Australian Broker Call

Morgan Stanley rates ABY as Overweight (1) -

Following in-line 1H results for Adore Beauty Group, Morgan Stanley remains Overweight and believes risk-reward has become more attractive, with the company trading on lower multiples.

Higher reinvestment drives the analyst's FY22-24 earnings (EBITDA) estimates -18-32% lower, and the target price falls to $4 from $6. Industry view: In-line.

With uncertainties around lockdowns, work-from-home and consumer sentiment, the broker expects near-term volatility for the share price.

Target price is $4.00 Current Price is $2.48 Difference: $1.52
If ABY meets the Morgan Stanley target it will return approximately 61% (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 ALD as Neutral (3) -

Credit Suisse reports that Australian Institute of Petroleum figures suggest a weak start to 2022 for retail fuel margins.

The broker adds industry sources suggest increased pricing competition from Coles and Ampol petrol; and that the gasoline diesel indicator in the quarter to February 11 is tracking below US$10.50/bbl.

Neutral rating and $30.03 target price are retained.

Target price is $30.03 Current Price is $32.19 Difference: minus $2.16 (current price is over target).
If ALD meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.34, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates AMS as Add (1) -

Video technology company Atomos' 1H earnings (EBITDA) were a beat versus Morgans estimates, despite headwinds from freight costs and supply chain disruptions.

Apart from management's reiteration of guidance, the analyst's key highlight was a significantly improved inventory position, which should enable the fulfillment of unmet demand from the 1H. The target price eases to $1.87 from $1.89. Add.

Target price is $1.87 Current Price is $0.87 Difference: $1
If AMS meets the Morgans target it will return approximately 115% (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

Ord Minnett rates AMS as Buy (1) -

Atomos's FY22 December first-half result outpaced Ord Minnett's forecasts on revenue but fell shy on earnings as variable and marketing costs bit into the top line.

The broker expects second-half margins will rise sharply in response to new product release and considers the recent share-price decline to be detached from fundamentals and that the share price offers an attractive entry point. 

FY22 EPS forecasts rise 49.7% but FY23 EPS forecasts are sharply lower.

Guidance is unchanged. Buy rating retained. Target price edges up to $1.92 from $1.90.

Coverage of Atomos has been transferred to analyst Jack Lynch.

Target price is $1.92 Current Price is $0.87 Difference: $1.05
If AMS meets the Ord Minnett target it will return approximately 121% (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

Citi rates ANN as Buy (1) -

Ansell's December-half pre-announced result still managed to disappoint Citi, the big nasty surprices being high cost inventories, which were being offloaded at lower prices, a trend management says will continue into FY23.

Covid-driven manufacturing and freight costs also hit margins and management guides to a normalisation post pandemic.

FY22 EPS forecasts are downgraded -4%, FY23 -8% and FY24 EPS forecasts rise 1%.

Target price falls to $36.50 from $37.50. Buy rating retained given the undemanding share price.

Target price is $36.50 Current Price is $25.47 Difference: $11.03
If ANN meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $30.52, suggesting upside of 16.9% (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

Credit Suisse rates ANN as Neutral (3) -

Ansell's December-half result disappointed Credit Suisse, the company suffering post-covid blues. EPS met downgraded pre-release figures and cash conversion was poor due to high inventories.

Management maintains downgraded FY22 EPS guidance but the broker says it will be a tough call given it assumes a big acceleration in demand just as the steam is leaving covid; and that it requires a 55% second-half skew at the midpoint as covid continues to drive cost headwinds.  

The broker also spies ESG-related labour-price headwinds. Target price falls to $25 from $26.50. Neutral rating retained.

Target price is $25.00 Current Price is $25.47 Difference: minus $0.47 (current price is over target).
If ANN meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.52, suggesting upside of 16.9% (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

Macquarie rates ANN as Neutral (3) -

In a follow-up to yesterday's first-glance report, Macquarie notes Ansell's revenues and earnings matched the earlier pre-release, and the result highlighted the impacts of near-term supply disruptions as well as downside risk for exam/single use gloves into FY23.

The broker believes it has already captured these risks in its earnings forecasts, and notes a solid balance sheet position and undemanding valuation based on those forecasts.

Neutral retained. Target falls to $27.65 from $28.30.

Target price is $27.65 Current Price is $25.47 Difference: $2.18
If ANN meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $30.52, suggesting upside of 16.9% (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

Morgan Stanley rates ANN as Overweight (1) -

While Ansell reported a 1H result in-line with a recent trading update. Morgan Stanley now feels margin issues may be transient though investors may have to wait for the FY22 result for increased confidence to emerge. The target rises to $33.43 from $33.27.

Management expects margin compression will remain into the 2H though normalisation should occur by the 1H of FY23.

