Australian Broker Call

Macquarie rates ANZ as Neutral (3) -

Macquarie envisages minimal risk to earnings for the banks in the upcoming results and expects the market to again focus on margins, expenses and early signs of credit quality deterioration.

The broker prefers National Australia Bank over ANZ Bank in business banking. Neutral rating and $23.50 target maintained.

Target price is $23.50 Current Price is $25.45 Difference: minus $1.95 (current price is over target).
If ANZ meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.41, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

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

Morgan Stanley expects both ANZ Bank and Suncorp Group ((SUN)) will appeal the ACCC decision to not authorise ANZ Bank's acquisition of Suncorp's banking arm.

Despite this view, the broker feels the strategic rationale and financial implications of the acquisition are not compelling, and the decision provides near-term share price support for ANZ. 

Should the transaction not proceed there's considered potential for ANZ to announce a buyback of more than $4bn.

The broker's Equal-weight rating and $25.20 target are unchanged for ANZ Bank. Industry View: In-Line.

Target price is $25.20 Current Price is $25.45 Difference: minus $0.25 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.41, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Ord Minnett rates ANZ as Accumulate (2) -

The ACCC has denied authorisation for ANZ Bank to acquire Suncorp Bank. Ord Minnett notes competition concerns were always going to be the hurdle but had expected it would be approved.

The broker asserts there is abundant competition from other retail banks, foreign banks and non-bank lenders. Still, the ACCC was not satisfied and Ord Minnett suspects the potential for a preferred Bendigo and Adelaide Bank merger with Suncorp Bank may have have the casting vote.

ANZ Bank will now take the decision to the Australian Competition Tribunal and, while the ACCC could be overruled, the broker suspects it unlikely the deal will proceed. Accumulate rating and $31 target maintained.

Target price is $31.00 Current Price is $25.45 Difference: $5.55
If ANZ meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $26.41, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

UBS rates ANZ as Buy (1) -

The ACCC has denied authorisation for ANZ Bank to acquire Suncorp Bank. ANZ Bank now hopes to persuade the Australian Competition Tribunal.

UBS considers the delayed timing of any acquisition will have impact on the economics, although ANZ Bank still benefits from a positive carry on the capital raised. Buy rating and $26 target retained.

Target price is $26.00 Current Price is $25.45 Difference: $0.55
If ANZ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $26.41, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Morgans rates ASX as Hold (3) -

Morgans assesses mixed trading in July for the ASX, with ongoing lower cash equities volumes and significantly lower capital raisings volumes compared to the previous corresponding period, though there were stronger futures volumes.

The broker raises its target to $64.90 from $64.70 after management announced the reversal of the prior year's impairment losses as a result of the proposed sale of the company's stake in Yieldbroker. Hold.

Target price is $64.90 Current Price is $62.54 Difference: $2.36
If ASX meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $63.91, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.1

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

Macquarie rates BEN as Neutral (3) -

Macquarie envisages minimal risk to earnings for the banks in the upcoming results and expects the market to again focus on margins, expenses and early signs of credit quality deterioration.

The broker prefers Bendigo & Adelaide Bank over Bank of Queensland within the regional banks. Neutral rating maintained. Target is raised to $9.50 from $9.25.

Target price is $9.50 Current Price is $9.15 Difference: $0.35
If BEN meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.43, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Bell Potter rates BGA as Hold (3) -

Since Bell Potter provided an update in late June, commodity returns have continued to weaken, creating a growing dislocation in global farmgate prices, the broker notes. Australian milk solids are continuing to look increasingly expensive versus NZ/US.

Nevertheless the broker does continue to expect growth in the retail-facing business of Bega Cheese in the first half, with relatively light prior year comparisons.

The broker has downgraded earnings forecasts by -12% and -9% in FY24-25 but target unchanged at $3.50 and Hold retained.

Target price is $3.50 Current Price is $3.29 Difference: $0.21
If BGA meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Macquarie rates BOQ as Neutral (3) -

Macquarie envisages minimal risk to earnings for the banks in the upcoming results and expects the market to again focus on margins, expenses and early signs of credit quality deterioration.

The broker prefers Bendigo & Adelaide Bank over Bank of Queensland within the regional banks. Neutral rating maintained. Target is raised to $5.75 from $5.50.

