Australian Broker Call

UBS rates A2M as Buy (1) -

While noting consensus is factoring in FY26 EBITDA margins to fall to 19%, on further analysis UBS believes margins can actually lift to 22%. This reflects lower ingredient costs, increased infant formula marketing efficiency and a more stable sales mix.

The broker expects a substantial rise in net profit versus FY23 going forward, driven by strong formula sales and a recovery in the daigou channel.

Estimates are trimmed for FY23-24 because of the disruptions caused by the pandemic in early 2023 and slower manufacturing internalisation in FY24.

Buy rating and NZ$8.90 target price retained.

Current Price is $5.21. Target price not assessed.

Current consensus price target is $5.84, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.1

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

Bell Potter rates AHL as Buy (1) -

Bell Potter expects Adrad will likely experience similar revenue weakness to that announced by peers in recent trading updates.

The broker expects the company will still meet guidance, but downgrades its revenue forecasts to the middle of the guidance range.

Adrad appreciates the company's dividend, strong balance sheet and potential for M&A.

EPS forecasts fall -8% in FY24; -8% in FY25; and -6% in FY26.

Buy rating retained on valuation. Target price falls to $1.45 from $1.55 to reflect weaker revenue assumptions.

Target price is $1.45 Current Price is $0.94 Difference: $0.515
If AHL meets the Bell Potter target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates AIZ as Accumulate (2) -

Air New Zealand now expects FY23 pre-tax profit of no less than NZ$580m, an upgrade of 8% at the mid point of prior guidance. Ord Minnett suggests exceptional conditions are unlikely to persist, expecting pricing competition will return as capacity bottlenecks ease.

Major competitors are also seeking to materially increase their own international capacity over coming months. Moreover, the lower fuel costs that are projected will typically be competed away and savings passed through to customers.

Accumulate rating and $0.88 target maintained.

Target price is $0.88 Current Price is $0.71 Difference: $0.17
If AIZ meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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 AX1 as Hold (3) -

Morgans lowers earnings forecasts for all Discretionary Retail stocks under its coverage in the expectation of ongoing consumer stress from elevated inflation and higher interest rates. Recent profit warnings by companies in the sector contributed to this view.

More positively, the analysts expect inflation will moderate in coming months and consumer sentiment may start to improve.

For Accent Group, the broker lowers its FY23 EPS estimate by -10% and its target to $1.80 from $2.30.

The Hold rating is unchanged as Morgans believes the company is currently fairly valued. While management continues to drive positive network expansion, some limitations are expected on sustaining the pace of growth.

Target price is $1.80 Current Price is $1.69 Difference: $0.115
If AX1 meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates AZJ as Accumulate (2) -

Ord Minnett notes the main impediment to Aurizon Holdings in FY23 was heavy rain on the east coast which hurt mine production but La Nina appears to be over and exports are recovering.

A more positive outlook for revenue in FY24 should be enhanced by higher average tariffs. Ord Minnett forecasts EBITDA growing at an average rate of just under 6% per annum to FY27.

The broker is not overly concerned by the high exposure to coal and points out the company is mostly exposed to coking coal for which there is no economically viable alternative in steel-making. Accumulate retained. Target is $4.70.

Target price is $4.70 Current Price is $3.57 Difference: $1.13
If AZJ meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $3.91, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates AZJ as Neutral (3) -

UBS observes June is the month for sampling input for Aurizon Holdings' network-regulated WACC and notes the recent increase in market bond yields is timely. The company has already announced a preliminary 8.18%, effective in FY24, compared with 6.3% currently.

The broker calculates that there is likelihood of a strong step up in earnings for the network post FY23.

That said, the stock is considered fairly valued and UBS retains a Neutral rating and $3.55 target. A larger proportion of non-coal earnings are considered essential for the stock to re-rate.

Target price is $3.55 Current Price is $3.57 Difference: minus $0.02 (current price is over target).
If AZJ meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.91, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Citi rates BAP as Downgrade to Neutral from Buy (3) -

Citi flags increasing concerns around the outlook for Bapcor's retail division and the commitment to the Thai roll-out. A more challenging economic environment is also going to make it harder for the company to achieve its FY25 EBIT target of more than $100m.

