Australian Broker Call

Citi rates BAP as Buy (1) -

Citi expects the acquisition of a 25% stake in Tye Soon for -$12m to provide the company a base to grow its Asian business and address gaps in its Specialist Wholesale portfolio.

The broker sees South Korea and Malaysia (43% of Tye Soon's revenue) as key rollout opportunities for Bapcor in Asia and the acquisition gives a base to expand into other Asian markets.

Buy rating is unchanged, target price increases to $9.35 from $9.30. Citi estimates South Korea and Malaysia could together represent a 460 store rollout opportunity for Bapcor over the medium to long-term.

Target price is $9.35 Current Price is $7.40 Difference: $1.95
If BAP meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $8.93, suggesting upside of 20.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Citi rates BHP as Neutral (3) -

Despite being bullish on the nearer-term prospects for oil, CEO Mike Henry has confirmed that in the long-term oil probably does not have a place in the company’s portfolio. This is a result of an increasingly ESG-focused shareholder base.

Citi explains if there were a spin out of the Petroleum segment, BHP Group would need to provide 'Newco' with a substantial cash balance given potential capex were it to be unconstrained regarding Scarborough/Trion/T&T North. Neutral rating and $46 target are retained.

Target price is $46.00 Current Price is $44.88 Difference: $1.12
If BHP meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $47.89, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.6

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

Citi rates BKL as Sell (5) -

Despite having better sales momentum than Swisse in A&NZ, competition could increase for Blackmores over 2021 as Swisse plans to invest in marketing and branding and expand its practitioner brand Nutra+, explains Citi. The $59.20 target and the Sell rating are retained.

The broker calculates the company is trading on high multiples and has concerns about the performance in Australia, just when competition is increasing and the company is reducing its investment in its salesforce.

Target price is $59.20 Current Price is $82.92 Difference: minus $23.72 (current price is over target).
If BKL meets the Citi target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $73.95, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates BKW as Buy (1) -

Upon initial read of today's interim report release, Citi analysts saw a better-than-expected result, boosted by revaluations and sales of property.

Excluding property, the operational performance was actually below expectations, explain the analysts. The Australian building products business is singled out as the major culprit.

The broker does believe the outlook is improving. Buy rating retained with an unchanged target price of $22.70.

Target price is $22.70 Current Price is $18.91 Difference: $3.79
If BKW meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $21.75, suggesting upside of 10.1% (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 BSL as Equal-weight (3) -

Steel spreads have reached record highs. Morgan Stanley notes historically the correlation of steel spreads with BlueScope Steel's share price has been high. In the broker's view, there could be further upside for the stock price from here.

Equal-Weight rating with a target of $19.50. Industry view: In-line.

Target price is $19.50 Current Price is $18.55 Difference: $0.95
If BSL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $20.28, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates CPU as Sell (5) -

Citi assesses the acquisition of Wells Fargo Corporate Trust Services (CTS) is of high quality and has the potential to add around 30% to EPS by FY25 or FY26. It's considered EPS accretion will only first appear in FY23, with it marginally dilutive in FY21 and FY22.

The broker feels investors may welcome the pivot towards US corporate trust which, despite significant initial capex, has the potential to generate recurring revenue and cash with relatively low capital intensity.

Sell rating. Target is raised to $13.90 from $13.20. Citi cautions that organic growth prospects seem relatively modest from the acquisition though the broker notes the company now has very material leverage to rises in shorter term interest rates.

Target price is $13.90 Current Price is $14.99 Difference: minus $1.09 (current price is over target).
If CPU 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 $15.42, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Macquarie rates CPU as Outperform (1) -

Computershare will acquire the assets of Wells Fargo Corporate Trust Services for US$750m. The deal is expected to be at least 15% accretive on a pro forma FY21 basis.

To fund the acquisition the company will complete an underwritten renounceable entitlement offer worth $835m with the remainder of the purchase price funded by debt.

Macquarie notes accretion is heavily reliant on long-term synergies but does reduce reliance on the more capital intensive US Mortgage Servicing business, which is a positive.

Outperform rating. Target is raised to $21.00 from $16.45.

Target price is $21.00 Current Price is $14.99 Difference: $6.01
If CPU meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $15.42, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Morgan Stanley rates CPU as Overweight (1) -

Computershare is buying Wells Fargo Corporate Trust. Morgan Stanley finds the 15% earnings accretion attractive although points out it will take five years for the company to achieve this.

