Australian Broker Call

Morgans rates ACF as Add (1) -

Acrow Formwork and Construction Services reported earnings comfortably above Morgans' forecast, and FY guidance has been upgraded for the third time since the August result release.

Earnings were driven organically, the broker notes, margins rose despite supply challenges and the pipeline remains strong.

Trading on an 8.3x FY22 PE multiple and offering a  4.7% yield the broker continues to see valuation as attractive, noting the company offers leverage to increased infrastructure activity over the longer term.

Add retained, target rises to 72c from 64c.

Target price is $0.72 Current Price is $0.53 Difference: $0.19
If ACF meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates AGL as Outperform (1) -

Following the first half, and a 3% beat to Credit Suisse's earnings forecasts, AGL Energy lifts lower end of full year guidance range, now guiding to earnings of $1,275m-1,400m, previously $1,200m at the lower end, and profit of $260-340m, previously $220m at the lower end. 

Despite the positives, New AGL, the company's green energy focused business, showed little progress towards its target of service growth of 500,000 by FY24, and the broker finds Accel's prospects better with energy price increases driving an improved outlook beyond FY22.

The Outperform rating is retained and the target price decreases to $8.20 from $8.50.

Target price is $8.20 Current Price is $7.27 Difference: $0.93
If AGL meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.62, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates AGL as No Rating (-1) -

AGL Energy's 1H profit of $194m was a beat versus the consensus estimate of $119m and Macquarie's forecast for $151m. This was despite a miss for the annuity business AGL Australia, on a weaker consumer business than expected.

On the other hand, Accel Energy was ahead of the analyst's expectations, partly due to better sale prices to AGL Australia. The broker adjusts FY22-24 EPS forecasts by 1.8%, -3.6% and 5.6%, respectively.

Due to research restrictions, Macquarie cannot advise its valuation on AGL Energy at present.

Current Price is $7.27. Target price not assessed.

Current consensus price target is $7.62, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Morgan Stanley deems the FY23 outlook for AGL Energy remains constructive, following somewhat mixed 1H results. After marking-to-market electricity pool prices, the target price rises 6% to $6.88. Equal-weight. Industry view: Cautious.

While 1H underlying profit was a beat versus the broker's estimate, FY22 profit guidance implies a lower run rate into FY23 than the consensus estimate, explains the broker.

The 1H dividend of 16cps was a beat versus the consensus estimate for 10cps.

Target price is $6.88 Current Price is $7.27 Difference: minus $0.39 (current price is over target).
If AGL meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.62, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates AGL as Hold (3) -

Following a better than expected result, AGL Energy has lifted FY22 guidance by 7% at the midpoint, Morgans reports. The company noted the demerger process is on schedule for the end of the FY, and has named its price.

AGL remains a difficult investment proposition ahead of its demerger, the broker suggests, with its component parts likely to attract investors who have environmental priorities that are at polar opposites.

Unfortunately in this scenario neither set of investors is likely to place much value on the assets of the respective unwanted businesses. The broker suggests investors may wait until after the demerger to re-rate the two entities. Hold retained, target falls to $7.24 from $7.48.

Target price is $7.24 Current Price is $7.27 Difference: minus $0.03 (current price is over target).
If AGL meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.62, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates AGL as Buy (1) -

AGL Energy's interim result proved better-than-expected but Ord Minnett points out the difference was made up by lower financing costs.

Management has not lifted FY22 guidance and the broker sees this as simply being (overly) conservative.

Ord Minnett was positioned for a fresh equity raise but now acknowledges this risk has been removed as both entities inside the business have secured fresh debt.

AGL has brought forward asset closure dates; no later than 2033 for Bayswater Power Station and 2045 for Loy Yang A Power Station.

Buy rating retained. Target lifts by 5c to $8.75.

Target price is $8.75 Current Price is $7.27 Difference: $1.48
If AGL meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $7.62, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates AGL as Neutral (3) -

UBS reports AGL Energy's underlying interim result was greater than 60% above market consensus with the company taking advantage of generation outages at two major competitors, explains the broker.