The broker's conviction remains soft for the near term, nonetheless, the Overweight rating is retained. Industry view In-Line.

Target price is $33.43 Current Price is $25.47 Difference: $7.96
If ANN meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $30.52, suggesting upside of 16.9% (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

Morgans rates ANN as Hold (3) -

Ansell's pre-released 1H results contained few surprises for Morgans. The timing of recovery from the (faster-than-expected) slowing of demand for PPE and covid disruptions are considered uncertain, and the Hold rating is maintained.

While the broker's FY22 profit forecast rises, FY23 and FY24 estimates fall by up to -7.5% due to lower margins. The target price eases to $27.53 from $28.95.

Target price is $27.53 Current Price is $25.47 Difference: $2.06
If ANN meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $30.52, suggesting upside of 16.9% (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

Ord Minnett rates ANN as Accumulate (2) -

Ansell's December first-half result broadly met Ord Minnett's estimates but the dividend sharply disappointed.

Ord Minnett notes the company is hostage to the rapid covid-induced decline for gloves and the company destocking, hitting margins.

Elsewhere, business lines were solid and sales guidance sans gloves was strong.

The broker expects margins and earnings will recover over the next 18 months as destocking slows; expects a sharp improvement in cash flow in the second half as working-capital pressure subsides, and tinkers with earnings estimates.

Accumulate rating retained, the broker expecting demand for hygiene and PPE products will continue and that higher costs can be fully passed on to consumers in an inflationary environment. Target price steady at $33.

Target price is $33.00 Current Price is $25.47 Difference: $7.53
If ANN meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $30.52, suggesting upside of 16.9% (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

Macquarie rates BHP as Outperform (1) -

Following up from yesterday's first-glance report, Macquarie notes BHP Group's earnings, cash flow and the dividend were all ahead of expectation, with the dividend well above.

The updated net debt range of US$5.0-15.0bn provides flexibility, the broker suggests, allowing for potentially increased capital returns or M&A activity.

Iron ore and coking coal prices underpin strong upgrade momentum for BHP with a spot price scenario generating 25% and 115%
higher earnings than the broker's base case for FY22 and FY23. Outperform retained, target rises to $54 from $51.

Target price is $54.00 Current Price is $48.18 Difference: $5.82
If BHP meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting downside of -2.5% (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: 0.2

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

Morgan Stanley rates BHP as No Rating (-1) -

Key points from Morgan Stanley's conference call with BHP Group include an ongoing focus upon copper, nickel and potash, which are seen as future facing commodities.

Also, the group expects to be better placed than the industry average with regard to cost inflation.

Morgan Stanley is unable to provide a rating or target price on BHP Group. Industry view: In-Line.

Current Price is $48.18. Target price not assessed.

Current consensus price target is $45.94, suggesting downside of -2.5% (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: 0.2

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

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

BHP Group 's 1H earnings (EBITDA) were 1% higher than the consensus forecast, while profit was a 11% beat. Despite the result, the rating falls to Hold from Buy on valuation grounds.

A lack of WA-based construction projects and larger labour resources enabled the miner to avoid the worst of labour shortages, explains the broker.

The analyst highlights the group's gearing of only 3%, after net debt fell to US$6bn from US$11.9bn by the end of December, due to strong cash flow generation.

Target price is $48.70 Current Price is $48.18 Difference: $0.52
If BHP meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting downside of -2.5% (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: 0.2

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

Ord Minnett rates BHP as No Rating (-1) -

BHP's Group's December-half result outpaced Ord Minnett's forecasts, thanks largely to lower-than-expected net-debt (BHP had recently warned of a $2bn jump in working capital).

FY22 capital expenditure guidance eased due to currency movements and Ord Minnett expects expenditure on decarbonising (in the region of US$2bn to US$4bn) willl result in a -US$500m hit to net present value.

Ord Minnett is on rating restriction.

Current Price is $48.18. Target price not assessed.

Current consensus price target is $45.94, suggesting downside of -2.5% (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: 0.2

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

UBS rates BHP as Neutral (3) -

UBS spotted a market-beating interim report, including a record US$1.50 interim dividend from the Big Australian. The broker observes BHP is maintaining discipline on controllable costs but flagged creeping inflation into 2023.

UBS does anticipate "growth" will now increasingly compete with "returns to shareholders", in particular if commodity prices ease over the next 12-18 months as UBS analysts expect to happen.

UBS is self-declared cautious on the outlook for commodities. Target remains at $42. Neutral rating unchanged. 

Target price is $42.00 Current Price is $48.18 Difference: minus $6.18 (current price is over target).
If BHP meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.94, suggesting downside of -2.5% (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: 0.2

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

Macquarie rates BRG as Outperform (1) -

Macquarie, upon first assessment, reports Breville Group's interim performance turned out 5% better-than-expected. FY22 guidance seems to be what market consensus had already penciled in.

