Australian Broker Call

Morgans rates AIM as Add (1) -

Morgans believes the next generation product called Smart ASR is a step change in technology efficiencies. It's the company's first live captioning product, does not require real time human curation and is considered to have potential to create new markets.

The Add rating and target price of $1.37 are unchanged though the analyst continue to see upside risk to prospectus forecasts and Morgans' FY21 forecasts.

Target price is $1.37 Current Price is $0.93 Difference: $0.44
If AIM meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates APE as Neutral (3) -

Credit Suisse observes Eagers Automotive had a strong start to 2021 but does not necessarily note any change in confidence around outer years.

Even while expecting the supply side to gradually normalise in the next 12 months, Credit Suisse warns the assumption of materially lower gross margins isn’t a given but the effect of rising house prices, strong equity markets and participation in non-traditional assets.

Neutral rating maintained. Target is raised to $15.70 from $13.

Target price is $15.70 Current Price is $15.54 Difference: $0.16
If APE meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $16.34, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates APE as Overweight (1) -

The first quarter underlying profit (PBT) run-rate was materially ahead of Morgan Stanley's expectation for the full year. This was considered due to a rebound in demand off multi-decade lows and expanded margins resulting from supply constraints.

The broker is cautious extrapolating from the first quarter though sees scope for material 2021 earnings upside. Overweight retained. Target is increased to $18 from $17. Industry view: In-Line.

Morgan Stanley thinks the business will be much bigger and more profitable tomorrow than today, yet the shares trade on a valuation in-line with history.

Target price is $18.00 Current Price is $15.54 Difference: $2.46
If APE meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $16.34, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates APE as Add (1) -

After a strong trading update, Morgans assesses Eagers Automotive continues to benefit from favourable supply/demand dynamics across the industry. This is considered bolstered by internal cost out strategies implemented in the second quarter 2020.

The broker upgrades the FY21 profit (PBT) forecast by 27% and raises the target price to $16.86 from $15.05 and feels risk still lies to the upside, should current conditions continue over 2021.

In the longer term, management's Next 100 strategy (capital recycling/EasyAuto123 used car strategy/Auto Mall) will further assist the growth profile, predicts the analyst. The Add rating is maintained.

Target price is $16.86 Current Price is $15.54 Difference: $1.32
If APE meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.34, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates APE as Accumulate (2) -

Ord Minnett lifts the target price to $16.50 from $14. This comes after a first-quarter FY21 underlying pre-tax profit (PBT) that was up substantially on the same period last year and is considered to show strong momentum from previous quarters.

The broker explains the company is benefiting from industry tailwinds with constrained original equipment manufacturer (OEM) supply driving gross margins higher. It's now expected this dynamic will continue for much of 2021.

Management highlighted the strong result was driven by demand continuing to outstrip supply and the ongoing benefits from the cost-savings program initiated at the start of 2020.

Target price is $16.50 Current Price is $15.54 Difference: $0.96
If APE meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $16.34, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates APE as Buy (1) -

Eagers Automotive provided a strong first quarter trading update, amid continued demand for vehicles and supply tightness. UBS, nevertheless, does not consider it appropriate to extrapolate the first quarter.

The broker also points out the second and fourth quarters have historically been the strongest. Medium-term value drivers are intact including strength in front-in volumes. Buy rating maintained. Target rises to $16.45 from $15.00.

Target price is $16.45 Current Price is $15.54 Difference: $0.91
If APE meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $16.34, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates AWC as Buy (1) -

Alcoa reported first quarter earnings that were broadly in line with expectations. Distributions received by Alumina Ltd were also in line with Citi's estimate.

Citi continues to be constructive on the outlook for aluminium, noting China is now importing ingot aluminium and, with a cap on aluminium production, ingot imports are expected to rise over time.

Buy retained. Target is $1.90.