The broker considers this deal to be substantial for Computershare and highlights the acquisition will increase the company's recurring revenues and increase exposure to US securitisation market.

Overweight rating with a target of $16.30. Industry view is In-Line.

Target price is $16.30 Current Price is $14.99 Difference: $1.31
If CPU meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.42, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Morgans rates CPU as Add (1) -

Morgans assesses the acquisition of Wells Fargo’s Corporate Trust Services (WFCT) business positively as it makes strategic sense and appears highly accretive. WFCT is a top four player in the US corporate trust market.

The analyst highlights the acquisition significantly increases leverage to rising interest rates (WFCT has US$61bn of client balances), with management believing clear opportunities exist to improve yields by applying Computershare’s treasury strategies.

The broker adjusts FY21-23 EPS forecasts by -5%, -1% and 7%, respectively, to reflect the initial dilution from the capital raising before acquisition accretion kicks in. Morgans raises the price target to $17.10 from $16.20. The Add rating is unchanged.

Target price is $17.10 Current Price is $14.99 Difference: $2.11
If CPU meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $15.42, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Ord Minnett rates CPU as Lighten (4) -

Computershare will acquire Wells Fargo Corporate Trust Services, a leading US provider of trust and agency services along with an equity raising to fund the acquisition.

The broker highlights the acquisition is broadly earnings-neutral in the near term but turns accretive if a value is assigned to synergies.

While management’s statement appears positive with respect to guidance, the broker can’t help feeling the second-half pick-up that implies a 27% operating improvement is a bit of a stretch. 

Ord Minnett maintains its Lighten recommendation with a target price of $10.75.

Target price is $10.75 Current Price is $14.99 Difference: minus $4.24 (current price is over target).
If CPU meets the Ord Minnett target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.42, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Credit Suisse rates GNC as Upgrade to Outperform from Neutral (1) -

Credit Suisse has increased medium-term forecasts to align with the company's new guidance for through-the-cycle earnings. The broker also upgrades FY22 amid expectations of another above-average east coast crop.

The broker has frequently argued that the market has underrated cost reductions over recent years while noting the addition of capacity to the east coast grain industry peaked several years ago. This has created a stable competitive environment.

Credit Suisse upgrades to Outperform from Neutral and raises the target to $5.59 from $5.06.

Target price is $5.59 Current Price is $5.00 Difference: $0.59
If GNC meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 19.4% (ex-dividends)

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 GNC as Outperform (1) -

Macquarie is more confident regarding the earnings outlook after the investor briefing.

New operating initiatives are expected to generate an additional $25m in annualised operating earnings by 2023-24. International expansion is expected to contribute a further $15m by 2022.

Macquarie reiterates an Outperform rating, noting the benefits of strong seasonal conditions and a favourable outlook for the processing business. Target is raised to $6.01 from $5.80.

Target price is $6.01 Current Price is $5.00 Difference: $1.01
If GNC meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 19.4% (ex-dividends)

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

Morgans rates GNC as Add (1) -

Morgans upgrades forecasts after management revealed new operating initiatives to improve earnings (EBITDA) by another $25m. FY21 guidance was reiterated and the company noted that recent rainfall has been positive for the upcoming winter crop (planted April-June).

Add rating. The target increases to $6.15 from $5.52 as Morgans notes no other ASX-listed agribusiness has greater leverage to improved seasonal conditions on the east coast of Australia and a bumper grain crop.

Target price is $6.15 Current Price is $5.00 Difference: $1.15
If GNC meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 19.4% (ex-dividends)

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

UBS rates GNC as Buy (1) -

UBS assesses the update from the company should provide investors with better visibility regarding the medium-term strategy. The broker is also more confident in valuation assumptions.

FY23-24 operating earnings estimates are lifted by 32-38%. Material upside risk also exists for FY22 if the east coast experiences a second consecutive bumper crop.

While the stock has rallied substantially, UBS believes the valuation remains attractive and retains a Buy rating. Target is raised to $6.60 from $5.30.

Target price is $6.60 Current Price is $5.00 Difference: $1.6
If GNC meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $6.09, suggesting upside of 19.4% (ex-dividends)

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 KLL as Outperform (1) -

Kalium Lakes has lifted its production scope for Beyondie to 100,000tpa. This is an 11% improvement on the feasibility study and Macquarie's expectations.

Importantly, the increased production can be achieved with no additional capital cost. Delivering the project on schedule and budget is key to realising the long-term value the broker believes the project offers. Outperform maintained. Target is $0.43.

