Australian Broker Call

Ord Minnett rates A1M as Buy (1) -

AIC Mines has raised $30m, and the second tranche of $4.7m is due in March, to upgrade the Eloise mill and progress studies at the Jericho resource.

Ord Minnett says the raising takes the pressure off the balance sheet and will improve working capital flows.

Speculative Buy rating retained. Target price falls to 70c from 75c to reflect the raising.

Target price is $0.70 Current Price is $0.48 Difference: $0.225
If A1M meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates AGL as Buy (1) -

In an early response to AGL Energy's first half result, Ord Minnett points out the company's outlook beyond the current fiscal year remains positive. The company reported a -$1.08bn after tax loss which included -$706m in impairment charges, largely on the company's accelerated decarbonisation plan. 

Year-on-year, underlying earnings declined -16% and net profit declined -55%, and the company lowered earnings and revenue guidance ranges to their lower ends at $1,250-$1,375m and $200-$280m respectively, with the profits decline attributed to unplanned outages at Loy Yang A. 

The broker is Buy rated with a target price of $9.50.

Target price is $9.50 Current Price is $7.94 Difference: $1.56
If AGL meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.74, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

UBS rates AGL as Neutral (3) -

At first glance, AGL Energy's December-half result sharply missed consensus and UBS forecasts, largely due to disappointing electricity earnings (EBIT), which outweighed an improvement in gas earnings and lower depreciation and amortisation. 

AGL has shaved the top end of FY23 guidance and retains its 2035 12GW new-generation target.

Buy rating retained. Target price eases to $8.60 from $8.70.

Target price is $8.70 Current Price is $7.94 Difference: $0.76
If AGL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.74, suggesting upside of 22.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Credit Suisse rates AMC as Neutral (3) -

Credit Suisse lowers its target for Amcor to $16.45 from $17.25 following 1H results, on EPS downgrades of -2-3% over the forecast period.

Credit Suisse noted yesterday an earnings (EBITA) beat was due to lower corporate costs, while a cash from operations miss was due to an increase in working capital, previously flagged by management.

Earnings of US$791m compared to the broker's forecast of US$780m and the expectation by consensus for US$770m.

FY23 EPS guidance was unchanged at US77-81c though management expects the lower end of the range and cited volumes as a key area of uncertainty. 

Credit Suisse notes volume weakness emerged in the 2Q in Latin America, Nth America and China and weakness is now entrenched in Europe. Neutral.

Target price is $16.45 Current Price is $16.70 Difference: minus $0.25 (current price is over target).
If AMC 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 $16.86, suggesting upside of 3.6% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.1

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

Macquarie rates AMC as Neutral (3) -

On a first look yesterday, Macquarie noted a slight underlying earnings beat for Amcor was flattered by lower tax and corporate costs. The company maintained its FY23 earnings guidance, but later suggested it expects a result at the lower end of the range.

The broker expects a flattish second half on a constant currency basis, and ex of the first half impact of the sale of the Russian business.

Amcor posted the weakest volume growth in over three years. The stock is defensive, the broker acknowledges, but not immune from
volume weakness resulting in slowing earnings growth over course of FY23.

Neutral retained, target falls to $17.38 from $17.94.

Target price is $17.38 Current Price is $16.70 Difference: $0.68
If AMC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $16.86, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.1

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

Morgan Stanley rates AMC as Downgrade to Underweight from Equal-weight (5) -

On closer examination of Amcor's December half result, Morgan Stanley downgrades its rating to Underweight from Equal Weight and cuts its target price to $15.50 from $17, observing guidance, while confirmed, was cautious.

All up, the broker spies volume softness in the near term and growth headwinds in FY23 and FY24, and expects Amcor is likely to be an underperformer should the market switch to risk-on and growth stocks.

Otherwise the broker considers Amcor's result to be in line, despite some deterioration in volume. Increased caution on the demand environment by the company was noted.

First half earnings (EBIT) were a 1% beat versus the broker's forecast and in-line with consensus.