The broker points to estimated retail sales growth of just 1% in FY24 and the downside risk to consumer demand, particularly for more discretionary products.

Many other retailers have recently downgraded, the broker adds, and credit card data in the US is showing a slowdown in auto parts demand. Hence, the category may not be as resilient as previously thought.

Rating is downgraded to Neutral from Buy and the target lowered to $6.49 from $9.18.

Target price is $6.49 Current Price is $6.13 Difference: $0.36
If BAP meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.37, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates BLX as Add (1) -

Morgans lowers earnings forecasts for all Discretionary Retail stocks under its coverage in the expectation of ongoing consumer stress from elevated inflation and higher interest rates. Recent profit warnings by companies in the sector contributed to this view.

More positively, the analysts expect inflation will moderate in coming months and consumer sentiment may start to improve.

For Beacon Lighting, the broker lowers its FY23 and FY24 EPS forecasts by -3% and -5%, respectively, and its target to $2.00 from $2.60.

The Add rating is unchanged as Morgans believes management will be able to offset the effect of reduced consumer demand with growth in the Trade division.

Target price is $2.00 Current Price is $1.39 Difference: $0.61
If BLX meets the Morgans target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates CHC as Buy (1) -

Ord Minnett assesses rents for the major office A-REITs have bottomed and should gradually recover, highlighting the recovery of activity in Sydney's central business district appears intact, according to passenger data released by Transport NSW.

The broker points out this view is distinct from lower-grade assets and the CBD fringe/secondary locations, yet is not arguing that hybrid working arrangements will end, as this is a structural change brought on by technology and a more diverse workforce that accelerated during the pandemic.

Significantly, hybrid working favours premium and A-grade buildings owned by the majors with their large floor plans and modern technology. The broker retains a Buy rating and $16.20 target for Charter Hall, believing the major office stocks are undervalued.

Target price is $16.20 Current Price is $10.99 Difference: $5.21
If CHC meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $14.79, suggesting upside of 34.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates DMP as Downgrade to Sell from Neutral (5) -

Citi downgrades Domino's Pizza Enterprises to Sell from Neutral, believing it increasingly unlikely franchisee profitability will improve materially in the short term. The broker is also cautious regarding the competitive risks in Australia with signs delivery volumes remain under pressure.

On further analysis of the takeaway sales in Australia and websites and apps across key markets, estimates for FY24-25 earnings per share are cut by -11-19% to reflect a slower roll-out and higher costs. Target is reduced to $42.80 from $58.00.

Target price is $42.80 Current Price is $46.26 Difference: minus $3.46 (current price is over target).
If DMP meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $61.47, suggesting upside of 41.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates DOW as Accumulate (2) -

If Downer EDi's new management can show improvements in the business, Ord Minnett believes the shares will re-rate. Shares are at their cheapest, in the broker's opinion, since the bear market during the pandemic.

Valuation metrics are also undemanding and the broker believes the market is discounting future cash flow too steeply. Now the capital-intensive business is out of the way attention can focus on the underlying growth drivers. Accumulate maintained. Target is $5.60.

Target price is $5.60 Current Price is $3.60 Difference: $2
If DOW meets the Ord Minnett target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $4.17, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Citi rates DXS as Neutral (3) -

Dexus has sold 44 Market Street, Sydney, for $393.1m, reflecting a -17.2% discount  to the December 2022 independent value. Citi estimates the building sold at just over a 6.5% capitalisation rate.

Although the company was not a forced seller Citi believes the sale is important in recycling capital into the development pipeline.

The transaction also serves as a pointer for the Sydney office market and the broker therefore anticipates a shift higher in cap rates throughout the year will affect listed and unlisted peer group book values.

Neutral and $8.00 target retained.

