Australian Broker Call

Macquarie rates AGL as Neutral (3) -

AGL Energy has announced a structural separation into New AGL, comprising the retailing interests and PrimeCo, mainly comprised of coal. The company also flagged the sale of two assets, Newcastle Gas storage and Silver Springs.

Macquarie highlights the company is tapping into the need for “green” and currently as a large coal fired gentailer it is compromised. The split ensures “New AGL” has strong ESG credentials, yet the flexibility to move quickly for growth in a rapidly changing electricity market. 

The change will require at least “New AGL” to maintain an investment grade credit rating, says the analyst. The around -$400m of asset sales ensures debt levels in FY21 for the group remain flat on FY20, thus actual separation debt is not expected to be a strain.

The Neutral rating and $9.84 target are retained.

Target price is $9.84 Current Price is $10.17 Difference: minus $0.33 (current price is over target).
If AGL meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.81, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Macquarie rates AMP as Neutral (3) -

AMP will end the management agreement with Precinct Properties NZ, allowing that company to internalise management for a one-off payment of $197m, of which AMP's share is 50%.

AMP has also confirmed the exclusivity period with Ares for the private markets joint venture has concluded. Both companies are working towards a transaction.

Further clarity around this deal is required before Macquarie can become more constructive on the stock and a Neutral rating is retained. Target rises to $1.50 from $1.45.

Target price is $1.50 Current Price is $1.30 Difference: $0.2
If AMP meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.57, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates CPU as Neutral (3) -

UBS incorporates the Corporate Trust Services acquisition into its modelling. Over a five-year view, on the assumption the company is successful in delivering on synergies and the US cash rate rises, UBS believes the acquisition would be around 15% accretive.

The long dated nature of the synergies and complexities of the acquisition underscore the risk of slippage, the broker points out, in addition there is ongoing short-term earnings risk in the core business. UBS retains a Neutral rating and raises the target to $16.25 from $15.00.

Target price is $16.25 Current Price is $14.96 Difference: $1.29
If CPU meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.86, 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: 0.1

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

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

Morgan Stanley's base case is for a strong EPS rebound in FY23 though uncertainty regarding the shape of plasma recovery and risk of
some permanency to Ig demand management strategies keep the rating at Equal-weight and the target at $276.

Plasma collections are now well below 2019 levels for around 12-months. Ig shortages of similar magnitude and duration should follow. Industry view: In-Line.

Target price is $276.00 Current Price is $265.39 Difference: $10.61
If CSL meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $297.30, suggesting upside of 12.8% (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

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

For 2021 to date, total pathology benefits are up 19.8% driven by 6.1% volume growth and an increased 13.7% price / mix impact. The strong growth reflects ongoing contribution from covid-19 testing which accelerated over the New Year period, notes Morgan Stanley. 

Equal-weight and target of $3.95 are retained. The broker feels Sonic Healthcare ((SHL)) offers the most palatable valuation relative to other large cap Australia healthcare from an earnings, dividend and balance sheet perspective. Industry view: In-line.

Target price is $3.95 Current Price is $4.11 Difference: minus $0.16 (current price is over target).
If HLS meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.26, suggesting upside of 4.8% (ex-dividends)

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

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

Longer term, Morgan Stanley sees structural risks around climate change. Shorter term the key to a re-rating is considered a reduction in earnings volatility and in the meantime investors could switch out of insurance stocks into more earnings-stable large-cap financials.

The group is now likely to modestly exceed the forecast FY21 catastrophe (CAT) budget, which has consistently occurred over the past few years, explains the broker. This is considered to mean higher earnings volatility and likely leads to higher reinsurance costs.

Aside from CAT's, the other issue overhanging insurers is covid losses, explains the analyst. Industry feedback is that business interruption insurance (BI) claims are complicated to settle and we will not know for some time if the insurers have over-provisioned

Morgan Stanley's cash profit (NPAT) and underlying EPS forecasts fall -11% for FY21, largely because of higher CAT cost estimates with Sydney heavy rain losses. Equal-Weight rating. The price target falls to $5 from $5.10. Industry view: In-line.

Target price is $5.00 Current Price is $4.72 Difference: $0.28
If IAG meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.42, suggesting upside of 17.2% (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

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

For 2021 to date, total pathology benefits are up 19.8% driven by 6.1% volume growth and an increased 13.7% price / mix impact. The strong growth reflects ongoing contribution from covid-19 testing which accelerated over the New Year period, notes Morgan Stanley. 