Industry view: In Line.

Target price is $15.50 Current Price is $16.70 Difference: minus $1.2 (current price is over target).
If AMC 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 $16.86, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.1

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

Morgans rates AMC as Hold (3) -

Amcor's 1H result was broadly in line with prior forecasts by Morgans and consensus. Underlying earnings (EBIT) rose by 3%, while underlying profit was steady.

Regarding the outlook, management was more cautious, according to the analyst, pointing to weaker consumer demand and pressure from destocking. 

While FY23 guidance for underlying EPS and underlying free cash flow was maintained, these metrics are expected to land at the lower-end of their respective ranges.

Morgans lowers its target to $16.20 from $17.75 on lower forecast earnings. Hold.

Target price is $16.20 Current Price is $16.70 Difference: minus $0.5 (current price is over target).
If AMC meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.86, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.1

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

Ord Minnett rates AMC as Hold (3) -

Amcor's December-half result missed Ord Minnett's forecasts due to lower turnover in flexibles and rigids and weaker price rises.

Management reiterated guidance, and the broker cuts FY23 EPS forecasts -4% to fall within the upper range. 

The retreat in volumes reflected destocking, China lockdowns, and lower beverage turnover in the Americas. Margins also felt the squeeze from a product-mix shift to lower margin goods as demand for higher margin products eased, observes the broker.

Ord Minnett retains its view that Amcor is a defensive, consistent performer, and its defensive position should protect it from the worst ravages of moderting demand and its cost discipline has room to support flagging margins.

Hold rating and $17 target price retained.

Target price is $17.00 Current Price is $16.70 Difference: $0.3
If AMC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.86, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.1

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

Ord Minnett rates APM as Upgrade to Accumulate from Hold (2) -

Ord Minnett raises APM Human Services International's target price to Accumulate from Hold after the company's recent share price retreat.

Target price is steady at $2.80.

Target price is $2.80 Current Price is $2.39 Difference: $0.41
If APM meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.41, suggesting upside of 44.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Credit Suisse rates AQZ as Outperform (1) -

First half earnings (EBITDA) for Alliance Aviation Services missed the forecasts of Credit Suisse and consensus. Profit (PBT) guidance was also a -23% and -18% miss against the broker and consensus.

Credit Suisse's unchanged $4.75 target is based upon the script offer by Qantas Airways ((QAN)). Outperform.

Target price is $4.75 Current Price is $3.43 Difference: $1.32
If AQZ meets the Credit Suisse target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 32.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates ARB as Downgrade to Sell from Buy (5) -

While new car sales growth continued in January, Citi points out momentum looks to have slowed across key categories to ARB Corp's business. 

A weaker than expected update from ARB Corp, with profitability impacted by elevated input and freight costs inflation, has driven Citi to lower its full year net profit forecast -6%, and -1% and -2% respectively in FY24 and FY25. 

The target price is downgraded to Neutral from Buy and the target price decreases to $31.79 from $39.25.

Target price is $31.79 Current Price is $30.21 Difference: $1.58
If ARB meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $31.80, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates ARX as Initiation of coverage with Add (1) -

Morgans initiates coverage on soft tissue regenerative company Aroa Biosurgery with an Add rating and $1.57 target price.

The Myriad product (trauma) currently provides 10% of revenue for the company and the analysts forecast this will grow to 25% and 40% in FY23 and FY24, respectively.

New products Symphony (complex wounds and limb salvage) is expected to launch in April-23 and Enivo (negative pressure wound therapy & Dead space) should have a soft launch in 2024. These are expected to add significantly to revenue, according to the broker.

Target price is $1.57 Current Price is $1.17 Difference: $0.405
If ARX meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates BLD as Sell (5) -

While Boral's first half result appears strong, Citi points out the company delivered year-on-year earnings growth of just $12m despite cycling off a -$33m covid-driven construction shutdown in the previous comparable period. The result leaves the broker unsure if price is recovering inflation.