Also, management at the company expects supply chain complexities and inflationary pressures to continue with the broker highlighting the former shall be managed through forward planning and the latter by increasing prices "where appropriate".

Outperform. Target $34.37.

Target price is $34.37 Current Price is $28.45 Difference: $5.92
If BRG meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $33.41, suggesting upside of 14.8% (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

Ord Minnett rates BRG as Hold (3) -

Ord Minnett's initial observation is that Breville Group's interim report, released this morning, is better-than-expected, albeit broadly in-line with general market forecasts.

Declared 15c in half-yearly dividend is equal to the broker's forecast.

Management has said to be comfortable with market forecasts for FY22, while flagging new geographies and new products for the second half.

Target price is $30.50 Current Price is $28.45 Difference: $2.05
If BRG meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $33.41, suggesting upside of 14.8% (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

Ord Minnett rates CDP as Buy (1) -

On closer examination of Carindale Property Trust's December-half result, Ord Minnett raises the target price to $5.70 from $5.20.

FY22 to FY24 FFOPS forecasts rise 4% to reflect strong trading at Westfield Carindale and the achievement of 97% of pre-covid net property income in the the first half.

Buy rating retained.

Funds from operations beat Ord Minnett by 5.5%, assisted by a -$1m decline in property outgoings in the second half versus the first. Guidance is for a distribution increase in FY22 of at least 9% above FY21.

Carindale’s current share price implies a further -20% write-down in the value of the Carindale Shopping Centre. The broker believes this is too negative for a centre that continues to perform well, with sales growth of 7.6% versus FY20 and slightly ahead of pre-covid levels.

Target price is $5.70 Current Price is $4.65 Difference: $1.05
If CDP meets the Ord Minnett target it will return approximately 23% (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

Ord Minnett rates CIM as Buy (1) -

Ord Minnett resumes coverage of CIMIC Group post rating restriction with a Hold rating and $17.50 target price. This compares with the last listing from the broker on FNArena's database of a Buy rating and $30 target price.

CIMIC Group's December first-half result landed at the bottom end of guidance, despite a recovery in margins as cost efficiency improved.

The broker says CIMIC has several opportunities and is likely to remain focused on cash-flow conversion now the West Gate tunnel dispute has been settled.

Ord Minnett prefers Ventia Services Group ((VNT)) for its lower contract labour risk and capital intensity.

Target price is $17.50 Current Price is $15.62 Difference: $1.88
If CIM meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.21, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates CSL as Outperform (1) -

Macquarie, after an initial glance, reports CSL's interim profit was better-than-expected, with reduced operational expenses helping the bottom line.

Overall, today's result was characterised by a better-than-expected Behring gross profit/gross margin result and with plasma collections showing improving trends, concludes the broker.

Outperform. Target $325.

Target price is $325.00 Current Price is $243.00 Difference: $82
If CSL meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $312.94, suggesting upside of 18.5% (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: 0.6

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

Ord Minnett rates CSL as Hold (3) -

Ord Minnet, upon first glance, spotted a "very strong" result from CSL today, with guidance confirmed and the broker suggesting there appears to be upside risk.

Net profits were well above forecast (by some 15%) while operating expenses surprised by some 5%.

Seqirus' result was the highlight, in the view of Ord Minnett, coming out 22% ahead of the broker's forecast on very strong Fluad sales.

Target price is $285.00 Current Price is $243.00 Difference: $42
If CSL meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $312.94, suggesting upside of 18.5% (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: 0.6

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

Ord Minnett rates CTD as Buy (1) -

Corporate Travel Management's interim report has provided Ord Minnett with some positive input, or so it appears from the broker's first read of today's release.

The key positive, reports the broker, is the company sees signs of a rapid recovery in February. Some metrics are better-than-forecasts, some are sligthly below.

Target price is $24.35 Current Price is $22.63 Difference: $1.72
If CTD meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $25.99, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates DXS as Neutral (3) -

Dexus' December-half result outpaced consensus by 6% and Citi by 5%, partly due to a one-off asset disposal, says the broker.

Citi increases earnings forecasts accordingly and to account for accretion from higher funds under management once development gets under way. The broker expects this will be further aided by a ramp-up in developments.

Neutral rating retained. Target price rises to $11.18 from $10.85.

Target price is $11.18 Current Price is $10.43 Difference: $0.75
If DXS meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $11.88, suggesting upside of 11.8% (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 DXS as Outperform (1) -

Dexus' December-half result proved a mixed bag with misses and beats on Credit Suisse forecasts.

Funds from operations outpaced the broker thanks to stronger property and co-investment income performances, low interest expense and good management operations. But elevated overheads, capital expenditure and weak trading profits disappointed.

Overall, the broker notes portfolio fundamentals improved and says Dexus plans to increase the development pipeline.