Equal-weight and target of $4.60 are retained. The broker feels Sonic Healthcare ((SHL)) offers the most palatable valuation relative to other large cap Australia healthcare from an earnings, dividend and balance sheet perspective. Industry view: In-line.

Target price is $4.60 Current Price is $4.79 Difference: minus $0.19 (current price is over target).
If IDX meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.20, suggesting upside of 9.3% (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

Macquarie rates MIN as Outperform (1) -

Mineral Resources has rights to new onshore exploration blocks in the Perth Basin and Pilbara. The acquisitions form part of the plan to develop a fully integrated energy business to support the mining and processing operations.

Macquarie notes the company now boasts a large exploration portfolio and the drilling of the Lockyer Deep-1 well later this year is a potential catalyst.

Upgrade momentum remains strong along with the iron ore price and the broker maintains an Outperform rating. Target is $50.

Target price is $50.00 Current Price is $37.94 Difference: $12.06
If MIN meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $42.18, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

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 MOC as Neutral (3) -

Citi expects REA Group's ((REA)) $1.95 takeover bid for Mortgage Choice will be successful although it is arguably opportunistic as profitability has been hit by elevated repayments and a re-basing distribution network. Nevertheless, the broker suspects there will be a lack of competing offers.

The Mortgage Choice business will add scale to REA Group's existing broker footprint and offer the opportunity to leverage its digital presence and large audience.

The transaction is evidence of further industry consolidation and highlights the strategic appeal in being able to monetise distribution, the broker adds. Neutral rating and $1.40 target retained.

Target price is $1.40 Current Price is $1.91 Difference: minus $0.51 (current price is over target).
If MOC meets the Citi target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates MVF as Overweight (1) -

Industry growth is better than Morgan Stanley anticipated and it is likely to be elevated across the balance of the second half FY21 at least. The broker has a preference for Monash IVF Group in the sector on valuation grounds. 

On a rolling 12 month basis, fresh cycles are up 10.3% versus a five year average up 2.2% and frozen cycles are up 8.9% versus a five year average up 4.5% showing demand remains elevated, explains the broker.

Overweight rating and $0.90 target are maintained.  Industry view: In-Line.

Target price is $0.90 Current Price is $0.75 Difference: $0.15
If MVF meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates QBE as Overweight (1) -

Longer term, Morgan Stanley sees structural risks around climate change. Shorter term the key to a re-rating is considered a reduction in earnings volatility and in the meantime investors could switch out of insurance stocks into more earnings-stable large-cap financials.

Aside from catastrophes, the other issue overhanging insurers is covid losses, explains the analyst. Industry feedback is that business interruption insurance (BI) claims are complicated to settle and we will not know for some time if the insurers have over-provisioned

Overweight rating. Target is $11. Industry view: In-line. 

Target price is $11.00 Current Price is $9.56 Difference: $1.44
If QBE meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $10.64, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Credit Suisse rates REA as Upgrade to Neutral from Underperform (3) -

REA Group will acquire all of Mortgage Choice ((MOC)) via a scheme of arrangement. The offer is $1.95 a share. Credit Suisse estimates the acquisition will more than triple the market share of REA Group in the mortgage broking channel to around 7%.

This should provide opportunities for synergies from greater scale and the ability to negotiate better rates. It will also be able to stream leads generated from its platform to a business which is fully owned.

Nevertheless, Credit Suisse warns mortgage broking is a business that is exposed to cyclical fluctuations and, while the scale of the investment is not enough to change the earnings profile, it is marginally dilutive to the multiple.

Rating is upgraded to Neutral from Underperform as the stock is now trading in line with valuation. Target is $136.70.

Target price is $136.70 Current Price is $137.45 Difference: minus $0.75 (current price is over target).
If REA 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 $152.40, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

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 REA as Hold (3) -

The company announced an offer to purchase mortgage broker Mortgage Choice ((MOC)) for $1.95 a share, or circa -$244m. The takeover offer, to be implemented via a scheme of arrangement, has the unanimous backing of the Mortgage Choice board.

There are no changes to Ord Minnett's FY21 estimates, as the transaction is likely to occur in late June or early July, while the FY22 net profit forecast increases by 2%. The Hold rating and $145 target are unchanged.