With no change at the top end of FY22 guidance, UBS points out H2 will be a lot lower in comparison. AGL did also reveal it plans to accelerate closure of its coal-fired power stations.

UBS thinks these plans will likely be accelerated further at some stage. As the broker continues to see numerous structural challenges, the rating remains Neutral. Price target jumps to $7.05 from $6.

Target price is $7.05 Current Price is $7.27 Difference: minus $0.22 (current price is over target).
If AGL meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.62, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Citi rates AMP as Neutral (3) -

Citi does not pass comment on the strength or otherwise of AMP's result. The broker notes the earnings outlook is becoming easier to assess but with a lot of transition still happening and several moving parts, assessment remains difficult.

It still looks like a tough year ahead, Citi suggests, with Private Markets in transition and only Wealth Management set to deliver much in the way of earnings growth. The upcoming demerger will lower costs, but probably not in 2022.

Target rises to $1.20 from $1.10, Neutral (High Risk) retained.

Target price is $1.20 Current Price is $1.07 Difference: $0.13
If AMP meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Credit Suisse rates AMP as No Rating (-1) -

While AMP beat consensus expectations by 14% with an FY21 profit result of $356m, largely driven by higher performance fees, profit loss of -$252m was worse than forecast. Looking ahead, Credit Suisse predicts FY22 profit to be down -35-40% year-on-year to $218m.

The expected profit decline takes into account earnings declines in Australian Wealth Management, New Zealand Wealth Management, AMP Capital and Bank earnings, with Bank earnings notably expected to reduce -25%. 

The broker also downgrades earnings forecasts -35% in FY22-23.

Credit Suisse remains research restricted and cannot provide a rating or target for AMP.

Current Price is $1.07. Target price not assessed.

Current consensus price target is $1.08, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

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

Morgan Stanley raises its target price for AMP to $1.12 from $0.95 following a better than expected FY21 result due to faster mortgage growth in the Bank and improved operating leverage in Wealth.

The analyst estimates the current valuation is fair and retains the Equal-weight rating though cautions the company offers a wide risk-reward scenario, with a broad range of potential outcomes. Industry View: Attractive.

Target price is $1.12 Current Price is $1.07 Difference: $0.05
If AMP meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Ord Minnett rates AMP as Hold (3) -

AMP's FY21 reported underlying profit was a beat versus Ord Minnett's estimate though a Hold rating is maintained as uncertainty reigns over what the new business will ultimately look like. The target price of $1.10 is unchanged.

After a fall in 2H earnings for Wealth, the broker assesses revenue pressures appear to be greater than cost savings. Meanwhile, net interest margin (NIM) pressure more than offset loan growth in the Bank segment.

Target price is $1.10 Current Price is $1.07 Difference: $0.03
If AMP meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

UBS rates AMP as Sell (5) -

UBS acknowledges the FY21 headline result released by AMP yesterday surprised to the upside, but at the same time operational challenges are tangible and real and that headline surprise won't be sustainable, counters the broker.

UBS sees little reason to change its cautious view regarding AMP's core businesses and thus retains its Sell rating and price target of $0.90.

The broker is equally not convinced the announced demerger plan for PrivateMarketsCo will unlock value for shareholders, adding there will be no resumption of paying dividends on the immediate horizon.

Target price is $0.90 Current Price is $1.07 Difference: minus $0.17 (current price is over target).
If AMP meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.08, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Ord Minnett rates ANN as Accumulate (2) -

Ord Minnett hopes Ansell's 1H results due on Tuesday February 15 will reveal greater detail on transitory costs and headwinds resulting from covid-related pressures.

Management has already indicated it implemented another round of price increases at the start of 2H of FY22 to offset cost inflation and the broker will be looking for signs around the pace of margin recovery. The Accumulate rating and $33 target are maintained.

Target price is $33.00 Current Price is $26.90 Difference: $6.1
If ANN meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $31.25, suggesting upside of 17.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Citi rates ANZ as Neutral (3) -

Given recent peer disclosures on the sensitivity of deposit earnings to higher rates, Citi has now incorporated a higher long term return on equity forecast into its ANZ Bank valuation given its deposit base.