Target price is $8.00 Current Price is $8.14 Difference: minus $0.14 (current price is over target).
If DXS meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.11, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Ord Minnett rates DXS as Accumulate (2) -

Ord Minnett assesses rents for the major office A-REITs have bottomed and should gradually recover, highlighting the recovery of activity in Sydney's central business district appears intact, according to passenger data released by Transport NSW.

The broker points out this view is distinct from lower-grade assets and the CBD fringe/secondary locations, yet is not arguing that hybrid working arrangements will end, as this is a structural change brought on by technology and a more diverse workforce that accelerated during the pandemic.

Significantly, hybrid working favours premium and A-grade buildings owned by the majors with their large floor plans and modern technology. The broker retains an Accumulate rating and $10.80 target for Dexus, believing the major office stocks are undervalued.

Target price is $10.80 Current Price is $8.14 Difference: $2.66
If DXS meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $9.11, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Ord Minnett rates EVN as Lighten (4) -

Ord Minnett is now more confident after site trips to Cowal and Ernest Henry, believing the company can deliver operating improvements over the coming years at Cowal and Mungari along with mine extensions at Ernest Henry.

The debt refinancing has reduced strain on the balance sheet and FY24 guidance is broadly in line with expectations at the production/costs line.

Still, the valuation of the stock remains stretched, although Ord Minnett acknowledges it is likely to retain appeal for those investors seeking liquid, large leveraged gold exposure. Lighten maintained. Target rises to $2.90 from $2.55.

Target price is $2.90 Current Price is $3.44 Difference: minus $0.54 (current price is over target).
If EVN meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.33, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Ord Minnett rates GPT as Accumulate (2) -

Ord Minnett assesses rents for the major office A-REITs have bottomed and should gradually recover, highlighting the recovery of activity in Sydney's central business district appears intact, according to passenger data released by Transport NSW.

The broker points out this view is distinct from lower-grade assets and the CBD fringe/secondary locations, yet is not arguing that hybrid working arrangements will end, as this is a structural change brought on by technology and a more diverse workforce that accelerated during the pandemic.

Significantly, hybrid working favours premium and A-grade buildings owned by the majors with their large floor plans and modern technology. The broker retains an Accumulate rating and $5.40 target for GPT Group believing the major office stocks are undervalued.

Target price is $5.40 Current Price is $4.01 Difference: $1.39
If GPT meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 26.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates IPL as Accumulate (2) -

Incitec Pivot has reported an unexpected reduction in reserves from the ENI Blacktip gas field which will leave it short of gas for Phosphate Hill but Ord Minnett observes the longer-term impact is relatively immaterial.

The leadership shuffle, with CEO Jeanne Johns stepping down, in conjunction with gas supply issues, does raise questions regarding the plant de-merger of fertiliser. Yet, the broker retains the view that a de-merger would be valuation-neutral in any case.

Ord Minnett assesses the shares, being down almost -30% from peaks in November 2022, screen attractively and retains an Accumulate rating with a $3.50 target.

Target price is $3.50 Current Price is $2.78 Difference: $0.72
If IPL meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.42, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Morgans rates JBH as Downgrade to Hold from Add (3) -

Morgans lowers earnings forecasts for all Discretionary Retail stocks under its coverage in the expectation of ongoing consumer stress from elevated inflation and higher interest rates. Recent profit warnings by companies in the sector contributed to this view.

More positively, the analysts expect inflation will moderate in coming months and consumer sentiment may start to improve.

For JB Hi-Fi, the broker lowers its FY24 EPS forecast by -5%, respectively, and its target to $45 from $50. The rating is downgraded to Hold from Add on valuation given shares have significantly outperformed the Discretionary Retail sector over the past three months.

Morgans considers the company is trading close to fair value given the risks around consumer spending, especially given a lack of significant store rollout potential.

Target price is $45.00 Current Price is $42.40 Difference: $2.6
If JBH meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $44.95, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Citi rates JHX as Buy (1) -

Citi notes recent information from James Hardie Industries' disclosures provides new insight into potential gross margins, noting the company has usually been reluctant to provide detail.