FY22 FFOPS rises 0.5% and FY23 rises 4.6%

Outperform rating retained. Target price rises to $11.48 from $11.26.

Target price is $11.48 Current Price is $10.43 Difference: $1.05
If DXS meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.88, suggesting upside of 11.8% (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

Macquarie rates DXS as Outperform (1) -

Dexus Property's first half funds from operations fell slightly short of Macquarie. No change to FY guidance implies lower FFO in the second half, but while the skew does not surprise, the broker believes guidance to be conservative.

If not for omicron, a guidance upgrade would have been likely. Importantly, the portfolio is improving and "quality matters", the broker suggests. The broker believes the REIT's growth ambitions for its funds management and development platforms are an important differentiator.

With the stock trading at an -11% discount to net tangible assets, the valuation does not appear to reflect this upside. Outperform retained, target rises to $12.39 from $11.93.

Target price is $12.39 Current Price is $10.43 Difference: $1.96
If DXS meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $11.88, suggesting upside of 11.8% (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 DXS as Overweight (1) -

Trading profits realised in the 1H by Dexus largely accounted for a 1H funds from operations (FFO) beat versus Morgan Stanley's forecast. 

The broker highlights a good performance by the core office business, with like-for-like effective rent growth of 4.4% (ex covid relief). In further good news, incentives are expected to moderate in Sydney, and 2% growth guidance was maintained for FY22.

Morgan Stanley notes there is potential for 25% margins from the the $8bn development pipeline. The Overweight rating and $12.57 target are retained. Industry View: In Line.

Target price is $12.57 Current Price is $10.43 Difference: $2.14
If DXS meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $11.88, suggesting upside of 11.8% (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

Ord Minnett rates DXS as Buy (1) -

Dexus' December first-half result outpaced Ord Minett's estimates by 6%, thanks mainly to higher office income and lower interest.

The broker expects the company should finish FY22 well ahead of consensus, noting the company is improving the portfolio by selling lower-quality (shorter weighted average lease expiry) office assets and redeploying capital accretively into funds under management and developments.

FFO forecasts rise 3% and dividend forecasts rise 4.9%, compared to a dividend guidance upgrade of 2%.

Buy recommendation retained. Target price rises to $12.50 from $12.

Target price is $12.50 Current Price is $10.43 Difference: $2.07
If DXS meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $11.88, suggesting upside of 11.8% (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

Macquarie rates EVN as Outperform (1) -

Evolution Mining's interim report met expectations, report analysts at Macquarie after an initial assessment. The 3c fully franked dividend, however, was better-than-expected.

Outperform. Target $4.70.

Target price is $4.70 Current Price is $3.94 Difference: $0.76
If EVN meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.21, suggesting upside of 4.7% (ex-dividends)

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

Ord Minnett rates EVN as Accumulate (2) -

Following a first glance at today's 1H result for Evolution Mining, Ord Minnett notes earnings were broadly in-line while the 3cps share exceeded the broker's forecast of 1cps. Guidance was unchanged.

The broker suggests figures released for Resource and Resources growth of 12% and 4% were of greater importance. This outcome was driven by the Kundana acquisition and Red Lake drilling (resources only).

The Accumulate rating and $4.70 target price are maintained.

Target price is $4.70 Current Price is $3.94 Difference: $0.76
If EVN meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.21, suggesting upside of 4.7% (ex-dividends)

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

Macquarie rates FMG as Outperform (1) -

Upon initial assessment, Macquarie concludes today's released 1HFY21 earnings result was in-line with expectations. The broker does add a reduction in the payout ratio meant the interim dividend came in -12% below its own estimate.

There was no change to FY22 guidance while Iron Bridge is on track for completion in December 2022.

Outperform. Target $21.

Target price is $21.00 Current Price is $21.59 Difference: minus $0.59 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.64, suggesting downside of -16.6% (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

Ord Minnett rates FMG as Hold (3) -

Ord Minnett, after an initial assessment, concludes Fortescue Metal's interim result was in-line both with market consensus and the broker's own forecasts.

The dividend declared matched the broker's estimate and no guidance was provided.

Target price is $21.00 Current Price is $21.59 Difference: minus $0.59 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.64, suggesting downside of -16.6% (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

Credit Suisse rates GWA as Neutral (3) -

GWA Group's December-half result just passed muster with Credit Suisse. Revenue proved the main culprit, but management advises it has maintained market share and margins advanced.

The broker believes the company is in a holding pattern, and is awaiting completion of a brand portfolio review to shed light on growth prospects.

Neutral rating retained. Target price falls to $2.70 from $3.09.

