Australian Broker Call

Macquarie rates AIA as Outperform (1) -

Macquarie anticipates near-term passenger growth for Auckland International Airport will continue to be negatively impacted by a combination of the worsening macroeconomic backdrop and by the company's aircraft engine issues.

The target falls to NZ$9.22 from NZ$9.56 on the broker's lower passenger growth assumptions and higher opex forecasts. EPS forecasts for FY25 and FY26 are lowered by -7%.

The Outperform rating is maintained.

Current Price is $7.11. Target price not assessed.

Current consensus price target is $8.25, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

This company reports in NZD. 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

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

Ord Minnett notes Australian Unity Office Fund announced a contract to sell 2-10 Valentine Ave, Parramatta for $80.5m, which is circa -15% below the December 2023 valuation and -6% below the draft June 2024 valuation.

The broker considers this to be a reasonable result as Parramatta has a 24% vacancy rate.

Following the settlement of this sale and the earlier sale of 96 York Street, Beenleigh, Ord Minnett lowers the target price to $1.37 from $1.45.

Australian Unity Office Fund retains two assets valued at around $97m as of December 2023, down from eight assets two years ago and the analyst expects it may eventually wind up the fund, subject to approval. 

The rating is downgraded to Accumulate from Buy.

Target price is $1.37 Current Price is $1.29 Difference: $0.08
If AOF meets the Ord Minnett target it will return approximately 6% (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 BHP as Accumulate (2) -

With BHP Group set to deliver its June quarter results on July 17, Ord Minnett estimate it will report 6% quarterly growth for copper equivalent, on the previous corresponding period, and a -1% decline in volumes.

The broker forecasts WA iron ore production will grow 10% to 75.3mt during the quarter on the same period a year ago, bringing FY24 production to around 285.5mt. BHP Mitsuibishi Alliance is expected to decline due to the divestment of Blackwater and Daunia in April.

Escondida is forecast to report a 3% quarter-on-quarter rise in production and for FY24 production of 1.113mt  slightly lower than management's mid-point guidance.

Accumulate rating and $45 target unchanged.

Target price is $45.00 Current Price is $43.40 Difference: $1.6
If BHP meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $45.91, suggesting upside of 5.0% (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: 0.4

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

Macquarie rates CTD as Neutral (3) -

Transfer of coverage to a new analyst at Macquarie for Corporate Travel Management results in the setting of a $14.40 target, down from $16.90 prior.

The broker is hoping guidance at upcoming FY24 results will allay concerns around FY25 European earnings. 

In the meantime, Macquarie decreases its FY25 European earnings forecast to $78m from $100m after removal of the majority of earnings associated with the UK Government bridging contract. Management lowered expectations for this contract at 1H results.

Target price is $14.40 Current Price is $13.73 Difference: $0.67
If CTD meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $17.73, suggesting upside of 31.3% (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

Bell Potter rates CYG as Buy (1) -

Coventry Group released a better-than-expected trading update with FY24 sales and EBITDA coming in ahead of Bell Potter's estimates.

Group sales rose 4% and the broker states the strategy at this stage of the cycle appears to be doing well, as EBITDA rose 22% year-on-year, above the analyst's forecast. 

Bell Potter raises its EPS estimates by 12% and 4% for FY24 and FY25, respectively, and notes strong demand in the resource states of WA and Qld; NZ continues to be challenging and there is some softening in other Australian states.

Steelmasters is trading in line with management's expectations. The Buy rating is retained, and the target price raised to $2 from $1.90.

Target price is $2.00 Current Price is $1.33 Difference: $0.67
If CYG meets the Bell Potter target it will return approximately 50% (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 DUG as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage of Dug Technology with a Buy rating and a $3.46 target price.

The broker forecasts it will benefit from upstream capital spending which should remain robust at 4.5% in FY24 and 3.6% p.a. over the rest of the decade, including strength from the Middle East, where Dug Technology has recently opened an office.

Key growth drivers according to the broker, include its novel MP-FWI technology, a driver of improved market share and higher cashflow generation in FY25, as the company's capex program winds down.

Ord Minnett believe the market underestimates the circa 4.8x market share expansion since 2013.

Buy. $3.46 target price.

Target price is $3.46 Current Price is $2.68 Difference: $0.78
If DUG meets the Ord Minnett target it will return approximately 29% (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 DUG as Buy (1) -

Dug Technology, which provides data processing services to clients in the Oil & Gas sector, has taken delivery of 1,500 AMD EPYC Genoa machines.

