Australian Broker Call

Bell Potter rates 4DX as Speculative Buy (1) -

Following completion of the Imbio acquisition, Bell Potter's forecast is updated for the prospective earnings and balance sheet impact. 4DMedical raised $35m in new equity to fund the upfront cash component of the purchase price.

The broker expects the recently completed Teaming Agreement between 4DMedical and Philips was a significant catalyst for structure of the transaction.

There is little transparency on FY25 revenues, Bell Potter suggests, with the potential for considerably more or less depending on the progress with the Teaming Agreement targeting the US Department of Veterans Affairs.

Target falls to $1.25 from $1.40 on dilution, Speculative Buy retained.

Target price is $1.25 Current Price is $0.65 Difference: $0.605
If 4DX meets the Bell Potter target it will return approximately 94% (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

UBS rates AGL as Buy (1) -

AGL Energy's first half result materially beat UBS' expectations, with FY guidance narrowed to the upper end of the range. Recent months have seen weaker sentiment and share price underperformance, due to softer grid demand and in turn electricity futures, the broker notes.

But UBS expects electricity earnings to fall only -5% from FY24-25, highlighting the resilience of AGL's contract portfolio. With the lowest cost generation portfolio in the market, the broker expects AGL to deliver a strong earnings profile over FY25-28.

If AGL continues to maintain solid generation availability, UBS believes earnings could surprise to the upside, particularly following other higher cost thermal generators exiting the market.

An increase in capital cost leads to a target fall to $11.25 from $11.70. Buy retained.

Target price is $11.25 Current Price is $8.56 Difference: $2.69
If AGL meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $10.61, suggesting upside of 22.4% (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 AZJ as Neutral (3) -

In an initial response, Citi notes Aurizon Holdings reported earnings in line with forecasts. The beat was of reasonable quality with Coal 12% ahead, however investors will likely be concerned, the broker suggests, regarding capital allocation as Bulk/Containerised freight continue to disappoint.

Despite the beat, guidance was maintained with what appears the broker to be a moderate reversal of Coal revenue yield gains implying overall a relatively neutral result.

Neutral and $3.90 target retained.

Target price is $3.90 Current Price is $3.76 Difference: $0.14
If AZJ meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.89, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Morgan Stanley rates BEN as Overweight (1) -

Despite the challenges facing Bendigo & Adelaide Bank this year, the stock's price has rallied 11% since the end of October. Ahead of the bank's first half release, Morgan Stanley expects the bank's margin volatility and deposit rates will be an area of focus and risk. 

With Bendigo & Adelaide Bank reporting no growth in its mortgage book since June, the broker is also anticipating an update on longer term strategy and near term tactics from the bank.

The broker anticipates first half cash profit of $260m and a pre-provision profit of $409m.

The Overweight rating is retained and the target price increases to $10.40 from $9.80.

Target price is $10.40 Current Price is $9.75 Difference: $0.65
If BEN meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.15, suggesting downside of -7.2% (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

Bell Potter rates BLD as Hold (3) -

Boral reported revenue in line with Bell Potter's expectation, with price realisation across all product lines leading the growth. Sales volumes were generally flat to slightly higher year on year across the suite.

Underlying earnings were ahead of the broker and up 144% year on year, reflecting strong cost discipline, benefits from operational efficiencies and good price realisation.

Flat costs associated with direct labour is a positive achievement, Bell Potter suggests, given reported shortages and wage pressures across the industry.

The broker sees see scope for an updated capital management strategy this financial year given a step-up in free cash flow generation and declining net gearing. Target rises to $6.30 from $5.15, Hold retained.

Target price is $6.30 Current Price is $5.86 Difference: $0.44
If BLD meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates BLD as Sell (5) -

A strong first half result with a surprising composition from Boral, says Citi, with the company reporting revenue of $1,840m. While this was largely in line with market expectations, earnings of $210m were a 20% beat to market, and full year guidance is upgraded 4%.

While the concrete, asphalt and cement segments all reported sales in line with or softer than expectations, higher margin quarry sales were a 7% beat in the half, with pricing up 17% year-on-year.

The Sell rating is retained and the target price increases to $5.60 from $4.60.

Target price is $5.60 Current Price is $5.86 Difference: minus $0.26 (current price is over target).
If BLD meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.51, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Macquarie rates BLD as Outperform (1) -

Boral's revenues were in line with expectations, so a material beat in earnings was a function of real price growth, Macquarie notes, lifting fleet efficiency, managing overheads, and realigning the operating model.

