Australian Broker Call

Citi rates ABG as Buy (1) -

Earlier today, Abacus Group released interim financials and Citi, upon first glance, notes key metrics are slightly below expectations.

But then management at the REIT has reaffirmed FY24 guidance for distribution of 8.5 cents per security with payout ratio of between 85% to 95%, which is in line with Citi expectations and consensus.

Citi sees valuation support relative to the rest of the sector. Buy. Target $1.45.

Target price is $1.45 Current Price is $1.09 Difference: $0.36
If ABG meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting upside of 31.9% (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

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

Adore Beauty's 1H revenue and earnings (EBITDA) were beats against forecasts by consensus, according to Morgan Stanley, with sales growth accelerating into both the second and third quarters.

Management reiterated FY24 earnings margin guidance, supported by an expanding gross margin percentage, notes the broker. The gross margin increased by 1.1percentage points to 33.5% in the 1H compared to the 33% forecast by consensus.

Less positively, the analyst points out sales growth is still below pre-covid trends and industry growth.

Equal-weight. Target $1.15. Industry view: In-Line.

Target price is $1.15 Current Price is $1.34 Difference: minus $0.19 (current price is over target).
If ABY meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.23, suggesting downside of -1.3% (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

UBS rates ABY as Neutral (3) -

Adore Beauty posted sales in the second quarter of $53m that were ahead of UBS estimates by 7%. This was the company's best quarterly growth in more than two years.

UBS makes minimal changes to forecasts and will consider a more positive view if sales growth can accelerate above current rates and/or there is further conviction on through-the-cycle margins.

The company has reaffirmed its EBITDA margin target for FY24 of 2-4%. Neutral retained. Target rises to $1.30 from $1.15.

Target price is $1.30 Current Price is $1.34 Difference: minus $0.04 (current price is over target).
If ABY meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.23, suggesting downside of -1.3% (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

Morgans rates ADH as Upgrade to Add from Hold (1) -

Morgans upgrades its rating for Adairs to Add from Hold following 1H results and raises its target to $2.40 from $1.70. Thanks to better gross margins and control over operating costs, earnings (EBIT) were 19% better than the analysts expected.

The earnings margin was 9.8%, down from 11.0% in the previous corresponding period, but better than the broker's forecast of 8.0%, while sales were broadly in line with expectations.

Gross margins increased by 220bps on the 1H of FY23 to 60.2%, which the broker explains was due to lower freight rates, reduced clearance activity and generally better promotional discipline.

In a resumption of interim payments, a 5cps dividend was declared.

Target price is $2.40 Current Price is $2.11 Difference: $0.29
If ADH meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting downside of -1.3% (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 ADH as Hold (3) -

Adairs posted first half earnings which were better than Ord Minnett expected, despite a -19% decline. The company, having previously suspended dividends, declared an interim of five cents which is considered a positive sign that the worst is now behind it.

The broker accepts trading conditions are likely to remain difficult in the near term amid the ongoing impact of higher interest rates and reduced consumer foot traffic.

Comparable growth rates should become easier in the second half. By division sales were down -9.5% for Adairs, -14.1% for Focus, while Mocka sales were up 4.0%. Hold maintained. Target is raised to $2.00 from $1.60.

Target price is $2.00 Current Price is $2.11 Difference: minus $0.11 (current price is over target).
If ADH 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 $2.20, suggesting downside of -1.3% (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

UBS rates ADH as Neutral (3) -

Strong delivery of cost reductions and robust gross margins meant the EBIT outcome in the first half from Adairs beat UBS estimates.

The second half to date is tracking below the broker's initial expectations, although the company should cycle much easier comparables over March-June while recent problems with stocks should be resolved.

UBS finds the stock "somewhat cheap" but retains a Neutral rating on the basis the sales performance is soft across the three brands and there are downside risks to consumer expenditure.

Moving to a new warehouse management system mid 2024 will also carry implementation risk.Target is $2.20, upgraded from $1.65.

Target price is $2.20 Current Price is $2.11 Difference: $0.09
If ADH meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting downside of -1.3% (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 AIA as Hold (3) -

Ord Minnett observes an ongoing recovery in passenger numbers for Auckland International Airport and higher regulated aeronautical pricing have lifted revenue in the first half across all segments.

Passenger numbers were 87% of the pre-pandemic equivalent with domestic still slightly outperforming. The broker maintains a FY24 earnings estimate of NZ$278m, close to the upper reaches of the unchanged guidance of NZ$260-280m. Target rises to $8.25 and a Hold rating is maintained.

