Australian Broker Call

Ord Minnett rates A1M as Speculative Buy (1) -

Ord Minnett assesses a "solid" quarterly result for AIC Mines with record production due to higher-than-expected grade, throughput and recoveries.

The broker notes the company is on track to exceed unchanged production guidance. It's felt the current share price is not reflecting operational outperformance, and presents a good entry-point for leveraged exposure to growing copper operations.

The Speculative Buy rating and 70c target are retained.

Target price is $0.70 Current Price is $0.28 Difference: $0.425
If A1M meets the Ord Minnett target it will return approximately 155% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates A1M as Buy (1) -

AIC Mines reported December quarter results and they pleased Shaw and Partners with the broker highlighting Eloise reported its highest quarterly production since the company took ownership in November 2021.

The analysts have lifted forecast production for FY24 and expect management to upgrade guidance prior to the end of the year.

The broker points out this company offers investors one of few ways only to invest in leveraged exposure to copper production on the ASX.

Buy rating and 80c price target retained. Forecasts have increased.

Target price is $0.80 Current Price is $0.28 Difference: $0.525
If A1M meets the Shaw and Partners target it will return approximately 191% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates ACF as Downgrade to Accumulate from Buy (2) -

Since Ord Minnett included Acrow in its Analyst Conviction List last November, the share price has risen 19%. As a result, the broker downgrades its rating to Accumulate from Buy.

The broker considers the company has strong organic growth opportunities, supported by a robust pipeline and M&A optionality, and expects a strong performance by the key Formwork division at upcoming 1H results.

The target price falls to $1.24 from $1.25.

Target price is $1.24 Current Price is $1.11 Difference: $0.13
If ACF meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Shaw and Partners rates ANG as Buy (1) -

Clearly, operational dynamics are better than anticipated for Austin Engineering, with management at the firm lifting guidance for H1 by circa 18% while adding the company currently carries a record order book.

Shaw and Partners has increased profit forecasts by 9.8%/15.6%/23.4% in FY24/FY25/FY26. The broker's DCF valuation has increased 17% to $0.50 per share from $0.43. Buy rating retained.

The broker profiles Austin Engineering as a very well-run company that is delivering impressive results under a revised strategy, though volatility in certain commodity prices should not be dismissed.

Such volatility should be accounted for in upgraded forecasts, suggests the broker.

Target price is $0.50 Current Price is $0.40 Difference: $0.1
If ANG meets the Shaw and Partners target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates ANZ as Neutral (3) -

Macquarie sees limited upside for Australian banks in FY24, with earnings forecast to decline by around -5-15%, and begins 2024 with an Underweight rating on the Bank sector.

Consensus pre-provision forecasts look reasonable to the analysts, but impairment charges are considered optimistic in light of current interest rate settings.

On the valuation front, the broker notes banks currently trade at an around 15% premium to their three-year relative price/PPOP (pre-provision operating profit) average.

The broker's preferred exposure is Westpac, National Australia Bank, ANZ Bank, CommBank, followed by the regionals Bendigo & Adelaide Bank and Bank of Queensland.

The analyst's rating for ANZ Bank is kept at Neutral given short-term risks around the upcoming tribunal decision regarding the potential acquisition of Suncorp Group's ((SUN)) banking business. The target rises to $25 from $24.

Target price is $25.00 Current Price is $26.50 Difference: minus $1.5 (current price is over target).
If ANZ meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.32, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgan Stanley rates APX as Underweight (5) -

Appen has lost one of its top-three customers in Google, which accounted for some 30% of FY23 revenues and 25% of gross profit.

Morgan Stanley's negative investment thesis on Appen has been based on a view that Appen's technology is becoming less valuable to its traditional clients.

Competition is intensifying and Appen's large customers are creating more sophisticated platforms and using more of their own AI and relying less on human input. Morgan Stanley asks: does the business have a terminal value?

Underweight retained, target falls to 60c from $1.94. Industry view: Attractive.

Target price is $0.60 Current Price is $0.28 Difference: $0.325
If APX meets the Morgan Stanley target it will return approximately 118% (excluding dividends, fees and charges).

Current consensus price target is $0.87, suggesting upside of 198.9% (ex-dividends)

The company's fiscal year ends in December.

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 BBN as Upgrade to Buy from Neutral (1) -

Citi found Baby Bunting's first half trading update disappointing, with both sales and margins missing expectations. While total sales of $248.5m were largely in line, like-for-like sales were a -7% miss to the broker's forecast.

