Australian Broker Call

Morgan Stanley rates 360 as Overweight (1) -

In first half of 2021, 26% of Life360's direct revenue was paid away in app store fees. Morgan Stanley explains the ability to accept payments directly from consumers materially improves profitability and unit economics for Life360.

Yesterday, the company discussed a "proposed settlement of a class action lawsuit that includes changes to (Apple's) App Store regulations that will allow software developers to tell customers about ways to pay for services outside the Apple ecosystem". 

The analyst sees the settlement as a further concession of app stores, pointing to a heavy skew towards lower app store fees over time. Overweight rating and $9.80 target price retained. Industry view: In-line.

Target price is $9.80 Current Price is $8.99 Difference: $0.81
If 360 meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Ord Minnett rates ABB as Buy (1) -

FY21 earnings (EBITDA) were in-line with Ord Minnett's expectations and management's guidance range. The company retains just under 5% share of the broadband market nationally and grew this share by close to 20% during the June quarter.

In the absence of FY22 guidance, the broker expects another high earnings growth year, partly offset by increased investment in the business segment and marketing programs to build share. 

The broker upgrades FY23 earnings forecasts by 6% and raises its target price to $4.32 from $3.59. The Buy rating is retained.

Target price is $4.32 Current Price is $3.75 Difference: $0.57
If ABB meets the Ord Minnett target it will return approximately 15% (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 ABY as Overweight (1) -

Morgan Stanley estimates FY21 revenue and earnings (EBITDA) were ahead of estimates and the start to FY22 is tracking well with sales growth of 26%. The broker retains its Overweight rating and $5 target. Industry view: In-line.

Ongoing lockdowns are driving new customer growth and returning customers, explains the analyst. Guidance is for 2-4% earnings margins over the medium term.

Target price is $5.00 Current Price is $4.97 Difference: $0.03
If ABY meets the Morgan Stanley target it will return approximately 1% (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

UBS rates ABY as Buy (1) -

FY21 results were ahead of guidance and demonstrated improved operating momentum.

UBS found it difficult to quantify the benefit from the lockdown, although sales growth of 26% in the current year to date surprised to the upside, particularly as July-August 2020 were the two highest sales months during that year.

The main negative was the outlook for EBITDA margins to be 2-4% in the medium term, as the company reinvests to support top-line growth.

UBS believes the market should be increasingly confident around FY22 forecasts and retains a Buy rating, raising the target to $6.00 from $5.60.

Target price is $6.00 Current Price is $4.97 Difference: $1.03
If ABY meets the UBS target it will return approximately 21% (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 ALU as Downgrade to Neutral from Outperform (3) -

FY21 revenue was in line with guidance while the EBITDA margin of 36.1% was below guidance. FY22 revenue guidance has been narrowed to US$209-217m and EBITDA reduced to US$72-80m from US$73-87m.

Credit Suisse is increasingly concerned about corporate oversight, such as delayed audited accounts, legal claims relating to tax, remuneration claims and the reduced FY22 EBITDA guidance. Key partnerships may also take time to materialise.

The broker's long-term view of the strategic importance of the business remains unchanged. Yet Credit Suisse expects to become more upbeat as the platform develops and downgrades to Neutral from Outperform. Target is reduced to $32 from $42.

Target price is $32.00 Current Price is $29.85 Difference: $2.15
If ALU meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $33.30, suggesting upside of 11.4% (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 AMI as Buy (1) -

Reflecting the operational turnaround, Aurelia Metals' second half FY21 result was broadly in line with the fourth quarter update versus Ord Minnett's expectations.

Ord Minnett updated view incorporates the Fed and latest mineral resources estimate (MRE) and latest project timeline and surprise development progress.

Overall, Ord Minnett's thesis remains unchanged, and the broker reiterates the company's remarkable organic growth potential.

The broker has revised the initial capex forecast to -$130m (from -$60m) and believes the company can be readily self-funding via existing cash ($75m), debt facility headroom ($25m), and existing project cash flow ($120m pa Dargues and Peak).

Ord Minnett maintains a Buy and price target of $0.95.

Target price is $0.95 Current Price is $0.35 Difference: $0.6
If AMI meets the Ord Minnett target it will return approximately 171% (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 ANZ as Equal-weight (3) -

Despite good first half margin outcomes and an improvement in housing loan growth, FY21 is turning out to be another year of weak revenue trends at the major banks, points out Morgan Stanley.

The broker believes margins will be the key swing factor for revenue in the second half while cost control remains important given that revenue growth remains relatively modest.

The analyst forecasts margins for ANZ Bank will fall by -2bps half-on-half. The Equal-weight rating and $28 target are maintained. Industry view: In-Line.

Target price is $28.00 Current Price is $28.00 Difference: $0
If ANZ meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $29.85, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates APA as No Rating (-1) -

APA Group has acknowledged it is negotiating with Keppel Infrastructure to potentially acquire the Basslink Transmission assets.

Given that APA has been wanting to push into non-gas areas in Australia, Macquarie notes Basslink is consistent with the strategy and would arguably complement its ownership of Murrylink (20% via EII) and Directlinkm (20% via EII), both HVDC interconnectors.

Based on the 2020 balance sheet, current debt at Keppel on the asset is $644m, long-term debt is $29m, and payables
of $80.4m. Basslink has tax losses of -$118m, which APA Group could utilise over time.

Macquarie is restricted from providing a price target and recommendation.

Current Price is $9.32. Target price not assessed.

Current consensus price target is $10.28, suggesting upside of 12.1% (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

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

APA Group has confirmed its exclusive but incomplete discussions to acquire Basslink from Keppel Infrastructure Trust (in Singapore). Basslink is a sub-sea DC interconnector between Victoria and Tasmania. 

Morgan Stanley estimates pro forma cashflow accretion of circa 1.5-2cps at an APA Group marginal debt cost of 3.5%. The Equal-weight rating and $10.11 price target are retained. Industry view is Cautious.

Target price is $10.11 Current Price is $9.32 Difference: $0.79
If APA meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $10.28, suggesting upside of 12.1% (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 ASG as Upgrade to Outperform from Neutral (1) -

Driven by better-than-expected margin outcomes in the final weeks of the period, Autosports Group's FY21 profit and revenue were both above the guidance range.

While no FY22 profit guidance is set, management believes the second half FY21 gross profit margin of 17.5%, 200bps above the pre-COVID average is sustainable. while Macquarie has this normalising to 16% in FY23.

Macquarie notes current lockdowns are leading to uncertainty, with 27 showrooms currently closed to customers.