Target price is $1.90 Current Price is $1.74 Difference: $0.16
If AWC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Credit Suisse rates AWC as Outperform (1) -

While Alumina Ltd's alumina production was largely within Credit Suisse's expectations, the broker finds the net distribution of US$62m inflated with a proportion of a tax shield worth US$30-35m expected in the June half.

Rising realised alumina prices rising during the March quarter were largely offset by higher unit costs, leading to broadly flat margins.

Credit Suisse expects aluminium profitability to increase with new 5-year power agreements for the Portland smelter and government support packages. The broker's 2021 earnings estimate falls by circa -US$50m with flow-on impacts in outer years immaterial. 

Credit Suisse retains its Outperform rating with a target of $2.

Target price is $2.00 Current Price is $1.74 Difference: $0.26
If AWC meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Macquarie rates AWC as Downgrade to Underperform from Neutral (5) -

Macquarie notes Alumina Ltd's first-quarter result was weak with in-line production offset by cost increases. The broker expects cost headwinds to continue throughout 2021.

Timing of the Alcoa of Australia (AoA) tax shield receipts, now expected in the second quarter, has impacted first quarter distributions, notes Macquarie. Added to this are cost pressures that have depressed Alumina Ltd's near-term dividend yield outlook.

Macquarie downgrades to Underperform from Neutral with the target falling to $1.5 from $1.8.

Target price is $1.50 Current Price is $1.74 Difference: minus $0.24 (current price is over target).
If AWC 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 $1.88, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgan Stanley rates AWC as Overweight (1) -

First quarter production, costs, revenue and net distributions were in-line with Morgan Stanley's expectations. Management sees an improving alumina price as Handysize freight rates come off.

The broker expects sustainably higher alumina prices as a catalyst for reigniting refinery expansion studies and retains an Overweight rating. Industry view: Attractive. Target is $2.10.

The analyst highlights Alcoa is expecting a strong 2021 based on continued economic recovery and increased demand for aluminum in all end markets.

Target price is $2.10 Current Price is $1.74 Difference: $0.36
If AWC meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Ord Minnett rates AWC as Hold (3) -

Alcoa Inc reported quarterly production and operating earnings (EBITDA) from its bauxite and alumina division. As a result Ord Minnett factors in higher costs and lower prices for Alumina Ltd, which reduces 2021 EPS forecast by -22% and the dividend yield to 4%.

As the company is trading near the broker's net present value (NPV) estimate, the Hold rating is maintained. The dividend yield falls short of some current alternatives in the mining sector, explains the analyst. The target price is unchanged at $1.80.

Target price is $1.80 Current Price is $1.74 Difference: $0.06
If AWC meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Citi rates BPT as Neutral (3) -

A favourable ruling in the arbitration with Origin Energy ((ORG)) over the re-pricing of the Lattice gas contract leads to an upgrade to Citi's forecasts for FY21-23.

The broker, in noting downgrades to earnings guidance from Origin Energy, along with the Beach Energy guidance on the arbitration outcome, calculates the re-pricing occurred at $9-10/gigajoule.

As a result, the Lattice contract price estimate has been increased to $9.67 from $7.50. Nevertheless, Cit is still unable to reconcile the company's five-year cash flow guidance. Neutral maintained. Target rises to $1.89 from $1.81.

Target price is $1.89 Current Price is $1.81 Difference: $0.08
If BPT meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.04, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates BPT as Outperform (1) -

While seeing risks around Western flank oil production in the March quarter, Macquarie remains more focused on the long term value of Beach Energy's growing gas business in Otway and Waitsia along with bolt-on acquisitions.

The broker notes arbitration with Beach Energy's key gas customer Origin Energy ((ORG)) has led to higher prices at the Otway Gas project for the next three years. The result is Otway gas project has become more valuable to the company.

Outperform retained. Target rises to $2.10 from $2.

Target price is $2.10 Current Price is $1.81 Difference: $0.29
If BPT meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.04, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates BPT as Add (1) -

The arbitrator has issued a partial award in favour of Beach Energy in the price dispute on the Origin Energy ((ORG)) contract for gas from the Otway plant. However, Morgans think gas production through the Otway plant will be weaker than previous expectations.