According to the company, price competition had a -$6m impact on sales on the half, likely impacting on the 37.2% gross margin. 

Citi expects this year will be seen as a transition year by the market. The broker expects the stock would benefit from demonstrating it can better leveraging its scale to drive higher gross margins.

The rating is upgraded to Buy from Neutral and the target price increases to $2.15 from $2.00.

Target price is $2.15 Current Price is $1.70 Difference: $0.45
If BBN meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates BBN as Neutral (3) -

After reviewing preliminary 1H results for Baby Bunting, Macquarie notes the competitive pricing backdrop and inventory reductions have had a dilutive impact on the company's gross margin. 

The gross margin of 37.2% was flat year-on-year but came in below the broker's expectation.

While trading improved in the 2Q, total sales fell by -2.5% in the 1H, compared to the previous corresponding period, due to a -7% fall in same store sales, explains the analyst.

Macquarie reduces FY24-26 EPS forecasts by -48%, -29% and -23%, respectively due to lower sales forecasts and higher cost of doing business (CODB) assumptions. The target falls to $1.75 from $2.10. Neutral.

Target price is $1.75 Current Price is $1.70 Difference: $0.05
If BBN meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

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

Baby Bunting's first quarter trading update showed sales down -2.5% year on year, slightly shy of consensus. The gorss margin was flat.

The miss could suggest a larger skew to the second half, Morgan Stanley notes, or a rebasing lower for FY24 forecasts. But there were positives.

Comparable sales rose 1% in the last nine weeks, margins were flat despite competition in car seats and prams, and inventory has been reduced.

Equal-weight and $1.88 target retained. Industry view: In Line.

Target price is $1.88 Current Price is $1.70 Difference: $0.18
If BBN meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates BEN as Underperform (5) -

Macquarie sees limited upside for Australian banks in FY24, with earnings forecast to decline by around -5-15%, and begins 2024 with an Underweight rating on the Bank sector.

Consensus pre-provision forecasts look reasonable to the analysts, but impairment charges are considered optimistic in light of current interest rate settings.

On the valuation front, the broker notes banks currently trade at an around 15% premium to their three-year relative price/PPOP (pre-provision operating profit) average.

The broker's preferred exposure is Westpac, National Australia Bank, ANZ Bank, CommBank, followed by the regionals Bendigo & Adelaide Bank and Bank of Queensland.

The rating for Bendigo & Adelaide Bank remains at Underperform, given Macquarie continues to see regional banks as structurally disadvantaged due to mortgage and deposit competition, resulting in ongoing margin contraction. The $8.50 target is unchanged.

Target price is $8.50 Current Price is $9.74 Difference: minus $1.24 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.09, suggesting downside of -7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Shaw and Partners rates BMN as Buy (1) -

Shaw and Partners has lifted forecasts for the price of uranium and, to little surprise, continues to advocate investors have an overweight allocation to the uranium sector in equity portfolios.

Revised forecasts assume a multi-year price spike to US$150/lb, before settling to a long-term U3O8 realised price assumption of US$76/lb (2024 Real) in 2030.

Preferred exposures are Paladin Energy, Silex Systems, Peninsula Energy, Lotus Resources and Bannerman Energy.

For Buy-rated Bannerman Energy, the price target has lifted by 95% to $7.04.

Target price is $7.04 Current Price is $3.42 Difference: $3.62
If BMN meets the Shaw and Partners target it will return approximately 106% (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

Shaw and Partners rates BOE as Upgrade to Hold from Sell (3) -

Shaw and Partners has lifted forecasts for the price of uranium and, to little surprise, continues to advocate investors have an overweight allocation to the uranium sector in equity portfolios.

Revised forecasts assume a multi-year price spike to US$150/lb, before settling to a long-term U3O8 realised price assumption of US$76/lb (2024 Real) in 2030.

Preferred exposures are Paladin Energy, Silex Systems, Peninsula Energy, Lotus Resources and Bannerman Energy.

Boss Energy is the sole Hold rating in the broker's Australian coverage, now upgraded from the prior Sell, with the broker's price target rising to $4.75 from $3.60 on higher price forecasts that benefit the industry at large.

