Australian Broker Call

Credit Suisse rates ABP as Neutral (3) -

Funds from operations growth of 8.2% year on year for Abacus Property Group was better than Credit Suisse expected, although the dividend was in line. An improved performance from Commercial was as expected but Storage outperformed.

The broker estimates there is $200-$250m worth of remaining “non-core” assets that provide scope for asset recycling, and forecasts modest headline FFO growth over the next few years, with a view the REIT can deliver 2-3%pa dividend growth.

Neutral retained, target rises to $3.51 from $3.48.

Target price is $3.51 Current Price is $3.53 Difference: minus $0.02 (current price is over target).
If ABP 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 $3.65, suggesting upside of 3.7% (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 ABP as Lighten (4) -

Following 1H funds from operations (FFO) for Abacus Property Group that exceeded Ord Minnett's forecast, the target price rises to $3.50 from $3.30.

Despite continued strength in storage operating metrics, and a steady performance from the office and retail portfolios, the analyst retains a Lighten rating.

Management's FY22 FFO guidance implies to the broker a range of 18.9-21.2cps, up 9% at the mid-point from FY21.

Target price is $3.50 Current Price is $3.53 Difference: minus $0.03 (current price is over target).
If ABP meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.65, suggesting upside of 3.7% (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

UBS rates BAP as Buy (1) -

Bapcor appears to have suffered market share loss given competitor GPC Asia Pacific's 9% sales growth in the final quarter of 2021, but UBS expects the worst is now behind for the company. 

The broker notes GPC Asia Pacific's performance suggest conditions will improve into the second half of FY22, and a 12 week operational program is underway to resolve issues which could offer share recovery. 

The Buy rating and target price of $8.10 are retained.

Target price is $8.10 Current Price is $6.89 Difference: $1.21
If BAP meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $8.10, suggesting upside of 18.8% (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 COH as Hold (3) -

In anticipation of 1H results for Cochlear on Tuesday, 22 February, Ord Minnett lowers its target price to $207 from $227 after allowing for the impact of covid and reviewing medium-term forecasts.

While the broker's EPS forecast declined -3% in FY22 from omicron-induced issues, the FY23 estimate increases 4% on rebound assumptions. The Hold rating is maintained.

Target price is $207.00 Current Price is $191.08 Difference: $15.92
If COH meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $213.17, suggesting upside of 12.0% (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

Macquarie rates CWN as Neutral (3) -

Crown Resorts December-half result disappointed Macquarie due to covid.

The broker expects earnings will recover by mid 2022 and anticipates Crown Sydney gaming will open in the June quarter.

But the result is fairly academic given Macquarie sees little risk of the Blackstone $13.10 takeover not proceeding, the broker expecting the gap between the share price and takeover price will narrow once regulatory approval is received.

FY22 earnings (EBITDA) forecasts fall -25% in FY22 and -6% in FY23.

Neutral rating retained. Target price is steady at $13.10.

Target price is $13.10 Current Price is $12.31 Difference: $0.79
If CWN meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.27, suggesting upside of 7.7% (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

Ord Minnett rates CWN as Buy (1) -

Following last weeks 1H result for Crown Resorts, and a Gaming & Casinos sector review, Ord Minnett lowers is target price to $13.60 from $15.

The analyst pushes out the assumed commencement date for the Barangaroo gaming operations and notes increased near-term pressure from regulatory and wages costs. Despite this, the stock is sill considered a strong recovery play. Buy.

Target price is $13.60 Current Price is $12.31 Difference: $1.29
If CWN meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $13.27, suggesting upside of 7.7% (ex-dividends)

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

UBS rates CWY as Neutral (3) -

While Cleanaway Waste Management presented another strong result, UBS's opinion is that while acquisition has been leveraged for growth, with recent acquisitions driving 7% a compound annual growth rate between FY21-23, it is time to pursue other growth avenues.

The core business is largely captured in share price, and the broker notes the waste to energy sector provides significant opportunity but processes, capital expenditure intensity and time frames offer little uplift to valuation in the near-term. 

The Neutral rating is retained and the target price increases to $2.95 from $2.35.

Target price is $2.95 Current Price is $2.91 Difference: $0.04
If CWY meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.11, suggesting upside of 6.6% (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

Credit Suisse rates DMP as Underperform (5) -

Ahead of Domino's Pizza's result, Credit Suisse has reassessed its long term unit growth assumptions for Japan and Europe, leading to an increase in discounted cash flow valuation and an increase in target price to 89.24 from $77.73.

