 sales growth of 13% against consensus at 11%, with Grifols "moderately gaining Ig market share." Albumin sales grew 11.7%, slightly better than Takeda's 11%.

Citi forecasts CSL's albumin sales to advance 7% in 1H25.

Grifols' cost per litre declined in 3Q2024 from the previous quarter.

Buy rating with an unchanged target price of $345.

Target price is $345.00 Current Price is $285.29 Difference: $59.71
If CSL meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $335.13, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 CSL as Accumulate (2) -

Ord Minnett draws implications for CSL from recent results of competitors, suppliers, and royalty contributors. Sales of Gardasil in the US rose by 20% in Q3 of 2024, supporting a forecast 1H FY25 royalty of US$125m for CSL.

The broker highlights a recovery in plasma collections, moderation in cost-of-goods-sold (COGS) inflation, and a positive outlook for Immunoglobulin and albumin growth.

The Accumulate rating and $320 target are maintained.

Target price is $320.00 Current Price is $285.29 Difference: $34.71
If CSL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $335.13, suggesting upside of 16.8% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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 DMP as Hold (3) -

Morgans considers incoming CEO and Managing Director Mark van Dyck an ideal choice, though the investment case for Domino's Pizza Enterprises remains uncertain pending a clear turnaround strategy.

A separate trading update for the first 17 weeks of FY25 was weaker than management and consensus had anticipated, highlights the broker.

While 1H guidance was retained, the analysts note management is relying on Christmas period trading in Japan.

Hold. The target falls to $30.70 from $33.20.

Target price is $30.70 Current Price is $30.50 Difference: $0.2
If DMP meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $34.73, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Citi rates EDV as Neutral (3) -

On first inspection, Citi observes Endeavour Group reported weaker-than-forecast 1Q25 results due to a soft retail environment.

1Q25 revenue grew 0.5%, compared to the consensus estimate of 1.9% for 1H25, which management attributed to higher cost-of-living pressures.

Hotel revenue rose 1.5% year-on-year, broadly meeting consensus, with like-for-like sales up 2.9%, outperforming retail, which was flat compared to the consensus estimate of 1.8% growth.

Costs rose for retail due to higher distribution centre wage costs and a doubling up of supply chain costs related to the Queensland warehouse transition, the analyst notes.

Citi points towards high promotional activity in October, and management expects ongoing challenges for the retail outlook. Hotels performed better in October.

Neutral rating with a $5.18 target price.

Target price is $5.18 Current Price is $4.73 Difference: $0.45
If EDV meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.47, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates GQG as Buy (1) -

Ord Minnett adds GQG Partners to the Ord Minnett Analyst Conviction List following sustained net flow momentum shown in management’s October funds under management (FUM) update.

In a strong result, analysts note net flows of US$3.0bn for the month, up from the US$2.2bn average over the past five months.

Along with an attractive valuation and a healthy earnings growth outlook, the broker suggests revenue margins are likely to benefit from a positive flow mix.

The Buy rating and $3.35 target are unchanged.

Target price is $3.35 Current Price is $2.79 Difference: $0.56
If GQG meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.32, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Ord Minnett rates IPH as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage on intellectual property services firm IPH with a Buy rating, expecting EPS growth of around 5% over the next two years alongside a 6% dividend yield.

Already operating across Australia, New Zealand, Asia, and Canada, the company’s growth strategy includes potential M&A activity in South America and South Africa, explains the broker.

The analysts note current PE undervaluation for IPH, highlighting a stronger valuation will be essential for management to issue equity and pursue expansion plans.

A $6.40 target price is set.

Target price is $6.40 Current Price is $5.38 Difference: $1.02
If IPH meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 43.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates IPL as Neutral (3) -

At first glance, Citi observes Incitec Pivot reported a strong FY24 result. EBIT results exceeded expectations, with margins rising to 10.8% compared to the consensus estimate of 9.7%.

The broker highlights fertilisers and Dyno Nobel Asia Pacific, which performed better than forecast, with lower depreciation/amortisation charges contributing positively.

Management provided a robust FY25 outlook, focusing on "transformation" activities, cost management, and pricing strategies, with technology expected to boost margins.

The turnaround in earnings is projected at around $45m-$55m. Neutral rating maintained. Target price $3.10.

Target price is $3.10 Current Price is $3.10 Difference: $0
If IPL meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates JIN as Buy (1) -

Citi is unsurprised by the weak trading AGM update from Jumbo Interactive, as total industry transaction values for the company's main games fell around -7% due to fewer jackpots and only two exceeding $40m.

The broker forecasts 1H25 total transaction value growth for lottery retail at 9%, with Powerball accounting for 55% of total transaction values as annual comps improve from November to December compared to the previous year.