Target price is $2.70 Current Price is $2.55 Difference: $0.15
If GWA meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.07, suggesting upside of 19.0% (ex-dividends)

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

Macquarie rates GWA as Outperform (1) -

GWA Group reported a solid result in line with Macquarie's expectations. The company was able to offset higher costs with price rises, keeping margins stable. A further price rise is planned to offset freight costs.

The market environment was disrupted by covid in the half, the broker notes, but seems to be gaining solid momentum, especially in renovation categories.

The broker continues to see the market developing favourably for GWA, and a growing execution track record should aid a re-rating. Outperform and $3.30 target retained.

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

Current consensus price target is $3.07, suggesting upside of 19.0% (ex-dividends)

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

Morgans rates GWA as Add (1) -

Despite a slight beat versus Morgans expectations for GWA Group’s 1H results, the target price falls to $3.13 from $3.28, though the Add rating is unchanged. While the earnings (EBIT) margin grew 140bpts, NZ and International  sales fell -15% and -5% from covid restrictions.

The broker takes a cautious approach due to uncertainty around labour availability and supply chain disruption and leaves forecasts unchanged. It's thought conditions will remain favourable due to improving housing markets.

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

Current consensus price target is $3.07, suggesting upside of 19.0% (ex-dividends)

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

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

In a preview of 1H results for Healius, Morgan Stanley forecasts revenue of $1,275m ($1,230m consensus) and EPS to climb 170.4% versus the previous corresponding period to $0.31 (consensus $0.38).

The target price is adjusted to $5.15 from $5.10. Equal-weight. Industry view In-Line.

Target price is $5.15 Current Price is $4.40 Difference: $0.75
If HLS meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.50, suggesting upside of 23.0% (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 IAG as Underweight (5) -

Insurance Australia Group noted last week that driving activity has normalised in Sydney, Melbourne and Auckland, and data suggests driving is now above pre-covid levels.

Morgan Stanley feels the increased activity, along with claims inflation, threatens profit margins, unless premiums for personal lines of insurance are raised. The Underweight rating and $3.90 target are kept. Industry view: Attractive.

Target price is $3.90 Current Price is $4.74 Difference: minus $0.84 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.98, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in June.

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 LTR as Outperform (1) -

Liontown Resources' offtake agreement with Tesla, announced today, is seen as a key positive for the miner.

Macquarie notes Liontown has secured another Tier 1 partner, highlighting the quality and scale of the Kathleen Valley project.

As the broker points out, Liontown has now secured around 60% of Stage 1 production at Kathleen Valley. Macquarie expects at least one more off-take agreement of similar volumes to be signed before production commences.

Outperform. Target $2.20.

Target price is $2.20 Current Price is $1.39 Difference: $0.81
If LTR meets the Macquarie target it will return approximately 58% (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

Citi rates NEA as Buy (1) -

Upon initial glance, Nearmap's half-yearly performance beat expectations (EBITDA) with revenues and gross profit in-line. Lower costs proved the magical ingredient.

Management reiterated cash burn guidance of -$30m for FY22, excluding legal costs, and Citi comments this looks conservative (i.e. better than expected).

Buy/High Risk. Target $2.10.

Target price is $2.10 Current Price is $1.23 Difference: $0.87
If NEA meets the Citi target it will return approximately 71% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 65.4% (ex-dividends)

The company's fiscal year ends in June.

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 NEA as Underperform (5) -

Macquarie, after an initial read of today's interim report, concludes revenues are in-line but costs are rising faster than anticipated.

Also, the broker notes competitor Aerometrex ((AMX)) seems to be growing faster. One of Macquarie's concerns beforehand was of Nearmap losing market share.

Underperform. Target $1.30.

Target price is $1.30 Current Price is $1.23 Difference: $0.07
If NEA meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 65.4% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates NEA as Overweight (1) -

Morgan Stanley reports, upon initial assessment, Nearmap's half-yearly performance surprised to the upside. The broker points out Nearmap's sales strength was achieved on improved sales efficiency in both regions.

Overweight. Industry view In-Line. Target $3.20.

Target price is $3.20 Current Price is $1.23 Difference: $1.97
If NEA meets the Morgan Stanley target it will return approximately 160% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 65.4% (ex-dividends)

The company's fiscal year ends in June.

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 NWL as Outperform (1) -

Macquarie, upon initial glance, reports Netwealth's interim performance missed expectations due to higher costs. Also, the platform revenue margin of 31.7bps proved equally lower than forecast primarily due to lower cash balances, and increased average account sizes.

The broker had already anticipated higher costs, but clearly not high enough. Outperform. Target $19.70.

Target price is $19.70 Current Price is $14.85 Difference: $4.85
If NWL meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $18.33, suggesting upside of 36.8% (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 ORA as Outperform (1) -

After an initial read of today's interim report release, Macquarie concludes Orora performed 17% better than expected in the first half. It was a "clean" result and the 8c in dividend matched forecasts.