However on the current price to earnings growth ratio based on the consensus three year earnings forecast, the broker still finds the stock expensive. Underperform retained.

Target price is $89.24 Current Price is $101.40 Difference: minus $12.16 (current price is over target).
If DMP meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $124.18, suggesting upside of 21.5% (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

Macquarie rates ECX as Outperform (1) -

Eclipx's December-quarter result pleased Macquarie, the company logging new business (up 10%), on more profitable yields.

Macquarie notes the group pipeline is at 2.6x pre-Covid levels and appreciates the rise in end-of-lease income per unit.

Novated business eased on the back of supply challenges and the buyback is nearly complete.

FY22 EPS forecasts rise 4.3%. Target price rises to $2.82 from $2.28, the broker considering the main risk to be a moderation in used car prices. Outperform retained.

Target price is $2.82 Current Price is $2.34 Difference: $0.48
If ECX meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 25.5% (ex-dividends)

The company's fiscal year ends in September.

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 ECX as Overweight (1) -

Following an AGM trading update by Eclipx Group, Morgan Stanley highlights most metrics are performing at or better than expectations, while FY22 is expected to be another strong year.

The analyst believes investors have generally looked through an elevated end-of lease (EOL) metric, given a longer-term view on price normalisation.

The broker retains a target of $2.90. Overweight rating. Industry view: In-line.

Target price is $2.90 Current Price is $2.34 Difference: $0.56
If ECX meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.87, suggesting upside of 25.5% (ex-dividends)

The company's fiscal year ends in September.

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 GOZ as Hold (3) -

Growthpoint Properties Australia reported 1H funds from operations (FFO) in-line with Ord Minnett's expectation. A tenant retention rate of 93% was considered a standout, and the business is believed to be on track to deliver FY22 guidance. 

The broker forecasts higher weighted average rent reviews, moderating incentives and suggests benefits are set to flow from acquisitions. The Hold rating is maintained, while the target price rises to $4.50 from $4.40.

Target price is $4.50 Current Price is $4.16 Difference: $0.34
If GOZ meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.47, suggesting upside of 5.7% (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 HCW as Outperform (1) -

HealthCo REIT's December-half result broadly met Macquarie's forecasts and management reiterated guidance.

Macquarie says the investment thesis revolves around capital allocation, the REIT needing to strike a successful balance between funding developments and recovering the dividend. 

The broker forecasts an extra $125m in acquisitions, which should cover the dividend, but if that fails or is delayed, so will be the dividend.

Otherwise, portfolio metrics pleased and the broker tinkers with FFOps estimates between FY22 and FY24.

Outperform rating and $2.52 target price retained.

Target price is $2.52 Current Price is $2.09 Difference: $0.43
If HCW meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 22.3% (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

Morgan Stanley rates HCW as Overweight (1) -

First half funds from operations (FFO) for HealthCo Healthcare & Wellness REIT were in advance of Morgan Stanley's estimate, though largely related to glitches in the broker's modeling forecasts for the newly-listed REIT.

The guidance for FY22 FFO of 5cpu was affirmed, and the broker's 5.2cps forecast is unchanged. The Overweight rating and $2.45 target price are maintained. Industry View: In-line.

Management is aiming to establish a dividend reinvestment plan for the March 22 quarterly distribution.

Target price is $2.45 Current Price is $2.09 Difference: $0.36
If HCW meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 22.3% (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

Morgans rates HCW as Add (1) -

Morgans retains its Add rating and $2.48 target for HealthCo Healthcare & Wellness REIT, following 1H results that revealed strengthening portfolio metrics since the IPO.

FY22 guidance was reiterated and the broker believes the balance sheet provides future scope for acquisitions and development opportunities for the existing pipeline.

A distribution of 3cpu was declared for the period since listing to December, to be paid on 25 February.

Target price is $2.48 Current Price is $2.09 Difference: $0.39
If HCW meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 22.3% (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

Ord Minnett rates HLO as Hold (3) -

At first glance, Helloworld Travel's December-half result missed Ord Minnett at the revenue level, thanks to margin contractions, but the underlying earnings (EBITDA) loss outpaced, thanks to reduced employee costs.