Target price is $8.25 Current Price is $7.67 Difference: $0.58
If AIA meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.25, suggesting upside of 8.0% (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

Morgans rates AIM as Add (1) -

There were beats against Morgans forecasts for both revenue and free cash flow (FCF) when Ai-Media Technologies presented 1H results. Earnings (EBITDA) were a miss on higher opex largely related to the launch of a new product, explain the analysts.

In a game-changing outcome, the broker highlights AI captioning is now faster and more accurate than humans, under Ai-Media Technologies' tutelage and intellectual property.

Management has fast tracked the company's use of technology (including AI) over its legacy services business, explains the broker, and now the Technology segment accounts for 63% of the group gross margin.

The Add rating and 70c target are unchanged.

Target price is $0.70 Current Price is $0.36 Difference: $0.345
If AIM meets the Morgans target it will return approximately 97% (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 ATA as Add (1) -

Atturra's 1H result was largely in line with pre-released numbers, notes Morgans. As previously flagged, earnings (EBITDA) and profit both fell year-on-year due to a large number of deal-related one-offs.

Management reiterated both FY24 revenue guidance and underlying earnings guidance.

The broker's forecasts are largely unchanged and the Add rating and $1.05 target are maintained.

Target price is $1.05 Current Price is $0.91 Difference: $0.14
If ATA meets the Morgans target it will return approximately 15% (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 ATA as Buy (1) -

First half revenue and underlying earnings from Atturra's first half were both towards the top end of guidance ranges, and the company has reiterated full year guidance for revenue of $235m. 

Shaw and Partners points out full year guidance appears de-risked, with key acquisitions like Cirrus provided a full period contribution. The broker was also encouraged by commentary around a potential turnaround in the Canberra advisory. 

The Buy rating is retained and the target price decreases to $1.40 from $1.45.

Target price is $1.40 Current Price is $0.91 Difference: $0.49
If ATA meets the Shaw and Partners target it will return approximately 54% (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

Morgan Stanley rates AWC as Overweight (1) -

Alcoa Corporation is proposing to acquire 100% of the ordinary shares on issue of Alumina Ltd via a scheme of arrangement, for scrip consideration of 0.02854 shares of Alcoa for each Alumina Ltd share. The conditional proposal is non-binding and indicative.

While the deal values Alumina Ltd at $1.15/share, a 13% premium to the last closing price, it is below Morgan Stanley's $1.40 base case valuation, which admittedly carries some restart risk for currently curtailed refineries.

Management at Alumina Ltd is recommending the deal and the broker believes it will progress to completion.

Overweight rating. Target $1.10. Industry View: Attractive.

Target price is $1.10 Current Price is $1.09 Difference: $0.01
If AWC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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 has launched a scrip takeover offer for Alumina Ltd, with the consideration being 0.02854 Alcoa shares for each Alumina share and representing a 13.1% premium to the preceding share price.

Ord Minnett suspects, choosing whether to accept are not may be moot, given major shareholder Allan Gray Australia has promised 19.9% at the bid terms and most of the board intend to recommend the proposal.

This comes in conjunction with the fact a particularly poor 2023 result is likely, the broker adds, that makes the chances of bid success high. Hold rating and $1.16 target retained.

Target price is $1.16 Current Price is $1.09 Difference: $0.07
If AWC meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Bell Potter rates AX1 as Buy (1) -

Accent Group delivered a largely in line result with its first half according to Bell Potter, with key beats in gross margin, inventory, net debt and dividends.

The broker points out trading in the first seven weeks of the second half has appeared positive, with like-for-like sales improving to -0.8% from an earlier -2.0%.

The company announced the planned conversion of 62 existing The Athlete Foot franchises over the next five years, unlocking potential revenue of $170m. 

The Buy rating is retained and the target price increases to $2.50 from $2.35.

Target price is $2.50 Current Price is $1.94 Difference: $0.56
If AX1 meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 14.0% (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

Shaw and Partners rates B4P as Buy (1) -

Beforepay Group has outlined two new strategic initiatives with its first half result.

Firstly, the company intends to apply for an Australian Credit Licence, allowing it to extend longer duration domestic loans in excess of $2,000. Secondly, it will explore partnering with other financial services that may be interested in its lending model as a service. 

Shaw and Partners has refrained from making any changes to its projections for Beforepay Group until developments from these initiatives emerge.