The broker's earnings per share (EPS) estimate changes of FY22 (up 3.1%), FY23 (up 8.9%), and 8% in outer years from a higher revenue base have incorporated increased D&A.

Macquarie has upgraded Autosports Group to Outperform from Neutral. Target is raised to $2.70 from $2.50.

Target price is $2.70 Current Price is $2.26 Difference: $0.44
If ASG meets the Macquarie target it will return approximately 19% (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

UBS rates ASG as Buy (1) -

FY21 results were at the top end of guidance and ahead of UBS estimates. Revenue growth was driven by new vehicles, up 34.7% in the second half, while used vehicle sales were up 8.7%. No FY22 guidance was provided.

The company will acquire the Bundoora BMW property from which it operates for $18.4m and fund this through debt and cash reserves, saving -$1.6m per annum in rent. This brings total property holdings to $76m.

UBS retains a Buy rating and $3 target.

Target price is $3.00 Current Price is $2.26 Difference: $0.74
If ASG meets the UBS target it will return approximately 33% (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 BGA as Accumulate (2) -

Bega Cheese reported a 38% increase in underlying earnings (EBITDA ), which was 2% above Ord Minnett's forecast and 3.4% ahead of consensus expectations. A 5cps dividend was in-line with the broker's forecast.

The analyst notes the result was boosted by the contribution from the transformative acquisition of Lion Dairy and Drinks in the second half. Management noted above-expectation earnings from the acquisition for the five months of trading, with strong FY22 momentum. 

The analyst thinks FY22 will be challenging, with a step-up in the farm gate milk price to $7.14 from $6.50 in FY21. Ord Minnett lowers its target price to $6.30 from $6.75 and retains its Accumulate rating.

Target price is $6.30 Current Price is $5.54 Difference: $0.76
If BGA meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.54, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates BKG as Add (1) -

Booktopia Group's FY21 result was largely in line with Morgans' forecast, with the broker noting the company benefited significantly from consumer trends shifting online. Active customers were up 19% and revenue was up 35%.

Morgans considers Booktopia Group to have gained around 170 basis points of share in FY21 and views the company as well-placed to continue to gain market share given its proven ability to attract and retain customers and current and future improvements to customer offering.

The broker increases forecasts for FY22 revenue and underlying earnings by 6% and 8% respectively. 

The Add rating is retained and the target price increases to $3.72 from $3.54.

Target price is $3.72 Current Price is $2.82 Difference: $0.9
If BKG meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates BKL as Hold (3) -

The FY21 result was materially weaker than Morgans expected, despite strong growth, particularly from China and the International businesses. For this country/segment, management remains positive on the outlook, with sales momentum continuing into FY22.

While A&NZ had a challenging year, (due to the loss of the daigou, a mild cold and flu season and reduced foot traffic in the pharmacy channel), the analyst was pleased by a rise in the gross profit (GP) and earnings (EBIT) margin.

After upgrading medium-to-longer-term forecasts, the broker lifts its target price to $95 from $86 and retains its Hold rating. By FY24, management hopes to increase the GP margin to the high 50% level and the earnings margin to around 15% versus 8.3% in FY21.

Target price is $95.00 Current Price is $97.30 Difference: minus $2.3 (current price is over target).
If BKL meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $81.08, suggesting downside of -18.4% (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

Morgan Stanley rates CBA as Underweight (5) -

Despite good first half margin outcomes and an improvement in housing loan growth, FY21 is turning out to be another year of weak revenue trends at the major banks, points out Morgan Stanley.

The broker believes margins will be the key swing factor for revenue in the second half while cost control remains important given that revenue growth remains relatively modest.

Morgan Stanley forecasts major bank revenue to grow by an average of around 3% in FY22, led by Commonwealth Bank at 4.5%. There's thought to be upside risk to the broker's loan growth forecasts, with potential for an offset by more margin pressure.

The Underweight rating and target of $90 are retained. Industry view: In-line.

Target price is $90.00 Current Price is $100.42 Difference: minus $10.42 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -9.6% (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 CWN as Neutral (3) -

Lockdowns dominated the FY21 results for Crown Resorts with Melbourne normalised EBITDA down -73% and Perth up 57%. No quantitative guidance was provided and Credit Suisse eliminates any FY22 profit from its estimates.

Corporate costs are expected to remain elevated as the company works to the regulatory inquiry. This will impact cash flow, although the broker notes the balance sheet is already under geared so there will be no need for new capital.

Neutral maintained. Target is reduced to $9.80 from $10.10.

Target price is $9.80 Current Price is $9.31 Difference: $0.49
If CWN meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.45, suggesting upside of 23.3% (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 CWN as Neutral (3) -

Crown Resorts' $242m earnings in FY21 proved within recent guidance and at 29% of pre-covid levels.

Macquarie notes there are many uncertainties on earnings considering possible license losses (low risk), structural changes
impacting volumes and increased risk and governance costs.

The broker has cut earnings estimates 47%, and 11% in FY22 and FY23 respectively.

Until the outcome of the Victorian Royal Commission in mid-October 2021, the broker sees limited catalysts considering the license
uncertainties and expects this outcome to set the precedent for Crown Sydney and Crown Perth licenses.

The Neutral rating is retained and the target price decreases to $11.00 from $12.40, assuming licenses are retained.

Target price is $11.00 Current Price is $9.31 Difference: $1.69
If CWN meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $11.45, suggesting upside of 23.3% (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) -

FY21 results revealed revenue ahead of Ord Minnett’s forecast, due to a better-than-expected performance from table games, poker machines and non-gaming operations in Melbourne.

However, earnings (EBITDA) and net profit were a miss thanks to higher losses from the Aspinalls private members club in London and a weaker showing from the digital business. The broker maintains its Buy rating and $15 target price.

The analyst feels the share price is implying a more dire situation than what the company is facing. It's thought there will be a ‘relief’ rally should the Victorian Commission for Gambling and Liquor Regulation (VCGLR) allow Crown to continue trading in that state.

Target price is $15.00 Current Price is $9.31 Difference: $5.69
If CWN meets the Ord Minnett target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $11.45, suggesting upside of 23.3% (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

UBS rates CWN as No Rating (-1) -

Normalised EBITDA in FY21 was slightly below UBS forecasts. Perth was the highlight, delivering its highest profit since FY15 and benefiting from government subsidies and a lower level of restrictions.

The main catalyst remains the number of regulatory processes underway, the broker suggests. Apartment sales continue to progress with a total of $750m in proceeds received to June 2021 and a further $500m expected by June 2022.

UBS is restricted on providing a rating and target at present.

Current Price is $9.31. Target price not assessed.