Monthly net operating cash outflows were steady and the minimum cash balance covenant was reduced to $30m from $55m.

No guidance was provided but the company expects to hit break-even in the June quarter and return to profitability through FY23.

Hold rating and $2.34 target price are under reviewing, awaiting further examination.

Target price is $2.34 Current Price is $2.54 Difference: minus $0.2 (current price is over target).
If HLO meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 HPI as Buy (1) -

First half funds from operations (FFO) for Hotel Property Investments were 9.8% above Ord Minnett's forecast. It's thought reaffirmed FY22 distribution guidance will be exceeded.

The analyst highlights a strong net tangible asset (NTA) value, which rose by 16% to $3.82. The Buy rating and $4 target price are retained.

Target price is $4.00 Current Price is $3.62 Difference: $0.38
If HPI meets the Ord Minnett target it will return approximately 10% (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 HUB as Buy (1) -

Citi resumes coverage of Hub24 post-research restriction with a Buy rating and $32.70 target price, both of which are under review pending information on Hub24's Platform of the Future strategy.

The broker's analysis of December-quarter performance data shows Hub24 and Netwealth lead overall net flows.

The company reports on Tuesday, and the broker expects margin declines and higher costs but will be keeping an optimistic eye peeled to guidance.

Target price is $32.70 Current Price is $23.21 Difference: $9.49
If HUB meets the Citi target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $33.99, suggesting upside of 44.5% (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

UBS rates HUM as Buy (1) -

Humm Group has entered into a binding agreement for the $335m sale of its Humm Consumer Finance business to Latitude Group Holdings ((LFS)). The segment contributed 67% of group profit in FY21 and 45% of group profit in the first half of FY22. 

The sale leaves Humm Group a pure-play commercial business, and proceeds from the sale will be used to close a $55m perpetual note with the remainder flagged for reinvestment and capital management initiatives. 

Latitude Group intends to combine its purchase with the company's existing buy now pay later and installments businesses.

The Buy rating and target price of $1.45 are retained. 

Target price is $1.45 Current Price is $0.89 Difference: $0.56
If HUM meets the UBS target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 38.3% (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

Citi rates ING as Buy (1) -

Inghams Group's December-half result disappointed Citi, the omicron hit proving worse than forecast, and the broker cuts its FY22 earnings EBITDA forecast -5%.

Citi expects most of the labour disruption will be contained to the March quarter and assumes a recovery in the FY23 December half.

Management has guided to higher feed prices this half but the broker expects the company can pass much of this on through prices.

Target price falls to $3.70 from $4. Buy rating retained.

Target price is $3.70 Current Price is $3.35 Difference: $0.35
If ING meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 8.1% (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

Credit Suisse rates ING as Outperform (1) -

Inghams Group's 1.8% year on year earnings increase in the first half compared to Credit Suisse' forecast of a -0.9% decline. However this is overshadowed by an earnings decline in the second half to date as omicron disruptions impact heavily.

The broker thus expects a very weak second half before impacts can unwind, but admits forecasting is risky. The balance sheet is nonetheless strong enough to absorb short term pressures, and the stock is offering value ahead of an FY23 earnings rebound.

Target falls to $4.05 from $4.15, Outperform retained.

Target price is $4.05 Current Price is $3.35 Difference: $0.7
If ING meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 8.1% (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 ING as Neutral (3) -

Inghams Group's December-half profit outpaced the broker and consensus thanks to non-visible operational items, but met the broker at the earnings level.

Guidance had already been downgraded twice prior to the result to account for covid disruptions, which have persevered into the opening months of the June half, suggesting the business has been operating at loss so far this year.

Management has discerned a very recent improvement, which the broker expects will continue and notes the company's balance sheet should easily carry it through.

FY22 EPS forecasts fall -35%; FY23 -5%; and FY24 -5%.

Target price falls to $3.38 from $3.46. Neutral rating retained.

Target price is $3.38 Current Price is $3.35 Difference: $0.03
If ING meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 8.1% (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 ING as Hold (3) -

While Inghams 1H results materially beat expectations, Morgans lowers its forward estimates as the 2H impact of the omicron variant weighs. The target falls to $3.62 from $3.70 and the Hold rating is maintained, on near-term covid uncertainty and elevated feed prices.