The broker had previously incorporated a higher risk free rate, but has now incorporated a higher ROE (11%) to reflect the impact of higher rates.

The result is no change to earnings forecasts but a target price increase to $29.25 from $27.00. Neutral retained.

Target price is $29.25 Current Price is $27.71 Difference: $1.54
If ANZ meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $29.68, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates AQZ as Buy (1) -

Ord Minnett stresses the FY23 story for Alliance Aviation Services is unchanged, despite a 1H result below expectations. Covid has delayed the ramp-up in usage by Qantas Airways ((QAN)) by three to six months, though a snap-back is expected in early April.

The broker lowers its FY22-23 profit (PBT) estimates and cuts its target price to $5 from $5.15.

Target price is $5.00 Current Price is $3.76 Difference: $1.24
If AQZ meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 31.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates ASX as Sell (5) -

As often seems to be the case, notes Citi, ASX has squeezed out a small beat relative to consensus. Record new listings were partly offset by lower futures volumes.

Slightly increased FY cost guidance is not expected to have a material impact on a company with such a strong earnings margin. The departure of the CEO somewhat upset the market, but Citi suggests this was not unexpected.

Yet the stock remains on a too-high multiple for the broker. Sell retained. Target unchanged at $82.30.

Target price is $82.30 Current Price is $83.41 Difference: minus $1.11 (current price is over target).
If ASX meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $81.86, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Credit Suisse rates ASX as Neutral (3) -

An unsurprising first half result from ASX for Credit Suisse, with profit of $250m a -1% miss on the broker's forecast, comprised of a 1% cost beat and -1% revenue miss. Given slightly higher costs, the broker reduces earnings per share -0-1% through to FY24.

Decarbonisation continues to provide new opportunities for growth, with the company shortlisted to submit for the Australian Carbon Exchange. The broker expects EPS growth of 3-4% per annum over the next few years.  

The Neutral rating and target price of $86.00 are retained.

Target price is $86.00 Current Price is $83.41 Difference: $2.59
If ASX meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $81.86, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Macquarie rates ASX as Outperform (1) -

Following 1H results for ASX, Macquarie lowers its EPS forecasts by an average of around -2% due to increased estimates for expense growth. FY22 expense growth guidance is now for 7-8%, up from 5-7%.

The announcement of the CEO's retirement weighed on sentiment, though potentially creates possibilities for capital restructuring/more leverage, suggests the analyst.

The broker likes the long term growth outlook and retains its Outperform rating, while the target slips to $96.50 from $103.50.

Target price is $96.50 Current Price is $83.41 Difference: $13.09
If ASX meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $81.86, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Morgan Stanley rates ASX as Underweight (5) -

The first half profit and dividend for ASX was a 4% beat over Morgan Stanley's forecast and just a 1% beat versus the consensus estimate. The positive outcome was thought due to better listings and post-trade revenues for equities. The target price rises to $73.70 from $72.50.

Despite the positive result, the broker retains its Underweight rating as there appears to be little progress on growth options. In addition, with the CEO leaving, risk increases that the CHESS replacement is delayed or reviewed, with cost implications. Industry view: Attractive.

Target price is $73.70 Current Price is $83.41 Difference: minus $9.71 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $81.86, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Morgans rates ASX as Reduce (5) -

The ASX result was a little shy of Morgans' forecast, but broadly strong overall, with revenue growth hampered by low futures and derivatives volumes. Increased expense guidance came as a surprise.

ASX is a quality company, in the broker's view, delivering strong results and the longer term optionality of revenue diversification from new adjacencies. However, based on its earnings growth profile, the broker sees the stock as fully priced.

Target rises to $72.94 from $68.95, Reduce retained.

Target price is $72.94 Current Price is $83.41 Difference: minus $10.47 (current price is over target).
If ASX meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $81.86, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Ord Minnett rates ASX as Hold (3) -

The interim financial performance proved slightly better-than-expected, but Ord Minnett sees the sudden departure of the CEO as overshadowing the ASX's result release, as it could potentially lead to some instability at the exchange.