Target price is $4.75 Current Price is $5.29 Difference: minus $0.54 (current price is over target).
If BOE meets the Shaw and Partners target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.15, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates BOQ as Underperform (5) -

Macquarie sees limited upside for Australian banks in FY24, with earnings forecast to decline by around -5-15%, and begins 2024 with an Underweight rating on the Bank sector.

Consensus pre-provision forecasts look reasonable to the analysts, but impairment charges are considered optimistic in light of current interest rate settings.

On the valuation front, the broker notes banks currently trade at an around 15% premium to their three-year relative price/PPOP (pre-provision operating profit) average.

The broker's preferred exposure is Westpac, National Australia Bank, ANZ Bank, CommBank, followed by the regionals Bendigo & Adelaide Bank and Bank of Queensland.

The rating for Bank of Queensland remains at Underperform, given Macquarie continues to see regional banks as structurally disadvantaged due to mortgage and deposit competition, resulting in ongoing margin contraction.

The target falls to $4.75 from $4.90.

Target price is $4.75 Current Price is $5.95 Difference: minus $1.2 (current price is over target).
If BOQ meets the Macquarie target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.55, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.6

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

Macquarie rates CBA as Underperform (5) -

Macquarie sees limited upside for Australian banks in FY24, with earnings forecast to decline by around -5-15%, and begins 2024 with an Underweight rating on the Bank sector.

Consensus pre-provision forecasts look reasonable to the analysts, but impairment charges are considered optimistic in light of current interest rate settings.

On the valuation front, the broker notes banks currently trade at an around 15% premium to their three-year relative price/PPOP (pre-provision operating profit) average.

The broker's preferred exposure is Westpac, followed by National Australia Bank, ANZ Bank, CommBank, followed by the regionals Bendigo & Adelaide Bank and Bank of Queensland.

While acknowledging such a recommendation didn't work in 2023, the analyst retains an Underperform rating for CommBank given the share price continues to re-rate while earnings risks skew to the downside. The target rises to $88 from $87.50.

Target price is $88.00 Current Price is $114.80 Difference: minus $26.8 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.53, suggesting downside of -21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Macquarie rates COE as Upgrade to Outperform from Neutral (1) -

Following yesterday's Basker Manta Gummy (BMG) wells decommissioning update, Macquarie suggests a blowout in costs, and subsequent share price fall, creates a buying opportunity for Cooper Energy shares.

The rating is upgraded to Outperform from Neutral on an improved risk/reward ratio.

In maintaining an 18c target price, the analyst explains the increased BMG decommissioning capex (-2cps) was offset by higher production rates (1cps) and a higher exploration value for Otway (1cps).

While higher debt levels post-BMG decommissioning increase risk, the broker also notes greater investor leverage to improving Orbost production.

Target price is $0.18 Current Price is $0.11 Difference: $0.07
If COE meets the Macquarie target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $0.20, suggesting upside of 63.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates DHG as Upgrade to Neutral from Underperform (3) -

Macquarie upgrades its rating for Domain Holdings Australia to Neutral from Underperform in anticipation of a solid 1H result and reiteration of FY24 guidance.

Since last August's results, the broker points out the company's share price has materially underperformed against the ASX200 and the spread between Domain and REA Group ((REA)) is at record highs.

The target rises to $3.49 from $2.87, largely reflecting a roll-forward of the broker's valuation model to FY25.

Target price is $3.49 Current Price is $3.25 Difference: $0.24
If DHG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.37, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Shaw and Partners rates EV1 as Buy (1) -

Buy, High Risk rating retained but Shaw and Partners has cut its price target for Evolution Energy Minerals to 40c from and 72c as trading multiples for graphite companies have de-rated.

In August last year, Evolution Energy Minerals partnered with the world’s leading battery anode producer, BTR New Material Group, with a view to establish a vertically integrated downstream battery anode material operation, the broker recalls.

Very disappointingly, that original agreement was recently re-priced; instead of paying $4.9m for 9.9% of equity the revision has cut the investment back to $3.62m.

Shaw and Partners still sees the agreement/investment as a positive overall.

Target price is $0.40 Current Price is $0.14 Difference: $0.26
If EV1 meets the Shaw and Partners target it will return approximately 186% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates JIN as Outperform (1) -

Macquarie upgrades FY24 foreacsts for Jumbo Interactive as Australian industry lottery volumes have fallen less than expected in the 1H and the 2H is off to a strong start, according to the broker's proprietary tracking data.