The broker assesses, unusually, it was lower SG&A (selling, general and admin expense) that drove the FY23 results, although historically this is not been the first time SG&A has assisted margins.

Ultimately volumes determine operating leverage in a manufacturing business yet there are levers the company can use to support margins. 

As a result Citi is now more comfortable forecasting a 28% FY24 EBIT margin for North America, while awaiting the market to turn. Buy rating and $42.50 target maintained.

Target price is $42.50 Current Price is $37.87 Difference: $4.63
If JHX meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $42.83, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in March.

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: 0.9

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

Shaw and Partners rates LME as Downgrade to Hold from Buy (3) -

Limeade's board has approved a merger with WebMD Health Services.

Under the deal, WebMD will buy 100% of Limeade for 42c a share, cash, - a 325% premium to the last close. The offer is in line with Shaw and Partners' target price of 40c so the broker considers it to be fair.

Shaw and Partners observes long-term investors are taking advantage of the current illiquid market and the focus on cash burn and adds that companies in a similar position to Limeade include Whispir ((WSP)), Keypath ((KED)) and XPON Technologies ((XPN)).

Holistics wellbeing solutions provider WebMD is owned by California-based Internet brands.

The broker observes that prior to the announcement, the company was trading on just 0.3x revenue; enjoyed $58m in recurring revenue; its customers included some of the world's largest companies; had invested $150m of capital into its software platform; and was a strategic partner with Microsoft on Viva.

Rating downgraded to Hold from Buy. Target price rises to 43c from 40c.

Target price is $0.43 Current Price is $0.41 Difference: $0.025
If LME meets the Shaw and Partners target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Morgans rates LOV as Add (1) -

Morgans lowers earnings forecasts for all Discretionary Retail stocks under its coverage in the expectation of ongoing consumer stress from elevated inflation and higher interest rates. Recent profit warnings by companies in the sector contributed to this view.

More positively, the analysts expect inflation will moderate in coming months and consumer sentiment may start to improve.

For Lovisa Holdings, the broker lowers its FY23 and FY24 EPS estimates by -4% and -5%, respectively, and lowers its target to $26 from $28.50.

While Lovisa can be affected by a general consumer downturn, Morgans expects outperformance due to its resilient customers and strong competitiveness. Add.

Target price is $26.00 Current Price is $18.20 Difference: $7.8
If LOV meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $27.56, suggesting upside of 45.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Ord Minnett rates MGR as Accumulate (2) -

Ord Minnett assesses rents for the major office A-REITs have bottomed and should gradually recover, highlighting the recovery of activity in Sydney's central business district appears intact, according to passenger data released by Transport NSW.

The broker points out this view is distinct from lower-grade assets and the CBD fringe/secondary locations, yet is not arguing that hybrid working arrangements will end, as this is a structural change brought on by technology and a more diverse workforce that accelerated during the pandemic.

Significantly, hybrid working favours premium and A-grade buildings owned by the majors with their large floor plans and modern technology. The broker retains an Accumulate rating and $3.10 target for Mirvac Group believing the major office stocks are undervalued.

Target price is $3.10 Current Price is $2.24 Difference: $0.86
If MGR meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $2.57, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Citi rates NIC as Neutral (3) -

Citi observes Nickel Industries' shares have risen 11% on news of a conditional $943m placement to United Tractors at a 27% premium to the last close.

With the overhang now removed, Nickel Industries will investigate third-party debt to partially fund construction of its 55% stake in the US$2.3bn ENC HPAL project, which points to no further equity being required for either stage.

Citi updates its numbers to reflect the placement and retains a Neutral/High Risk rating with a target of $1.05.

Target price is $1.05 Current Price is $0.98 Difference: $0.07
If NIC meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Ord Minnett rates PSI as Initiation of coverage with Hold (3) -

Ord Minnett initiates coverage on PSC Insurance with a Hold rating and $4.90 target. Acquisitions remain a key pillar of the company's growth strategy.