More positively, Citi highlights long-awaited infrastructure has started and it expects this can deliver a strong volume outlook. Despite seeing good earnings momentum for the company, Citi finds the stock overpriced at its current valuation. 

The Sell rating is retained and the target price increases to $3.25 from $2.67.

Target price is $3.25 Current Price is $3.97 Difference: minus $0.72 (current price is over target).
If BLD meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Credit Suisse rates BLD as Outperform (1) -

Following 1H results by Boral, Credit Suisse increases its target to $4.50 from $3.90 and maintains its Outperform rating in the expectation of good operating conditions and earnings upgrades over the next six months.

Earnings (EBIT) for the 1H exceeded the analyst's forecast by 19%, due to better-than-expected margins, while FY23 guidance was also a 5% beat. 

The broker expects upside to this guidance, as margins should improve in the 2H on lower energy costs, improved weather and modest growth in end markets.

No interim dividend was declared due to low free cash flow and a low franking balance, according to the company.

Target price is $4.50 Current Price is $3.97 Difference: $0.53
If BLD meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.73, suggesting downside of -2.2% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Macquarie rates BLD as Neutral (3) -

A solid volume outcome was the key driver of a beat for Boral, with weather seemingly not impacting as badly as Macquarie feared. Price gains were broadly in line with expectations, but indicative of growing price traction that should be recouping some margin soon, the broker suggests.

Yet inflation pressure and risks remain, with management calling out second-order effects of last year’s strong commodity inflation in many key inputs, although this has sharpened the focus on price discipline, the broker believes.

After a good run, Boral is trding at a 7% premium to its long term average. Neutral retained, target rises to $4.05 from $3.60.

Target price is $4.05 Current Price is $3.97 Difference: $0.08
If BLD meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.73, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Morgan Stanley rates BLD as Underweight (5) -

Boral's December-half result beat consensus' and Morgan Stanley's forecasts by a decent clip, but the broker obsserves continuing cost pressure.

No interim dividend was announced due to a lack of franking credits.

Guidance was tight-lipped, management expecting June half earnings will be about the same as the December half, implying upside risk to the market's forecasts and consensus upgrades.

EPS forecasts are raised to reflect the beat and guidance.

Underweight rating retained, the broker pointing to the uncertain outlook, the need to raise pricing to combat cost inflation, and the fact that much of the beat is already priced into the share price.

Target price rises to $3 from $2.20 to reflect the beat.

Target price is $3.00 Current Price is $3.97 Difference: minus $0.97 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Ord Minnett rates BLD as Hold (3) -

Boral's December-half result missed Ord Minnett's forecasts due to a squeeze on operating margins (which were still up 50 basis points, thanks to energy hedging and better operating leverage). Nevertheless, energy costs still rose 54%, cartage rose 20% and maintenance costs rose 8%.

On the flipside, volumes, revenue and pricing all posted increases, allowing the company to deliver a solid result.

The broker lowers its FY23 earnings (EBIT) forecast to just above management's guidance as it realigns its lofty margin forecasts (albethey in line with historical averages) to the inflationary context.

Ord Minnett bemoans the company's lack of durable competitive advantages in a crowded market but expects demand will remain steady as large infrastructure projects step into the forecast residential construction gap.

Hold rating and $4 target price retained.

Target price is $4.00 Current Price is $3.97 Difference: $0.03
If BLD meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.73, suggesting downside of -2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Citi rates BWP as Sell (5) -

Despite seeing signs of BWP Trust continuing to perform well through the remainder of the fiscal year Citi finds the stock overpriced, particularly in comparison to peers. 

While BWP Trust has largely maintained its cap rate since the start of the fiscal year, currently 5.05%, Citi expects this will rise over the coming year. Around 30% of BWP Trust's leases are set to expire in FY26, but the company remains confident in renewals 

The Sell rating is retained and the target price decreases to $3.60 from $3.70.