North America delivered better-than-expected revenue and margins, and proved the key driver behind today's upward surprise.

The company stuck with its FY22 guidance. Outperform. Target $3.60.

Target price is $3.60 Current Price is $3.31 Difference: $0.29
If ORA meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Macquarie rates PGH as Neutral (3) -

Macquarie took an early look over Pact Holdings' interim report, released this morning, and concluded the H1 performance and FY22 guidance were both in-line.

Cash conversion of 73% surprised positively despite supply chain challenges. One of the risks mentioned are persistently higher costs.

Neutral. Target $2.85.

Target price is $2.85 Current Price is $2.52 Difference: $0.33
If PGH meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.53, suggesting upside of 31.0% (ex-dividends)

The company's fiscal year ends in June.

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 RDY as Outperform (1) -

Macquarie, after an initial glance over today's interim report release, concludes ReadyTech Holdings performed better-than-expected over the first half. FY22 guidance has been maintained.

Average revenue per new customer increased to circa $60k, up from $42.5k pcp, including 22 new customers generating annualised revenue of circa $5m, the broker highlights.

Outperform. Target $4.10.

Target price is $4.10 Current Price is $3.30 Difference: $0.8
If RDY meets the Macquarie target it will return approximately 24% (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

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

Reckon's FY21 result revealed broadly in-line revenue though softer earnings (EBITDA) and profit than Morgan Stanley had expected. Revenue for Business and Accountant divisions were a slight miss while Legal was a slight beat versus the broker's forecast.

Higher depreciation and amortisation costs contributed to a -18% lower group profit than the analyst expected.

Morgan Stanley remains Equal-Weight rated with a target price of $1.05, and believes the pipeline of new products are the key for meaningful sales growth. Industry view: In-Line.

Target price is $1.05 Current Price is $1.03 Difference: $0.02
If RKN meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Credit Suisse rates SEK as Outperform (1) -

Seek's December-half result outpaced Credit Suisse and consensus forecasts, thanks to strong revenue from A&NZ and Asia and lower-than-expected domestic costs.

The domestic share-placement improvement also reinforces the company's competitive position, says the broker.

Management sharply upgraded FY22 guidance and Credit Suisse upgrades earnings forecasts accordingly. Long-term upgrades were relative modest.

Zhaopin, OES and higher net debt disappointed, causing the broker to reduce its target price to $38.50 a share from $39.50.

Outperform rating retained, the broker forecasting strong trading upside.

Target price is $38.50 Current Price is $29.47 Difference: $9.03
If SEK meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $33.97, suggesting upside of 16.8% (ex-dividends)

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

Macquarie rates SEK as Outperform (1) -

Macquarie found Seek's result to be as expected. An upgrade to FY guidance was also expected, largely reflecting a strong
labour market, although the broker notes revenue guidance implies 32% second half growth.

Early evidence suggests price-to-value will benefit depth product take-up. If this continues, the broker can see a path for Seek to achieve its 5-year revenue-doubling aspiration, although this is not yet captured in forecasts.

The company should continue to benefit from a strong labour market and offers an attractive valuation-to-growth profile when compared to listed online peers. That said, the broker has lowered its PE multilpe assumption to be in line with peers.

Outperform retained, target falls to $32 from $37.

Target price is $32.00 Current Price is $29.47 Difference: $2.53
If SEK meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $33.97, suggesting upside of 16.8% (ex-dividends)

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

Morgans rates SEK as Hold (3) -

In the wake of Seek's 1H result, which exceeded consensus revenue forecasts by 4%, Morgans lifts FY22 and FY23 EPS forecasts after also factoring-in upwardly-revised guidance. The target price rises to $32.33 from $31.73.

Aided by record job advertisements and depth penetration, Seek A&NZ put in a very strong performance, highlights the analyst.

The broker estimates margin upside will be constrained by an investment pull-forward and retains a Hold rating.

Target price is $32.33 Current Price is $29.47 Difference: $2.86
If SEK meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $33.97, suggesting upside of 16.8% (ex-dividends)

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

Ord Minnett rates SEK as Accumulate (2) -

After fully digesting Seek's December-half result, Ord Minnett upgrades the target price to $35 from $34 and retains an Accumulate rating.

This reflects an upgrade in earnings estimates for the company's recruitment portal, the broker expecting continued strength in A&NZ markets, as buoyant price and yield trends triumph over a pull-forward of costs.

Target price is $35.00 Current Price is $29.47 Difference: $5.53
If SEK meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $33.97, suggesting upside of 16.8% (ex-dividends)

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 SEK as Neutral (3) -

Neutral rating unchanged as UBS had been of the view, pre-results release, that investors were anticipating an upgrade to guidance from Seek, but yesterday's interim result with upgraded guidance still managed to surprise to the upside.