Target price is $5.75 Current Price is $5.95 Difference: minus $0.2 (current price is over target).
If BOQ 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 $6.43, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Macquarie rates CBA as Underperform (5) -

Macquarie envisages minimal risk to earnings for the banks in the upcoming results and expects the market to again focus on margins, expenses and early signs of credit quality deterioration.

The broker prefers Westpac over CommBank in mortgage banking. Underperform rating maintained. Target is $88.

Target price is $88.00 Current Price is $101.87 Difference: minus $13.87 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.35, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Bell Potter rates CCX as Upgrade to Buy from Hold (1) -

City Chic Collective has divested its Europe/Middle East/Africa business, Evans.

This supports inventory re-sizing for the group, Bell Potter suggests, given majority of the inventory build has been associated with the UK where trading has remained weak, and enables the company to channel capital towards generating better returns in existing regions.

The broker believes the next few months can thus be well supported in A&NZ and the US as continuing tough retail conditions persists.

On sale proceeds the target rises to 70c from 42c. Upgrade to Buy from Hold.

Target price is $0.70 Current Price is $0.62 Difference: $0.085
If CCX meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $0.55, suggesting downside of -11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Citi rates CKF as Initiation of coverage with Buy (1) -

Citi forecasts group earnings for Collins Foods will  nearly double by FY31 from FY23, due to the rollout of KFC in the Netherlands and Australia, and initiates coverage with a Buy rating and $12.80 target price.

The broker suggests KFC is significantly under-penetrated relative to other major fast-food chains in Europe and predicts the number of stores in Europe will more than double by FY31. It's thought the company's conservatively geared balance sheet can fund the rollout.

In Australia, the analysts don't forecast any extra Taco Bells stores will be opened in FY24 due to a lack of customer traction to date.

One of the primary growth drivers over the next decade, in the broker's view, relates to the signing of the corporate franchise agreement with Yum! Brands in October 2021. It's felt this agreement underpins Collins Foods’ expansion into the Netherlands.

Target price is $12.80 Current Price is $10.12 Difference: $2.68
If CKF meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $10.66, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in May.

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

Bell Potter rates COS as Buy (1) -

Cosol has announced the acquisition of AssetOn Group, an asset management software and services provider and specifically provides a software platform for efficiently building, maintaining and deploying asset strategy and work instructions for large industrial assets.

Bell Potter sees rationale the for the acquisition as accelerating Cosol’s core Asset-Management-as-a-Service strategy and expanding both the blue chip customer base and the company's proprietary intellectual property stack.

Debt and a $15m placement will fund the acquisition. Despite this, target rises to $1.10 from $1.05, Buy retained.

Target price is $1.10 Current Price is $0.80 Difference: $0.3
If COS meets the Bell Potter target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates COS as Buy (1) -

Cosol has acquired AssetOn Group, which represents potential enterprise value of $29m, funded through a combination of cash, scrip and earn-out. This was accompanied by an equity raising.

Ord Minnett considers the strategic rationale robust and potentially transformational, adding intellectual property, geography and new adjacent verticals.

The transaction is expected to be 8.8% accretive on a pro forma basis to FY24 EPS. Buy rating retained. Target rises to $1.15 from $1.07.

Target price is $1.15 Current Price is $0.80 Difference: $0.35
If COS meets the Ord Minnett target it will return approximately 44% (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 CPU as Outperform (1) -

Inside Mortgage Finance reported Computershare's US mortgage servicing UPB (unpaid principal balance) growth was 1.8% in the fourth quarter, which represents a slowdown that Macquarie interprets as affected by lower refinancing.

Refinancing levels are significant, the broker points out, because they reduce UPB, loan count, associated servicing-related revenue and cash flow.

The broker maintains an Outperform rating as excess capital is reinvested over the coming 18 months, leading to higher EPS growth and a rotation towards a higher PE multiple mix. Target is $26.

Target price is $26.00 Current Price is $25.20 Difference: $0.8
If CPU meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $25.63, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Ord Minnett rates CQR as Accumulate (2) -

Ord Minnett observes retail property trusts have screened expensive over the past 18 months but recently value has emerged in retail A-REITs, as investors finally acknowledge the impact of higher rates on finance costs and the softening outlook for rents linked to turnover or CPI.