The operational improvement trajectory is stronger than expected but continues to hold significant potential, the broker suggests, even in the face of tepid volumes.

The market environment is generally solid, with volumes flat in the first half, but management was somewhat cautious about infrastructure volumes due to development delays and noted signs of the expected softening in residential activity.

Macquarie nonetheless believes trajectory of turnaround is prone to underestimation. Target rises to $6.40 from $6.00, Outperform retained.

Target price is $6.40 Current Price is $5.86 Difference: $0.54
If BLD meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Morgan Stanley rates BLD as Underweight (5) -

Boral has delivered a strong first half, says Morgan Stanley, with the company reporting earnings of $201m. The result reflects a 6% beat to the broker's forecast, but a 25% beat to consensus forecasts.

Coupled with the company's second half guidance, Boral's stock price has enjoyed positive momentum. Morgan Stanley expects earnings momentum to slow in the second half, and that residential and infrastructure risk persists into the new financial year.

While FY24 guidance was lifted to $330-350m, from $300-330m, the broker expects a return to normalised seasonality in the second half.

The Underweight rating is retained and the target price increases to $4.30 from $3.90.

Target price is $4.30 Current Price is $5.86 Difference: minus $1.56 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.51, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

UBS rates BLD as Neutral (3) -

Boral posted a solid beat on cost control. While hitting a double-digit earnings margin is not a surprise, the timing is well ahead of UBS' assumptions and previous management comments.

While industry pricing traction remains, and product mix helped, it is Boral's ability to keep costs under control that was key in lifting the first half earnings margin, the broker notes. "Conservative" guidance has once again been provided.

With Boral "priced for perfection", UBS retains Neutral despite forecasts above earnings guidance in the second half and continuing to see earnings growth into FY25. Target rises to $6.20 from $5.50.

Target price is $6.20 Current Price is $5.86 Difference: $0.34
If BLD meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates CAR as Neutral (3) -

In an initial response, Citi notes CAR Group reported a first half underlying profit up 34% year on year and 3% ahead of the broker. Revenue was stronger than expected while earnings were in line.

In Australia, Dealer revenue guidance has been upgraded to ‘Good’ from ‘Solid’, Citi notes, Private has been downgraded to ‘Solid’ from ‘Good’ and Media has been upgraded to ‘Strong’ from ‘Good’.

Given share price strength in recent months the broker sees potential for the shares to underperform initially, on the lack of a guidance upgrade. Neutral and $34.30 target retained.

Target price is $34.30 Current Price is $33.47 Difference: $0.83
If CAR meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $30.85, suggesting downside of -9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates COG as Buy (1) -

COG Financial Services reported a first half unaudited profit attributable to shareholders in line with Bell Potter's forecast. Broker-driven loan volumes appear to be holding up, the broker suggests, albeit at a lower margin for each incremental loan commitment.

Funds under management were not disclosed but have "presumably" increased. New car sales have continued to normalise with a record 1.2m vehicle deliveries for 2023.

Bell Potter's positive view is confirmed by healthy bank and non-bank liquidity and greater monetisation of the group’s equity and independent member finance brokers.

Target rises to $1.83 from $1.81, Buy retained.

Target price is $1.83 Current Price is $1.44 Difference: $0.395
If COG meets the Bell Potter target it will return approximately 28% (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

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

Cochlear has issued an increase to its full year underlying net profit guidance, now targeting a result between $385-400m. The update reflects a 26-31% increase from prior guidance, underpinned by strength in cochlear implants in the first half.

Morgans looks forward to more detail on first half performance with the upcoming result, but believes post-covid clinical capacity improvement and catch-up surgeries have aided broad based growth and share gains.

The rating is downgraded to Hold from Add and the target price increases to $290.50 from $269.40.

Target price is $290.50 Current Price is $322.73 Difference: minus $32.23 (current price is over target).
If COH meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $245.92, suggesting downside of -23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Citi rates CSL as Buy (1) -

The transition of CSL's plasma collection devices to the Terumo Rika continues, with transition completed at thirty centres. According to Citi, this appears on track for all centres to be transitioned by mid-2025.

The company expects the Rika device will lower collection time by -30%.