Guidance for higher expenses is seen as a negative too. With futures volumes potentially, eventually, to benefit from rising interest rates, Ord Minnett retains its Hold rating.

Target price $84.56 (was $86.24).

Target price is $84.56 Current Price is $83.41 Difference: $1.15
If ASX meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $81.86, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

UBS rates ASX as Sell (5) -

Judging from UBS's commentary, the released financials were -broadly- in-line, but higher costs on the operational side were a big negative surprise.

As a result, the ASX's operational margin surprised to the downside. The broker sees benefits from rising rates, but also a challenge ahead from peak equity-related volumes and rising costs.

It is UBS's view that the ASX share price is too expensive. Sell. Target $77.

Target price is $77.00 Current Price is $83.41 Difference: minus $6.41 (current price is over target).
If ASX 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 $81.86, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Citi rates BBN as Buy (1) -

Upon initial assessment, it apears baby Bunting's interim performance marks a significant beat of market consensus, and Citi's forecasts have been bettered too, but there's a lot going on on the accountancy front.

No FY22 guidance was forthcoming from the company.

Citi analysts argue the non-discretionary nature of the baby goods industry should see Baby Bunting relatively well placed over 2022 compared to other listed retailers.

Today's better-than-expected underlying performance in combination with the reasonable start to 2H22 may be taken positively by investors, suggests the broker. Buy. Target $6.11.

Target price is $6.11 Current Price is $5.43 Difference: $0.68
If BBN meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.39, suggesting upside of 21.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates BLD as Neutral (3) -

In the wake of divestments and a $3bn return of capital, Citi has updated its valuation model to reflect continuing operations and the new capital structure.

As a result, target falls to $4.03 from $4.20. Neutral retained.

Target price is $4.03 Current Price is $3.93 Difference: $0.1
If BLD meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.57, suggesting upside of 46.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates BSL as Buy (1) -

Ord Minnett lowers its earnings (EBIT) forecasts for BlueScope Steel after a fall in US hot-rolled coil forward curves and a rebound in iron ore prices. The target price falls to $27 from $30. Buy.

The company reports 1H results on Monday, 21 February.

Target price is $27.00 Current Price is $19.01 Difference: $7.99
If BSL meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $26.01, suggesting upside of 37.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates CBA as Underweight (5) -

Commonwealth Bank posted a first half cash profit 10% above Morgan Stanley's estimate, as franchise momentum and volume tailwinds offset a -17bp net interest margin headwind. Management is expecting further margin decline in the second half.

But an "historically unique inflection point" in interest rates should lead to medium term tailwinds, management suggests, which could offset ongoing variable rate mortgage competition and an increase in wholesale funding costs.

The broker agrees, forecasting a -20 point margin fall in FY22, stable in FY23 and up 6 points in FY24. Target rises to $91 from $90, Underweight retained. Industry view: Attractive.

Target price is $91.00 Current Price is $100.78 Difference: minus $9.78 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $91.48, suggesting downside of -7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.7

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

Credit Suisse rates CIM as Neutral (3) -

Having reported an FY21 profit result of $405.4m, a miss on Credit Suisse's forecast $414.0m, Cimic Group has provided initial profit guidance for FY22 of $425-460. Improvement in cash flow remained poor in FY21, but the broker sees a foundation for growth. 

The company is targeting operating cash flow above 80% for FY22 having overcome some of the pressures of the last two years, and achieving this could be a positive catalyst.

Contract wins in the second half appear to reflect covid delayed work, and give the company a robust pipeline. 

The Neutral rating is retained and the target price increases to $17.35 from $17.16. 

Target price is $17.35 Current Price is $15.89 Difference: $1.46
If CIM meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $21.84, suggesting upside of 39.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates CIM as Neutral (3) -

Cimic Group's FY21 profit result was a miss versus Macquarie's estimate, and was at the bottom end of prior guidance by management. Meanwhile, FY22 profit guidance of $425-460m (in-line with the analyst) represents 5%-14% growth on the previous corresponding period.