While long anticipating headwinds, the broker considers the downside risks contained, amid generally longer leases and solid balance sheets. Charter Hall Retail REIT is expected to meet or modestly exceed management earnings guidance in upcoming results.

Accumulate maintained. Target is $4.15.

Target price is $4.15 Current Price is $3.70 Difference: $0.45
If CQR meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Morgans rates CRN as Add (1) -

Morgans reduces its forecasts for the coal sector due to lower estimates for coal prices and higher longer-term costs. Across FY24-25, forecasts for NEWC (thermal prices) and hot coking coal (HCC) are lowered by -25-35% and -0-3%, respectively.

The broker believes risks to realised coal pricing (met and thermal) are asymmetrically skewed to the upside. It's felt currently depressed share prices imply coal pricing will never again tighten upward in support of windfall cash flows.

Morgans lowers its target for Coronado Global Resources to $2.15 from $2.50 and retains its Add rating.

The analyst sees potential for the company to exit the sale process for the auction of BHP Group's ((BHP)) Daunia/ Blackwater coal assets, which should unwind a current valuation discount being applied by the market.

Target price is $2.15 Current Price is $1.66 Difference: $0.49
If CRN meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.99, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Ord Minnett rates CRN as Hold (3) -

Coronado Global Resources delivered revenue in the June quarter that exceeded expectations amid higher realised prices. Ord Minnett incorporates Curragh North into numbers and now expects saleable production to grow 20% to 20mt by 2026.

2023 guidance has been reaffirmed at 16.8-17.2mt of saleable production.

The broker believes the company continues to offer leveraged exposure to metallurgical coal, although this is offset somewhat by the onerous contract with a local power generator that weighs on profit margins. Hold rating. Target is raised to $1.60 from $1.45.

Target price is $1.60 Current Price is $1.66 Difference: minus $0.06 (current price is over target).
If CRN meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.99, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Morgan Stanley rates DDR as Overweight (1) -

While management at Dicker Data provided no FY23 guidance, 1H results imply to Morgan Stanley the company is mostly on-track to hit profit of $113m, with PC's the main 2H swing factor.

While revenue was -2% below the broker's and consensus forecasts, a 9.4% gross margin was materially better compared to forecasts for 9-9.1%.

The Overweight rating and $10.00 target are retained. Industry View: In-Line.

Target price is $10.00 Current Price is $8.40 Difference: $1.6
If DDR meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

Macquarie expects Judo Capital's deposit margins in the second half will underpin underlying margins well in excess of the target of more than 3% proposed by management

That said and despite the business appearing set to meet FY23 guidance the broker still expects SME competitive pressures and term deposit spreads will put pressure on margins.

With lower growth prospects, normalising funding costs and uncertain credit quality Macquarie downgrades to Neutral from Outperform. Target is reduced to $1.50 from $1.60.

Target price is $1.50 Current Price is $1.31 Difference: $0.195
If JDO meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.62, suggesting upside of 28.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates MQG as Buy (1) -

The first quarter trading update was weaker than UBS expected for three out of Macquarie Group's four operating divisions. The broker downgrades cash net profit forecasts by -7.3% and -6.3% for FY24 and FY25, respectively.

The broker assesses the market is scrutinising the absolute level of earnings, given the reset in the commodities business, and consensus expects the group will grow earnings 15% over the next two years. Buy rating maintained. Target is reduced to $196 from $200.

Target price is $196.00 Current Price is $175.44 Difference: $20.56
If MQG meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $189.72, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

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 NAB as Neutral (3) -

Macquarie envisages minimal risk to earnings for the banks in the upcoming results and expects the market to again focus on margins, expenses and early signs of credit quality deterioration.

The broker prefers National Australia Bank over ANZ Bank in business. Neutral maintained. Target is $26.50.

Target price is $26.50 Current Price is $27.95 Difference: minus $1.45 (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 $27.05, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Morgans rates NHC as Downgrade to Hold from Add (3) -

Morgans reduces its forecasts for the coal sector due to lower estimates for coal prices and higher longer-term costs. Across FY24-25, forecasts for NEWC (thermal prices) and hot coking coal (HCC) are lowered by -25-35% and -0-3%, respectively.