The analyst now forecasts 6% industry lottery volume growth in FY24, up from 4%, with 20% growth anticipated for the 2H.

The Outperform rating is maintained and the target rises to $16.85 from $16.45.

Target price is $16.85 Current Price is $15.00 Difference: $1.85
If JIN meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $16.26, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Shaw and Partners rates LOT as Buy (1) -

Shaw and Partners has lifted forecasts for the price of uranium and, to little surprise, continues to advocate investors have an overweight allocation to the uranium sector in equity portfolios.

Revised forecasts assume a multi-year price spike to US$150/lb, before settling to a long-term U3O8 realised price assumption of US$76/lb (2024 Real) in 2030.

Preferred exposures are Paladin Energy, Silex Systems, Peninsula Energy, Lotus Resources and Bannerman Energy.

For Buy-rated Lotus Resources, the price target has lifted by 122% to $0.72.

Target price is $0.72 Current Price is $0.32 Difference: $0.405
If LOT meets the Shaw and Partners target it will return approximately 129% (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 LTM as Outperform (1) -

Macquarie believes Arcadium Lithium, a product of the late-2023 merger between Allkem and Livent, is well positioned for a potential re-rating in the medium term, given its diverse portfolio of lithium operations and projects. 

The broker points out the company is the only Australian lithium producer with brine exposure at scale, and has growth potential in both hard rock and brine production with downstream processing capabilities.

Regarding industry conditions, the analyst sees near-term potential for a lithium restocking cycle to emerge during 2024, with positive implications for pricing.

Macquarie sets an $11 target and has an Outperform rating.

Target price is $11.00 Current Price is $7.50 Difference: $3.5
If LTM meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $11.99, suggesting upside of 52.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates LTR as Buy (1) -

Liontown Resources has announced its current banking syndicate has withdrawn support for a $760m debt funding arrangement, as a result of recent declines in spot lithium prices and subsequent price forecast downgrades.

Bell Potter notes the company is working to secure a smaller debt facility, and an update is expected by the end of the quarter. Liontown Resources also outlined its intentions to defer capital expenditure components and reduce near-term funding requirements.

With Liontown Resources having fully drawn $300m in debt, the company did hold cash totaling $515m as of the end of December, which Bell Potter believes is sufficient to fund Kathleen Valley to first production.

The Buy rating is retained and the target price decreases to $1.60 from $2.25.

Target price is $1.60 Current Price is $0.94 Difference: $0.66
If LTR meets the Bell Potter target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting upside of 56.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Citi rates LTR as Neutral (3) -

Liontown Resources has announced the withdrawal of its $760m syndicated debt facility given current lithium pricing. According to the company, the eight lenders involved in the syndicate remain supportive and an updated loan and terms is expected later this quarter.

Citi points out a new facility will likely be lower than the $760m originally pledged. In the interim, Liontown Resources announced its intention to review spend, anticipating they can "run a leaner buffer" for the Kathleen Valley project.

The Neutral rating is retained and the target price decreases to $1.00 from $1.35.

Target price is $1.00 Current Price is $0.94 Difference: $0.06
If LTR meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting upside of 56.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates LTR as Neutral (3) -

Macquarie delays  its forecast for a ramp-up at Kathleen Valley after soft lithium pricing has prompted Liontown Resources to conduct a review of the expansion at the project to preserve near-term funding.

The broker's long-term cost (AISC) assumption is also increased by 15%.

Falling spodumene prices, explains the broker, have also led to the termination of the recently signed commitment letter with a syndicate for $760m of debt funding.

Macquarie's EPS forecasts for FY24-27 are reduced by -9%, -34%, -53% and -10%, respectively, and the target is decreased by -38% to $1.00. Neutral.

Target price is $1.00 Current Price is $0.94 Difference: $0.06
If LTR meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting upside of 56.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Bell Potter rates LYC as Buy (1) -

Lynas Rare Earths has issued a full year production guidance upgrade alongside its second quarter result, but this hasn't stopped Bell Potter from finding the result to be on the weaker side.

Production totaled 901 tonnes over the quarter, impacted by the previously flagged shutdown in Malaysia. The company is guiding to production of 1,500 tonnes over the third quarter, and second half production of 3,200-3,400 tonnes.

While the broker remains positive on the company's long-term outlook, it remains concerned that a potentially weaker short-term outlook for rare earths may impact on valuation over the coming year.