Management highlighted the workforce still isn’t fully back, a tight labour market is making new hiring difficult and there is wage inflation. Omicron is also emerging in New Zealand and impacting operations and the same is expected for Western Australia upon reopening.

Target price is $3.62 Current Price is $3.35 Difference: $0.27
If ING meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.69, suggesting upside of 8.1% (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 IPL as Outperform (1) -

Incitec Pivot has shut operations at its Waggaman Ammonia Plant after a malfunction caused a high-pressure gas pipe to burst and ignite.

So far there is no evidence of chemical releases or injuries, although a more thorough investigation is under way.

The company has yet to determine a timeframe for re-starting, although history suggests re-starts take about three weeks, says Macquarie.

The broker perceives the main risk to be in the event the shutdown stops the company from fully leveraging the ammonia cycle while prices are strong.

For now, FY22 EPS forecasts fall -2%. Target price is steady at $4.10. Outperform rating retained.

Target price is $4.10 Current Price is $3.06 Difference: $1.04
If IPL meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates IRE as Hold (3) -

Following in-line FY21 results from Iress, Morgans points out EPS growth from previously stated strategies has been elusive so far. While an inflection point may be coming in FY23, more evidence is required and the Hold rating is maintained.

Management re-stated its goal to deliver $120m profit in FY25 and noted the sale of the mortgage sales and originations (MSO) business is progressing well. The target price falls to $11.75 from $13.75.

Target price is $11.75 Current Price is $11.05 Difference: $0.7
If IRE meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.70, suggesting upside of 7.1% (ex-dividends)

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

Ord Minnett rates LAU as Buy (1) -

Following a 1H result from Lindsay Australia that exceeded Ord Minnett's forecasts, and an upgrade to the outlook, the target price rises to $0.53 from $0.44. The Buy rating is maintained.

The analyst is expecting a 40% sales increase for FY22 from a return of import/export volumes for the Lindsay Fresh business. Capacity utilisation and price is also expected to be supported by tight general freight conditions across the corporate and horticultural sectors.

Target price is $0.53 Current Price is $0.39 Difference: $0.14
If LAU meets the Ord Minnett 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: 0.5

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

UBS rates LOV as Buy (1) -

Store closures and reduced foot traffic have driven UBS to reduce expected first half skew for Lovisa Holdings. The broker has updated its model accordingly and minor changes are made to earnings per share forecasts, decreasing -0.4%, 0.0% and -1.2% through to FY24. 

Looking ahead, the broker notes second half comparables will be tough and supply chain constraints and related cost pressures will continue to impact. 

The Buy rating is retained and the target price decreases to $20.00 from $21.25. 

Target price is $20.00 Current Price is $17.06 Difference: $2.94
If LOV meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $22.11, suggesting upside of 37.6% (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 MFG as Neutral (3) -

Magellan Financial Group's first half profit beat Credit Suisse by 6%, but the core funds management business only beat by 1%, with the rest driven by lower-quality investment income.

A 1-8 bonus issue of options for shareholders was announced, and the board is also considering a share buyback.

The broker remains Neutral given valuation support, and upside risk from profitable associate Barrenjoey, but expects further negative catalysts in the near term. Taking into account a buyback, target rises to $20.00 from $16.50. 

Target price is $20.00 Current Price is $21.70 Difference: minus $1.7 (current price is over target).
If MFG meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.35, suggesting downside of -14.4% (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 MFG as Downgrade to Underperform from Neutral (5) -

Magellan Financial Group's December-half result outpaced Macquarie's forecasts, thanks to a beat on fee margins and profits (partly from Barrenjoey).

Macquarie upgrades outer year earnings by roughly 3% to reflect the fee beat.

Magellan Financial is toying with capital management options, but the broker considers them to be out of the money and hasn't incorporated them into estimates.

EPS forecasts rise 6% for FY22; 3.1% for  FY23; and 4.6% for FY24. 

Macquarie downgrades the rating to Underperform from Neutral, believing the chance of further downgrades from potential outflows outweighs the scope for earnings upgrades. Target price is $19.25.

Target price is $19.25 Current Price is $21.70 Difference: minus $2.45 (current price is over target).
If MFG meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.35, suggesting downside of -14.4% (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 MFG as Underweight (5) -

Morgan Stanley remains Underweight on Magellan Financial Group on soft performance, key person risk and the concentration risk of having almost 70% of funds under management from institutional clients.