As for the interim report itself, UBS is using the words "impressive set of numbers". Within the current context, the broker believes a flattish margin outcome in A&NZ is likely in 2H22 vs 1H22, but UBS also sees a scenario where significant operating leverage could present in FY23.

UBS's confidence has grown that Seek will reach $1bn in revenues by FY25. Earnings estimates have been lifted. But as the valuation is seen as appropriate, the rating has not been upgraded. Target $32 (equally unchanged).

Target price is $32.00 Current Price is $29.47 Difference: $2.53
If SEK meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $33.97, suggesting upside of 16.8% (ex-dividends)

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

Macquarie rates SGF as Outperform (1) -

After an initial read, Macquarie finds SG Fleet's interim performance, underlying, beat its own forecast by some 10%. There is a lot happening, points out the broker, but disclosure has improved materially.

Macquarie highlights the used vehicle value environment “remains exceptionally strong”. Used vehicle values were higher in 1H22 versus 2H21. The company expects used car price softening to commence 4Q22/1H23.

Outperform. Target $2.98.

Target price is $2.98 Current Price is $2.48 Difference: $0.5
If SGF meets the Macquarie target it will return approximately 20% (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

Citi rates SGM as Buy (1) -

Sims' December-half result sharply outpaced Citi and consensus forecasts thanks to sharp rises in ferrous and non-ferrous metals. The result was struck in the face of covid-induced freight price volatiity and inflation, that were slighly outpaced by strong margins.

Earnings (EBIT) outpaced the broker by 9% and consensus by 8%, thanks to strength in SA Recycling, NA and Australasia.

Net cash rose to $45.1m from $8.3m at June 30. 

Citi notes $54m has been allocated to complete the share buyback by the second half; capital expenditure fell to $170m from $220m due to a pause in construction at Cambellfield, and management has guided to continued strength in the second half.

Citi upgrades earnings (EBIT) forecasts 17% and 11% and increases its dividend forecast 36% and 43% across FY22 and FY23.

Outperform rating retained, Citi expecting Sims to be a beneficiary of steel decarbonisation. Target price rises to $19.50 from $18.50.

Target price is $19.50 Current Price is $17.04 Difference: $2.46
If SGM meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $19.48, suggesting upside of 10.8% (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 SGM as Outperform (1) -

Sims December-half result sharply outpaced guidance and consensus and Credit Suisse forecasts. Management says momentum has continued in the first months of 2022. Higher coal and iron prices supported the gains, producers seeking scrap alternatives.

Strong prices were largely offset by higher operating costs (the latter driven 30% by inflation, 30% by growth and 40% by higher activity, says management), and A&NZ delivered the strongest performance. 

The broker upgrades FY22 EBIT forecasts by 25%.

Outperform rating retained. Target price eases to $21.30 from $21.50, the broker waiting to see if elevated costs are permanent or temporary. 

Target price is $21.30 Current Price is $17.04 Difference: $4.26
If SGM meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $19.48, suggesting upside of 10.8% (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 SGM as Outperform (1) -

Sims' first half profit beat Macquarie by 6%, with key regions delivering improving earnings per ton metrics.

The broker continues to like the backdrop for Sims, with the group well positioned in the decarbonisation of global metal production, both ferrous and non-ferrous.

Some moderation in profitability is expected but current valuation more than compensates for this, the broker suggests. Outperform retained, target rises to $19.20 from $18.65.

Target price is $19.20 Current Price is $17.04 Difference: $2.16
If SGM meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $19.48, suggesting upside of 10.8% (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 SGM as Equal-weight (3) -

While Sims recorded a strong 1H result, according to Morgan Stanley, earnings and pricing are likely near peak cycle and the Equal-weight rating is retained. The target rises to $18 from $16.50 on the better result and a stronger revenue outlook.

The broker's estimate for 1H profit was exceeded by 8%, while earnings (EBIT) margins declined just -100bps half-on-half, and were in-line with the forecast. Management guidance into the 2H suggests to the analyst strong momentum. The industry view is In-Line.

Target price is $18.00 Current Price is $17.04 Difference: $0.96
If SGM meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $19.48, suggesting upside of 10.8% (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 SGM as Buy (1) -

Sims December-half result outpaced Ord Minnett's forecasts by roughly 10%, as improved cost performance despite covid-induced freight and inflationary imposts yielded stronger margins.

Management reports continued strong momentum in the early months of 2022. 

Elsewhere, capital expenditure guidance fell to $170m from $220m to reflect deferral of the Campberfield construction plus a $54m share buyback was announced.

The broker likes Sims' ESG profile and expects scrap markets should remain supported in the near term as China accelerates its decarbonisation.

Buy rating and $20 target price retained.