The Buy rating is retained and the target price decreases to $7.60 from $8.50.

Target price is $7.60 Current Price is $5.87 Difference: $1.73
If LYC meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $7.70, suggesting upside of 33.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates LYC as Neutral (3) -

December quarter production from Lynas Rare Earths has totalled 901 tonnes of NdPr and 1,566 tonnes of rare earth oxide, amid a previously flagged shutdown at the Malaysian facilities to upgrade capacity to 10,500 tonnes by end of year.

Citi points out the company is suggesting an improved ramp up, guiding to NdPr production of 1,500 tonnes in the March quarter and 3,200-3,400 over the second half.

On spot pricing, the broker expects Lynas Rare Earths will be lossmaking in FY25 given low demand in China and weaker than anticipated electic vehicle demand, but does remain constructive on long-term pricing. 

The Neutral rating is retained and the target price decreases to $6.70 from $7.20.

Target price is $6.70 Current Price is $5.87 Difference: $0.83
If LYC meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.70, suggesting upside of 33.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates LYC as Outperform (1) -

Strong 2Q sales volumes for Lynas Rare Earths were offset by weak average realised prices due to product mix changes, explains Macquarie.

The company's production of rare earth oxide (REO) missed the broker's forecast by -28%, but Neodymium and praseodymium (NdPr) production of 901t was within 1% of expectation.

Following completed modifications to the Malaysian processing facilities, the company is targeting production of 3.2-3.4kt of NdPr in the 2H.

Macquarie sees first production from Kalgoorlie in the 3Q as a major positive catalyst for Lynas Rare Earths. The Outperform rating is unchanged and the target slips to $7.30 from $7.40.

Target price is $7.30 Current Price is $5.87 Difference: $1.43
If LYC meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $7.70, suggesting upside of 33.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

UBS rates LYC as Buy (1) -

Lynas Rare Earths saw disrupted production in the Dec Q due to flagged capacity upgrade works at its LAMP processing facility in Malaysia.

While UBS upgrades the near-term production profile in line with improved guidance from Lynas on the ramp-up, of greater concern is the continued weakness in the NdPr price, with downside risk to the broker's US$80/kg end-2024 forecast comparing to spot at US$50/kg.

A more robust price outlook is expected in China on demand growth, but Chinese rare earth producers are yet showing signs of anticipated supply discipline, UBS notes. Buy and $9.20 target retained.

Target price is $9.20 Current Price is $5.87 Difference: $3.33
If LYC meets the UBS target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $7.70, suggesting upside of 33.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates NAB as Neutral (3) -

Macquarie sees limited upside for Australian banks in FY24, with earnings forecast to decline by around -5-15%, and begins 2024 with an Underweight rating on the Bank sector.

Consensus pre-provision forecasts look reasonable to the analysts, but impairment charges are considered optimistic in light of current interest rate settings.

On the valuation front, the broker notes banks currently trade at an around 15% premium to their three-year relative price/PPOP (pre-provision operating profit) average.

The broker's preferred exposure is Westpac, National Australia Bank, ANZ Bank, CommBank, followed by the regionals Bendigo & Adelaide Bank and Bank of Queensland.

The analyst's rating for National Australia Bank stays at Neutral on valuation, while the target rises to $30 from $28.

Target price is $30.00 Current Price is $31.63 Difference: minus $1.63 (current price is over target).
If NAB meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.44, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Morgan Stanley rates NSR as Underweight (5) -

National Storage REIT has made the unusual move of pre-announcing its 1H24 earnings, ahead of scheduled reporting on 21st Feb. Unaudited earnings came in in line with expectation.

Importantly for Morgan Stanley, guidance has been reaffirmed, despite revenue per available metre growth currently tracking at just 0.6% versus previous guidance of "no less than 4.2%".

Interestingly, notes Morgan Stanley, the cap rate has tightened only one basis point to 5.90%. This is slightly more bullish than REIT peers who have pre-reported 13-28bps expansion.

Underweight ans $2.30 target retained. Industry view: In-Line. 

Target price is $2.30 Current Price is $2.20 Difference: $0.1
If NSR meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.33, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates NXT as Buy (1) -

NextDC has 972MW of total build-out capacity, but UBS only incorporates 43% in its core earnings and discounted cash flow valuations, leaving a substantial landbank for further growth.