Target price is $3.60 Current Price is $3.88 Difference: minus $0.28 (current price is over target).
If BWP meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.63, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -1.0

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

Morgan Stanley rates BWP as Underweight (5) -

BWP Trust's December-half earnings nosed out Morgan Stanley's forecast thank to a jump in comparative rental growth to 3.9% (54% of leases are tied to the CPI).

Management retains dividend guidance but the broker says the beat suggests incremental dividend growth may be forthcoming, although the broker's forecasts are steady until FY26.

The broker admires the company's balance sheet, BWP Trust's gearing sitting at sector low of 15.3%.

Morgan Stanley's main concern is that roughly 25% of the Trust's leases expire over FY24 and FY25, limiting future growth.

Underweight rating and $3.70 target price retained on valuation. Industry view: In-line.

Target price is $3.60 Current Price is $3.88 Difference: minus $0.28 (current price is over target).
If BWP 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 $3.63, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -1.0

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

Ord Minnett rates BWP as Lighten (4) -

BWP Trust's December-half result met Ord Minnett's forecasts, delivering a flat result. 

The broker appreciates the company's balance sheet; defensive, growing rental income and low gearing but expect the company to struggle to make headway as Bunnings vacates older stores and as interest rates continue to rise. The broker suspects recent weak rent reviews and poor terms struck on recent developments could be a sign of things to come. 

All up, the broker believes the company is overvalued.

Lighten rating retained. Target price falls to $3.60 from $4.

Target price is $3.60 Current Price is $3.88 Difference: minus $0.28 (current price is over target).
If BWP 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 $3.63, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -1.0

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

Morgans rates CAR as Hold (3) -

Coming into 1H results on February 13, Morgans remains attracted to growth optionality longer-term at Carsales though retains a Hold rating on valuation grounds.

The broker's price target increases slightly to $23.80 from $23.70.

Target price is $23.80 Current Price is $22.98 Difference: $0.82
If CAR meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $24.50, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Citi rates CCX as Neutral (3) -

Visits to City Chic Collective's website declined -9% year-on-year in January, which Citi notes is largely in line with its expectations for an -11% online sales revenue decrease over the second half. 

By brand, visits to the retailers US platforms increased in January, up 63% and 17% year-on-year for City Chic US and Avenue respectively, while Australia New Zealand declined -29%, and Europe's Evans and Navabi declined -30% and 66%. 

The Neutral rating and target price of $0.72 are retained.

Target price is $0.72 Current Price is $0.54 Difference: $0.185
If CCX meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.67, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates CLW as Buy (1) -

Citi's early assessment of Charter Hall Long WALE REIT's interim result release is there remain too many questions unanswered. The fact FY23 was left unchanged is one disappointment highlighted by the analysts.

There's a meeting between REIT and institional investors later today and Citi thinks questions centre around rental growth assumptions, debt costs and debt covenants on certain roads, asset values and transaction opportunities.

H1 performance was in line with forecasts and the 14c in dividend had already been announced. Debt costs have risen, offsetting any inflation benefit to the REIT's top line, highlights the broker.

Target $5. Buy.

Target price is $5.00 Current Price is $4.62 Difference: $0.38
If CLW meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.64, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgan Stanley rates CSL as Overweight (1) -

Blood and plasma provider Haemonetics December-quarter reports has implications for CSL, says Morgan Stanley.

Haemonetics also extended its supply agreement with CSL to December 2025.

The broker says this implies a slower-than-expected Rika rollout, suggesting EPS benefits will now be delayed to post-FY24.

Overweight rating and $354 target price retained.

Target price is $354.00 Current Price is $306.20 Difference: $47.8
If CSL meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $328.20, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Morgan Stanley rates DDR as Overweight (1) -

At first glance, Dicker Data's 2022 result beat Morgan Stanley's forecasts.

Overweight rating and $13 target price retained.

Target price is $13.00 Current Price is $9.31 Difference: $3.69
If DDR meets the Morgan Stanley target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 DMP as Overweight (1) -

Morgan Stanley adjusts down its EPS forecasts for Domino's Pizza Enterprises heading into the company's December-half result, to reflect recent acquisitions, the December equity raising, and challenging market conditions.