Citi notes a rise to 180k players post-launch, or around 16% of active players, in the loyalty program’s free tier. Depending on conversion to the premium tier at $15/month, the analyst estimates daily winners could add 2%-5% of revenue and 2%-8% of EBITDA.

Management retained FY25 EBITDA guidance and margin and noted the company is open to acquiring growth in the more technology-oriented B2C technology space.

Buy rating maintained with a target price of $14.70.

Target price is $14.70 Current Price is $12.52 Difference: $2.18
If JIN meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $15.77, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgan Stanley rates JIN as Overweight (1) -

After reviewing Jumbo Interactive’s July to October AGM trading update, Morgans assesses a soft start to FY25 for lottery retailing, with total transaction value (TTV) and revenue down by -11.8% and -10.3%, respectively.

Consensus had expected a 1H increase in TTV of 9.55%, slowing to 0.08% growth for FY25, note the analysts.

Morgans assures the company has successfully managed costs in low jackpot environments before, and management has reiterated 46-48% margin guidance at the group level.

Target $19.50. Overweight. Industry view: In Line.

Target price is $19.50 Current Price is $12.52 Difference: $6.98
If JIN meets the Morgan Stanley target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $15.77, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgans rates LAU as Add (1) -

Morgans assesses a "solid" trading update by Lindsay Australia’s management at the AGM, with Transport and Rural sales rising by 3.5% year-on-year for the first four months of FY25.

While horticultural transport volumes were a drag, the analyst notes management indicated conditions are showing signs of improvement at the start of FY25.

Overall, outlook statements remained consistent with those made at the group’s FY24 results, observes the broker.

The Add rating and $1.15 target are unchanged.

Target price is $1.15 Current Price is $0.86 Difference: $0.295
If LAU meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 41.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates LYC as Sell (5) -

Citi anticipates potential US tariffs on Chinese goods could weaken demand, impacting commodities and prices due to reduced levels of Chinese manufacturing activity. Trump's proposed 60% tariffs are viewed as a bargaining tool rather than an immediate threat.

The broker believes tariffs may increase the risk of rare earth substitution as companies explore alternatives to rare earth magnets to minimise supply chain disruptions.

While instability in Myanmar potentially underpins a more "material" risk, to its sell rating on Lynas Rare Earths, the analyst highlights heavy rare earth elements represent less than 10% of the company's revenues.

Sell rating maintained. Target price $5.50.

Target price is $5.50 Current Price is $8.09 Difference: minus $2.59 (current price is over target).
If LYC meets the Citi target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.79, suggesting downside of -13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Ord Minnett rates NWS as Hold (3) -

Following a "robust" 1Q for News Corp, Ord Minnett raises its FY25 earnings (EBITDA) forecast to $1.675bn from $1.65bn, with earnings growth estimates also increased from FY26 onwards.

Earnings of $415m for the quarter came in 4% ahead of consensus, a figure that looks even better when excluding -$12m of REA Group merger and acquisition costs, highlights the analyst.

After a hiatus on research coverage on News Corp, a $50 target is set. Hold.

Target price is $50.00 Current Price is $48.22 Difference: $1.78
If NWS meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $48.77, suggesting downside of -0.9% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.5

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

Morgan Stanley rates ORI as Overweight (1) -

Orica's FY24 result is due on November 14 and Morgan Stanley forecasts EBIT of $804m and a profit of $410m.

Thanks to favourable industry dynamics and market structure, the broker anticipates further evidence of execution and an ongoing strong performance.

The broker retains an Overweight rating and $21.50 target. Industry view: In-Line.

Target price is $21.50 Current Price is $17.64 Difference: $3.86
If ORI meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $19.57, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Bell Potter rates PFP as Buy (1) -

Propel Funeral Partners' 1Q revenue growth run-rate was broadly in line with consensus expectations. Funeral volumes grew by 13%, driven by increased organic volumes and multiple major acquisitions closing from 2Q24 to 1Q25, explain the analysts.

Growth in average revenue per funeral (ARPF) has returned to the company’s longer-term range of 2-4%, observes the broker.

The broker’s target price rises to $6.80 from $6.40 due to a lower assumed risk-free rate, anticipating the upcoming easing cycle.

Buy rating remains unchanged.

Target price is $6.80 Current Price is $5.95 Difference: $0.85
If PFP meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

Bell Potter rates REA as Buy (1) -

REA Group's 1Q trading update was in line with Bell Potter's expectations and management maintained opex guidance while expecting double-digit Buy yield growth in FY25.

While the broker leaves its forecasts unchanged, a lower assumed WACC and higher valuation multiple result in a $258 target, up from $239.

Bell Potter notes seller confidence has continued to underpin a positive operating environment, supported by continued appetite for new lending despite elevated interest rates.