Analysis suggests deploying the 551MW landbank could accelerate the already impressive ten-year earnings compound growth rate from 19% to 26%, while adding material valuation upside.

NextDC has also materially de-risked its forward growth profile, UBS notes, with 44% of cumulative 5-year growth for the Australian operations now contracted versus 15% in FY22.

Target rises to $17.20 from $15.40, Buy retained.

Target price is $17.20 Current Price is $13.77 Difference: $3.43
If NXT meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $15.11, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Shaw and Partners rates PDN as Buy (1) -

Shaw and Partners has lifted forecasts for the price of uranium and, to little surprise, continues to advocate investors have an overweight allocation to the uranium sector in equity portfolios.

Revised forecasts assume a multi-year price spike to US$150/lb, before settling to a long-term U3O8 realised price assumption of US$76/lb (2024 Real) in 2030.

Preferred exposures are Paladin Energy, Silex Systems, Peninsula Energy, Lotus Resources and Bannerman Energy.

For Buy-rated Paladin Energy, the price target has lifted to $1.50 (up by 22%).

Target price is $1.50 Current Price is $1.20 Difference: $0.3
If PDN meets the Shaw and Partners target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.28, suggesting upside of 4.7% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Shaw and Partners rates PEN as Buy (1) -

Shaw and Partners has lifted forecasts for the price of uranium and, to little surprise, continues to advocate investors have an overweight allocation to the uranium sector in equity portfolios.

Revised forecasts assume a multi-year price spike to US$150/lb, before settling to a long-term U3O8 realised price assumption of US$76/lb (2024 Real) in 2030.

Preferred exposures are Paladin Energy, Silex Systems, Peninsula Energy, Lotus Resources and Bannerman Energy.

For Buy-rated Peninsula Energy, the price target has lifted by 180% to $0.34.

Target price is $0.34 Current Price is $0.11 Difference: $0.23
If PEN meets the Shaw and Partners target it will return approximately 209% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates PNR as Hold (3) -

Estimated all-in sustaining costs for Pantoro's December quarter of $3,000-3,400 per ounce represent a strong quarter-on-quarter improvement, but remain higher than Bell Potter had forecast. 

The quarter also saw Pantoro sell off its lithium, nickel and copper rights at Norseman to Mineral Resources ((MIN)) for an immediate $30m payment and further contingent payments of up to an additional $30m.

The Hold rating is retained and the target price increases to 4.3 cents from 4.2 cents.

Target price is $0.04 Current Price is $0.04 Difference: $0
If PNR meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates PNR as Speculative Buy (1) -

As 2Q production estimates for Pantoro were pre-released and, thus provided only limited new information, Ord Minnett takes the opportunity to update forecasts to incorporate the new mine plan at Scotia.

The underground has been brought forward and the open pit will cease in the December quarter of 2024, which results in downgrades to the broker's earnings estimates.

The Speculative Buy rating is retained and the target price decreases to 6 cents from 7 cents.

Target price is $0.06 Current Price is $0.04 Difference: $0.017
If PNR meets the Ord Minnett target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates PNV as Outperform (1) -

PolyNovo's 1H sales were 8% ahead of Macquarie's forecast due to strong growth in regions outside the US. Earnings (EBITDA) of $1.9m exceeded the consensus expectation for an earnings loss of -$0.5m.

The broker highlights record NovoSorb BTM sales of $42.2m, a rise of 55% on the previous corresponding period, and a 137% rise in revenue from the Biomedical Advanced Research and Development Authority (BARDA).

Outperform. The target rises to $2.90 from $2.70.

Target price is $2.90 Current Price is $1.74 Difference: $1.16
If PNV meets the Macquarie target it will return approximately 67% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates PNV as Lighten (4) -

Ord Minnett leaves its earnings estimates for PolyNovo unchanged even after 1H results showing a 55% lift in sales, with 76% of the total deriving from the main US market.

The broker still believes the company's share price is materially overvalued, maintaining the market is overstating the commercial roll out and underestimating competitive pressures. It's also felt potential new uses for the NovoSorb technology are being exaggerated.

Lighten rating and $1.00 target retained.

Target price is $1.00 Current Price is $1.74 Difference: minus $0.74 (current price is over target).
If PNV meets the Ord Minnett target it will return approximately minus 43% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.90, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates REA as Neutral (3) -

Macquarie suggests REA Group will outperform the consensus expectation at upcoming 1H results due to greater depth penetration for the portal's Premiere and Premiere+ products. More listings in both NSW and VIC are also expected to benefit.