Following 1H results, the broker lowers its earnings forecasts and the target price falls to $12 from $17.50 as higher estimated outflows drive lower operating leverage.

This reaction comes despite an adjusted 1H profit that beat the broker's and the consensus estimate by 7% and  9% supported by a more profitable half for associates, with Barrenjoey the major contributor.

In short, the analyst feels the stock is too dear with multiples well above peers. Industry View: Attractive. 

Target price is $12.00 Current Price is $21.70 Difference: minus $9.7 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 45% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.35, suggesting downside of -14.4% (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

Morgans rates MFG as Hold (3) -

After recent widely-publicised turmoil, Magellan Financial Group posted a 1H result in-line with Morgans forecasts.

While management gave a business as usual message, further outflows are considered likely (Morgans believes inevitable). The board is considering a buyback, retail fees won't be cut and options issuance was announced for both staff and shareholders.

The broker downgrades FY22-24 EPS estimates by -4%, -15% and -13%, respectively, and sees a negative risk reward outlook. Hold retained. Target falls to $21.87 from $24.73.

Target price is $21.87 Current Price is $21.70 Difference: $0.17
If MFG meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $18.35, suggesting downside of -14.4% (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 MFG as Downgrade to Lighten from Hold (4) -

Mindful of substantial pressures facing Magellan Financial Group, Ord Minnett lowers its rating to Lighten from Hold. Despite this, the group reported a 6.4% beat versus the analyst's forecast for first-half underlying profit. The target rises to $20 from $16.50.

The broker is cautious of management prediction for no fee cuts, given the extent of investment underperformance and outflows.

The broker feels the $35 exercise price on bonus share options (staff and investors) only serves to create an artificial ceiling for the share price, despite some merits for retention and team stability.

Target price is $20.00 Current Price is $21.70 Difference: minus $1.7 (current price is over target).
If MFG meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.35, suggesting downside of -14.4% (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

UBS rates MFG as Sell (5) -

Following Magellan Financial Group's first half results, which included profit of $248m equating to a 1% beat on UBS's forecast, the company intends to refocus on its core management business and will end further investment in Magellan Capital Partners (MCP).

UBS notes the decision not to allocate capital to MCP could indicate an ultimate exit from the segment, and could support reduced outflows and improve returns to clients but the company's recommitment to its high retail fees may present a barrier to this. 

The Sell rating and $17 target price are retained.

Target price is $17.00 Current Price is $21.70 Difference: minus $4.7 (current price is over target).
If MFG meets the UBS target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.35, suggesting downside of -14.4% (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

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

Orora's December-half result beat consensus and Citi's forecasts by 10%, and the broker notes that business has stabilised, which traditionally augurs well for packaging companies, and upgrades to Buy from Neutral.

Citi tempers optimism, however, noting areas are only just delivering profit at the earnings (EBIT) level; can supply is constrained; and the company appears to be trading at capacity.

Target price rises to $4.07 from $3.35.

Target price is $4.07 Current Price is $3.68 Difference: $0.39
If ORA meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.85, suggesting upside of 2.8% (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

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

In advance of weekend news of a potential takeover for Origin Energy, Morgans penned new research that leads to a downgrade in rating to Hold from Add on valuation considerations.

The downgrade arose after the broker lowered its target price by -5% to $6.23 in reaction to a 1H underlying profit that came in less than expected. Moreover, more caution is warranted after the uncertainty introduced upon the brought-forward closure of the Eraring coal plant.

Management guidance for FY22 earnings (EBITDA) rose by 5% on strong commodity pricing for APLNG.

Target price is $6.23 Current Price is $5.65 Difference: $0.58
If ORG meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.16, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

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 ORG as Buy (1) -

Despite Origin Energy's first half profit of $268m missing consensus forecasts of $354m, the company upgraded Australia Pacific LNG cash distribution guidance to more than $1.1bn, which remains below UBS's forecast fo $1.3bn.

The company intends to accelerate the closure of the Eraring power station to August 2025, previously slated for staggered closure between 2029-2032, with some project capacity to be replaced with a battery model that UBS expects will attract broader investors. 

The broker expects the proposed battery project could add around $110m annually to earnings, and Origin Energy will continue to benefit from rising electricity and gas pricing. 

The Buy rating is retained and the target price increases to $6.65 from $6.60. 