The Buy rating and target price of $1.00 are retained.

Target price is $1.00 Current Price is $0.57 Difference: $0.425
If B4P meets the Shaw and Partners target it will return approximately 74% (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

Bell Potter rates BUB as Hold (3) -

Bubs Australia reported a greater underlying loss in the first half then Bell Potter had anticipated, disclosing a -$6.8m loss. This does represent an improvement from the -$22.0m loss reported in the first half of FY23, and net revenue lifted 24% year-on-year.

The broker is encouraged by progress made in the US, and by improved underlying product gross margin. Bell Potter expects the extent to which the US sell through begins to track, given recent initiatives to improve on-shore inventory levels, will prove a key driver.

The Hold rating and target price of 14c are retained.

Target price is $0.14 Current Price is $0.12 Difference: $0.02
If BUB meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Shaw and Partners rates CLG as Buy (1) -

First half earnings of $22.7m from Close the Loop not only exceeded expecations set by Shaw and Partners, but also the company's guidance. Shaw and Partners explains the US computer furbishing business, ISP Tek, is benefitting from higher volumes. 

The result sees Shaw and Partners lift its near-term earnings expectations 4-5%, but this drives little impact to valuation. The company lifted its full year earnings guidance to $44-46m, with the broker anticipating $45.8m. 

The Buy rating and target price of 70c are retained.

Target price is $0.70 Current Price is $0.36 Difference: $0.34
If CLG meets the Shaw and Partners 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

Citi rates COL as Buy (1) -

In an initial response, Citi notes first half earnings from Coles Group beat its estimates. The beat occurred across gross margins and costs. Significantly, elevated theft rates are beginning to ease.

The  interim dividend of $0.36 was also ahead of expectations. The company's supermarkets have reported 4.9% like-for-like sales growth for the first eight weeks of the third quarter, underpinned by volumes.

Citi notes this is a very strong result when compared to the Woolworths Group ((WOW)) Australian food business. Buy rating retained. Target is $18.

Target price is $18.00 Current Price is $15.88 Difference: $2.12
If COL meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.54, suggesting downside of -1.5% (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 CSR as Neutral (3) -

CSR has entered into a scheme implementation deed with Saint Gobain for a cash consideration of $9/share for all shares outstanding. The CSR Board recommends voting in favour, in absence of a superior proposal and assuming a supportive fair and reasonable assessment.

While the offer is subject to customary regulatory and shareholder approvals, Macquarie believes it's a good price and the deal is likely to proceed.

Target rises to $9.00 from $6.60 to match the offer. Neutral retained.

Target price is $9.00 Current Price is $8.38 Difference: $0.62
If CSR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.37, suggesting downside of -16.2% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates CSR as Hold (3) -

Saint Gobain has entered a definitive agreement to acquire CSR for an enterprise value of $4.5bn. Ord Minnett believes the likelihood of shareholders accepting the offer is high, given a large premium, 13% above the broker's fair value estimate prior to the announcement.

The acquisition appears consistent with the Saint Gobain strategy to be a leader in light construction materials. Hold rating and $8.75 target.

Target price is $8.75 Current Price is $8.38 Difference: $0.37
If CSR meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.37, suggesting downside of -16.2% (ex-dividends)

The company's fiscal year ends in March.

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

Shaw and Partners rates CY5 as Buy (1) -

First drilling at the Pegasus prospect, within Cygnus Metals' Auclair project has returned numerous thick and shallow spodumene bearing pegmatite intersections. 

Shaw and Partners points out these intersections are up to 77m wide, and with an average width of 38m. 

The company has also reported strong results from the Lyra discovery, and combined the known spodumene and mineralised corridor at Auclair has expanded to over 6 kilometres long, from a previous 1.9 kilometres.

The Buy rating and target price of 50c are retained.

Target price is $0.50 Current Price is $0.06 Difference: $0.439
If CY5 meets the Shaw and Partners target it will return approximately 720% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates DBI as Buy (1) -

Dalrymple Bay Infrastructure's 2023 results were largely in line with expectations. The Terminal Infrastructure Charge revenue increased 7.7% and the company paid distributions of 20.8c for the year.

Citi makes minimal changes to its estimates and outlook, retaining a Buy rating and $3 target as, while inflation is higher than the yield curve, there are positive aspects from the duration mismatch between revenue and costs.

Target price is $3.00 Current Price is $2.79 Difference: $0.21
If DBI meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 DBI as Add (1) -

Dalrymple Bay Infrastructure's 2023 result revealed 2H earnings (EBITDA) in line with Morgans forecast.