Terumo and CSL are also hoping to launch the individualised nomogram in FY25, pending FDA approval. In combination with Rika, it is hoped this will lower the cost per litre and restore pre-pandemic levels in the next 305 years.

The Buy rating and target price of $325.00 are retained.

Target price is $325.00 Current Price is $305.00 Difference: $20
If CSL meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $328.70, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Morgan Stanley rates CSL as Overweight (1) -

Ahead of CSL's expected results release today, Takeda has reported its own third quarter results. The latter reported a 22% increase in immunoglobulin sales across the quarter, in line with Morgan Stanley and limiting downside risk for the broker's estimates.

The broker anticipates improvement to Behring's gross margins, and sees some potential for a small upside to market expectations.

The Overweight rating is retained with a target price of $318.00.

Target price is $318.00 Current Price is $305.00 Difference: $13
If CSL meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $328.70, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Morgan Stanley rates DDR as Overweight (1) -

Morgan Stanley sees potential upside risk for Dicker Data, following a 15 cent per share dividend payout from the company. 

The dividend brings Dicker Data's full year dividends to 45 cents, and with the company typically paying out 100% of earnings, or close to, through dividends, Morgan Stanley expects this will be interpreted as a 45 cents earnings per share result. 

However, Morgan Stanley leaves room for some upside risk if Dicker Data has not paid out a full 100%, and awaits further detail at the full result.

The Overweight rating and target price of $13.00 are retained.

Target price is $13.00 Current Price is $11.47 Difference: $1.53
If DDR meets the Morgan Stanley target it will return approximately 13% (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

Morgans rates DXI as Add (1) -

Dexus Industria REIT has released its first half results, reporting funds from operations of $27.3m, with the result underpinned by 7.3% like-for-like income growth.

Full year guidance was reiterated and portfolio metrics appear resilient to Morgans. Portfolio occupancy lifted half-on-half to 99%, with the Brisbane Technology Park occupancy lifting 10% to 95.7% and an 80% retention rate.

The Add rating and target price of $3.18 are retained.

Target price is $3.18 Current Price is $2.88 Difference: $0.3
If DXI meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

ikeGPS Group has provided a March quarter update headlined by a year to date revenue decrease of -34%, cycling a strong year on year period for transaction revenue, Bell Potter notes, which has seen headwinds in FY24.

The key highlight during the period was an announced subscription contract win with a Fortune 150 company and several other new and upgraded contracts.

The broker's positive view is underpinned by a forecast US$410bn of investment into the North American 5G, fibre and rural broadband rollout. With an unchanged target price of 63c now more than 30% above the trading price, Bell Potter upgrades to Buy from Hold.

Target price is $0.63 Current Price is $0.43 Difference: $0.2
If IKE meets the Bell Potter target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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: 1.0

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

Citi rates JBH as Buy (1) -

In an initial response to today's result release, Citi notes JB Hi-Fi reported group earnings in line with the broker. While sales were -1% below, margins across JB Hi-Fi Australia and The Good Guys held up better than expected despite well flagged cost pressures.

An interim dividend of 158c was declared, slightly above below expectations of 155c.

Cost of doing business growth of 5% for JB Hi-Fi Australia and 3% for TGG is a reasonable result, Citi suggests, given the well documented cost pressures. Gross margins were down -84bps for JB Hi-Fi Australia but surprisingly up 16bps for TGG.

Inventory management remains "excellent", the broker suggests. A January update was considered strong given consumer weakness fears. Despite this, concerns on margins and the direction of consumer spending are likely to persist.

Buy and $65 target retained.

Target price is $65.00 Current Price is $56.55 Difference: $8.45
If JBH meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $49.73, suggesting downside of -17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates MQG as Neutral (3) -

Ahead of Macquarie Group's third quarter results this week, Citi notes the stock has experienced a similar rally to last year. Despite the weaker than expected first half results, the stock has moved towards twelve-month highs. 

Citi notes the stock price retraced following third quarter results last year, on a less than stellar outlook for the year ahead. The broker anticipates a similar reaction this year, expecting investors to be focused on the outlook and initial FY25 guidance.

The broker expects deal-related activity to remain low, leading to potentially conservative guidance for FY25.

The Neutral rating and target price of $161.00 are retained.

Target price is $161.00 Current Price is $190.89 Difference: minus $29.89 (current price is over target).
If MQG meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $181.16, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates NWS as Buy (1) -

News Corp's Dec Q results showed continued outperformance of digital assets and UBS sees value emerging, particularly from Dow Jones, digital real estate and Subscription Video Services.