Target price is $0.43 Current Price is $0.24 Difference: $0.19
If KLL meets the Macquarie target it will return approximately 79% (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

Citi rates MQG as Sell (5) -

Citi's US gas trading team has suggested a variety of factors that drove Macquarie Group’s material profitability relative to peers from the extreme weather events in North America in February. 

The broker explains the group benefited from an outsized regional presence where activity was strongest. Volatility was considered exacerbated by constraints on traders to access markets (covid and holiday related) and specific energy regulation.

The grid was also considered unprepared for the winter conditions. Sell rating is maintained with a target of $125.

Target price is $125.00 Current Price is $151.51 Difference: minus $26.51 (current price is over target).
If MQG meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $149.22, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates PMV as Neutral (3) -

In the wake of first half results, Citi expects margins to structurally reset 400 basis points higher, given rent savings and the shift to online. The company has started the 2H strongly in terms of like-for-like sales growth and gross margins, notes the analyst.

The broker highlights almost all of the uplift in profitability is driven by lower rent, which is expected to fall to 13.7% of sales in FY22 from 17.7% of sales in FY19.

The company has seen online increase to 20% from 10% over the past three years albeit accelerated by covid. The analyst expects this to increase to 30% over the next five years, as online continues to be margin accretive. Neutral rating and target lifts to $26 from $25.

Target price is $26.00 Current Price is $23.84 Difference: $2.16
If PMV meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $26.26, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in July.

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

Credit Suisse rates PMV as Neutral (3) -

First half retail earnings were ahead of guidance provided in January. Aside from government support and temporary rent reductions, Credit Suisse assesses the result still reflected the strength of the portfolio. Online sales increased 61.3%.

While Australian clothing retail has improved, Credit Suisse notes uncertainty regarding the recovery in the Smiggle sales performance, given the impact of the pandemic.

As Smiggle is a significant driver of valuation, the near-term uncertainty underpins the broker's Neutral rating. Target is raised to $25.05 from $23.09.

Target price is $25.05 Current Price is $23.84 Difference: $1.21
If PMV meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $26.26, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in July.

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 PMV as Outperform (1) -

First half earnings were ahead of Macquarie's estimates. The broker notes the 30.3% margins were supported by online and rent/wages relief.

Earnings margins are expected to normalise but still exceed pre-pandemic levels amid long-term rent reductions and a shift to online.

Macquarie likes the exposure to a leading global retailer and retains an Outperform rating. Target is raised to $31 from $28.

Target price is $31.00 Current Price is $23.84 Difference: $7.16
If PMV meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $26.26, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in July.

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

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

Premier Investments delivered record profits in the first half, observes Morgan Stanley, reflecting strong consumer conditions and execution. Operating income was up 89% at $238m and higher than expected.

The broker expects this momentum to continue into the second half although admits earnings growth in FY22 is becoming increasingly challenging with the CEO transition adding further to the complexity.

Equal-weight rating with a target price of $24. Industry view: In-Line.

Target price is $24.00 Current Price is $23.84 Difference: $0.16
If PMV meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $26.26, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in July.

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

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

Premier Investments reported a first-half FY21 net profit of $188.2m, above Ord Minnett’s forecast of $176m.

Premier Retail operating earnings at $237.8m came in above the broker's $230.4m estimate and guidance of $221–233m. An interim dividend of 34c was declared which was below Ord Minnett's 44c expectation.

In the broker's view, Premier Retail operating income margin expansion and Smiggle providing leverage to reopening following covid will position Premier Investments well to manage a difficult comparable period in some brands especially Peter Alexander from 2020.

Ord Minnett upgrades its rating to Accumulate from Hold with the target price rising to $27 from $24.

Target price is $27.00 Current Price is $23.84 Difference: $3.16
If PMV meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $26.26, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in July.

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 PNV as Upgrade to Outperform from Neutral (1) -

Macquarie continues to believe Polynovo is well-positioned to increase its share within existing indications. Moreover, entry into new indications with sizeable markets, such as chronic wounds and hernia, should support growth over the medium to longer term.

There is a degree of short-term uncertainty related to the pandemic, the broker acknowledges. Rating is upgraded to Outperform from Neutral. Target is raised to $3.20 from $2.75.

Target price is $3.20 Current Price is $2.87 Difference: $0.33
If PNV meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Morgans rates RED as Add (1) -

Red 5 disappointed Morgans by announcing a -$60m capital raise, given prior guidance. However, the raising in combination with a $175m combined debt and working capital facility is considered to ensure the King of the Hills project (Koth) is fully financed to completion.