This previously announced purchase was necessary after a significant ramp-up in compute demand in early FY24, and management has been outsourcing costly compute power in the interim, explain the analysts.

As these costs will cease, a potential overhang for the share price has now been removed, suggests Shaw and Partners.

Unchanged Buy rating and $3.45 target price.

Target price is $3.45 Current Price is $2.68 Difference: $0.77
If DUG meets the Shaw and Partners target it will return approximately 29% (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 FLT as Outperform (1) -

Transfer of coverage to a new analyst at Macquarie for Flight Centre Travel results in the setting of a $26.80 target, up from $23.25 prior.

The company remains the broker's preferred travel exposure, given market share growth and upside risk to earnings expectations, and the Outperform rating is unchanged.

The new analyst highlights the shift to an omni-channel leisure model from a mass market approach has diversified the total addressable market (TAM) towards more scalable models and widened the company's leisure TAM.

Target price is $26.80 Current Price is $21.95 Difference: $4.85
If FLT meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $24.98, suggesting upside of 10.7% (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

Ord Minnett rates FMG as Hold (3) -

Ord Minnett previews the June quarter results for Fortescue on July 25.

The broker forecasts shipments of 53.7mt which would deliver FY24 shipments of 191.6mt, slightly below management's guidance but higher than the market expectations.

Pricing is estimated to see a decline in revenue realisation to 83% from low-grade discounting. The market is looking for 85%, states Ord Minnett.

Unit costs are expected to decline -7% to US$17.70 as a result of the higher shipments.

Hold rating with a $21 target price.

Target price is $21.00 Current Price is $22.10 Difference: minus $1.1 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.99, suggesting downside of -11.1% (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: -0.6

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

Shaw and Partners rates HLO as Buy (1) -

Helping boost the outlook for Helloworld Travel, Shaw and Partners highlights positive Australian Bureau of Statistics (ABS) Overseas Arrivals and Departures data for May.

Total arrivals for May increased by 14% on the previous year, while total departures experienced a 14.7% lift.

The broker continues to forecast FY24 earnings of $72m for the company, at the top end of management's guidance for between $64-72m.

The Buy rating and $3.80 target are unchanged as are the analyst's earnings forecasts.

Target price is $3.80 Current Price is $2.42 Difference: $1.38
If HLO meets the Shaw and Partners target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $3.72, suggesting upside of 53.7% (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

Citi rates IMD as Neutral (3) -

The June quarter trading update from Imdex did not allay concerns around the -12% to -16% decline in drill holes compared to the previous three quarters.

Citi has a Neutral rating and $2 target price and remains "cautious" unless there is more evidence of a pick up in junior raisings beyond the 4QFY24 or an increase in drilling programs from the majors.

Target price is $2.00 Current Price is $2.17 Difference: minus $0.17 (current price is over target).
If IMD meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.17, suggesting downside of -2.5% (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

Citi rates LYC as Sell (5) -

Citi changes analyst coverage on Lynas Rare Earths and issues a 90-day "downside" short-term risk on the stock due to operational issues and cost pressures. 

The broker highlights the potential for cost pressures from BHP’s nickel smelter shutdown and ongoing depressed rare earth prices, particularly NdPr.

Lynas is expanding its product range with the production of separated heavy rare earths at its Malaysia refinery, with first production expected in 2025.

Despite the analyst lifting the long-term revenue assumption to account for this, near-term earnings downgrades are anticipated by Citi.

Sell rating and $5.30 target price unchanged.

Target price is $5.30 Current Price is $6.40 Difference: minus $1.1 (current price is over target).
If LYC meets the Citi target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.64, suggesting upside of 4.4% (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

Morgan Stanley rates LYC as Underweight (5) -

BHP Group's ((BHP)) WA Nickel smelter in Kalgoorlie supplies Lynas Rare Earths with sulphuric acid, which is used in the C&L process undertaken at the new Kalgoorlie facility, explains Morgan Stanley.

Following BHP's announcement nickel operations will be temporarily suspended from October, BHP will apply reasonable efforts to supply imported acid to Lynas, explains the broker, in line with the terms of the supply contract.

The Underweight rating and $4.85 target are unchanged. Industry View: Attractive.