Current consensus price target is $11.45, suggesting upside of 23.3% (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 CWP as Hold (3) -

Following FY21 results, Morgans sees earnings recovering strongly though pre-covid levels remain unlikely until post FY23. With shares trading in-line with valuation, the broker maintains its Hold rating and lowers its target price to $6.71 from $6.77.

FY21 profit was up 61% on the previous corresponding period (pcp) though still -32% below peak FY19 earnings. Gross margin improved to 31% from 28% in the pcp, a function mainly of product mix, explains the analyst.

Positive outlook commentary centered around pre sales of $478m, with around two thirds expected to settle in FY22. This is a 14% uplift of land/buildings sales in FY21, and underpins around the same gross profit levels as delivered in FY21, notes the broker.

Target price is $6.71 Current Price is $6.52 Difference: $0.19
If CWP meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates FLT as Neutral (3) -

While Flight Centre delivered a slight miss on the FY21 result, with sales and underlying profit before tax 6% and
4% short, Citi expects the market to look through the result in light of travel returning and pent-up demand.

With revenue margins declining due to channel and sales mix, Citi thinks a large part of the cost-cutting will lead to maintaining historic profit before tax margins in leisure. 

In corporate, Citi expects client wins to materialise in the financials further out, as integration and duty of care impact its mix of larger clients.

While Citi expects the travel recovery will drive profit growth and earnings upgrades, the broker sees challenges emerging for the legacy Flight Centre business model.

Citi maintains its Neutral rating and the target increases to $16.94 from $16.55.

Target price is $16.94 Current Price is $16.65 Difference: $0.29
If FLT meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.72, suggesting upside of 2.1% (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

Citi rates FMG as Neutral (3) -

Fortescue Metals Group’s FY21 financials were all in line with both Citi and consensus, with revenue up 74% and earnings up 96% on the previous period on a 72% higher iron ore price realisation. The company paid FY21 dividends of $3.58 at 80% payout, fully franked.

FY22 capex is expected at US$2.8-$3.2bn including $1.1bn sustaining, shipments of 180-185mt, gross gearing target of 30-40% and
debt to earnings 1-2x.

As iron ore forecasts retrace to US$98/t in FY23, Citi notes the projected dividend declines to $1.64 and EV/EBITDA multiple increases to 6x from FY22’s low 3.3x.

Neutral rating is unchanged and the target price is lowered to $19.50 from $21.

Target price is $19.50 Current Price is $21.32 Difference: minus $1.82 (current price is over target).
If FMG meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.61, suggesting upside of 2.8% (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: 0.0

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

Credit Suisse rates FMG as Neutral (3) -

Credit Suisse welcomes the "clean" FY21 result which was in line with estimates, and with no change to FY22 guidance. There was no material update on projects.

The broker considers the Fortescue Future Industries venture remains on a "trust" narrative, and without a tangible business case the market is unlikely to ascribe value.

The stock has pulled back -20% since the broker downgraded a month ago and now presents better value.

Credit Suisse expects the stock to be generating cash, underpinning solid dividend yields for a little longer although catalysts for the short term appear few. Neutral maintained. Target is reduced to $21 from $22.

Target price is $21.00 Current Price is $21.32 Difference: minus $0.32 (current price is over target).
If FMG 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 $21.61, suggesting upside of 2.8% (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: 0.0

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

Macquarie rates FMG as Outperform (1) -

Following Fortescue Metals' record FY21 result, in line with estimates, Macquarie has made modest changes to earnings forecasts, and updated reserves and resources estimates.

Macquarie's FY22 and FY23 earnings estimates rise 2% while the broker's FY24 estimate falls by around -1%.

Macquarie notes movements in iron ore prices present the most significant upside and downside risk to the broker's earnings forecasts and valuation. At spot prices, the broker's earnings estimates rise 14% and 77% in FY22 and FY23.

The Outperform rating and target price of $27.00 are retained. 

Target price is $27.00 Current Price is $21.32 Difference: $5.68
If FMG meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $21.61, suggesting upside of 2.8% (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: 0.0

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

Morgan Stanley rates FMG as Underweight (5) -

While FY21 EPS and the dividend were in-line with Morgan Stanley's estimates, operating cash was a 4% beat, driven by working capital release. There was no new guidance nor detail on Fortescue Future Industries (FFI).

The broker remains Underweight on a turning iron ore cycle, higher capex requirements and grade discounts. The target price is unchanged at $18.55. Industry view: Attractive.

Target price is $18.55 Current Price is $21.32 Difference: minus $2.77 (current price is over target).
If FMG meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.61, suggesting upside of 2.8% (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: 0.0

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

Morgans rates FMG as Reduce (5) -

Morgans assesses the FY21 result was in-line with expectations. The analyst questions whether being an early adopter would be a more efficient approach for the company rather than an innovator (as a global technology leader in renewables and green products).

Given that Fortescue Future Industries (FFI) is contemplating investment in Afghanistan and Indonesia, it raises questions around how the company's risk profile might change, ponders the broker. After adjusting for the FY21 result, the target falls to $19.20 from $19.40. 

Management expects investing aggressively towards the goal of becoming the first green iron ore producer will attract a material premium for its products, the broker notes.

Target price is $19.20 Current Price is $21.32 Difference: minus $2.12 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.61, suggesting upside of 2.8% (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: 0.0

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

Ord Minnett rates FMG as Buy (1) -

For Ord Minnett's initial response to FY21 results, see yesterday's Report

Profit was estimated to be in-line with the broker's and consensus expectations, while US$2.7bn net cash was pre-reported. The final dividend of $2.11 was also in-line with consensus estimates.

Based on cheap valuation metrics, balance sheet strength, high yields and iron ore markets stabilising, the analyst maintains a Buy recommendation, while the target price reduces slightly to $28 from $29.

Ord Minnett remains unclear on how to value Fortescue Future Industries (FFI) and carries the vehicle at zero in the valuation. 

Target price is $28.00 Current Price is $21.32 Difference: $6.68
If FMG meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $21.61, suggesting upside of 2.8% (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: 0.0

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

UBS rates FMG as Neutral (3) -

FY21 results were in line with UBS estimates. The focus is now on the progress of Iron Bridge.

Expenditure for Fortescue Future Industries is expected to be -US$400-600m in FY22, including's expenditure on green fleet development and further exploration projects.

Neutral rating and the price target of $18 are both unchanged.

Target price is $18.00 Current Price is $21.32 Difference: minus $3.32 (current price is over target).
If FMG meets the UBS target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.61, suggesting upside of 2.8% (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: 0.0

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

Citi rates HLS as Neutral (3) -

Driven by a strong result in pathology due to high levels of covid testing, Healius reported FY21 underlying net profit of $148m, broadly in line with consensus but -5% below Citi.