The broker believes risks to realised coal pricing (met and thermal) are asymmetrically skewed to the upside. It's felt currently depressed share prices imply coal pricing will never again tighten upward in support of windfall cash flows.

Morgans downgrades its rating for New Hope to Hold from Add on valuation and lowers its target to $5.30 from $6.35.

Target price is $5.30 Current Price is $5.54 Difference: minus $0.24 (current price is over target).
If NHC meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.98, suggesting downside of -8.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Citi rates PLS as Buy (1) -

The analysts at Citi have returned from a site visit at Pilgangoora in WA, noting Pilbara Minerals is operationally years ahead of peers (by 18 months) and suggest there’s more upside to come from the asset.

Management is positive on the September quarter resource/reserve update. The downstream strategy is progressing with the view that it better places the company to weather any pricing downturns.

The Buy rating and $5.10 target are retained.

Target price is $5.10 Current Price is $4.99 Difference: $0.11
If PLS meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.36, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

UBS rates PLS as Neutral (3) -

UBS attended a Pilbara Minerals briefing and visited Pilgangoora. The brownfield expansion of the P680 and P1000 remain on track. With $3.3bn in cash and strong free cash flow the broker envisages potential for greater returns over the near term.

UBS forecasts FY24 production of 670,000t  of five point for% spodumene. Despite reports Tesla's Chinese-made EV sales have slumped in July sales to China's car producers remain robust, the broker adds.

Neutral maintained. Target is $5.20.

Target price is $5.20 Current Price is $4.99 Difference: $0.21
If PLS meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.36, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates RGN as Hold (3) -

Ord Minnett observes retail property trusts have screened expensive over the past 18 months but recently value has emerged in retail A-REITs, as investors finally acknowledge the impact of higher rates on finance costs and the softening outlook for rents linked to turnover or CPI.

While long anticipating headwinds, the broker considers the downside risks contained, amid generally longer leases and solid balance sheets. Region Group is expected to meet or modestly exceed management earnings guidance in upcoming results.

Hold rating and $2.50 target maintained.

Target price is $2.50 Current Price is $2.35 Difference: $0.15
If RGN meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

UBS rates RIO as Sell (5) -

UBS attended a briefing from Rio Tinto where the focus was on strategy and less on the first half result. The broker observes the risk around expenditure is increasing and investors will need to be comfortable that management can build projects in challenging conditions.

While impressed by the recent improved performance and the company's constructive approach to growth, given a negative view on near-term earnings UBS retains a Sell rating with a $95 target.

Target price is $95.00 Current Price is $114.83 Difference: minus $19.83 (current price is over target).
If RIO meets the UBS target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $114.17, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.2

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

Citi rates RMD as Buy (1) -

Following 4Q results, Citi expects ResMed's gross margin recovery will take longer than previously expected. Strong growth in Devices came with a negative mix impact on the margin, which fell short of consensus expectations.

Management expects an improving FY24 margin due to a better product/geographic mix (masks, software, non-invasive ventilators), declining freight costs, production optimisation, as well as a move to a single device platform.

The broker's Buy rating is unchanged though the target falls to $39 from $40.50. The analyst expects Philips will return to the market in Q1 2024 but the timing remains uncertain.

Target price is $39.00 Current Price is $30.70 Difference: $8.3
If RMD meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $36.57, suggesting upside of 24.4% (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

Macquarie rates RMD as Outperform (1) -

Revenue for ResMed was largely in line with Macquarie's expectations in the fourth quarter while net profit was below. The gross margin of 55.8% was -80 basis points below forecasts.

The main headwinds highlighted are elevated component and freight costs, as well as adverse product and geographic mix such as in US devices.

The broker is positive about the outlook for ResMed, expecting increased new patient set-ups and new mask launches. Outperform maintained. Target is reduced to $36.50 from $38.00.

Target price is $36.50 Current Price is $30.70 Difference: $5.8
If RMD meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $36.57, suggesting upside of 24.4% (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

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

Fourth quarter revenue for ResMed was a -2% miss versus forecasts by Morgan Stanley and consensus, with ex-US being a key disappointment. 