Research restrictions having been lifted, Macquarie sets a $17.50 target. A Neutral rating is adopted, pending increased earnings and the delivery of improved cash conversion (with Leighton Asia the key).

Target price is $17.50 Current Price is $15.89 Difference: $1.61
If CIM meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $21.84, suggesting upside of 39.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates CSR as Accumulate (2) -

Following the sale of acreage at Badgerys Creek for $20.77m, CSR now expects property earnings (EBIT) of $46m for FY22.

Ord Minnett increases its FY22 group earnings forecast by 4% to $288m and lifts its target price to $6.15 from $6. The Accumulate rating is unchanged.

Target price is $6.15 Current Price is $5.79 Difference: $0.36
If CSR meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.60, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Credit Suisse rates DOW as Downgrade to Neutral from Outperform (3) -

Downer EDI reported earnings of $181.6m in the first half, a miss on Credit Suisse's forecast $204m, and notably the company retracted previous guidance as covid disruptions to operating conditions continue, making outlook forecasts difficult to determine. 

The broker downgrades earnings per share estimates -15-20% for FY22-FY24. While covid impacts are transient, Credit Suisse does not find the stock's current pricing low enough to reap value once normalisation occurs.

The rating is downgraded to Neutral from Outperform and the target price decreases to $5.40 from $6.50.

Target price is $5.40 Current Price is $5.45 Difference: minus $0.05 (current price is over target).
If DOW meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.18, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates DOW as Outperform (1) -

Downer EDI retains its status as a recovery play, according to Macquarie, following a 1H profit miss versus both the broker's forecast and the consensus estimate. Extra impetus is expected from the energy transition. Outperform.

The broker reduces EPS estimates to reflect covid impacts and lowers the target price to $6.50 from $6.68.

Target price is $6.50 Current Price is $5.45 Difference: $1.05
If DOW meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgan Stanley rates DOW as Overweight (1) -

While Morgan Stanley lowers its price target for Downer EDI to $6.70 from $6.90, it's felt a number of one-offs resulted in a miss for 1H results.

For example, earnings for the Transport division would have been materially higher in the absence of weather events, according to management. The broker retains its Overweight rating. Industry view: In-line.

The analyst expects an earnings recovery by the year's end. Meanwhile, share buybacks are set to resume, and balance sheet optionality is considered to remain.

Target price is $6.70 Current Price is $5.45 Difference: $1.25
If DOW meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates DOW as Hold (3) -

Ord Minnett saw a "solid" interim performance from Downer EDI in light of challenges including closures and reopenings at different timings.

The broker agrees with management that labour conditions should normalise, but also maintains operational contract risks remain.

Hold rating remains in place while the price target improves to $5.80 from $5.60.

Target price is $5.80 Current Price is $5.45 Difference: $0.35
If DOW meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates DOW as Buy (1) -

There's a twist in today's Downer EDI tale or so it seems with UBS reporting the company released core Urban Services EBITA growth of 3% to $186m for the first half, which beat UBS by 2% but failed market consensus by -10%.

UBS sums up reasons market consensus had not been paying proper attention to. Revenue growth was better-than-expected, plus management suggests labour challenges should ease in the half ahead.

UBS thinks the cash flow performance was a key highlight, with the company delivering underlying operational conversion of 91%. Buy. Target $6.50.

Target price is $6.50 Current Price is $5.45 Difference: $1.05
If DOW meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates IAG as Buy (1) -

Citi's initial assessment of today's interim report reveals a number of twists and buts. Core earnings are well above forecasts, but there has been a different treatment from covid benefits than was anticipated.

The positive comes in the form of management lifting its growth guidance for gross written premia to “mid single digit" from “low single digit”.

There are a lot of buts and ifs in Citi's early response, but the underlying theme seems to be of a better performance from the insurer than was anticipated up until yesterday. Buy. Target $5.60.

Target price is $5.60 Current Price is $4.55 Difference: $1.05
If IAG meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $5.06, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates IAG as Buy (1) -

At first assessment, it appears Insurance Australia Group's interim financials show numbers above Ord Minnett's forecasts, but the broker points out, as per usual, there are numerous moving factors in play.