The broker also increases capital expenditure forecasts for the Western Flank to take a conservative view on the impact of faster decline rates. The Add rating is maintained and the target price decreases to $2.20 from $2.25.

Morgans feels the market will be looking for confidence the company has a resolution to the uncertainty around Western Flank oil production.

Target price is $2.20 Current Price is $1.81 Difference: $0.39
If BPT meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.04, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates BSL as Outperform (1) -

Credit Suisse increases its FY21-22 operating income forecasts for BlueScope Steel by 7-8%. The revised second-half operating income estimate of $913m is also above BlueScope Steel's guidance.

The broker's forecast increase is based on expectations of higher North Star and Australian steel spreads, offset partially by lower margins in buildings products and buildings divisions. Outperform retained. Target rises to $22.50 from $20.

Target price is $22.50 Current Price is $20.94 Difference: $1.56
If BSL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $21.76, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates CCL as No Rating (-1) -

Coca-Cola Amatil shareholders approved Coca-Cola European Partners’ (CCEP’s) takeover offer for Coca Cola Amatil at $13.50 per share in cash.

Pending court approval, Coca Cola Amatil's shares will be suspended from trading on the ASX from April 21 with Coca Cola European Partners taking control of the company on 10 May.

 Macquarie cannot provide a rating or target at present.

Current Price is $13.32. Target price not assessed.

Current consensus price target is $13.10, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates CSL as Neutral (3) -

According to Macquarie's analysis, plasma collection centre foot traffic is yet to show a sustained improvement. The broker continues to see plasma collection as presenting risks in relation to the near-term outlook.

Foot traffic for about 100 of CSL's US-based collection centres eased in April after declines from mid-March. Macquarie has tempered its FY22 forecasts and expects lower immunoglobulin related revenue growth.

Neutral rating with the target dropping to $282.50 from $288.

Target price is $282.50 Current Price is $269.07 Difference: $13.43
If CSL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $297.26, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

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

Morgan Stanley believes fears around the future of office have been overplayed and thinks net absorption and rent trajectory may be nearing a trough. It's considered this may lead to a re-rating of Dexus. The rating is upgraded to Overweight from Equal-weight.

The analyst's target rises to $11.70 from $8.25, driven by forecast incentives in the terminal year declining to 20%-25% from 30%
previously. Additional factors were the recent $120m buyback and a long-term occupancy assumption of 95% versus 90% previously.

Industry View: In-line.

Target price is $11.70 Current Price is $10.16 Difference: $1.54
If DXS meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.89, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates GMG as Outperform (1) -

Macquarie assesses Goodman Group's US business accounts for $4.3bn or circa 9% of the assets under management. The group has $1bn developments in the region and an additional $1bn of developments in planning across the US. 

In the broker's view, the exposures screen positively on both fundamentals and demographics providing confidence in developments. With upside risk to earnings and strong asset level fundamentals, Macquarie retains its Outperform rating.

The target remains $20.39. 

Target price is $20.39 Current Price is $18.94 Difference: $1.45
If GMG meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates GNX as Add (1) -

Morgans assesses the additional $115m raised via new equity allows the company to reach financial close on the Kidston Hydro project (K2-H), without needing a joint venture partner. The Speculative Buy rating is increased to an Add. 

The broker feels this de-risks the company’s prospects and secures the path for the most significant asset in the development pipeline, especially now that it will have a 100% stake rather than a 50/50 share. The target increases to $0.34 from $0.33.

Target price is $0.34 Current Price is $0.20 Difference: $0.14
If GNX meets the Morgans target it will return approximately 70% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates HUB as Buy (1) -

Citi expects net inflows of $1.9bn in the third quarter, up 39%. Moreover, the broker envisages upside risk to forecasts and suspects HUB24 will overtake Netwealth ((NWL)) for flows excluding large transitions.

Market movements are also expected to affect funds under administration in a positive way. Buy rating and $26 target.