Target price is $4.85 Current Price is $6.40 Difference: minus $1.55 (current price is over target).
If LYC meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.64, suggesting upside of 4.4% (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 LYC as Buy (1) -

The closure of BHP Group's WA nickel smelter raises concerns about the long-term supply of sulfuric acid for Lynas Rare Earths' Kalgoorlie Rare Earth Facility, notes Ord Minnett.

Management highlighted it believes the company is covered for acid supply until mid-2027 under current contracts, but the broker understands Lynas Rare Earths will encounter high costs and scalability issues at this facility.

Ord Minnett acknowledge the uncertain future for this facility as it is too large for Lynas Rare Earths' requirements.

No change to buy rating and $8 target price as the analyst envisages a recovery in rare earth prices.

Target price is $8.00 Current Price is $6.40 Difference: $1.6
If LYC meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.64, suggesting upside of 4.4% (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

Citi rates MPL as Neutral (3) -

Citi emphasises the market is seemingly discounting several concerns in the share prices of private health insurers.

At the most recent assessment, the broker highlights industry participation remains good, if a little weaker, and policy holder growth is sustaining above pre covid levels.

The broker makes some minor mark-to-market EPS adjustments for Medibank Private of 2% in FY24 to FY26 and emphasises its forecasts sit above consensus estimates.

The Neutral rating and target price of $3.80 are retained.

Target price is $3.80 Current Price is $3.67 Difference: $0.13
If MPL meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 6.8% (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

Citi rates MQG as Sell (5) -

Citi questions the ongoing price appreciate of Australian banks and specifically Macquarie Group.

The broker states the earnings tailwinds for the Commodities and Global Markets division is easing as geopolitical shifts in the gas market, are expected to stabilise.

The Banking and Financial Services division is facing increased competition in the personal banking sector, making revenue growth challenging and  Macquarie Asset Management's performance could be impacted by softness in the Green Investment Group.

Citi's forecasts for FY25-27 earnings are some -2 to -5% below consensus due to a more modest earnings profile from Macquarie Asset Management.

The stock is rated a Sell, and the target price is unchanged at $176.

Target price is $176.00 Current Price is $203.40 Difference: minus $27.4 (current price is over target).
If MQG meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $193.08, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Ord Minnett rates NEM as Buy (1) -

Ord Minnett flags Newmont Corp management have highlighted the June quarter results will be the "weakest" in terms of production for FY2024.

The broker has included milling shutdowns at three sites for extended periods and is forecasting 1.562moz production which is lower than guidance and consensus estimates by -4%.

EBITDA is anticipated to reach US$1.91bn and sits -4% below the market forecasts with free cashflow of US$347m and a lowering in net debt to US$6.5bn, notes the analyst.

An unchanged Buy rating and $80 target.

Target price is $80.00 Current Price is $69.50 Difference: $10.5
If NEM meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Citi rates NHF as Buy (1) -

Citi issues an "upside" 90-day short term view on nib Holdings.

The broker's assessment of claims inflation between nib Holdings and Medibank Private suggests the market's view is too high and there is scope for higher-than-consensus margins.

nib Holdings is due to report FY24 earnings on August 26.

Buy rating and $8.60 target unchanged.

Target price is $8.60 Current Price is $6.94 Difference: $1.66
If NHF meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $8.19, suggesting upside of 16.7% (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

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

Citi initiates coverage of Patriot Battery Metals with a Buy rating (High Risk) and a 75c target price.

The company's Corvette project in Quebec is highlighted by the broker as a tier 1 deposit due to its location, size, grade, and experienced team, making it an attractive acquisition target despite tough short-term lithium fundamentals.

The size of the resource around 800ktpa for decades equates to a  potential top 10 lithium mine globally, and the Citi analyst believes first production in 2030 at 5mt per annum is achievable.

Buy rating, High risk. 75c target price.

Target price is $0.75 Current Price is $0.56 Difference: $0.185
If PMT meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.26, suggesting upside of 125.4% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. 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

Shaw and Partners rates PMT as Initiation of coverage with Buy (1) -

In new coverage of Patriot Battery Metals, Shaw and Partners begins with a Buy rating. The company's Corvette spodumene project in Northern Quebec, Canada, is already the largest lithium pegmatite in the Americas, point out the analysts.