Morgans moves to a Speculative Buy from Add and lowers the target price to $0.25 from $0.33 as the market is unlikely to fully value Koth until the project is constructed and commissioned by mid 2022.

Target price is $0.25 Current Price is $0.16 Difference: $0.09
If RED meets the Morgans target it will return approximately 56% (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

Citi rates RSG as Downgrade to Neutral from Buy (3) -

Citi cuts the rating to Neutral (high risk) from Buy (high risk) and reduces the target to $0.75 from $0.90 after news of the termination of the mining lease for Bibiani. The impact on the slated US$105m Bibiani divestment to Chifeng at this stage is unknown.

Activities at Bibiani (Ghana) are to cease after the termination. The analyst is disappointed, to say the least, especially when this news is coupled with recent industrial action at Syama and the contested circa US$66m in VAT and other tax balances in Mali.

The company is seeking legal advice regarding validity, appeal rights and any recourse. Citi still expects the company can meet its debt repayment obligations either way without the need for capital though the outlook could change on gold weakness or further geopolitical events.

Target price is $0.75 Current Price is $0.63 Difference: $0.12
If RSG meets the Citi target it will return approximately 19% (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: -0.5

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

Macquarie rates RSG as Downgrade to Underperform from Outperform (5) -

Resolute Mining has received notice from Ghana's minerals commission advising that its lease on the Bibiani gold mine has been terminated. The company has been advised to cease all activities.

Resolute Mining was in the process of selling Bibiani to Chifeng Jilong and close the deal this month. The termination of the lease is unexpected and the company is seeking clarification.

Macquarie suspects it is unlikely the sale will go ahead, at least in its current form. The sale is removed from the broker's estimates and the rating is downgraded to Underperform from Outperform. Target is reduced to $0.55 from $1.00.

Target price is $0.55 Current Price is $0.63 Difference: minus $0.08 (current price is over target).
If RSG meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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: -0.5

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

UBS rates SPK as Neutral (3) -

Spark NZ has highlighted the depth and breadth of its offering in IT services, which accounted for 33% of FY20 revenue. UBS is less optimistic about the company's ability to offset the margin decline in the cloud.

If more customers migrate to the public cloud this could put pressure on pricing and margins and result in revenue growth towards the lower end of the aspirational range, the broker adds. Spark NZ is forecasting 6% growth in cloud revenues, below the market growth of 10-15%.

Forecasts are unchanged. The target price is NZ$4.60. Neutral retained.

Current Price is $4.05. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Morgan Stanley rates TPW as Overweight (1) -

Morgan Stanley believes Temple & Webster Group can generate marketing leverage as the brand increases awareness, interest and retention.

The broker notes the group's brand awareness rose to 55% from 30% around 12 months ago, driven by TV advertising while web traffic rose three times over last year. 

Overweight rating and $14 target retained. Industry view: In-Line.

Target price is $14.00 Current Price is $9.86 Difference: $4.14
If TPW meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates WBC as Hold (3) -

Westpac Bank is assessing the appropriate structure for its New Zealand businesses and whether a spin-off would be in the best interests of shareholders. The bank is in a very early stage of the assessment and has not come up with a decision.

In Ord Minnett’s view, the changes the Reserve Bank of New Zealand has made in recent years have made the spin-off of the New Zealand banking arms more palatable.

Also, the broker believes such a move would allow Westpac to focus more on driving better performance from its domestic business. What is not clear is whether the move would create value for shareholders given regulatory pressures, among other things.

Hold recommendation with a $25.30 target price.

Target price is $25.30 Current Price is $24.19 Difference: $1.11
If WBC meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $25.84, suggesting upside of 7.4% (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 XRO as Lighten (4) -

Xero has acquired Tickstar which is a Sweden-based e-invoicing infrastructure business that lets people integrate with Pan-European Public Procurement Online (PEPPOL) infrastructure.

PEPPOL enables cross-border eProcurement, including e-invoicing, and is being adopted across Europe, Singapore, Australia and New Zealand.

Ord Minnett considers this a strategic move that will likely help Xero’s subscribers to become PEPPOL-compliant. Even so, the broker does not see the acquisition as a material growth or earnings contributor in the medium term.

Lighten rating retained with a target of $88.

Target price is $88.00 Current Price is $123.47 Difference: minus $35.47 (current price is over target).
If XRO meets the Ord Minnett target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $108.08, suggesting downside of -11.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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