Target price is $26.00 Current Price is $23.62 Difference: $2.38
If HUB meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.38, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates MIN as Buy (1) -

March quarter iron ore production was -10% below Citi's estimates. Shipments were lower, at 4.1mt. Subsequently, the company has revised shipment guidance for FY21 down to 17.4-18wmt.

Citi trims FY21 earnings estimates by -6.6%. Buy rating and $47 target retained.

Target price is $47.00 Current Price is $42.79 Difference: $4.21
If MIN meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $45.32, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates MIN as Outperform (1) -

Mineral Resources' third-quarter result is considered "weak" by Macquarie with iron-ore production and shipments -8% and -18% lower than the broker's estimates.

The weaker result was led by logistical constraints in trucking and rail and has led to a -11-12% cut to the miner's FY21 iron-ore shipment guidance. 

Macquarie thinks iron-ore prices will continue to drive strong upgrade momentum and expects lithium hydroxide production from 2022.

Outperform rating with a target of $61.

Target price is $61.00 Current Price is $42.79 Difference: $18.21
If MIN meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $45.32, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates MIN as Underweight (5) -

Iron ore price realisation was -15% lower this quarter versus Morgan Stanley's expectation. This is considered to point to widening grade discounts alongside lower lump sales. Underweight rating and the target is lowered to $32 from $33.40. Industry view: Attractive.

This is driven by expectations of continued environmental supply side controls in China leading to a preference for high grade ores by Chinese steel mills, explains the broker. EPS forecasts for FY21 and FY22 decline by -25% and -28%, respectively.

The analyst points out FY22 earnings are also impacted by a reduction in lump production at Koolyanobbing. This reflects management commentary that there has been a move to focus on fines production in the short to medium-term.

Target price is $32.00 Current Price is $42.79 Difference: minus $10.79 (current price is over target).
If MIN meets the Morgan Stanley target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.32, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates MYX as Neutral (3) -

Mayne Pharma Group aims at Nextstellis capturing about 2% market share of the oral contraceptive market and believes peak sales could exceed US$200m. On the other hand, Credit Suisse expects a slow ramp-up period, especially in FY22 with the launch amidst covid. 

The broker expects the group to achieve peak sales in FY27 and do not forecast Nextstellis to be above breakeven until FY23.

Neutral retained. Target rises to $0.50 from $0.32.

Target price is $0.32 Current Price is $0.51 Difference: minus $0.19 (current price is over target).
If MYX meets the Credit Suisse target it will return approximately minus 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.36, suggesting downside of -26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Macquarie rates MYX as Downgrade to Underperform from Neutral (5) -

The US FDA has approved Mayne Pharma Group's Nextstellis, a combined oral contraceptive. Macquarie expects a commercial launch by June end noting the group has a 20-year supply and license agreement with Mithra for the commercialisation.

In the near term, the broker continues to see subdued business trends as subdued.

Mayne Pharma Group is downgraded to Underperform from Neutral with the target price rising to 38c from 32c.

Target price is $0.38 Current Price is $0.51 Difference: minus $0.13 (current price is over target).
If MYX meets the Macquarie target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.36, suggesting downside of -26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Macquarie rates ORG as Neutral (3) -

Arbitration with Beach Energy ((BPT)) over the Otway Basin gas supply agreements was unfavourable, observes Macquarie. As a result, in FY21 on 13-14PJ of gas, the company expects circa -$30-40m step change in costs.

FY22 prospects remain challenging with Origin Energy highlighting gas gross profit to be down over FY21. Positively APLNG cash distribution guidance increased to more than $650m from $575-675m. 

Neutral rating retained. Target is reduced to $4.68 from $5.21.

Target price is $4.68 Current Price is $4.28 Difference: $0.4
If ORG meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates ORG as Buy (1) -

Management has warned that lower wholesale electricity prices and higher gas procurement costs were likely to have a material impact on profitability in FY22–23 in the Energy Markets division.