Ord Minnett is of the view that competitor Suncorp Group ((SUN)) delivered a better performance, but management at IAG has today upgraded guidance for gross written premia, and that's unmistakably a positive.

There has been some margin improvement, but Ord Minnett is not impressed (it's minimal). Buy. Target $5.45.

Target price is $5.45 Current Price is $4.55 Difference: $0.9
If IAG meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.06, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates IEL as Outperform (1) -

In the wake of IDP Education's December-half result, which outpaced forecasts, Macquarie notes positive leading indicators that reveal a 59% rise in qualified leads.

Macquarie suggests the company should benefit from the reopening of borders, given the company has a strong presence in India, providing a 50% 4-year compound annual growth rate.

EPS forecasts increase 6% in FY22; 4% in FY23; and 1% in FY24. Target price rises 9% to $35. Outperform rating retained.

Target price is $35.00 Current Price is $31.03 Difference: $3.97
If IEL meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $36.80, suggesting upside of 28.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates MGR as Upgrade to Buy from Neutral (1) -

Mirvac Group's first half result was in line with Citi. FY22 guidance is unchanged given omicron disruptions, as the broker expected, although the market may have been disappointed.

Operationally, the development business is performing well, Citi notes, offsetting near term covid impacts on the investment portfolio. New forecasts reflect higher development profits and lower net operating income.

Target rises to $3.13 from $2.95 on higher property values. On recent share price weakness the broker upgrades to Buy from Neutral.

Target price is $3.13 Current Price is $2.55 Difference: $0.58
If MGR meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates MGR as Outperform (1) -

Mirvac Group's first half results were largely in line with Credit Suisse's expectations, with operating earnings per share up 9% on the previous comparable period as forecast by the broker, and the company retained full year guidance. 

Having completed 1,303 settlements in the half, up 21% on the previous comparable period, the company also appears on track to achieve its full year target of more than 2,500 settlements, although Credit Suisse estimates slightly higher. 

While active projects currently total $2.1bn, the broker notes the roll out of a $13bn commercial development pipeline is a key growth driver, expecting larger projects to provide meaningful medium- and long-term earnings potential, but requiring capital partnership. 

The Outperform rating is retained and the target price decreases to $3.02 from $3.13.

Target price is $3.02 Current Price is $2.55 Difference: $0.47
If MGR meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgan Stanley rates MGR as Overweight (1) -

Morgan Stanley believes an adverse share price reaction to yesterday's 1H results for Mirvac Group was more due to a lack of anything outstanding rather than the presence of something particularly bad.

In fact, the analyst sees a future with competitive advantages in apartments, and commercial development profit potential in the medium term.

The company delivered 1H22 EPS of 7.5c, largely in-line with the broker's 7.8c estimate, while guidance for FY22 was maintained at 'at least 15.0c. The Overweight rating remains and the target price falls to $3.30 from $3.40. Industry view: In-Line.

Target price is $3.30 Current Price is $2.55 Difference: $0.75
If MGR meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates MGR as Hold (3) -

Stronger than expected commercial development profits helped Mirvac deliver a "beat" with the release of first half financials, but there's a twist (see below).

Ord Minnett projects consistently strong funds from operations growth out to FY24, based on a 9% compound annual growth rate (CAGR).

Corrected for the profit recognition for Locomotive Workshop, however, the broker finds the underlying profit was actually a slight "miss".

Management's FY22 funds from operations guidance is twice disappointing; it's slightly lower than market consensus, plus the market was positioned for an upgrade to guidance, according to Ord Minnett.

The broker retains its Hold rating and $2.90 price target.

Target price is $2.90 Current Price is $2.55 Difference: $0.35
If MGR meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates MQG as Hold (3) -

Macquarie Group's annual operational briefing revealed a record December quarter result and FY22 commentary more favourable than previously, Morgans notes.