The non-GAAP gross profit margin fell by -210bps (compared to the previous corresponding period) to 55.8%.

This margin outcome was -30bps adrift of the consensus forecast due to an unfavourable product mix and higher costs offset by higher average selling prices, explains the analyst.

The Equal-weight rating is maintained and the target falls to $31.40 from $33.50. Industry View: In-Line.

The broker remains upbeat on the ongoing absence of Phillips from the market and suggests easing supply constraints may result in more devices sales with direct cloud connectivity.

Target price is $31.40 Current Price is $30.70 Difference: $0.7
If RMD meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $36.57, suggesting upside of 24.4% (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

Morgans rates RMD as Add (1) -

Strong sales across all product lines for ResMed in the 4Q failed to translate into operating leverage, explains Morgans.

However, the broker feels some goodwill was responsible as a disappointing gross product margin (GPM) was due to preferencing demand fulfillment over short-term profit growth.

The analyst explains adjusted GPM fell by -200bp to 55.8%, mainly on an unfavourable product mix and higher component costs, partially offset by increased price. It's felt margins will improve through FY24 on abating headwinds.

Philips continued market absence and unconstrained supply supported device growth, notes Morgans, while masks benefited from resupply programs and new patient setups.

The Add rating is unchanged and the target falls to $36.95 from $37.80.

Target price is $36.95 Current Price is $30.70 Difference: $6.25
If RMD meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $36.57, suggesting upside of 24.4% (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

Ord Minnett rates RMD as Accumulate (2) -

Ord Minnett expects a more protracted recovery for ResMed and lowers gross margin assumptions by -100 basis points on average for the next four years.

Most significant, in the broker's opinion, was the steeper increase in selling, general and administrative expenses in the FY23 results.

Nevertheless, long-term assumptions are intact, with Ord Minnett noting the company is still selling through higher-cost inventory with the full benefits of more normal freight and component costs yet to flow.

Accumulate maintained as the shares are considered materially undervalued. Target is $39.

Target price is $39.00 Current Price is $30.70 Difference: $8.3
If RMD meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $36.57, suggesting upside of 24.4% (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

Ord Minnett rates SCG as Accumulate (2) -

Ord Minnett observes retail property trusts have screened expensive over the past 18 months but recently value has emerged in retail A-REITs, as investors finally acknowledge the impact of higher rates on finance costs and the softening outlook for rents linked to turnover or CPI.

While long anticipating headwinds, the broker considers the downside risks contained, amid generally longer leases and solid balance sheets. Scentre Group is expected to meet or modestly exceed management earnings guidance in upcoming results.

Accumulate rating and $3.30 target maintained.

Target price is $3.30 Current Price is $2.73 Difference: $0.57
If SCG meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.04, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

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

Ahead of FY23 results, Morgan Stanley modestly upgrades its earnings forecast for the Motheo operations and increases its target for Sandfire Resources to $6.10 from $6.05.

The Equal-weight rating is unchanged. Industry view: Attractive.

Target price is $6.10 Current Price is $6.62 Difference: minus $0.52 (current price is over target).
If SFR meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.79, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.6

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

Morgans rates SMR as Add (1) -

Morgans reduces its forecasts for the coal sector due to lower estimates for coal prices and higher longer-term costs. Across FY24-25, forecasts for NEWC (thermal prices) and hot coking coal (HCC) are lowered by -25-35% and -0-3%, respectively.

The broker believes risks to realised coal pricing (met and thermal) are asymmetrically skewed to the upside. It's felt currently depressed share prices imply coal pricing will never again tighten upward in support of windfall cash flows.

Morgans lowers its target for Stanmore Resources, its top preference in coal, to $4.35 from $4.75 and retains its Add rating.

The analyst sees potential for the company to exit the sale process for the auction of BHP Group's ((BHP)) Daunia/ Blackwater coal assets, which should unwind a current valuation discount being applied by the market.

Target price is $4.35 Current Price is $2.80 Difference: $1.55
If SMR meets the Morgans target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Ord Minnett rates SMR as Buy (1) -

Stanmore Resources delivered a strong production result in the June quarter of which 5mt ROM significantly exceeded expectations. Ord Minnett increases its production outlook by 6% to reflect the results.