The analyst highlights the acquisition is EPS-accretive with potential upside, with both revenue and cost benefits. It will be financed by an increase in the group’s syndicated debt facilities, with the $170m existing facility due to expire in December.

Target price is $145.00 Current Price is $137.45 Difference: $7.55
If REA meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $152.40, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates REA as Neutral (3) -

UBS believes the acquisition of Mortgage Choice fits in with REA Group's financial service strategy and is immediately accretive to earnings amid further opportunity for synergies.

Mortgage Choice is an Australian mortgage broking business with over 500 brokers and 30 lending partners. The proposed transaction is to be funded by an increase in debt facilities.

The acquisition is small in the overall scheme of REA Group but the broker notes opportunities for additional synergies and larger scale in mortgage broking could help in negotiations with lenders. Neutral rating and $155 target retained.

Target price is $155.00 Current Price is $137.45 Difference: $17.55
If REA meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $152.40, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

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 RHC as Neutral (3) -

Citi reviews Ramsay Health Care in terms of its offshore acquisitions. While there is some potential for upside surprise post the pandemic, the broker assesses the stock is currently fairly valued.

The broker's analysis reveals that returns differ materially between geographies. In FY23 a return on invested capital for the Australian business is estimated to be 21%, largely because of the low historical cost base of the assets.

The return on the UK business, on the other hand, is forecast at 9% while Ramsay Sante is 4%, below the cost of capital.

The broker considers the change in the long-term incentive methodology at the company a positive, aligning the interests of management and shareholders more closely. Neutral rating retained. Target is reduced to $67 from $69.

Target price is $67.00 Current Price is $67.11 Difference: minus $0.11 (current price is over target).
If RHC meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $69.06, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates S32 as Outperform (1) -

The divestment of the South Africa Energy Coal business, which has been loss-making over the past three years, is set to be completed. Macquarie notes this is a key catalyst as the sale simplifies the business.

Meanwhile, earnings upgrade momentum has improved because of stronger silver, nickel and manganese prices. A spot price scenario generates earnings largely in line with forecasts and Macquarie retains an Outperform rating and $3.10 target.

Target price is $3.10 Current Price is $2.84 Difference: $0.26
If S32 meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.04, suggesting upside of 8.3% (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: 0.9

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

Morgan Stanley rates SGP as Overweight (1) -

The company has confirmed that new CEO, Tarun Gupta was appointed with full knowledge of Stockland's direction. He will start in around two months.

Morgan Stanley believes he will look to enhance the quality of the portfolio (for example by trimming assets, developing new
commercial towers etc) and bolster the development pipeline, which at present looks lean versus diversified peers.

The broker also feels he will maximise the company's earnings potential from its existing skill-sets by bringing in capital partners, making more use of the existing landbank or exploration of tangential sectors. Overweight rating. Target is $4.90. Industry view: In-line.

Target price is $4.90 Current Price is $4.37 Difference: $0.53
If SGP meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.52, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates SHL as Overweight (1) -

For 2021 to date, total pathology benefits are up 19.8% driven by 6.1% volume growth and an increased 13.7% price / mix impact. The strong growth reflects ongoing contribution from covid-19 testing which accelerated over the New Year period, notes Morgan Stanley. 

The Overweight rating and target of $39.70 are retained as the broker feels the company offers the most palatable valuation relative to other large cap Australia healthcare peers from an earnings, dividend and balance sheet perspective. Industry view: In-line.

Target price is $39.70 Current Price is $35.30 Difference: $4.4
If SHL meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $37.36, suggesting upside of 6.1% (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 SHV as Buy (1) -

The 2021 crop update has revealed softer pricing with 20% of the crop now ordered at $6.60/kg. This produces a -$3m reduction in Citi's earnings estimates for FY21. The company no longer appears to be anticipating a firming of prices in the current season.

Guidance is unchanged despite disruption to harvests in NSW because of heavy rainfall. The broker remains constructive on almond prices beyond FY21. Citi retains a Buy rating and $6.50 target.

Target price is $6.50 Current Price is $6.11 Difference: $0.39
If SHV meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates SM1 as Neutral (3) -

First half results were affected by several factors, largely one-off, Macquarie notes, producing a net profit that was down -76% and the second half will move to a loss.