The briefing itself was more longer-term focused, highlighting its Infrastructure business and EMEA (Europe, Middle East, Africa) operations, but again it reinforced the group’s favourable growth profile, the broker suggests.

Hold and $200 target retsained.

Target price is $200.00 Current Price is $193.39 Difference: $6.61
If MQG meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $220.20, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates NAB as Neutral (3) -

Following National Bank's update, Citi increases earnings forecasts to reflect stronger volumes, higher market revenues and lower bad debts.

The broker has increased its risk free rate assumption to 2%, but the impact is offset by higher long term returns as stronger volume growth, and higher rates lift longer-term profitability.

Neutral and $30.50 target retained.

Target price is $30.50 Current Price is $29.67 Difference: $0.83
If NAB meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $30.86, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates NAB as Neutral (3) -

A first quarter update from National Bank has shown some momentum, with cash earnings of $1.80bn up 9% on the previous comparable period and a beat on Credit Suisse's expected $1.54bn.

The update has driven Credit Suisse to lower bad debt forecasts, and increase trading income and credit growth for FY22, resulting in earnings upgrades of 5%, 3% and 3% through to FY24. 

The Neutral rating is retained and the target price increases to $30.00 from $29.00. 

Target price is $30.00 Current Price is $29.67 Difference: $0.33
If NAB meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $30.86, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates NAB as Outperform (1) -

Following 1Q results, Macquarie upgrades National Australia Bank's earnings by 6% in FY22 and by around 4% in outer years, driven by stronger than expected volume growth and improved non interest income. The price target rises to $32.50 from $31.50.

In a conservative stance, the broker only partially includes the unusually strong 1Q revenue trends in forecasts. However, the quarterly run-rate suggests 1H revenue will come in around 4% above Macquarie's amended forecast.

The analyst points out the bank grew well above system, and continued to take market share in the categories of housing and business, as well as market share in New Zealand. Outperform.

Target price is $32.50 Current Price is $29.67 Difference: $2.83
If NAB meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $30.86, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

National Australia Bank's pre-provision profit was a 7.5% beat versus Morgan Stanley's forecast, with revenue 8% better and expenses a -2% miss. The result is considered the best of the major banks during the current reporting season.

FY22 guidance is for “broadly flat” expenses. The Equal-weight rating is maintained as the analyst feels trading multiples should find support from improving franchise momentum and a better-than-peer margin outcome.

The target price rises to $29 from $28.50. Industry view: Attractive.

Target price is $29.00 Current Price is $29.67 Difference: minus $0.67 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.86, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates NAB as Hold (3) -

National Bank's December quarter cash earnings were 8% above Morgans' forecast. Market & Treasury revenue saw notable improvement.

The broker suggests a steepening yield curve and increasing volatility in interest rate and forex markets assisted M&T revenue in the quarter. With rising inflation and increased prospects of rate rises, it is assumed volatility will continue to be seen for the remainder of FY22.

While NAB has reported a 12.4% tier one capital ratio, Morgans warns there remains a risk of an AUSTRAC penalty. Hold retained, target rises to $30.00 from $28.50.

Target price is $30.00 Current Price is $29.67 Difference: $0.33
If NAB meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $30.86, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates NAB as Accumulate (2) -

Judging from Ord Minnet's commentary, National Australia Bank's quarterly update surprised on many levels, including less margin pressure than for other major banks and with strong loan growth.

The broker sees a strong case for consistent above-peer earnings growth, which would justify a rerating. Accumulate. Target lifts to $33.50 from $31.50.

Target price is $33.50 Current Price is $29.67 Difference: $3.83
If NAB meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $30.86, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates NAB as Buy (1) -

The quarterly update was better-than-expected at the top line, acknowledges UBS, and despite pressure on the net interest margin (NIM) the bottom line surprised too.

The broker notes management is guiding towards flat cost growth for the full year, despite obvious inflationary challenges.

Buy rating retained. Target price $30.50 (unchanged). UBS only resumed coverage of Australian banks earlier in February.