Sales also outperformed expectations, at 3.2mt, amid lower processing yields from SWC along with planned maintenance at Poitrel CHPP.

The broker increases the target to $ 4.00 from $3.70 and retains a Buy rating. Ord Minnett believes the current share price provides an attractive point for investors that are looking to gain exposure to the metallurgical coal sector.

Target price is $4.00 Current Price is $2.80 Difference: $1.2
If SMR meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 1.0

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

Citi rates SQ2 as Buy (1) -

Citi's FY23 gross profit estimate for Block remains unchanged following 2Q results which beat the forecasts of Citi and consensus by 2.5% and 3%, respectively.

The broker lowers its Cash App growth assumption purely on lowered bitcoin growth expectations and increases its FY23 Square
gross profit growth assumption to 15% from 1.5%. The Afterpay growth estimate is unchanged.

The analysts see plenty of room for earnings upside and retain the Buy rating and US$90 price target.

Current Price is $109.51. Target price not assessed.

Current consensus price target is $146.00, suggesting upside of 48.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Ord Minnett rates SQ2 as Accumulate (2) -

Ord Minnett believes Block is tracking in the right direction after a strong second quarter. The cash app business continues to experience strong growth, with revenue up 39% year-on-year, excluding bitcoin.

Still, the broker is increasingly impatient as growth is yet to translate into better profitability and would be encouraged by traction in the bottom line rather than the top line. Accumulate rating and $147 target maintained.

Target price is $147.00 Current Price is $109.51 Difference: $37.49
If SQ2 meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $146.00, suggesting upside of 48.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Shaw and Partners rates STA as Buy (1) -

Shaw and Partners has visited the Strandline Resources Coburn mineral sands project. Commissioning has been slowed by equipment availability problems as well as labour. The June quarter was considered disappointing, and the recent capital raising unexpected.

The broker notes the issues are being resolved and the operation has a plan to reach nameplate. The wet concentration plant was actually running at nameplate over the last few days.

Still, the broker acknowledges the market will need to witness more consistent operations and positive cash flow before the stock re-rates.

Buy rating and $0.65 target maintained.

Target price is $0.65 Current Price is $0.17 Difference: $0.48
If STA meets the Shaw and Partners target it will return approximately 282% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates SUN as Buy (1) -

With FY23 results due next Wednesday, Citi believes the focus will return to Suncorp Group's underlying performance now that the merger of the group's banking arm with ANZ Bank has been delayed (or called off) by the ACCC.

The broker expects Suncorp to mostly deliver on FY23 guidance.

The $14.90 target and Buy rating are maintained.

Target price is $14.90 Current Price is $14.13 Difference: $0.77
If SUN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.92, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgan Stanley rates SUN as Overweight (1) -

Morgan Stanley expects both ANZ Bank and Suncorp Group ((SUN)) will appeal the ACCC decision to not authorise ANZ Bank's acquisition of Suncorp's banking arm.

Despite this view, the broker feels the strategic rationale and financial implications of the acquisition are not compelling. 

The upcoming appeal and the currently low valuation for Suncorp Group's banking division limits share price downside for the group, according to the analyst. 

The Overweight rating and $15.70 target are unchanged. Industry View: In-Line.

Target price is $15.70 Current Price is $14.13 Difference: $1.57
If SUN meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.92, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates SUN as Hold (3) -

The ACCC has denied authorisation for ANZ Bank to acquire Suncorp Bank. Ord Minnett notes competition concerns were always going to be the hurdle but had expected it would be approved.

The broker asserts there is abundant competition from other retail banks, foreign banks and non-bank lenders. Still, the ACCC was not satisfied and Ord Minnett suspects the potential for a preferred Bendigo and Adelaide Bank merger with Suncorp Bank may have have the casting vote.

The broker also suspects this option is less appealing for Suncorp shareholders as Bendigo and Adelaide Bank is unlikely to pay as much as ANZ Bank. Moreover the combined banks would have inferior scale compared with the majors.

The broker retains a Hold rating and $13 target.

Target price is $13.00 Current Price is $14.13 Difference: minus $1.13 (current price is over target).
If SUN meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.92, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

UBS rates SUN as Buy (1) -

The ACCC has denied authorisation for ANZ Bank to acquire Suncorp Bank. ANZ Bank now hopes to persuade the Australian Competition Tribunal.