Target price is $6.65 Current Price is $5.65 Difference: $1
If ORG meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.16, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

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 PNI as Initiation of coverage with Buy (1) -

UBS initiates coverage on Pinnacle Investment Management Group. The company has minority equity stakes in 16 investment boutiques, and the broker expects the company can deliver 14% per annum organic earnings growth through to FY25 and is improving diversification.

The broker finds no value has currently been ascribed to the performance fees Pinnacle Investment Management Group is exposed to, but has valued this at a $2.50 per share benefit. 

The broker initiates with a Buy rating and a target price of $14.00.

Target price is $14.00 Current Price is $10.58 Difference: $3.42
If PNI meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $15.09, suggesting upside of 40.8% (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

Morgans rates PPE as Add (1) -

First half results for PeopleIn exceeded Morgans forecasts. Cash conversion was considered to be strong and organic earnings (EBITDA) growth was 10%, with the Technology division a standout performer.

Strong employment markets, unprecedented client demand and wage inflation are expected to benefit the outlook for all segments, according to management. The broker estimates the upper-end of the $45-47m guidance range is currently running on target.

The Add rating and $5.15 target price are maintained.

Target price is $5.15 Current Price is $4.03 Difference: $1.12
If PPE meets the Morgans target it will return approximately 28% (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 PPE as Buy (1) -

Ord Minnett praises both a solid 1H result for PeopleIn and a dividend that exceeded expectations. Rising billable hours in the Technology and Industrial segments offset a benign Health and Community result, due to 1Q workplace constraints in Sydney and Melbourne.

With the latter now alleviated, the analyst believes FY22 earnings are achievable. The Buy rating is maintained, while the target price slips to $4.60 from $5.03, following acquisition adjustments and new shares on issue.

Target price is $4.60 Current Price is $4.03 Difference: $0.57
If PPE meets the Ord Minnett target it will return approximately 14% (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

Morgans rates PWH as Add (1) -

First half results for PWR Holdings comfortably exceeded Morgans estimates. Motorsports outperformed expectations while Automotive Aftermarket and Emerging Technologies lagged.

The target price rises to $10.05 from $8.50 after the broker increases earnings (EBITDA) estimates by around 2% and rolls forward its forecasts.

Management sees extensive organic growth opportunities and has invested heavily in staff, which confirms to Morgans the future possibilities. Add retained.

Target price is $10.05 Current Price is $8.70 Difference: $1.35
If PWH meets the Morgans target it will return approximately 16% (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 QBE as Buy (1) -

QBE Insurance Group's FY21 result sharply missed consensus and Citi forecasts but largely due to a very conservative stance on provisioning for potential inflation, says the broker. Citi also perceived guidance to be conservative.

Beneath that, the company posted strong premium growth, rate increases outstripping claims inflation,

Citi expects the company should continue to benefit from rising interest rates and has an opportunity to optimise asset allocation.

Buy rating retained. Target price falls to $13.70 from $14.55.

Target price is $13.70 Current Price is $11.55 Difference: $2.15
If QBE meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $14.53, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates QBE as Outperform (1) -

QBE Insurance's FY22 full-year result pleased Macquarie, management offering guidance that the broker considers to be conservative.

The broker posits that management is implementing rebasing measures, banking money while the sun shines or "hollow-logging".

The company upped the catastrophe allowance, seriously strengthened reserves and reduced the payout ratio, setting the stage for growth measures.

Premiums rate growth is outstripping claims inflation and bond yields are improving, and the broker expects both trends to continue.

FY22 EPS forecasts fall -20.5% to reflect the reserve strengthening; and 3% to 2% thereafter.

Target price falls to $13.50 from $13.90. Outperform rating retained. 

Target price is $13.50 Current Price is $11.55 Difference: $1.95
If QBE meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $14.53, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgan Stanley rates QBE as Overweight (1) -

While QBE Insurance Group's FY21 results missed versus Morgan Stanley's estimates, the broker lifts its target price to $14.50 from $14.15, due to tailwinds from higher premiums and interest rates.

While the group is increasing its budget for catastrophe and large claims insurance, the broker estimates the impact will be offset by better than expected pricing that began to emerge in the 2H of 2021.

As guidance is for gross written premium (GWP) growth of high single digits, the analyst upgrades forecasts by 10%. Overweight. Industry View: Attractive.