Given the elevated level of covid testing and continued lock downs, there was no FY22 guidance as expected, but management confirmed its 300bps margin target increase in Path and Imaging by FY23.

Citi increases FY22 and FY23 earnings per share (EPS) estimates by 100% and 10% respectively. Neutral rating maintained, and the target increases to $4.95 from $4.35.

Target price is $4.95 Current Price is $4.67 Difference: $0.28
If HLS meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.98, suggesting upside of 2.0% (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

Credit Suisse rates HLS as Outperform (1) -

FY21 underlying earnings were below expectations. No FY22 earnings guidance was provided although Credit Suisse notes the outlook commentary is positive.

Coronavirus testing is accelerating and the broker expects this will contribute $425m in revenue and $180m in EBITDA in the first half.

Credit Suisse remains conservative and assumes testing rates decline in the second half. Outperform retained. Target is raised to $5.35 from $5.00.

Target price is $5.35 Current Price is $4.67 Difference: $0.68
If HLS meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.98, suggesting upside of 2.0% (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 HLS as Outperform (1) -

Covid testing contributed to a strong FY21 result for Healius, while benefits from internal initiatives are also evident, observes Macquarie.

While no FY22 guidance was provided, management notes strong covid testing numbers, with base business pathology revenue
ahead of the previous period.

Macquarie sees near-term earnings as supported by covid testing, with margin improvement supporting growth in FY23.

While earnings per share (EPS) estimates are almost unchanged in FY23 and FY24, the EPS revision of 7% in FY22 primarily reflects increased covid testing earnings in first half FY22.

Outperform and target of $5.30 are both retained.

Target price is $5.30 Current Price is $4.67 Difference: $0.63
If HLS meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.98, suggesting upside of 2.0% (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 HLS as Hold (3) -

Following FY21 results, Morgans adjusts FY22-24 forecasts largely due to material increases in covid testing assumptions, and increases its target price to $4.71 from $4.04.

The sale of low-margin businesses, combined with cost outs and lower tax, drove margins and improved profitability, explains the analyst.

The focus now turns towards growth, via bolt-on acquisitions, right-sizing overheads and building longer-term capabilities via the Sustainable Improvement Program (SIP) Phase II, notes Morgans.

Target price is $4.71 Current Price is $4.67 Difference: $0.04
If HLS meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.98, suggesting upside of 2.0% (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

Ord Minnett rates HLS as Accumulate (2) -

The FY21 net profit was -8.4% short of Ord Minnett’s estimate, while the final dividend of 6.75cps was below the forecast for 8cps. However, this was thought due largely to slightly lower margins on covid-19 testing and some one-off items.

The broker lifts FY22 forecasts by over 30% to allow for the recent dramatic increase in covid-19 testing and raises its target price to $5.50 from $5.35. It's assumed in Ord Minnett's forecasts that testing peaks soon and drops back to lower levels from the start of 2022.

Target price is $5.50 Current Price is $4.67 Difference: $0.83
If HLS meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.98, suggesting upside of 2.0% (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 IDX as Equal-weight (3) -

The FY21 result was weaker than Morgan Stanley expected, and the pandemic-impacted outlook drives negative EPS revisions. The broker lowers its target price to $5.05 from $5.20 and retains its Equal-weight rating. Industry view: In-line. 

The analyst also sees potential headwinds to MRI reimbursement in FY23 though expects activity returning to near pre-pandemic levels in FY23. It's thought the key driver of the outlook will be efficient use of capital for organic growth and further acquisitions at the right price.

Target price is $5.05 Current Price is $4.76 Difference: $0.29
If IDX meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 13.4% (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 IDX as Accumulate (2) -

Integral Diagnostics delivered FY21 revenue in-line with Ord Minnett's forecast though elevated opex resulted in a -4% and -3% miss for earnings (EBITDA) and profit. The broker retains its Accumulate rating, given durable earnings and the long-term growth profile.

The analyst points out there is now a trade-off between nearer-term EPS accretion from bolt-on acquisitions and mid-term earnings benefits. This is because suitable M&A opportunities are becoming harder to come by and greenfield opportunities are being scoured.

The target price is adjusted to $5.05 from $5.09.

Target price is $5.05 Current Price is $4.76 Difference: $0.29
If IDX meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.24, suggesting upside of 13.4% (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 IME as Add (1) -

While ImexHS has reported continued growth through the first half, fluctuations and contract delays have kept growth below Morgans' forecasts. Revenue grew to $5.2m in the period, an approximate -12% miss on forecast. 

While annual recurring revenue also improved in the half to $12.7m, Morgans notes there remains a fairly distinct lag between signed and billable annual recurring revenue. Underlying earnings losses also increased to -$2.1m given increased investment in sales and marketing, as well as acquisition costs.

Morgans is now forecasting FY21 revenue at the lower-end of the company's guidance range and underlying earnings losses to increase to -$4.2m.

The Speculative Buy rating is retained and the target price decreases to $2.48 from $3.13.

Target price is $2.48 Current Price is $1.49 Difference: $0.99
If IME meets the Morgans target it will return approximately 66% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates IVC as Sell (5) -

Due to operating leverage, InvoCare reported a strong first half FY21 result with operating earnings per share (EPS) of 14.4 cps, 50% above consensus, and 30% above Citi estimates.

While no guidance was provided, Citi expects the market to likely look through second half FY21, which should see case average decline due to lockdowns.

The broker changes FY21-23 operating EPS estimates by 2%, 12%, and 11% on higher revenue and marginally higher earnings margins.

Sell rating is unchanged and the target price increases to $11 from $10.00.

Target price is $11.00 Current Price is $12.15 Difference: minus $1.15 (current price is over target).
If IVC meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.53, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Macquarie rates IVC as Underperform (5) -

InvoCare delivered a solid first half FY21 beat to expectations with tight cost control, comments Macquarie.

While industry volumes appear strong and case averages returned to near pre-covid levels, Macquarie notes current lockdowns create some near-term headwinds.

Industry volumes started 2021 strongly, with ABS data to the end of May tracking 2.5% above the highest levels over 2015-19.

The broker's near-term earnings per share (EPS) revisions reflect a stronger volume environment than expected and better cost control with a rebasing of earnings from FY23 to capture the unwind of deferred revenue.

Macquarie maintains its Underperform rating with the target rising to $9.90 from $9.30.