The broker also cuts its dividend forecast.

While the Overweight rating and $85 target price are retained (along with the forecast EPS compound annual growth rate of 20%), the broker expects the result will reveal strong challenges for the company in FY23, prior to a likely recovery in FY24.

Target price is $85.00 Current Price is $70.45 Difference: $14.55
If DMP meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $75.57, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates DXI as Outperform (1) -

Dexus Industria REIT's first half funds from operations (FFO) were -3% below Macquarie's forecast, driven by costs and tax. FY23 guidance is nevertheless reaffirmed and the broker now sits at the mid-point of the range.

Following the divestment of Rhodes, Dexus Industria has flagged the potential to divest its final business park exposure. While the sale would be in isolation FFO dilutive, it would release capital to execute on the uncommitted pipeline, the broker notes.

The REIT’s earnings profile is superior to many of its peers, Macquarie suggests, aided by strength in topline growth and developments, with leverage to industrial rental growth. Outperform retained, target rises to $3.28 from $3.08.

Target price is $3.28 Current Price is $3.05 Difference: $0.23
If DXI meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates DXI as Add (1) -

Dexus Industria REIT delivered solid rental outcomes during the 1H, according to Morgans, with releasing spreads of 11%.

The broker expects further rental growth with around 14% of leases set to expire over FY24 and FY25, while in Sydney and Perth the development pipeline continues to grow.

Management reiterated FY23 guidance for funds from operations (FFO) of 16.7-17.5cpu and a distribution of 16.4cpu.

Dexus Industria REIT is a preffered REIT in the sector by Morgans and the Add rating is unchanged, while the target rises to $3.37 from $3.26.

Target price is $3.37 Current Price is $3.05 Difference: $0.32
If DXI meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates GLN as Outperform (1) -

Galan Lithium has paid the final instalment and settled the purchase of 100% title of the Candelas Project, Macquarie reports.

Galan is progressing key workstreams to enable the immediate commencement of construction on the HMW Pilot project once all
approvals are received.

Once this occurs, Macquarie expects Galan to also lodge the development plans and permits for the full-scale plant, post the completion of the definitive feasibility study.

Outperform and $1.90 target retained.

Target price is $1.90 Current Price is $1.25 Difference: $0.655
If GLN meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates JBH as Upgrade to Lighten from Sell (4) -

Ord Minnett has upgraded JB Hi-Fi to Lighten from Sell after the company's recent share-price retreat.

Target price is steady at $35.50.

Target price is $35.50 Current Price is $46.69 Difference: minus $11.19 (current price is over target).
If JBH meets the Ord Minnett target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $46.03, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates JRV as Outperform (1) -

Jervois Global has delievered a positive in-fill drilling update which improves confidence at the RAM resource.

Jervois' Dec quarter production result was soft, Macquarie notes, with a delay to first production from the Idaho Cobalt Operations and a
capex overrun.

Yet the stock is cheap on the broker's valuation. The key is delivering ICO to updated cost guidance and timeline and returning Jervois
Finland to profitability.

Outperform and 40c target retained.

Target price is $0.40 Current Price is $0.25 Difference: $0.15
If JRV meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Macquarie rates KMD as Neutral (3) -

A Dec quarter update from KMD Brands showed the Columbia and North Face brands grew sales in the period depite cycling tough comparables, Macquarie notes.

Margins nonetheless remain under pressure for both, the broker warns, given promotions and elevated inventories, but both expect a recovery in the coming FY.

Good news, but the broker remains cautious on KMD due to its increased marketing spend for offshore growth amid macroeconomic uncertainty. Neutral and 90c target retained.

Target price is $0.90 Current Price is $0.96 Difference: minus $0.055 (current price is over target).
If KMD meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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 LM8 as Outperform (1) -

Fresh from updating on new nickel prospects this week, Lunnon Metals has provided an update on its metallurgical test on 85H diamond core, highlighting a strong result.