Earnings in H2 grew by 8% on the 1H, driven by growth in the Terminal Infrastructure Charge (TIC) and 93% earnings margins, explains the analyst.

Management guided to a 21.5cps dividend for FY24. The target rises to $3.03 from $2.84 and the Add rating is maintained.

Target price is $3.03 Current Price is $2.79 Difference: $0.24
If DBI meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 DDR as Buy (1) -

Citi only initiated coverage of IT distributor Dicker Data with a Buy rating and $12.90 target price less than ten days ago, observing the PC cycle appeared to be bottoming.

Today, in an initial response to H1 financials released earlier, Citi notes 5% gross sales improvement is some -2% below forecasts by the broker and market consensus, but EBITDA is slightly ahead as the gross margin improved.

The suggestion now is that a bottom in the PC sales is indeed near with the H1 contraction falling to only -6% compared with -21% in H1 of FY23.

Among the negatives, gross software sales slowed to 2% growth only in the second half of 2023. Net working capital remains elevated, and interest costs have increased by 84%.

Citi analysts believe the market's attention will be on the PC cycle and opportunities from AI. Buy. Target $12.90.

Target price is $12.90 Current Price is $11.87 Difference: $1.03
If DDR meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.10, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates EDV as Outperform (1) -

Endeavour Group's strong gross margin in Hotels of 84.7%, despite mix-shifting towards food & beverage away from gaming, was driven by strong cost discipline, Macquarie notes. The result was in line with expectations.

Retail trading was strong into year end, the broker notes, but has been mixed into the second half, with a flat January before sales improved in February.

Seasonality improved the company's debt position, but higher interest rates have driven up Macquarie's interest cost forecasts for the full year.

Target falls -3% to $5.60, Outperform retained, noting Endeavour's resilience to economic cycles.

Target price is $5.60 Current Price is $5.08 Difference: $0.52
If EDV meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.74, suggesting upside of 7.7% (ex-dividends)

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

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

Endeavour Group's 1H results were in line with Morgan Stanley's forecasts, but the trading update (showing sales were impacted by a slower January) was shy of consensus expectations.

A weighting of opex for One Endeavour to the 2H resulted in a 2% beat over consensus for earnings (EBIT) in the 1H, explains the broker.

The group realised -$53m of cost savings in the 1H via the EndeavourGO program, helping to deliver a gross margin beat.

Management's FY24 interest expense guidance of -$300-310m exceeded the consensus estimate for -$295m.

Morgan Stanley's $5.80 target and Equal-weight rating are maintained. Industry view is In-Line.

Target price is $5.80 Current Price is $5.08 Difference: $0.72
If EDV meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.74, suggesting upside of 7.7% (ex-dividends)

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

Morgans rates EDV as Hold (3) -

A 1H group earnings (EBIT) margin of 9.9% for Endeavour Group was a good outcome, in Morgans view, with cost-out initiatives offsetting cost inflation. Cash realisation of 140% was also considered strong and compared to 99% in the previous corresponding period.

Overall, the 1H results exceeded the broker's expectations and reflected sales and earnings growth for both Retail and Hotels, with cost-out and an improved sales mix offsetting higher input costs.

For the first seven weeks of the 2H, sales for Retail and Hotels increased by 0.3% and 1%, respectively. This growth for Retail was softer than the analyst's 2.5% forecast for the 2H, while sales for Hotels were in line.

The target rises to $5.20 from $5.15 and the Hold rating is maintained.

Target price is $5.20 Current Price is $5.08 Difference: $0.12
If EDV meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.74, suggesting upside of 7.7% (ex-dividends)

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

UBS rates EDV as Buy (1) -

Endeavour Group deliverred first half earnings that were ahead of expectations. UBS observes higher gross margins offset higher costs.

The sources of margin expansion were new product development, pricing and promotion optimisation as well as supply chain savings in retail.

The broker found cash and capital allocation suboptimal. Capital expenditure guidance for FY24 was reiterated, with leverage at 3.4x. Buy rating and $6 target unchanged.

Target price is $6.00 Current Price is $5.08 Difference: $0.92
If EDV meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.74, suggesting upside of 7.7% (ex-dividends)

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 FMG as Sell (5) -

The main highlight of the first half results from Fortescue was the $1.08 fully franked dividend, which Ord Minnett notes was up 44% on the prior year's interim payment. The results reflect a 20% increase in realised iron ore prices at US$122/t.