Target price is $9.90 Current Price is $12.15 Difference: minus $2.25 (current price is over target).
If IVC meets the Macquarie target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.53, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

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

Following first half results, the key concern for Morgan Stanley are lockdowns, which are set to impact the typically strong second half skew. Overall, the funerals result was considered strong, despite flat volumes year-on-year, driving a 13% earnings (EBITDA) beat.

The analyst remains with an Equal-weight rating as the valuation appears to be pricing in significant ongoing success in a relatively mature market. The Equal-weight rating and target of $11 are retained. Industry view: In-Line.

Target price is $11.00 Current Price is $12.15 Difference: minus $1.15 (current price is over target).
If IVC meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.53, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Morgans rates IVC as Add (1) -

First half results were comfortably ahead of Morgans expectations, with all divisions except for Singapore delivering improved earnings. Management expects the delta covid strain to lead to a softening of the funeral services sector once again in the second half.

The result was driven by a return to pre-covid funeral case averages in A&NZ, higher memorialisation sales and strong growth in the Pet Cremations division, explains the analyst. The target rises to $13.20 from $12.60 and the Add rating is unchanged.

Morgans views the company as a play on a reopening of the economy.

Target price is $13.20 Current Price is $12.15 Difference: $1.05
If IVC meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $11.53, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates IVC as Hold (3) -

Ord Minnett assesses a better than-expected first-half 2021 result, with underlying operating earnings (EBITDA) of $63.6m ahead of Ord Minnett’s $55.6m forecast. A fully franked interim dividend of 9.5cps was declared. No guidance was provided.

At the current price the analyst views the company as fair value if management achieves the lower end of its return on capital employed (ROCE) target of 12% for the business. The Hold rating is maintained and the target price rises to $12 from $11.20.

Target price is $12.00 Current Price is $12.15 Difference: minus $0.15 (current price is over target).
If IVC 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 $11.53, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

UBS rates IVC as Neutral (3) -

Revenue was marginally ahead of UBS estimates in the first half. The broker was impressed by the cost control which flowed to a strong beat at the EBITDA line.

Given lockdowns, the main question for UBS is how much of the leverage improvement was a pulling forward of margin recovery.

The broker would like more evidence of underlying volume and services growth and maintains a Neutral rating. Target is raised to $12.10 from $10.30.

Target price is $12.10 Current Price is $12.15 Difference: minus $0.05 (current price is over target).
If IVC meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.53, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Morgans rates JHC as Hold (3) -

Japara Healthcare reported  a FY21 result in-line with Morgans expectations. No changes are made to forecasts and the broker retains its Hold rating and $1.40 target price. No guidance was provided.

The key focus is completing the scheme of implementation documentation following the unanimous recommendation by the Board to accept the Calvary bid of $1.40 per share, explains the analyst.

Target price is $1.40 Current Price is $1.37 Difference: $0.03
If JHC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.06, suggesting downside of -22.9% (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

Citi rates LFG as Buy (1) -

Liberty Financial Group delivered a slightly softer FY21 net profit of $226m relative to Citi forecasts but 41% higher than FY20, as funding costs fell materially and bad debts were negligible.

Citi notes the group is set to benefit from lower funding costs, with funding locked in during second half FY21 at 85bps versus the back book at 200bps. While that favourably impacts FY22, the broker notes competition headwinds start to mount, with peers experiencing comparable tailwinds.

Citi lowers FY22/23 earnings estimates by -4-9%, primarily reflecting lower net revenues. The Buy rating is retained and the target is lowered to $8.10 from $8.50.

Target price is $8.10 Current Price is $7.29 Difference: $0.81
If LFG meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.25, suggesting upside of 14.0% (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

Credit Suisse rates LFG as Outperform (1) -

FY21 underlying net profit was up 61% and slightly ahead of Credit Suisse estimates. The broker believes the business is well-positioned for further growth and continues to manage growth against margin outcomes.

Interest margin assumptions are raised while bad debt forecasts are lowered. Credit Suisse retains an Outperform rating and raises the target to $8.30 from $8.10.

Target price is $8.30 Current Price is $7.29 Difference: $1.01
If LFG meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.25, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates LLC as Buy (1) -

In a recent briefing to update the market on key areas of focus, Lendlease Group highlighted plans to ramp-up the development pipeline, development earnings recognition, and target cost savings.

Generally consistent with prior disclosures, the group's targets include 8-11% core operating return on equity (ROE) by FY24, $8bn pa production, and development return on invested capital (ROIC) of 10-13% by FY24. The group is also targeting $70bn of
funds under management (FUM) by FY26 and -$160m pa in targeted cost savings.

Overall, Citi expects the market to take some comfort from these targets, and additional clarity on the potential composition of cost savings and the ramp-up in development activity.

The broker does not anticipate significant changes to consensus forecasts. Buy rating and target of $14.27 are both retained.

Target price is $14.27 Current Price is $12.02 Difference: $2.25
If LLC meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 8.3% (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 LLC as Outperform (1) -

Credit Suisse found few extra financial details on the strategy update and believes the business is all about the years beyond FY24.

Lendlease anticipates hitting a target return on equity by FY24 of 8-11% by which stage annual development production is anticipated to be more than $8bn per annum.

By the end of FY24 a further $2-4bn in additional invested capital could be required to facilitate annual development production and co-investment targets, Credit Suisse asserts.

While strategy is clear, the broker suggests investors still need to back management's ability to deliver. Outperform rating and target price of $12.94 are both unchanged.

Target price is $12.94 Current Price is $12.02 Difference: $0.92
If LLC meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 8.3% (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 LLC as Neutral (3) -

During a recently hosted strategy day, Lendlease Group provided detail on the high-level metrics announced at the FY21 including cost-out, timing of earnings recognition, and the impact of covid on urban regeneration projects and simplification.

On investments, the group is aiming to increase funds under management (FUM) from $40bn to $70bn by 2026, which Macquarie expects to aid earnings per share (EPS) by 10%.

Macquarie notes the upside for development earnings is strong with $16bn of developments across 15 projects expected to commence in FY22/FY23. If successful, the broker notes it will enable the group to maintain its production target of $8bn beyond FY24.

The Neutral rating and target price of $11.88 are both retained.

Target price is $11.88 Current Price is $12.02 Difference: minus $0.14 (current price is over target).
If LLC meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.96, suggesting upside of 8.3% (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 LLC as Equal-weight (3) -

Morgan Stanley considers Lendlease Group's strategy briefing was bullish, given FY24 targets for completions and returns were confirmed, post the new CEO's review.

However, the analyst noted uncertainty around the progress of the pipeline, and the potential for FY22 and FY23 to be unexciting years for earnings. The Equal-weight rating and $13 price target are unchanged. Industry view: In-line.