Lunnon goes into 2023 with a solid cash position, Macquarie notes, positioning it well for a busy and catalyst-rich period which could include a declaration of a maiden ore reserve at Baker and a Warren mineral resource update.

Outperform and $1.30 target retained.

Target price is $1.30 Current Price is $0.95 Difference: $0.35
If LM8 meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates MGR as Buy (1) -

Upon initial assessment, today's interim release by Mirvac Group is considered a "strong beat" by Citi, but management left FY23 guidance unchanged and that might disappoint some, suggest the analysts.

Add a strong rally in the share price and Citi would not be surprised if the share price loses some momentum in the aftermath of today's result.

The strong beat was carried by higher commercial development profits, higher retail net operating income (NOI) and higher management income, the broker explains.

Target $2.40. Buy.

Target price is $2.40 Current Price is $2.40 Difference: $0
If MGR meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.39, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates MGR as Neutral (3) -

In an initial response to today's H1 release, UBS finds Mirvac Group did beat expectations, but it's considered of "low quality" as the strong result was carried by non recurring benefits.

There's a below the line writedown as well and the broker resolutely posits "the market won't like it".

UBS continues to see risks for the residential business. Guidance for 2500 lot sales is skewed to Q4, points out the broker.

Neutral. Target $2.40.

Target price is $2.40 Current Price is $2.40 Difference: $0
If MGR meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.39, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Citi rates MP1 as Buy (1) -

Citi expects Megaport's recent operational weakness could continue into the second half, underpinned by slowing cloud growth. Megaport's revenue has typically correlated with revenue growth of large cloud providers, which have flagged expected slowing growth into 2023. 

The broker anticipates cash burn of $25m in the first half will decrease over the second half, with a -$5m reduction in capital expenditure and $2m in additional savings. 

The Buy rating and target price of $10.95 are retained.

Target price is $10.95 Current Price is $6.19 Difference: $4.76
If MP1 meets the Citi target it will return approximately 77% (excluding dividends, fees and charges).

Current consensus price target is $10.14, suggesting upside of 70.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Ord Minnett rates MPL as Downgrade to Hold from Accumulate (3) -

Ord Minnett has downgraded Medibank Private to Hold from Accumulate, after shifting to whitelabelling of Morningstar research.

Target price rises to $3.20 from $3.

Target price is $3.20 Current Price is $3.09 Difference: $0.11
If MPL meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Morgan Stanley considers' Nuix's legal win in the Federal Court against its former CEO as a plus, translating to lower legal costs and improved free cash flow, a reduction in uncertainty and overhang, no payment of damages and no issue capital raisings.

The broker conjectures that it may also engage in M&A, which could prove a big plus going forward.

While the company is not yet out of the woods, still having to address an ASIC case regarding continuous disclosure as well as class actions, the broker observes the company's fundamentals are improving, as demonstrated in its December-half result.

But Morgan Stanely prefers to place its money on high-quality, highly profitable companies with good free cash flow and clear path to scale.

Equal-Weight rating and $1.25 target price retained. Industry view: Attractive.

Target price is $1.25 Current Price is $1.47 Difference: minus $0.22 (current price is over target).
If NXL meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates PXA as Outperform (1) -

Returning from research restriction, Macquarie sees scope for outperformance from Pexa Group as domestic transfer volumes appear to be nearing a trough with potential positive UK catalysts on the horizon. At the current share price there is little value being ascribed to UK and Insights.

While refinance volumes should remain elevated, the broker has downgraded earnings forecasts on lower near-term margins and higher interest expenses.

Outperforma and $18 target set.

Target price is $18.00 Current Price is $13.20 Difference: $4.8
If PXA meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $17.21, suggesting upside of 30.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates REA as Add (1) -

REA Group reports 1H results tomorrow (February 10) and Morgans broadly aligns with consensus in forecasting revenue and earnings (EBITDA) growth on the previous corresponding period of around 3% and -3%, respectively.