Ord Minnett makes no material changes to forecasts, retaining a $17.30 target.

Fortescue shares are considered significantly overvalued and to justify the current price it is necessary to assume the iron ore price averages around US$120/t over the longer term, which the broker considers highly unlikely. Sell maintained.

Target price is $17.30 Current Price is $27.85 Difference: minus $10.55 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 38% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.27, suggesting downside of -22.9% (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 GMG as Overweight (1) -

Goodman Group will be paid NZ$272.4m as consideration, as well as an additional $17.6m for future performance fees, now that the group's managed fund in New Zealand (the listed GMT) has proposed to internalise management.

Goodman Group will take the consideration in the form of scrip, meaning its stake in GMT will increase to around 32% from 25%.

Management indicated to Morgan Stanley that forfeited income will be broadly offset by additional Investment income.

The Overweight rating and $31.35 target are retained. Industry view: In-Line.

Target price is $31.35 Current Price is $28.95 Difference: $2.4
If GMG meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $29.11, suggesting upside of 1.5% (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

Morgans rates GNX as No Rating (-1) -

After a review of all company research, Morgans has decided to keep providing updates for Genex Power, but will cease generating forecasts, a target price and a rating.

Regarding 1H results, the broker notes the company reported a -26.5% year-on-year fall in revenue due to intraday pricing volatility.

A -63% fall in underlying earnings (EBITDA) was due to higher project site costs following the start-up of  the Bouldercombe Battery Project (BBP) and higher interest costs on the company's corporate loan facility, explains the analyst.

Current Price is $0.18. Target price not assessed.

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

Ord Minnett rates GOZ as Buy (1) -

Growthpoint Properties Australia delivered half-year funds from operations of $0.12 per security and is on track for Ord Minnett's full year estimate of $0.23. Second half income is expected to be  lower because of a tenant surrendering a lease.

The broker notes there was little news regarding transactions or new funds, although Growthpoint extended the term of several funds accounting for 25% of FUM, offering some reassurance that the clients inherited from the Fortius acquisition can be retained. Buy rating and $3.80 target.

Target price is $3.80 Current Price is $2.23 Difference: $1.57
If GOZ meets the Ord Minnett target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting upside of 35.5% (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

Bell Potter rates IGL as Buy (1) -

IVE Group's first half result disappointed Bell Potter's expectations, largely on less seasonality than the previous year explains the broker. Revenue reached $507.6m, and underlying earnings $65.8m. A narrower miss at the earnings line implies a better than expected earnings margin.

Full year guidance was reiterated, with an update to include an eight month contribution from the JacPak acquisition. The result sees Bell Potter's earnings forecasts largely retained through to FY26.

The Buy rating and target price of $2.65 are retained.

Target price is $2.65 Current Price is $2.15 Difference: $0.5
If IGL meets the Bell Potter target it will return approximately 23% (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 IGL as Buy (1) -

UBS found the first half result from IVE Group mixed as the soft top line was offset by stronger margins and the benefits from the Ovato integration.

The main positives were a solid step up in margins, operating cash flow conversion improvement and momentum in Lasoo and Apparel.

UBS is comfortable with the underlying EBITDA guidance range of $122-127m yet asserts the macro slowdown remains a concern, although management has noted no major change in customer expenditure to date.

Buy rating retained. Target is reduced to $2.65 from $2.70.

Target price is $2.65 Current Price is $2.15 Difference: $0.5
If IGL meets the UBS target it will return approximately 23% (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

Bell Potter rates IPG as Buy (1) -

IPD Group delivered a beat at the earnings line with its 'robust' first half, says Bell Potter, with the reported $16.5m coming in at the top end of the company's guidance range. Group revenuew grew 8% year-on-year to $120.8m.

The company anticipates projects will weigh more significantly on the second half, characterising first half top line growth as a reflection of daily trading.

The Buy rating and target price of $5.90 are retained.

Target price is $5.90 Current Price is $4.91 Difference: $0.99
If IPG meets the Bell Potter target it will return approximately 20% (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 IPG as Buy (1) -

A solid first half financial result from IPD Group, according to Shaw and Partners, included both earnings and underlying earnings at the top end of company guidance. The broker maintains that the medium-term outlook is positive. 

The half saw IPD Group report year-on-year operating revenue growth of 8.8% to $120.7m, and gross profit growth of 15.8% to $48.3m. The company also reported a fully franked interim dividend of 4.6 cents per share. 