Target price is $258.00 Current Price is $234.19 Difference: $23.81
If REA meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $240.86, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Morgans rates REA as Hold (3) -

Morgans assesses REA Group’s 1Q trading update as strong, with momentum continuing into October. National listings growth of 7% was achieved (pre-released at the AGM), along with a 15% increase in yield.

The domestic residential business remained robust, while REA India’s revenue growth of 42% was another highlight in the analyst’s view.

The target rises to $210 from $204 on the broker’s minor EPS forecast upgrades. Hold.

Target price is $210.00 Current Price is $234.19 Difference: minus $24.19 (current price is over target).
If REA meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $240.86, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Ord Minnett rates REA as Hold (3) -

Ord Minnett raises its target for REA Group to $240 from $225 after Q1 indications some agents and vendors are favouring the group over Domain Holdings Australia ((DHG)) in their marketing allocations.

REA's residential growth of 22%, excluding Realtair, outpaced Domain's 12%, buoyed by price hikes, increased depth uptake, and add-ons, explains the analyst.

Management now expects 4% listings growth for FY25, up from an earlier forecast for marginal growth.

Ord Minnett's Hold rating is maintained.

Target price is $240.00 Current Price is $234.19 Difference: $5.81
If REA meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $240.86, suggesting upside of 0.5% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

UBS rates REA as Buy (1) -

UBS believes REA Group reported another "solid" quarterly result, with the analyst surprised by the growth in underlying yield, which advanced 6% year-on-year due to ongoing upgrades by agents to Prem-plus packages, increased take-up of Audience Maximiser, and contributions from Luxe.

The analyst notes October volumes are up 14% year-on-year and up 7% when adjusted for two extra working days relative to the previous corresponding period.

UBS raises forecast volume growth for 2Q25 to 7% from 5%, assuming a slight easing in growth rates in November and December, as rate cuts are now expected in May rather than February 2025.

Growth in volumes for 2H25 is expected to be flat, leading to estimated FY25 volumes of 3.5% versus the previous estimate of 3%.

Target price increases to $268 from $263. Buy rating retained.

Target price is $268.00 Current Price is $234.19 Difference: $33.81
If REA meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $240.86, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Ord Minnett rates RHC as Hold (3) -

In a recent September quarter update, Ramsay Health Care's majority-owned subsidiary Ramsay Sante reported 8.6% revenue growth driven by price hikes and volume growth in both France and Sweden, highlights Ord Minnett.

Despite a margin increase to 9% from 8.5% in the prior corresponding period, the broker advises caution in extrapolating first-quarter results due to seasonal variations.

The broker retains its Hold rating and $42.40 target for Ramsay Health Care.

Target price is $42.40 Current Price is $38.72 Difference: $3.68
If RHC meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $44.00, suggesting upside of 14.3% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Citi rates SGP as Buy (1) -

Stockland upgraded FY25 guidance by 3%, which Citi believes is in line with expectations, following the finalisation of the communities acquisition from Lendlease (LLC).

At first glance, the broker explains the upgrade aligns with expectations but remains a positive move for the REIT.

The analyst anticipates a possible 1%-2% earnings accretion on top of the already estimated circa 5% accretion from the deal in FY26.

Citi favours Stockland over Mirvac Group ((MGR)), with a compound growth rate in EPS of around 11% from FY25 to FY27.

Citi retains a Buy rating. Target price: $6.

Target price is $6.00 Current Price is $5.04 Difference: $0.96
If SGP meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.72, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Ord Minnett rates WDS as Hold (3) -

Scarborough remains on track for inaugural LNG production in 2026, with an enhanced focus on decarbonising operations, notes the analyst at Ord Minnett, following a site tour of Woodside Energy's LNG operations in Karratha.

A greater understanding of the derating of Train 1 capacity with Scarborough’s start-up leads the broker to reduce Pluto production forecasts for 2026-2028, resulting in a -4% lower target of $25.50.

The broker’s Hold rating is maintained due to potential execution risks and concerns around future production.

Target price is $25.50 Current Price is $24.07 Difference: $1.43
If WDS meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.63, suggesting upside of 15.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Morgan Stanley rates WEB as Downgrade to Underweight from Equal-weight (5) -

In what appears to be a reaction to Web Travel's 1H preliminary results back in mid-October, Morgan Stanley lowers its target to $3.70 from $7.00 and downgrades to Underweight from Equal-weight, preferring other travel exposures. Industry View: In-line. 

In the broker's view, the October trading update was not just an earnings downgrade but also a downgrade to long-term earnings potential.

Further, channel checks conducted by the analysts indicate competition between wholesalers, in the form of take-rates, has
intensified, and major online travel agents (OTAs) and competitor Hotelbeds have a relative scale advantage.

Target price is $3.70 Current Price is $4.34 Difference: minus $0.64 (current price is over target).
If WEB meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.26, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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