The broker now forecasts a -10% fall, a further decline from its -6% previous estimate, in year-on-year new listings volumes in Australia Residential in the 2H.

The analyst’s FY23-FY25 earnings forecasts fall by circa -1-3% and the price target is lowered to $136 from $138. The Add rating is unchanged.

Target price is $136.00 Current Price is $124.45 Difference: $11.55
If REA meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $123.14, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates SEK as Add (1) -

Prior to 1H results for Seek, Morgans lifts its FY23 A&NZ revenue and earnings (EBITDA) forecasts on the basis that resilient job ads volumes continue into the 2H. 

However, forecast job ads volumes are lowered into FY24/FY25 as the analysts expect a normalisation of job vacancies as immigration increases.

The target price falls slightly to $28.90 from $29.40. Add.

Target price is $28.90 Current Price is $25.19 Difference: $3.71
If SEK meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $28.35, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Citi rates SUN as Buy (1) -

Despite facing some challenges, Citi points out Suncorp Group margin trajectory appears solid and potential for further expansion remains. According to the broker, reinsurance remains a headwind, but the insurer is confident in its ability to price for cost increases. 

Citi expects the first half may prove loss making for Suncorp Group's motor insurance portfolio, assuming a more than 7% lift in the motor claims ratio. However, the broker expects Suncorp Group should be able to address through price increases and as inflation recedes.

The Buy rating is retained and the target price increases to $14.30 from $13.50.

Target price is $14.30 Current Price is $13.04 Difference: $1.26
If SUN meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Credit Suisse rates SUN as Outperform (1) -

Credit Suisse reiterates its Outperform rating for Suncorp Group after 1H results and raises its target to $13.95 from $13.34, despite misses of -6% and -5% against forecasts by the broker and consensus, respectively.

The analyst lifts its earnings forecasts by around 2-3% across the forecast period and assumes a higher market multiple.

The broker notes very strong bank profits as the net interest margin (NIM) rose by 13bps versus the 2H of FY22, and home lending grew by 5.4% compared to system growth of 1.7%. The sale of the bank is expected to be completed by the 2H of 2023.

Credit Suisse believes management guidance is conservative and the multiple for the pureplay insurance business is currently trading at a-25% discount to the market.

Target price is $13.95 Current Price is $13.04 Difference: $0.91
If SUN meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 14.0% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Macquarie rates SUN as Outperform (1) -

Within Suncorp Group's result, gross written premium growth and underlying margins were both as Macquarie expected. The FY23 Hazards outlook was unchanged, while group cost targets are now within reach.

Going forward there will clearly be underlying margin volatility, Macquarie warns, and the need for significant premium rate rises to account for resets to multiple items including motor claims, home claims, catastrophe changes and reinsurance changes.

But with the prospect of sale proceeds from the bank in the coming 12 months, Suncorp remains the broker's preference among Australian General Insurers.

Outperform retained, target rises to $16.40 from $15.80.

Target price is $16.40 Current Price is $13.04 Difference: $3.36
If SUN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Morgan Stanley rates SUN as Overweight (1) -

Suncorp Group's December-half result appears to have largely met Morgan Stanley's forecasts, and the broker suspects strong pricing on personal lines could help the company exceed near-term margin guidance.

Suncorp is the broker's preferred insurance pick, and the company's improved capital position and strong top-line have cemented this ranking for FY23. 

The broker observes rising pressure on bank net interest margins, suggesting earnings are under pressure and may have peaked. But for now book-growth is solid, notes Morgan Stanley.

EPS forecasts fall -4% to -6% to reflect lower bank-earnings expectations.

Overweight rating retained. Target price falls to $14.50 from $14.60.

Target price is $14.50 Current Price is $13.04 Difference: $1.46
If SUN meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Morgans rates SUN as Add (1) -

While 1H cash profit was a -7% miss compared to the consensus forecast, Morgans raises its FY23 and FY24 EPS forecasts by 6% and 8%,respectively and lifts its target to $14.44 from $13.33.