Target price is $14.50 Current Price is $11.55 Difference: $2.95
If QBE meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $14.53, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgans rates QBE as Add (1) -

Following FY21 results for QBE Insurance Group that were -10% below the consensus estimate, Morgans lowers FY22 and FY23 EPS estimates by -9% and -5%, on lower margin assumptions.

The broker feels the miss was largely driven by one-off factors for claims and reserves. Guidance is for high-single-digit gross written premium (GWP) growth into FY22, and ongoing improvement in the underlying combined operating ratio (COR).

The Add rating is unchanged and the target price falls to $13.50 from $14.32.

Target price is $13.50 Current Price is $11.55 Difference: $1.95
If QBE meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $14.53, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

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

While QBE Insurance Group's FY21 underlying profit was -1.6% shy of Ord Minnett's forecast, strong rate and growth written premium (GWP) momentum was in evidence. As momentum is expected to continue in 2022, the rating increases to Buy from Accumulate.

The analyst believes new management will seek a more stable earnings trajectory, which probably means more measured, but more sustainable, improvements for margins.

While guidance has been reset for only modest improvement, the analyst believes it is  somewhat conservative in relation to margins. The target price of $15.50 is unchanged. 

Target price is $15.50 Current Price is $11.55 Difference: $3.95
If QBE meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $14.53, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates QBE as Buy (1) -

QBE Insurance Group delivered a miss on full year results driven by reserving charges that reduced margins by 2.1%. Further, UBS notes FY22 margin guidance has disappointed but that there were positive features in the result despite short-term headwinds.

Repricing delivering margin expansion, unit volume growth, and a ten-year record return on equity result were all positives. Earnings per share forecasts decrease -19.5% and -5.9% for FY22 and FY23 respectively. 

The Buy rating is retained and the target price decreases to $14.40 from $15.00. 

Target price is $14.40 Current Price is $11.55 Difference: $2.85
If QBE meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $14.53, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgan Stanley rates RIO as Overweight (1) -

Commodity strategists at Morgan Stanley remain positive on aluminium, iron ore and nickel, noting price rises of 22%, 40% and 16%, respectively, since the December 2021 price deck.

As a result, the broker's price target for Rio Tinto climbs to $126.50 from $112.

The Overweight rating is retained. Industry view: Attractive.

Target price is $126.50 Current Price is $119.25 Difference: $7.25
If RIO meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $111.21, suggesting downside of -7.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Ord Minnett rates SGR as Accumulate (2) -

Following last weeks strong 1H result for Star Entertainment Group, and a Gaming & Casinos sector review, Ord Minnett maintains its $4.40 target price.

The analyst increases FY22 earnings forecasts after allowing for the strong half and the removal of mask mandates. The stock is still considered a strong recovery play. Accumulate.

Target price is $4.40 Current Price is $3.60 Difference: $0.8
If SGR meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.19, suggesting upside of 19.6% (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

Ord Minnett rates SHL as Hold (3) -

Upon first assessment, Sonic Healthcare's interim performance missed Ord Minnett's forecast by some -8% while the 40c dividend meets expectation.

Lower covid-related earnings seem to explain the gap. The broker observes pathology revenue was -4% weaker than expected while pathology margins were -44bps lower.

Ord Minnett highlights management announced a $500m share buyback while also maintaining they still have an active pipeline of acquisitions ahead for the year.

No guidance was provided.

Target price is $45.00 Current Price is $37.60 Difference: $7.4
If SHL meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $45.24, suggesting upside of 25.1% (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

Credit Suisse rates SIQ as Outperform (1) -

Credit Suisse describes SmartGroup Corp's result a good outcome of low surprise, and views the outlook as substantially unchanged. Despite some covid impacts, novated lease orders rose and continued to rise in January.

Settlements continue to lag orders due to supply chain issues, which will likely persist for at least most of 2022, but the broker retains a positive view on robust demand and the excess pipeline gap being closed into FY23.

Outperform and $8.90 target retained.

Target price is $8.90 Current Price is $8.24 Difference: $0.66
If SIQ meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.48, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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 SIQ as Neutral (3) -

Smartgroup Corporation's December-half result outpaced Macquarie's forecasts by 3.5%, half of which was attributable to a $1.2m one-off revenue and $0.7m provision release, and the balance largely to strong margins.