Target price is $20.00 Current Price is $17.04 Difference: $2.96
If SGM meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $19.48, suggesting upside of 10.8% (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

UBS rates SGM as Buy (1) -

UBS has retained its Buy rating with an increased target of $18.90 (was $17.80) following a record interim result released by Sims; the broker has put a small rocket under forecasts.

UBS explains it sees continued strength in non-ferrous prices and largely stable ferrous prices on the horizon, but while this supports Sims' earnings outlook, the broker maintains continued volume growth is key.

Target price is $18.90 Current Price is $17.04 Difference: $1.86
If SGM meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $19.48, suggesting upside of 10.8% (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 STO as Neutral (3) -

Upon early assessment, Citi finds Santos' 2021 result was in-line, with a slight beat for the dividend. Production guidance is apparently slightly higher than market consensus, but Citi had a higher forecast.

The analysts report Santos is considering US$2-3bn in asset sales. Also, the company plans to review its capital management framework through the course of this year, including returns to shareholders.

Assuming crude oil remains priced above US$65/bbl in 2022, Santos expects free cash flow generation to be sufficient to fund major growth capex. Neutral. Target $7.30.

Target price is $7.30 Current Price is $7.40 Difference: minus $0.1 (current price is over target).
If STO 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 $8.95, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Macquarie rates STO as Outperform (1) -

Santos has released 2021 numbers and Macquarie, upon initial assessment, reports it was better-than-expected, but weaker at the underlying EBITDAX level.

Final dividend of 8.5c was above expectations, backed by strong cash conversion.

The market's focus is now shifting towards asset sales, says the broker. Outperform. Target $9.40.

Target price is $9.40 Current Price is $7.40 Difference: $2
If STO meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $8.95, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Ord Minnett rates STO as Buy (1) -

In an early look at today's FY21 results for Santos, Ord Minnett believes -4% weaker than expected underlying earnings (EBITDA) are not material, when considered in light of higher oil prices. Upgrades to market commodity estimates are still expected over time.

Guidance for production and sales volume was also below the analyst's current estimates. 

Outside of PNG LNG and Papua LNG, management is targeting US$2-$3bn in infrastructure asset sales, which the broker notes should delever the balance sheet. The Buy rating and $9.15 target are retained.

Target price is $9.15 Current Price is $7.40 Difference: $1.75
If STO meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $8.95, suggesting upside of 24.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates SWM as Outperform (1) -

Seven West Media's December-half result outpaced Credit Suisse, thanks to improved market share amidst a strong Metro TV ad market

Net debt proved a slight beat and management upgraded guidance, which also outpaces the Credit Suisse forecast.

The broker expects further improvement should market momentum continue (the Federal Election augurs well) but doubts this will be sufficient to warrant a rise in the target price.

Outperform rating and 90c target price are retained.

Target price is $0.90 Current Price is $0.69 Difference: $0.21
If SWM meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $0.88, suggesting upside of 25.7% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates SWM as Outperform (1) -

Seven West Media's result fell short of Macqurie's forecast, which the broker admits was top-of-the-market.

FY guidance was upgraded as expected, driven by strong metro ad markets and the inclusion of Prime. The pace of growth in 7Plus has also been a positive surprise, the broker notes.

The company is reviewing capital management options, and the broker suggests a buyback or capital return of $100m is achieveable. Outperform retained, target rises to 92c from 91c.

Target price is $0.92 Current Price is $0.69 Difference: $0.23
If SWM meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $0.88, suggesting upside of 25.7% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates SWM as Accumulate (2) -

After closer examination of Seven West Media December half results, Ord Minnett raises the target price to 75c from 70c noting the post-result sell-off in the share price makes the multiple appear undemanding.

The result outpaced the broker by 21%, thanks to a strong free-to-air advertising market and Ord Minnett expects advertising bookings will continue to outpace in the second half.

Seven's digital segment, which comprises 36% of earnings, continues to grow, suggesting the digital transition is on track.

While longer term headwinds remain, the broker applies an Accumulate rating for now.

Target price is $0.75 Current Price is $0.69 Difference: $0.06
If SWM meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.88, suggesting upside of 25.7% (ex-dividends)

The company's fiscal year ends in June.

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 TGR as Outperform (1) -

Tassal Group's December first-half result generally pleased Credit Suisse, the company reporting a recovery in sales prices as covid eases. 

Strong cash flow was the standout, a selldown of excess inventory improving working capital. The broker notes capital expenditure is falling, forecast harvest volumes are steady, and that management plans to optimise margins and costs.

FY22 EPS estimate is fairly steady; FY23 EPS estimate falls -3.9% and FY24 falls -3.5%.

Outperform rating retained, the broker considering the company cheap heading into a longer term recovery from covid. Target price edges up to $3.90 from $3.85.

Target price is $3.90 Current Price is $3.66 Difference: $0.24
If TGR meets the Credit Suisse 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: 1.0

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