Only around 20% of the -$160m cost-out program will come from overheads, the rest from the operating segments. In the broker's view, this makes it difficult to judge the success and value-add of the strategy.

Target price is $13.00 Current Price is $12.02 Difference: $0.98
If LLC meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 8.3% (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 LLC as Hold (3) -

Ord Minnett notes an implied step-change in development earnings, following a strategy update. Also, cost savings of -$160m are being targeted, with nearly half from downsizing post the sale of engineering and services businesses.

Finally, funds under management (FUM) is targeted to grow to $70bn by FY26. If the group can sustainably achieve its targets, the stock could see a material price-to-earnings re-rate, in the analyst's view. However, earnings volatility is expected to persist.

Ord Minnett retains its Hold rating and $13 target price.

Target price is $13.00 Current Price is $12.02 Difference: $0.98
If LLC meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 8.3% (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 LLC as Buy (1) -

There was no material news from the strategy briefing although UBS notes key incremental information included a $70bn target for assets under management by FY26.

The broker considers guidance around returns in FY24 is achievable and from here the focus is on the upside potential and risks in the remaining development pipeline as well as capital/funding requirements.

UBS retains a Buy rating and $12.66 target.

Target price is $12.66 Current Price is $12.02 Difference: $0.64
If LLC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.96, suggesting upside of 8.3% (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 LRK as Buy (1) -

Lark Distilling's FY21 revenues and cost of goods sold (COGS) were slightly above Ord Minnett's expectations resulting in a gross profit of $8.7m.

Lark’s guidance of doubling sales means that the FY21 revenue performance translates to upgrades in FY22, FY23, and FY24. The result of this is low single-digit upgrades to Ord Minnett's earnings estimates in FY22, FY23, and FY24.

Ord Minnett retains its Buy rating and the target price increases to $5.77 from $5.41, which the broker considers reasonable given
Lark’s premium price point, high net sales gross margins, substantial whisky under maturation, and significant forecast sales growth.

Target price is $5.77 Current Price is $4.66 Difference: $1.11
If LRK meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for 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 LVH as Add (1) -

LiveHire's FY21 operating revenue of $5.53m was a slight miss on Morgans' forecast but implied 60% growth, while underlying earnings were also -1.5% below expectations.

LiveHire is looking to grow its US partner network to include an additional 70 partners, with 25 in the current pipeline. Given two current partners have already sourced five clients each, a network of 70 partners would make Morgans' estimate of 146 clients in FY26 fairly conservative.

The Add rating is retained and the target price increases to $0.54 from $0.53.

Target price is $0.54 Current Price is $0.35 Difference: $0.19
If LVH meets the Morgans target it will return approximately 54% (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 MAI as Hold (3) -

The FY21 result was in-line with Ord Minnett's forecasts on an underlying basis, with significant one-off costs relating to the proposed takeover by Apex Group. The analyst expects the takeover to go ahead and the price target remains unchanged at the bid price of $2.80.

The broker retains its Hold rating and notes all regions reported strong contribution increases, with Asia Pacific leading the charge with 31% revenue growth.

Target price is $2.80 Current Price is $2.75 Difference: $0.05
If MAI meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

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 MCA as Buy (1) -

Considering the volatility attributable to covid in FY21, Ord Minnett regards Murray Cod Australia's FY21 result as a strong showing.

Despite global supply line cut-offs limiting exports and pervasive Victorian lockdowns hampering the domestic restaurant
opportunity, the broker notes the company was able to adjust its business model and shift to retail settings and live fish transport, leading to live fish sales growth of 145% on the previous period and 27% ahead of Ord Minnett.

The downside of this approach, notes Ord Minnett, is it requires additional costs in the form of transportation and staff, which resulted in a slight depression of gross margins to 51.5%.

The broker has made changes to near-term revenue forecasts due to the current lockdowns in NSW and Victoria and consequently reduced FY22 total income estimates by -15%.

The Buy rating is maintained and the target price is lowered to $0.51 from $0.55.

Target price is $0.51 Current Price is $0.33 Difference: $0.18
If MCA meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MCR as Downgrade to Neutral from Outperform (3) -

Mincor Resources has delivered two impressive exploration successes with new discoveries confirmed at Golden Mile and Location 1.

Further exploration success at both sites is likely, and Macquarie assumes $100m in exploration potential in the broker's valuation for the company.

Macquarie has not made any changes to production or cost assumptions, hence the broker's earnings estimates for the company are largely unchanged after incorporating the FY21 result.

The company reported FY21 earnings losses wider than the broker had forecast and notes that the variance reflected exploration expensed and was equivalent to just $1m.

Macquarie notes production ramp-up and costs assumptions are the key risks to the broker's forecasts on Mincor.

Macquarie downgrades Mincor Resources to Neutral from Outperform: $1.40 target.

Target price is $1.40 Current Price is $1.39 Difference: $0.01
If MCR meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

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

Morgans rates MME as Add (1) -

Morgans considers FY21 to have been a strong year for MoneyMe, with the company closing out the year with revenue of around $58m, a 21% increase on the prior comparable period. 

With much of MoneyMe's FY21 results released with the fourth quarter trading update, eyes were on FY22 expectations. The broker considers MoneyMe to be positioning itself for a strong FY22, and believes its new product suite targeting niche under-serviced markets has potential to drive top-line growth.

The broker updates earnings per share forecasts by -19% and -2% for FY22 and FY23 respectively given revised revenue and margin assumptions. 

The Add rating is retained and the target price increases to $2.28 from $2.25.

Target price is $2.28 Current Price is $2.02 Difference: $0.26
If MME meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates MVF as Overweight (1) -

Industry growth for IVF continues better than Morgan Stanley anticipated though any potential normalisation is challenging to forecast. The broker prefers Monash IVF Group over Virtus Health ((VRT)) based on better near-term growth and valuation.

Australian Medicare data shows IVF cycle strength continued across the second half where fresh IVF cycles rose 45% versus the previous corresponding period. The Overweight rating is retained and the target price is increased to $1.10 from $0.90. Industry view is In-Line.

Target price is $1.10 Current Price is $1.01 Difference: $0.09
If MVF meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.09, suggesting upside of 8.7% (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 NAB as Equal-weight (3) -

Despite good first half margin outcomes and an improvement in housing loan growth, FY21 is turning out to be another year of weak revenue trends at the major banks, points out Morgan Stanley.

The broker believes margins will be the key swing factor for revenue in the second half while cost control remains important given that revenue growth remains relatively modest.

In the near term, the analyst thinks National Australia Bank offers the best combination of improved operating momentum and confidence in earnings estimates. The Equal-Weight rating and target price of $27.90 are retained. Industry view: In-Line.