The broker believes the listing market will remain resilient over the next year with interest rate cuts limiting downside risk for the housing market.

Macquarie's price target jumps to $185 from $155 on a combination of higher earnings forecasts and a valuation roll-forward.

Target price is $185.00 Current Price is $179.55 Difference: $5.45
If REA meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $162.50, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates RMD as Outperform (1) -

Second quarter results for ResMed are due on January 25, and Macquarie forecasts revenue of US$1,139m (consensus US$1,148m) and non-GAAP EBIT/NPAT of US$344m and US$271m, respectively.

The broker's forecasts imply a 2Q gross margin of 56.3%, a rise of 30bps quarter-on-quarter.

The Outperform rating and $33.40 target are maintained.

Target price is $33.40 Current Price is $26.51 Difference: $6.89
If RMD meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $32.23, suggesting upside of 20.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Citi rates S32 as Buy (1) -

Following weaker than expected production from South32 in the December quarter, as per Citi, the company is anticipating a stronger second half. The broker points out the miss was largely on lower met coal production from Illawarra. 

Total aluminium output was up on the September quarter, with Brazil Aluminium delivering an 8% quarter-on-quarter increase. Full year met coal production was retained, but the company lowered guidance for Brazil Alumina by -7% given third party disruptions. 

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

Target price is $3.60 Current Price is $3.15 Difference: $0.45
If S32 meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Macquarie rates S32 as Neutral (3) -

Macquarie decribes "mixed" 2Q production results for South32, with strong Cannington volumes offset by weaker coal volumes at Illawarra.

FY24 guidance for group copper equivalent production was reduced by circa -3%, with Brazil Alumina, Mozal, and molybdenum (Sierra Gorda) guidance volumes lowered.

While cost guidance was unchanged, the broker notes risks to cost guidance at both Sierra Gorda and Illawarra.

The Neutral rating is retained and the target price decreases by -9% to $3.10.

Target price is $3.10 Current Price is $3.15 Difference: minus $0.05 (current price is over target).
If S32 meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.82, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Morgan Stanley rates S32 as Overweight (1) -

South32's sales and pricing Dec Q impact is negative -7% to Morgan Stanley's first half earnings forecast and -3% to FY24, offset by costs either in line or below for the period.

There have been small changes to production guidance, and no changes to cost.

Morgan Stanley remains Overweight on a strong balance sheet and significant discount to valuation. Target unchanged at $3.85. Industry view: Attractive.

Target price is $3.85 Current Price is $3.15 Difference: $0.7
If S32 meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Morgans rates S32 as Add (1) -

Morgans assesses a "mixed" 2Q operational and sales result for South32, with Illawarra a big miss against expectation, while there were in-line performances for key assets Worsley, Cannington, Hillside and Cerro Matoso.

In important outcomes, according to the analysts, opex costs were contained and group FY24 guidance was reaffirmed, even though FY24 production volume guidance was lowered for Alumar, Mozal and molybdenum (Sierra Gorda).

The Add rating is unchanged and the target falls to $4.75 from $4.80.

Target price is $4.75 Current Price is $3.15 Difference: $1.6
If S32 meets the Morgans target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

UBS rates S32 as Buy (1) -

South32's Dec Q was soft, UBS reports, featuring reduced FY guidance at Mozal and Brazil alumina, adverse working capital, and higher tax rates to weigh on net debt and returns in the first half.

Earnings and free cash flow should improve materially in the second half, UBS believes, due to the combination of improved markets in alumina, met coal, copper and manganese, expected operational stability at key assets, and the unwind of first half working capital build.

The broker cuts its FY24 earnings forecast by -31% and its target to $3.80 from $4.00. Buy retained on an anticipated free cash flow yield increase from 1% in FY24 to 7% in FY25.

Target price is $3.80 Current Price is $3.15 Difference: $0.65
If S32 meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.82, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Shaw and Partners rates SLX as Buy (1) -

Shaw and Partners has lifted forecasts for the price of uranium and, to little surprise, continues to advocate investors have an overweight allocation to the uranium sector in equity portfolios.

Revised forecasts assume a multi-year price spike to US$150/lb, before settling to a long-term U3O8 realised price assumption of US$76/lb (2024 Real) in 2030.