The broker points out  top line growth was robust on the previous corresponding period for general insurance, and the bank result was strong on all key metrics.

Strong price rises remain supportive of near-term margins, according to Morgans, and the group appears well positioned for when inflation and bad weather ease. Add.

Target price is $14.44 Current Price is $13.04 Difference: $1.4
If SUN meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Ord Minnett rates SUN as Hold (3) -

Suncorp Group's December-half result appears to have met Ord Minnett's forecasts, the broker saying the company's profit recovery after its past woes was to be expected.

Claims costs rose, reflecting higher second-hand car and parts prices, wage inflation and natural hazard costs but the broker observes premium increases combined with lower operational expenditure, an uptick in investment income, and rising net interest margins won the day.

Suncorp's capital position, high payout-ratios and low reported bad debts were considered pluses.

But the rebound does not change the broker's view that the company is unlikely to deliver persistent high returns over the long term given its lack of competitive barriers and exposure to large uninsured events.

Hold rating and $13 target price. (Prior to Ord Minnett's shift to whitelabelling Morningstar research the broker rated the company a Buy and held a $13.25 target price.) 

Target price is $13.00 Current Price is $13.04 Difference: minus $0.04 (current price is over target).
If SUN meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.51, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Macquarie rates SVW as Outperform (1) -

Macquarie has updated its forecasts for Seven Group to account for updated forecasts for Seven West Media ((SWM)), Beach Energy ((BPT)) and Boral ((BLD)) in which the group has shareholdings.

The bottom line is earnings downgrades for Beach, upgrades for Seven West and following yesterday's strong result, upgrades for Boral.

Elsewhere in the group, WesTrac expects demand to remain strong for mining products and services and Coates customer activity remains solid due to a robust economic industry environment, the broker notes.

The net result is a target increase to $25.85 from $25.05, Outpeorm retained.

Target price is $25.85 Current Price is $22.89 Difference: $2.96
If SVW meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $23.88, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Ahead of Tabcorp Holdings' result, Macquarie is cautious on Wagering & Media considering competition, including a recent new entrant, and the waiving of Sky Channel fees in pubs and clubs.

The broker now sees Tabcorp as fair value, balancing downside risks within wagering and uncertainties relating to licence renewals, against
the possible upside to earnings through leveling of the playing field within jurisdictions outside of Queensland.

To that end the broker pulls back to Neutral from Outperform, on an unchanged $1.10 target.

Target price is $1.10 Current Price is $1.05 Difference: $0.05
If TAH meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.11, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates TLC as Downgrade to Lighten from Accumulate (4) -

Ord Minnett has downgraded Lottery Corp to Lighten from Accumulate, after shifting to whitelabelling of Morningstar research.

Target price falls to $4.40 from $4.95.

Target price is $4.40 Current Price is $4.99 Difference: minus $0.59 (current price is over target).
If TLC meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.92, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Credit Suisse rates TLS as Outperform (1) -

In the lead up to 1H results, Telstra Group remains the top pick by Credit Suisse in its coverage of the Telco sector.

The broker expects management to retain its FY23 guidance for underlying earnings (EBITDA) of $7.8-8bn. This guidance implies around 4.5% year-on-year growth at the midpoint with Mobile expected to be a key driver.

Any news on a potential transaction on monetisation of InfraCo Fixed would be a likely positive spur for the stock price, according to the analyst.

The Outperform rating and $4.50 target are unchanged.

Target price is $4.50 Current Price is $4.11 Difference: $0.39
If TLS meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Credit Suisse rates TPG as Neutral (3) -

In the lead up to FY22 results for TPG Telecom, Credit Suisse forecasts 7.7% year-on-year growth in 2H earnings (EBITDA).

The broker lowers its target to $5.30 from $5.60 as management has previously noted: Every 50bp increase in interest rates
results in an around $17m increase in annualised interest expense. Neutral.

Target price is $5.30 Current Price is $4.76 Difference: $0.54
If TPG meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.04, suggesting upside of 28.5% (ex-dividends)

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