Remaining significant exploration potential has the broker predicting the resource will double from 109mt at 1.42% Li2O. It's noted the resource is ideally positioned and timed to feed the growing North American battery supply chain by the end of the decade.

The analysts also highlight resource nationalism (diversification of supply chains) will ultimately benefit the company, as will the quality management team.

Buy rating, and a $1.80 target is set.

Target price is $1.80 Current Price is $0.56 Difference: $1.235
If PMT meets the Shaw and Partners target it will return approximately 219% (excluding dividends, fees and charges).

Current consensus price target is $1.26, suggesting upside of 125.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. 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

Morgan Stanley rates RIO as Overweight (1) -

Canadian miner Teck Resources is rumoured (Sky News) to be on a new list of takeover targets under consideration by management at Rio Tinto, observes Morgan Stanley.

A potential valuation of around US$32bn for Teck Resources was mentioned by Sky News, but no formal approach was confirmed, points out the broker. It's noted management at Rio continues to explore options to enhance the copper portfolio.

Teck is the world's third-largest producer of mined zinc and a significant copper producer in the Americas.

The Rio Tinto's target remains at 6580p ($142). Overweight retained. Industry view is Attractive.

Target price is $142.00 Current Price is $119.83 Difference: $22.17
If RIO meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $131.83, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.3

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

Ord Minnett rates RIO as Buy (1) -

Ord Minnett forecasts June quarter iron ore shipments at 79.9mt, slightly below consensus at 80.5mt for Rio Tinto.

Copper production is expected to rise 13%, boosted by Escondida, Oyu Tolgoi and Kennecott in the US.

Alumina is forecast to report a downwards revision from the Queensland gas problems.

Buy rating and a $136 target remain.

Target price is $136.00 Current Price is $119.83 Difference: $16.17
If RIO meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $131.83, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.3

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

Ord Minnett rates S32 as Buy (1) -

South32 is due to report June quarter production on July 22 and Ord Minnett is looking for a 3% rise quarter-on-quarter for the copper equivalent.

The analyst notes this is slightly above the consensus estimate and the Sierra Gorda forecast is -10% below the market expectations.

Alumina, aluminium, and coal forecasts are stated as with 2% of consensus forecast.

Ord Minnett are anticipating a decline in net debt of -US$760m, which is around consensus.

Buy rating and $4.75 target maintained.

Target price is $4.75 Current Price is $3.62 Difference: $1.13
If S32 meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 16.4% (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: 0.7

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

Bell Potter rates SMP as Hold (3) -

At the SmartPay AGM, management offered a trading update.

Bell Potter highlights Australian terminals fleet advanced to 19,100 units and net adds came in at 700-plus over April-May, with the Australian merchant base up to 13.500 from 13,000 in FY24.

Monthly recurring revenue of NZ$384 per average unit used in May is forecast by the broker, and total transaction volume has been weaker for hospitality, falling -10%. 

Total growth of 0.7% on the 1H24 is highlighted as positive, given the soft hospitality results. $1.30 target price and Hold rating remain unchanged.

Target price is $1.30 Current Price is $1.15 Difference: $0.15
If SMP meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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

Citi rates WDS as Upgrade to Neutral from Sell (3) -

Citi upgrades Woodside Energy to Neutral from Sell with a $28 target price post a June quarter mark-to-market of forecasts.

The analyst highlights a preference for Santos ((STO)) which is also Neutral rated, due to the structural problem of an "ex-growth" portfolio for Woodside Energy.

Citi's earnings forecast is in line with consensus for the 2Q2024 results, the broker states, and the Sangomar ramp-up is progressing as anticipated.

A better-than-expected ramp-up would potentially raise forecast production, which is currently at the lower end of the guidance range.

Target price is $28.00 Current Price is $28.94 Difference: minus $0.94 (current price is over target).
If WDS meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.36, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates WEB as Neutral (3) -

Transfer of coverage to a new analyst at Macquarie for Webjet results in the setting of a $9.95 target, up from $9.23 prior.

"Solid" results are expected in the short-to medium-term, but these are already priced in, suggests the broker.

The Neutral rating is maintained. While noting an attractive growth trajectory for WebBeds (B2B), the analyst sees limited upside to the consensus forecast, based on current FY30 targets. Any re-rating upside from a B2B demerger is also considered limited.

Target price is $9.95 Current Price is $9.23 Difference: $0.72
If WEB meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $10.42, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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