UBS considers the delayed timing of any acquisition will have impact on the economics, although Suncorp Bank continues to perform strongly.

From Suncorp Group's perspective, the broker believes the announcement is a setback for the stock and will likely delay a possible unwinding of conglomerate discount that it believes exists.

Assuming no sale proceeds, this would reduce the UBS valuation of Suncorp Group by -$0.90 a share and would also likely maintain the conglomerate discount on the company's general insurance business.

Buy rating and $15 target maintained.

Target price is $15.00 Current Price is $14.13 Difference: $0.87
If SUN meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.92, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Bell Potter rates SVR as Downgrade to Hold from Buy (3) -

A trading update from Solvar ahead of its earnings result is in line with Bell Potter's forecast. The outlook for FY24 is less favourable, the broker notes, with increases to funding costs affecting the back book.

Most loans are fixed rate at inception, and the company has taken on more floating rate debt to back these, which has squeezed net interest margins as interest rates have risen.

Bell Potter has revised down forecasts but the outcome is uncertain and will depend future trading through FY24 and into FY25. Target drops to $1.08 from $3.01. Downgrade to Hold from Buy.

Target price is $3.01 Current Price is $1.16 Difference: $1.855
If SVR meets the Bell Potter target it will return approximately 161% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates TPW as Neutral (3) -

Reading through the results from Wayfair, Macquarie forecasts flat revenue growth in the second half for Temple & Webster.

The broker expects the business will gain market share with a structural shift to online and amid a wide product offering. The strong balance sheet also offers the potential for acquisition opportunities.

Neutral rating and $4 target maintained.

Target price is $4.00 Current Price is $6.77 Difference: minus $2.77 (current price is over target).
If TPW meets the Macquarie target it will return approximately minus 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.15, suggesting downside of -24.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates TWE as Buy (1) -

China's Ministry of Commerce has removed the trade barriers on Australian barley. The Australian government has signalled the negotiations will be used to seek and resolve the elevated impost on Australian wine.

Yet UBS points out, the decision on Australian barley comes amid a supply constraint on what is feedstock into Chinese industry which does not apply to wine. Hence any removal of duties on Australian wine may take time.

The Buy rating and $13.75 target are unchanged for Treasury Wine Estates.

Target price is $13.75 Current Price is $11.78 Difference: $1.97
If TWE meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $12.75, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates VCX as Hold (3) -

Ord Minnett observes retail property trusts have screened expensive over the past 18 months but recently value has emerged in retail A-REITs, as investors finally acknowledge the impact of higher rates on finance costs and the softening outlook for rents linked to turnover or CPI.

While long anticipating headwinds, the broker considers the downside risks contained, amid generally longer leases and solid balance sheets. Vicinity Centres is expected to meet or modestly exceed management earnings guidance in upcoming results.

Hold rating and $2.05 target maintained.

Target price is $2.05 Current Price is $1.92 Difference: $0.13
If VCX meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.99, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Macquarie rates WBC as Neutral (3) -

Macquarie envisages minimal risk to earnings for the banks in the upcoming results and expects the market to again focus on margins, expenses and early signs of credit quality deterioration.

The broker prefers Westpac over Commonwealth Bank in mortgage banking. Neutral rating maintained. Target is $21.50.

Target price is $21.50 Current Price is $21.98 Difference: minus $0.48 (current price is over target).
If WBC 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 $23.37, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates WHC as Add (1) -

Morgans reduces its forecasts for the coal sector due to lower estimates for coal prices and higher longer-term costs. Across FY24-25, forecasts for NEWC (thermal prices) and hot coking coal (HCC) are lowered by -25-35% and -0-3%, respectively.

The broker believes risks to realised coal pricing (met and thermal) are asymmetrically skewed to the upside. It's felt currently depressed share prices imply coal pricing will never again tighten upward in support of windfall cash flows.

Morgans lowers its target to $8.90 from $9.60 for Whitehaven Coal and believes there is scope for the final dividend at upcoming results to disappoint versus consensus expectations. Add.

Target price is $8.90 Current Price is $7.07 Difference: $1.83
If WHC meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $7.64, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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