The analyst trims the target price to $5.50 from $5.55 on the additional costs. The Buy recommendation is unchanged, based on valuation, with Australia Pacific LNG (APLNG) expected to distribute more than $650m in cash (8% yield) to the company this year.

Also, after an unfavourable arbitration finding related to the Lattice Energy gas contracts, the company will be required to pay more for gas supply from Beach Energy’s ((BPT)) Otway Basin fields.

Target price is $5.50 Current Price is $4.28 Difference: $1.22
If ORG meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates PDL as Overweight (1) -

After second quarter results, Morgan Stanley assesses surprising resilience of flows after a negative first quarter. The broker forecasts positive inflows in the second half though at a lower run-rate.

The Australian business has seen a good first half for both the institutional channel as well as higher margin wholesale, explains the analyst. The strong investment performance in J O Hambro and also Australian funds is predicted to support flows.

In addition, the broker thinks the diversity of longer-term growth options remains attractive, with increased investment in ESG and impact investing. The Overweight rating is unchanged and the target price is increased to $8.50 from $7.70. Industry view: In-line.

Target price is $8.50 Current Price is $7.60 Difference: $0.9
If PDL meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.85, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgan Stanley rates SCG as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley lowers the rating to Equal-weight from Overweight. The share price has increased around 60% since April 2020 and it's considered the reopening trade has largely played out with foot-traffic now back at 90% across Scentre Group assets (ex CBD).

The broker continues to like the revised distribution guidance of 14cps, which implies a sustainable circa 70% payout ratio. 

Whilst sales and foot-traffic will continue to recover in 2021, leasing spreads are almost certain to remain negative and online market share will remain an overhanging issue, explains the analyst. Target is decreased to $2.98 from $3.15. Industry view: In-line.

Target price is $2.98 Current Price is $2.88 Difference: $0.1
If SCG meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Credit Suisse rates SVW as Outperform (1) -

In Seven Group Holdings's case, Credit Suisse is going by the saying no news is good news.

The group's investor day did not involve any major revelations with no formal update to guidance for both Coates and WesTrac. Thus, the broker makes no changes to its forecast.

Outperform rating retained. The target price rises to $27.50 from $25.40.

Target price is $27.50 Current Price is $23.43 Difference: $4.07
If SVW meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $27.60, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates SVW as Accumulate (2) -

Management remains positive on the outlook for key industrial end markets and provided aspirational targets for the Coates Hire business for FY25. This implies meaningful potential upside to Ord Minnett's earnings (EBIT) estimates for the division.

The Accumulate rating is unchanged. The target is raised to $27 from $26 due to a mark to market analysis of listed holdings. 

Target price is $27.00 Current Price is $23.43 Difference: $3.57
If SVW meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $27.60, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Citi rates URW as Sell (5) -

Citi observes the stock has rallied significantly from its 2020 lows yet expects an 2021 decline of -13% in earnings per share. The first half is expected to have a negative impact on store closures in Europe and rent concessions could extend well into the second half.

Yet the broker expects a rebound in earnings in 2022 and an average -5% decline over 2023-25 as an equity raising is assumed. The broker emphasises the company is under the impression that a return to 2019 rents can still be achieved.

Sell maintained. Target rises to EUR27.70 from EUR21.20.

Current Price is $5.38. Target price not assessed.

Current consensus price target is $4.26, suggesting downside of -19.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

This company reports in EUR. 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 WHC as Add (1) -

Morgans is frustrated that faulting issues persist at Narrabri, just as the company should be fully leveraging the spike in high calorific value (CV) coal prices. The broker downgrades the FY21 earnings (EBITDA) forecast by -30% on lower revenue and higher costs.

The analyst lowers the target price to $2.05 from $2.23 though still see solid upside in the company which looks far too oversold. The repeat issues are considered a knock to confidence, which risks a discount to value until production and costs are stabilised/ re-based.

Target price is $2.05 Current Price is $1.49 Difference: $0.56
If WHC meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 32.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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