The broker remains positive on an improving long-term margin profile, driven by Digital, with a likely boost in FY25 from a macro recovery.

The stock trades on 23x two-year PE versus a five-year average of 28x, which UBS views as attractive in light of the low- to mid-teens medium term earnings compound growth, with potential upside from Generative AI content deals with tech players.

Target rises to $50.40 from $40.20, Buy retained.

Target price is $50.40 Current Price is $41.89 Difference: $8.51
If NWS meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $42.08, suggesting upside of 0.7% (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: 0.5

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

Macquarie rates PME as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of Pro Medicus with an Outperform rating and a $120 target. Pro Medicus is a provider of healthcare imaging software (Visage 7), with current contracted revenue implying US market share of  some 7% in FY25.

US market share has increased in recent years, the broker notes, underpinning strong revenue and earnings growth.

Macquarie sees the competitive advantages of Pro Medicus' product offering as driving market share gains over the medium-longer term, with upside from new products.

Target price is $120.00 Current Price is $106.77 Difference: $13.23
If PME meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $75.10, suggesting downside of -32.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates SGP as Buy (1) -

Given lower residential volumes and higher interest expenses, Citi lowers its estimates on Stockland. The broker lowers its earnings estimates by between -2% and -5% through to FY26. 

The broker points out Stockland is now at the midpoint of its full year guidance range for residential volumes of 5,200-5,600, which does reflect the broker's revised expectations for first half sales.

The Buy rating is retained and the target price decreases to $5.00 from $5.10.

Target price is $5.00 Current Price is $4.61 Difference: $0.39
If SGP meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.51, suggesting downside of -1.3% (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 SSM as Buy (1) -

Citi continues to see FY24 as a "year of delivery" for Service Stream, expecting this to be driven by incremental margin improvement and crystalisation of a robust work in hand pipeline. 

The broker expects margin volatility to moderate, underpinned by a disciplined approach to pricing and risk appetite. It anticipates the pricing landscape to remain in favour of contractors. 

Citi sees the interim result as providing a foundation for Service Stream to build Utilities margins towards 5% in the medium-term.

The Buy rating and target price of $1.15 are retained.

Target price is $1.15 Current Price is $0.94 Difference: $0.215
If SSM meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.05, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Shaw and Partners rates SYR as Buy (1) -

Buy rating and $1.30 target price retained with Shaw and Partners commenting Syrah Resources reported first Active Anode Material has been produced at Vidalia after a delay from the end of 2023, with final capex of US$209m, up from originally estimated US$176m.

The broker describes the announcement as "extremely positive news". Tesla will be the beneficiary under the existing offtake agreement.

No changes have been made at this stage.

Target price is $1.30 Current Price is $0.52 Difference: $0.78
If SYR meets the Shaw and Partners target it will return approximately 150% (excluding dividends, fees and charges).

Current consensus price target is $0.90, suggesting upside of 66.7% (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

UBS rates SYR as Buy (1) -

Syrah Resources has announced first production of Active Anode Material at its Vidalia facility. This marks a significant milestone for Syrah, UBS suggests, which hopes to diversify downstream and indeed represents a strategic US-based anode alternative to the China-dominated market.

While this milestone should be well-received and separates Syrah from other aspirants in the junior graphite/anode space, the broker reminds that there is more to be done before Vidalia makes first sales.

Buy and $1.00 target retained.

Target price is $1.00 Current Price is $0.52 Difference: $0.48
If SYR meets the UBS target it will return approximately 92% (excluding dividends, fees and charges).

Current consensus price target is $0.90, suggesting upside of 66.7% (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

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

Shaw and Partners has initiated coverage on Vista International with a Buy rating and $2 price target. The broker describes the company as the dominant software provider in its vertical, with a strong leadership team and part-way through a transformational cloud migration.

Impacted by covid, the broker sees FY24 as the inflection year with positive leverage ready to return. The years ahead should see double-digit revenue growth, with the cash EBITDA margin projected to turn positive.

Vista International is the leading provider of cinema management software and data analytics to the cinema and film industry globally with a 50% market share outside of China and India.

Target price is $2.00 Current Price is $1.50 Difference: $0.505
If VGL meets the Shaw and Partners target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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