Target price is $27.90 Current Price is $27.54 Difference: $0.36
If NAB meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $27.98, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates NEC as Buy (1) -

Further to the FY21 results UBS lowers FY22 EBITDA forecasts by -4.5% as a result of downgrades to Stan and Domain ((DHG)).

In contrast, the broker believes the metropolitan free-to-air advertising market, which has been under pressure to the best part of a decade, can grow, particularly combined with the opportunity that broadcast video on demand presents.

Buy rating and $3.10 target unchanged.

Target price is $3.10 Current Price is $2.75 Difference: $0.35
If NEC meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 20.5% (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 NHC as Buy (1) -

Market dynamics seem to have changed such for coal markets, both thermal and hard coking, that Citi analysts have now shifted to nominate their previous bull case scenario as the base case for the second half of 2021.

The move has positive implications for ASX-listed coal producers Whitehaven Coal and New Hope Corp as medium term forecasts receive a boost.

Citi prefers New Hope Corp over Whitehaven Coal in the sector. Buy rating retained for New Hope with a revised price target of $2.20; up from $2.10 prior.

Target price is $2.20 Current Price is $2.11 Difference: $0.09
If NHC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.15, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates NXL as Overweight (1) -

While FY21 revenue met recently lowered guidance, Morgan Stanley highlights it was -9% below original prospectus estimates while earnings (EBITDA) beat guidance and prospectus. No FY22 guidance was provided.

The fall in churn business and new customer wins are indicative of a company growing slowly, not collapsing, points out the analyst. It's felt product innovation, expansion into new verticals and a faster SaaS take-up is required for a re-rating.

Morgan Stanley retains its Overweight rating and $6.40 price target. Industry view is Attractive.

Target price is $6.40 Current Price is $2.56 Difference: $3.84
If NXL meets the Morgan Stanley target it will return approximately 150% (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 NXT as Overweight (1) -

NextDC's FY21 results were a slight miss on consensus forecasts, but Morgan Stanley notes the high growth outlook remains intact and the company continues to be considered a positive structural growth story.

Morgan Stanley is forecasting three-year revenue compound annual growth rate of 22% and underlying earnings compound annual growth rate of 27%.

Given FY21 results, the broker updates underlying earnings forecasts by 1% to -7.8% and earnings per share forecasts by -6.5% to -10.3%, through to FY23. 

The Overweight rating is retained and the target price increases to $15.50 from $14.60. Industry View: Attractive.

Target price is $15.50 Current Price is $12.79 Difference: $2.71
If NXT meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $14.31, suggesting upside of 7.8% (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 PBH as Buy (1) -

At first glance, Ord Minnett notes PointsBet's FY21 earnings loss of -$156.1m was 5% better than expected, due to slightly lower than anticipated costs.

The Australian trading business delivered statutory earnings of $9.2m, while the US provided a statutory earnings loss of -$149.6m.

Within outlook commentary, the broker notes the company's expectations of launching in 11 additional US states and Ontario, Canada by end of 2022, building on the current 7 live US states is unchanged from previous guidance.

The broker expects FY22 consensus earnings estimates to be broadly unchanged on the back of what has been seen so far. 

Buy rating is unchanged and the target is increased to $15.70 from $13.60.

Target price is $15.70 Current Price is $10.21 Difference: $5.49
If PBH meets the Ord Minnett target it will return approximately 54% (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 PTB as Add (1) -

PTB Group's net profit before tax for FY21 was in line with Morgan's forecast, however segmental results showed strong underlying earnings in the US business but weaker results in the Australian sector.

The company also announced it will be managing an additional 18 engines that will be flown by Trans Maldivian Airways. 

The company is yet to provide guidance for FY22 but this is expected at the November AGM. Morgans adjusts revenue forecasts downwards, and has underlying earnings up 22%.

The Add rating is retained and the target price increases to $1.18 from $0.93.

Target price is $1.18 Current Price is $0.83 Difference: $0.35
If PTB meets the Morgans target it will return approximately 42% (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 PWR as Overweight (1) -

It is Morgan Stanley's view that the market is concerned with Peter Warren Automotive Holdings' near-term outlook given profit before tax guidance of $28m, which implies a material decrease on FY21 profit, but is overlooking growth in sustainable profit before tax. 

The broker notes the company looks to have already achieved sustainable profit before tax at or above FY23 consensus. 

According to Morgan Stanley, demand in the auto sector is clearly there, and while the broker has not factored mergers and acquisitions into forecasts, it does expect to see inorganic tailwinds in FY22.

The Overweight rating is retained and the target price increases to $4.60 from $4.40. Industry view: In-Line.

Target price is $4.60 Current Price is $3.38 Difference: $1.22
If PWR meets the Morgan Stanley target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates QBE as Outperform (1) -

Hurricane Ida has already caused significant damage and will increase QBE Insurance Group's second half catastrophe costs. A conservative worst-case scenario could mean a loss of -US$250m, although Credit Suisse acknowledges it is too early to tell what the ultimate cost will be.

The broker points out there is already a catastrophe risk from the US drought. While there is increased risk to the catastrophe allowance, Credit Suisse maintains forecasts for now waiting to see if further events unfold in the current season.

Outperform rating and $15.60 target maintained.

Target price is $15.60 Current Price is $11.87 Difference: $3.73
If QBE meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $13.99, suggesting upside of 18.2% (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: 0.8

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

Morgans rates SHJ as Add (1) -

Shine Justice's FY21 underlying earnings were slightly ahead of Morgans' expectations and a 9.8% increase on the previous comparable period, totaling $56.2m. 

While there remains some risk around the resolution of the Mesh class action case, Morgans notes a successful determination will put Shine Justice in a strong capital position to pursue acquisitions. 

The company is guiding underlying earnings growth in the low double digits for FY22 and the broker updates the FY22 underlying earnings forecast by 7.6%, assuming 11.4% growth. 

The Add rating is retained and the target price increases to $1.55 from $1.47.

Target price is $1.55 Current Price is $1.15 Difference: $0.4
If SHJ meets the Morgans target it will return approximately 35% (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 SHV as Buy (1) -

Select Harvest continues to benefit from ongoing almond price momentum in FY21, with concerns emerging about the potential size of the 2021 Californian almond crop as the current harvest progresses.

Citi notes higher 2020 crop prices also bode well for the company's FY22 earnings, given that the 2021 crop is currently at a 10% premium to 2020. 

Driven by the higher almond price assumptions, Citi's FY21, FY22, and FY23 earnings estimates increase by 18%, 18%, and 13%, respectively.