The broker notes the track record of acquiring and growing businesses has been good and while the risk of brokers and business founders leaving on acquisition can never be fully mitigated this has not been an issue over the company's history.

At current prices the broker believes the shares are trading at a modest discount to fair value.

Target price is $4.90 Current Price is $4.87 Difference: $0.03
If PSI meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.35, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Bell Potter rates PWH as Upgrade to Buy from Hold (1) -

Bell Potter expects PWR Holdings will likely experience similar revenue weakness to that announced by peers in recent trading updates.

The broker observes wage pressure, rising set-up costs in the UK and potential softness in the aftermarket sector (offset by rises in motorsports and operating equipment manufacturing forecasts).

On the cost front, Bell Potter notes the company can fully expense costs in the period incurred so changes are minimal.

EPS forecasts fall -3% in FY23; -4% in FY24; and -3% in FY23 to reflect increase operating expenditure forecasts.

Rating upgraded to Buy from Hold. Target price eases to $10.50 from $10.75.

Target price is $10.50 Current Price is $8.59 Difference: $1.91
If PWH meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $11.21, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

UBS rates PXA as Buy (1) -

UBS assesses Pexa Group offers a free option on success in the UK and in digital. The UK refi roll-out has evolved and appears to be on track. Rebates to existing lenders will continue until December.

Meanwhile, transfers volumes are cycling tough comparables but gradually recovering, the broker notes. Recent data indicates a strong recovery in Sydney, which UBS interprets as a positive lead indicator into FY24.

Buy rating retained. Target is reduced to $16.50 from $17.50.

Target price is $16.50 Current Price is $13.07 Difference: $3.43
If PXA meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $16.03, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates SOL as Lighten (4) -

WH Soul Pattinson's portfolio net asset value has increased by just 1% since March, Ord Minnett observes.

The aggregate portfolio benefited from valuation gains, while funds were reallocated for the listed large cap portfolio to structured yield assets, private equity investments and cash. The broker maintains its Lighten rating and $26.90 target.

Target price is $26.90 Current Price is $32.38 Difference: minus $5.48 (current price is over target).
If SOL meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates SUL as Add (1) -

Morgans lowers earnings forecasts for all Discretionary Retail stocks under its coverage in the expectation of ongoing consumer stress from elevated inflation and higher interest rates. Recent profit warnings by companies in the sector contributed to this view.

More positively, the analysts expect inflation will moderate in coming months and consumer sentiment may start to improve.

For Super Retail, the broker lowers its FY23 and FY24 EPS estimates by -2% and its target to $14.20 from $15.50.

The company has 9.7m Club members who spend $267 per year (1.5 times non-members) and management is aiming for around $300 per year, which Morgans feels will support sales in a weaker environment. Add.

Target price is $14.20 Current Price is $11.10 Difference: $3.1
If SUL meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $12.79, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates THL as Buy (1) -

Ord Minnett reviews the latest results from Thor Industries, the largest RV manufacturer globally, to ascertain why Tourism Holdings Rentals may be misunderstood.

The analysis of the US market suggests RV manufacturers may be demonstrating a more rational approach to both production and working with dealers to manage excess inventory.

As a result, the recent decline in the share price on the back of concerns about the US market appears overdone. Hence, Ord Minnett retains a Buy rating and reduces the target to NZ$5.46 from NZ$5.57.

Current Price is $3.43. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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

Morgans rates TRS as Downgrade to Hold from Add (3) -

Morgans lowers earnings forecasts for all Discretionary Retail stocks under its coverage in the expectation of ongoing consumer stress from elevated inflation and higher interest rates. Recent profit warnings by companies in the sector contributed to this view.

More positively, the analysts expect inflation will moderate in coming months and consumer sentiment may start to improve.

For the Reject Shop, the broker downgrades its rating to Hold from Add and recommends investors take profits after recent share price strength. The target is decreased to $4.25 from $4.60 on lower earnings estimates.

Target price is $4.25 Current Price is $4.48 Difference: minus $0.23 (current price is over target).
If TRS meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.93, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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