Preferred exposures are Paladin Energy, Silex Systems, Peninsula Energy, Lotus Resources and Bannerman Energy.

For Buy-rated Silex Systems, the price target has lifted by 54% to $7.60.

Target price is $7.60 Current Price is $4.76 Difference: $2.84
If SLX meets the Shaw and Partners target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Macquarie upgrades FY24 foreacsts for Lottery Corp as Australian industry lottery volumes have fallen less than expected in the 1H and the 2H is off to a strong start, according to the broker's proprietary tracking data.

The analyst now forecasts 6% lottery volume growth in FY24, up from 4%, with 20% growth anticipated for the 2H.

The rating is downgraded to Neutral from Outperform after a recent share price rally, and the target price rises to $5.05 from $4.95.

Target price is $5.05 Current Price is $5.01 Difference: $0.04
If TLC meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.39, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Macquarie rates WBC as Upgrade to Outperform from Neutral (1) -

Macquarie sees limited upside for Australian banks in FY24, with earnings forecast to decline by around -5-15%, and begins 2024 with an Underweight rating on the Bank sector.

Consensus pre-provision forecasts look reasonable to the analysts, but impairment charges are considered optimistic in light of current interest rate settings.

On the valuation front, the broker notes banks currently trade at an around 15% premium to their three-year relative price/PPOP (pre-provision operating profit) average.

The broker's preferred exposure is Westpac, followed by National Australia bank, ANZ Bank, CommBank, followed by the regionals Bendigo & Adelaide Bank and Bank of Queensland.

The analyst's rating for Westpac is upgraded to Outperform from Neutral on valuation, with scope for the discount to peers to narrow. The target rises to $24 from $20.50.

Target price is $24.00 Current Price is $23.45 Difference: $0.55
If WBC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $23.08, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Morgans rates WGN as Speculative Buy (1) -

Morgans reports strong underlying trading conditions within Wagners Holding Co's Construction Materials & Services division was largely responsible for 1H operating earnings (EBIT) of $20m (management's trading update), up from the expected $15.5m.

Management also provided FY24 guidance for earnings in the range of $31-34m, which compares to the analyst's prior forecast of $30m.

The 1H skew (1H $20m:2H $11-14m) is mostly due to the completion of production of precast tunnel segments for the Sydney Metro project, explains the broker.

The Speculative Buy rating is maintained and the target raised to $1.15 from $1.05. First half results are due on February 21.

Target price is $1.15 Current Price is $0.95 Difference: $0.2
If WGN meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates ZIP as Neutral (3) -

Zip Co has reported first half cash earnings of $31m, a notable beat to Citi's expected $3m for the period. The broker highlights lower than expected net bad debt in both Australia and the US was a key driver of the result.

The broker does expect US bad debt to pick up moving forward, but anticipates group bad debt to decline, reflecting lower losses in Australia. The broker also anticipates lower cash earnings in the second half of $22m, partly on seasonality.

The Neutral rating is retained and the target price increases to 78 cents from 51 cents.

Target price is $0.78 Current Price is $0.74 Difference: $0.04
If ZIP meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $0.70, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates ZIP as Buy (1) -

Having yesterday revised Zip Co's target to 75c from 42c (and upgraded to Buy), Ord Minnett further raises the target to 95c following a strong 1H interim results update. The Buy rating is retained.

The highlight, according to the broker, was management's guidance for quarterly cash earnings (EBTDA) of between $19.5-23.5m for
the December quarter.

Total transaction value (TTV) growth in the 1H rose by 9.4% on the previous corresponding period, while fixed costs, such as overhead and marketing, came in under the analysts' expectations.

Revenue margins increased to 8.2% from 7.1% in the previous corresponding period, and bad debts once again performed well, according to Ord Minnett.

Target price is $0.95 Current Price is $0.74 Difference: $0.21
If ZIP meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $0.70, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates ZIP as Neutral (3) -

Zip Co posted a strong Dec Q result relative to UBS' forecasts driven primarily by transaction volume growth, particularly in the US, due to strong Black Friday and Christmas trading.

Revenue yields came in slightly softer, but net bad debts have also continued to trend downwards, which is positive, the broker notes,  given an environment of continuing uncertainty around consumer household sentiment.

Neutral and 36c target retained.

Target price is $0.36 Current Price is $0.74 Difference: minus $0.38 (current price is over target).
If ZIP meets the UBS target it will return approximately minus 51% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.70, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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