It was a strong result across the board that inspired confidence. The company renewed all eight of its major contracts expiring in FY21. Lead conversions jumped from 2% to 29%, and digital lead conversions to 44% and management guides to further rises in FY22 as restrictions ease.

Looking ahead, novated business increased sharply in the normally quiet month of January but supply chain pressures are likely to continue to hit settlement times.The capital position is solid, supporting growth prospects, says Macquarie.

EPS forecasts rise 0.9% in FY22 and ease -1.2% in FY23. Target price rises to $8.31 from $8.24. Neutral rating retained.

Target price is $7.90 Current Price is $8.24 Difference: minus $0.34 (current price is over target).
If SIQ meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.48, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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 SIQ as Equal-weight (3) -

FY21 results for SmartGroup were solid in light of 2H lockdowns and supply headwinds, according to Morgan Stanley, and bang in-line with expectations. A 30cps special dividend was declared for FY21.

Higher levels of financed vehicle assets offset lower penetration rates, and the broker highlights efficiency gains for Smart Future where leases per consultant grew by 50%.

Equal-weight rating. Target is $7.70. Industry view: In Line.

Target price is $7.70 Current Price is $8.24 Difference: minus $0.54 (current price is over target).
If SIQ meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.48, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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 SIQ as Downgrade to Hold from Add (3) -

Following in-line FY21 results from SmartGroup, Morgans feels the concluded financial year provides a solid baseline earnings level for the business, though vehicle delivery in the current half will be vital. Vehicle orders were impacted by lockdowns in the 2H of 2021.

The broker lowers its rating to Hold from Add on limited upside to valuation. However, a future opportunity to buy may arise post dividend and also when there's more certainty on contract renewals and short-term vehicle supply issues.

The target price slips to $8.78 from $8.80.

Target price is $8.78 Current Price is $8.24 Difference: $0.54
If SIQ meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $8.48, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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 SIQ as Buy (1) -

Despite ongoing new car supply constraints, SmartGroup Corp's FY21 result exceeded Ord Minnett's forecasts. The target price rises to $9.10 from $8.80 due to strong earnings (EBITDA) margins of 46%.

The broker highlights total leasing leads in the last six months were up around 6% versus the previous corresponding period, while orders rose 11%. The latter is considered to provide revenue tail winds over the medium term.

Meanwhile, the Smart Future program is showing some early wins, points out the analyst. The Buy rating is maintained.

Target price is $9.10 Current Price is $8.24 Difference: $0.86
If SIQ meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.48, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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 TAH as Hold (3) -

Following last weeks 1H result for Tabcorp, and a Gaming & Casinos sector review, Ord Minnett increases its target price to $4.90 from $4.75. It's felt the value creation in the Lotteries division should exceed further Wagering weakness leading into the Lotteries spin-off.

The Hold rating is maintained and the analyst notes that despite an increasingly adverse wagering market, previous offers to buy the Wagering division puts a moderate floor on valuation.

Target price is $4.90 Current Price is $5.25 Difference: minus $0.35 (current price is over target).
If TAH meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.79, suggesting upside of 12.3% (ex-dividends)

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 TYR as Buy (1) -

At first glance, Tyro Payments' December-half result outpaced Ord Minnett on revenue and gross profit but margins disappointed thanks to higher-than-expected reinvestment.

The broker reports strong merchant acquisition and service fees but notes investment in operating expenditure was high.

Ord Minnett expects the margin miss could lead to consensus changes.

Target price and rating on hold for now, ahead of a more in depth examination of the result.

Target price is $4.30 Current Price is $2.18 Difference: $2.12
If TYR meets the Ord Minnett target it will return approximately 97% (excluding dividends, fees and charges).

Current consensus price target is $4.13, suggesting upside of 154.6% (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 WES as Neutral (3) -

Store closures and higher costs saw Wesfarmers report a -1% sales decrease, -12% earnings decrease and -14% profit decrease in the first half. UBS notes despite results, a dividend of 80 cents per share was more than forecast by the broker. 

Operating cashflow was impacted by investment in inventory build, and despite this supply chain pressures are expected to persist into the second half. A conservative second half outlook disappointed UBS. 

Earnings per share forecasts decrease -8%, -5% and -7% through to FY24. 

The Neutral rating is retained and the target price decreases to $54.00 from $59.00.

Target price is $54.00 Current Price is $50.41 Difference: $3.59
If WES meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $54.10, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

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