Target price is $30.50 Current Price is $29.67 Difference: $0.83
If NAB meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $30.86, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates NST as Outperform (1) -

Credit Suisse has described Northern Star Resources' December half -12% earnings miss and -40% profit miss on consensus forecasts as a non-event, with the results driven by a -$90m inventory adjustment reported in cost of goods sold. 

Notably, the company declared a 27% of cash earnings dividend, and the inclusion of a non-cash inventory adjustment in cost of goods sold has allowed the company to understate earnings and therefore dividends.

Incorporating non-cash inventory costs into cost of goods sold, the broker downgrades earnings per share forecasts -28.5%, -12.3% and -3.3% through to FY24. 

The Outperform rating is retained and the target price decreases to $10.30 from $10.50.

Target price is $10.30 Current Price is $8.64 Difference: $1.66
If NST meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $11.54, suggesting upside of 36.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates NST as Outperform (1) -

Macquarie points out a large non-cash inventory move was largely responsible for a softer than anticipated 1H underlying profit for Northern Star Resources. More positively, the 10c/share fully franked dividend exceeded the 9c/share forecast.

No change was made to FY22 guidance though management said labour shortages could be exacerbated by growing covid-19 impacts in Western Australia.

The target price slips -7% to $14 and the Outperform rating is kept.

Target price is $14.00 Current Price is $8.64 Difference: $5.36
If NST meets the Macquarie target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $11.54, suggesting upside of 36.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

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

Northern Star Resources reported 1H underlying earnings (EBITDA) that were -5% lower than Morgan Stanley had expected, though free cashflow was a beat and FY22 guidance remains unchanged.

A 1H 10cps dividend was in-line with the consensus forecast. The target price falls to $9.35 from $9.60. Equal-weight rating. Industry view: Attractive.

Target price is $9.35 Current Price is $8.64 Difference: $0.71
If NST meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.54, suggesting upside of 36.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates NST as Buy (1) -

Ord Minnett assesses a solid 1H result for Northern Star Resources with better than forecast earnings offsetting a slightly softer (10 cent) dividend than expected.

The broker suggests a Buy opportunity has been presented by the recent sector-wide pullback, and the $12.40 target price is unchanged.

Target price is $12.40 Current Price is $8.64 Difference: $3.76
If NST meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $11.54, suggesting upside of 36.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates OGC as Outperform (1) -

After OceanaGold Corp updated the market with a multi-year outlook, 2022 guidance was considered broadly in-line with Macquarie's forecast, as was the three year outlook.

The company is receiving key permits for the Haile gold mine in the first quarter of 2022, and the analyst feels a smooth ramp-up at
Didipio will be necessary in meeting 2022 guidance.

The Outperform rating and $3.30 target are retained.

Target price is $3.30 Current Price is $2.16 Difference: $1.14
If OGC meets the Macquarie target it will return approximately 53% (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 VSL as Downgrade to Neutral from Outperform (3) -

A good first half result from Vulcan Steel, with earnings 2% above consensus forecasts, was coupled with a second upgrade to full year guidance. The company now expects earnings of NZ194-204m, up from NZ$174-184m, and profit of NZ$107-114m, up from NZ$93-100m. 

First half cash flow was weak as the company undertook inventory build to safeguard service levels amid supply chain constraint. The broker notes supply chain constraint and rising prices could persist for 6-12 month, and it is wary of where margins will normalise. 

The rating is downgraded to Neutral from Outperform and the target price increases to $9.80 from $9.60.

Target price is $9.80 Current Price is $9.50 Difference: $0.3
If VSL meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates VSL as Buy (1) -

UBS believes Vulcan Steel produced a strong 1H upgrade on the back of 10% volume growth and strong inventory gains, but because HRC prices are forecast to decline, inventory will shift from a tailwind to a headwind in 2H22.

Further commentary suggests management's focus is likely to shift towards M&A and this is seen as the next potential catalyst for the share price.

Forecasts have increased by double digit percentages, with the broker highlighting margins have held up better than anticipated. Buy. Target lifts to $10.20 from $9.50.

Target price is $10.20 Current Price is $9.50 Difference: $0.7
If VSL meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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