The weakness was the result of a sudden drop in canned infant formula demand, a shift in mix to ingredients and shipping delays.

Macquarie forecasts full year operating earnings of NZ$80-85m but notes significant uncertainty around the timing and speed of the recovery. Neutral rating retained. Target is reduced to NZ$3.60 from NZ$5.33.

Current Price is $3.12. Target price not assessed.

Current consensus price target is $2.58, suggesting downside of -16.8% (ex-dividends)

The company's fiscal year ends in July.

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

Morgans rates SM1 as Reduce (5) -

The weak first half result was in-line with the Morgans’ expectations. However, softer-than-expected FY21 guidance leads to material FY21 forecasts downgrades and the assumption a breakeven profit (NPAT) result. 

The analyst’s profit forecasts fall -8.9% and -5.1% for FY22 and FY23 as a result of slightly more conservative assumptions regarding the rate of the company’s recovery.

Morgans maintains a reduce rating due to near-term earnings uncertainty, heightened balance sheet risk and long-term challenges with The a2M Milk Co ((A2M)). The target is reduced to $2.58 from $2.78.

Target price is $2.58 Current Price is $3.12 Difference: minus $0.54 (current price is over target).
If SM1 meets the Morgans target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.58, suggesting downside of -16.8% (ex-dividends)

The company's fiscal year ends in July.

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

UBS rates SM1 as Buy (1) -

The first half earnings fell -58% because of a sharp reduction in high-margin infant formula volumes and associated manufacturing efficiencies with low off-season dryer utilisation.

Nevertheless, Synlait Milk is trading on a record discount to book value for a business with hard assets and proven world-class manufacturing capability, the broker asserts.

UBS lowers estimates by -94% for FY21 and -18% for FY22, reflecting a temporary increase in manufacturing unit costs and lower basic ingredient price premiums. Buy rating retained. Target is reduced to NZ$5.55 from NZ$5.75.

Current Price is $3.12. Target price not assessed.

Current consensus price target is $2.58, suggesting downside of -16.8% (ex-dividends)

The company's fiscal year ends in July.

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

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

Longer term, Morgan Stanley sees structural risks around climate change. Shorter term the key to a re-rating is considered a reduction in earnings volatility and in the meantime investors could switch out of insurance stocks into more earnings-stable large-cap financials.

The group is now likely to modestly exceed the forecast FY21 catastrophe (CAT) budget, which has consistently occurred over the past few years, explains the broker. This is considered to mean higher earnings volatility and likely leads to higher reinsurance costs.

Aside from CAT's, the other issue overhanging insurers is covid losses, explains the analyst. Industry feedback is that business interruption insurance (BI) claims are complicated to settle and we will not know for some time if the insurers have over-provisioned.

Equal-weight rating. Target is $11.10. Industry view: In-line.

Target price is $11.10 Current Price is $9.88 Difference: $1.22
If SUN meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $11.83, suggesting upside of 21.3% (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

Morgan Stanley rates TLS as Upgrade to Overweight from Underweight (1) -

Morgan Stanley upgrades to Overweight from Underweight after recent news of the separation into three operating companies and the injection of external investors into Mobile Towers. The price target is raised to $4 from $3.

The broker feels the greater the degree of freedom headquarters allows each entity the better. The Towers spin-off provides a near term catalyst though it's considered the primary risk continues to be intense competitive rivalries preventing mobile and fixed line price inflation.

Additional options are now emerging to create value including but not limited to InfraCo and the NBN and the analyst thinks additional
changes in structure across other operating units are also possible. Industry view: In-Line.

Target price is $4.00 Current Price is $3.39 Difference: $0.61
If TLS meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.79, suggesting upside of 10.1% (ex-dividends)

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

Morgan Stanley rates VRT as Underweight (5) -

Industry growth is better than Morgan Stanley anticipated and it is likely to be elevated across the balance of the second half FY21 at least. The broker has a preference for Monash IVF Group ((MVF)) in the sector on valuation grounds. 

On a rolling 12 month basis, fresh cycles are up 10.3% versus a five year average up 2.2% and frozen cycles are up 8.9% versus a five year average up 4.5% showing demand remains elevated, explains the broker.

The Underweight rating and $5.05 target are retained. Industry view is In-Line.

Target price is $5.05 Current Price is $5.95 Difference: minus $0.9 (current price is over target).
If VRT meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.29, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

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