Citi retains its Buy rating and the target price increases to $9.85 from $8.10.

Target price is $9.85 Current Price is $8.60 Difference: $1.25
If SHV meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates SRL as Outperform (1) -

Most financial metrics had been pre-reported, but Sunrise Energy Metals' FY21 earnings loss of -$21.2m was 13% greater than Macquarie had expected.

Macquarie notes increased equity dilution in the broker's Sunrise-project-funding scenario, due to the fall in the share price, drives 2% increases in FY22-FY24 forecast earnings losses.

The broker retains the Outperform rating and the target is lowered to $2.30 from $2.50.

Target price is $2.30 Current Price is $1.69 Difference: $0.61
If SRL meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates TLS as Buy (1) -

To better encapsulate reported and adjusted earnings based on FY21 results disclosure, Ord Minnett has made some adjustments to its financial model for Telstra Corp.

Ord Minnett has also made adjustments to its base-case assumptions, resulting in small upgrades to net profit forecasts and a 2% increase in its net present value (NPV) estimate.

The broker sees Telstra as best placed in the Australian mobile market, with the company’s headstart on the rollout of 5G infrastructure expected to deliver market share gains of lucrative postpaid subscribers.

Ord Minnett maintains its Buy rating and the target price increases to $4.50 from $4.40.

Target price is $4.50 Current Price is $3.83 Difference: $0.67
If TLS meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.24, suggesting upside of 10.1% (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 TPW as Outperform (1) -

FY21 results were pre-reported and EBITDA and EBIT were in line with that disclosure. Net profit was lower than Credit Suisse forecast, as a higher benefit associated with tax assets did not eventuate.

The company provided a positive trading update that has shown further acceleration in sales growth in August. Credit Suisse upgrades near-term sales forecasts under the assumption that lockdowns persist through September.

The broker retains an Outperform rating and raises the target to $15.73 from $14.62.

Target price is $15.73 Current Price is $14.34 Difference: $1.39
If TPW meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.78, suggesting upside of 0.2% (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 TPW as Overweight (1) -

According to Morgan Stanley, the main takeaway from Temple & Webster Group's trading update is revenue growth accelerating into August.

Revenue is up 49% year-on-year from the beginning of the financial year. The broker expects near-term trading to continue to benefit from lockdowns. 

The Overweight rating and target price of $16.00 are retained. Industry view: In-Line.

Target price is $16.00 Current Price is $14.34 Difference: $1.66
If TPW meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.78, suggesting upside of 0.2% (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 VRT as Underweight (5) -

Industry growth for IVF continues better than Morgan Stanley anticipated though any potential normalisation is challenging to forecast. The broker prefers Monash IVF Group ((MVF)) over Virtus Health based on better near-term growth and valuation.

Australian Medicare data shows IVF cycle strength continued across the second half where fresh IVF cycles rose 45% versus the previous corresponding period. The Underweight rating is retained and the target rises to $6.50 from $6.05. Industry view In-Line.

Management announced the acquisition of Adora in Australia for -$45m, which the analyst expects will be mildly EPS accretive in the first year.

Target price is $6.50 Current Price is $6.88 Difference: minus $0.38 (current price is over target).
If VRT meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.12, suggesting upside of 4.4% (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 WBC as Overweight (1) -

Despite good first half margin outcomes and an improvement in housing loan growth, FY21 is turning out to be another year of weak revenue trends at the major banks, points out Morgan Stanley.

The broker believes margins will be the key swing factor for revenue in the second half while cost control remains important given that revenue growth remains relatively modest.

The analyst forecasts margins for Westpac Bank will fall by -6bps half-on-half. The $29.20 target price and Overweight rating are unchanged. Industry view: In-line.

Target price is $29.20 Current Price is $25.80 Difference: $3.4
If WBC meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $28.37, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates WEB as Buy (1) -

At first glance, Ord Minnett expects Webjet to deliver a circa -$15m earnings loss in first half FY22 followed by a return to profitability in second half FY22.

During the AGM trading update, Webjet stated it will be operating cash flow-positive in first half FY22, and re-affirmed that the company is on track to deliver cost reductions of -20% versus pre-pandemic.

The key, notes Ord Minnett, is that the recovery in earnings from the WebBeds (B2B) Division - which was profitable in July and August and is on track to be profitable in September - is likely to gather momentum, noting the January to March 2022 is a quieter period. 

The broker believes Webjet is on track to get back to pre-covid earnings quicker than local peers. Buy rating and target price of $7.02.

Target price is $7.02 Current Price is $5.50 Difference: $1.52
If WEB meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates WES as Neutral (3) -

Further to the FY21 results, UBS updates estimates for earnings per share. The broker notes lockdowns are weighing on sales as the first half gets underway from de-leveraging.

There is optimism around a recovery which assumes consumer spending will stay strong and the broker is not yet convinced this will be the case.

Neutral rating and $62 target are unchanged.

Target price is $62.00 Current Price is $60.20 Difference: $1.8
If WES meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $56.75, suggesting downside of -5.6% (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 WGX as Outperform (1) -

Westgold Resources FY21 net profit of $76.8m was within -1% of Macquarie's estimate, and the company declared a surprise maiden 2.0c/sh (unfranked) dividend in recognition of improved financial performance.

Underlying earnings of $246.3m were in line after stripping out $5.2m in gains on financial assets.

The broker's cash flow outlook for the company remains reliant on a reduced capital spend and improved production from the Big Bell mine at Cue. 

The broker notes Big Bell’s ramp-up appears to be maturing with the cave producing at a rate of 0.8Mtpa in fourth quarter FY21, which is approaching the 1Mpta nameplate.

The higher closing lease and hire purchase liabilities resulted in a small increase in Macquarie's finance cost expectations, which reduces the broker's earnings per share (EPS) estimates by low single-digits between FY22 and FY26.

Outperform and target price of $2.30.

Target price is $2.30 Current Price is $1.76 Difference: $0.54
If WGX meets the Macquarie target it will return approximately 31% (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 WHC as Neutral (3) -

Market dynamics seem to have changed such for coal markets, both thermal and hard coking, that Citi analysts have now shifted to nominate their previous bull case scenario as the base case for the second half of 2021.

The move has positive implications for ASX-listed coal producers Whitehaven Coal and New Hope Corp as medium term forecasts receive a boost.

Citi prefers New Hope Corp over Whitehaven Coal in the sector. For Whitehaven, Citi has removed the High Risk tag, but kept the Neutral rating. Target price gains 10c to $2.70.

Target price is $2.70 Current Price is $2.48 Difference: $0.22
If WHC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 8.7% (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