The broker has increased its target price for the stock, reflecting revenue growth rates, margins and free cash flow reported in the first half. 

Buy. The target price increases to $5.50 from $5.35.

Target price is $5.50 Current Price is $4.91 Difference: $0.59
If IPG meets the Shaw and Partners target it will return approximately 12% (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

Citi rates JLG as Buy (1) -

In an initial response, Citi found the first half results from Johns Lyng missed expectations at the net profit level because of higher depreciation. EBITDA, excluding commercial construction, was ahead of expectations.

The guidance upgrade for FY24 is for revenue, including commercial construction, of $1.207bn and EBITDA, including commercial construction, of $129m. The broker highlights the upgrade is largely driven by catastrophe re-building.

Buy rating maintained. Target is $8.35.

Target price is $8.35 Current Price is $7.20 Difference: $1.15
If JLG meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.45, suggesting upside of 19.0% (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 KGN as Sell (5) -

Further to the first half results for Kogan.com, Citi now envisages New Zealand as a source of sustainable earnings growth as Mighty Ape disrupts the market there.

The broker still expects the Kogan First fee hike will hinder growth, particularly when there are much cheaper alternatives.

Citi increases estimates for FY24 and FY25 EBIT by 11% and 24%, respectively, to reflect price-driven Kogan First revenue growth but is less constructive on the longer-term outlook. Target is raised to $5.50 from $4.30 and a Sell rating is maintained.

Target price is $5.50 Current Price is $7.57 Difference: minus $2.07 (current price is over target).
If KGN meets the Citi target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.73, suggesting downside of -0.6% (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

Ord Minnett rates KGN as Accumulate (2) -

Kogan.com met expectations in the first half while Ord Minnett increases FY24 underlying estimates for EPS by 8% because of a significant hike in subscription fees from April.

While expecting higher Kogan First earnings will boost the bottom line in the short term the elevated fee structure is anticipated hampering longer-term membership growth.

The $10.70 target is retained and the shares continue to screen as significantly undervalued. The broker suspects the market remains cautious about long-term sales growth potential although believes this will be underpinned by a structural shift to e-commerce.

Accumulate maintained.

Target price is $10.70 Current Price is $7.57 Difference: $3.13
If KGN meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting downside of -0.6% (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 KGN as Neutral (3) -

Further to the first half results from Kogan.com, UBS makes material upgrades to estimates for earnings per share. Prior earnings forecasts are now considered too conservative from a gross margin point of view.

FY24 and FY25 EPS estimates are upgraded by 54% and 39%, respectively. The target is raised to $7.00 from $4.90 and a Neutral rating is maintained.

Target price is $7.00 Current Price is $7.57 Difference: minus $0.57 (current price is over target).
If KGN meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.73, suggesting downside of -0.6% (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

Morgans rates LAU as Add (1) -

First half earnings (EBITDA) for Lindsay Australia rose by 22% on the previous corresponding period, but fell -7% short of Morgans forecast as a strong Transport division was partially offset by a softening for the Rural business.

Management anticipates momentum within Transport will continue in the 2H, but wet weather and less planting will likely see ongoing softness for Rural for the balance of 2024.

The company now expects to deliver earnings towards the lower end of its original FY24 guidance for $102-108m.

The target falls to $1.45 from $1.50. The Add rating is maintained.

Target price is $1.45 Current Price is $1.06 Difference: $0.395
If LAU meets the Morgans target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 40.6% (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

Ord Minnett rates LAU as Buy (1) -

First half earnings (EBITDA) of  $52.1m missed Ord Minnett's expectations, largely because off the impact of Cyclone Jasper on Far North Queensland growers during December.

Lindsay Australia has still guided to FY24 EBITDA of $102-108m, with the broker expecting the result will be more likely at the lower end.

The company's national growth strategy has created a far more diversified earnings mix and, as such, Ord Minnett suspects volatility is reduced relative to prior years.

Another highlight was growth in the rail segment which now accounts for over 30% of profit forecasts. Target edges down to $1.52 from $1.53 and a Buy rating is maintained.

Target price is $1.52 Current Price is $1.06 Difference: $0.465
If LAU meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 40.6% (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

Shaw and Partners rates LAU as Buy (1) -

Lindsay Australia delivered first half results that were in line with Shaw and Partners. Guidance was reduced to the lower end of the prior range because of weather-related conditions, which the broker points out is beyond management's control and does not justify the slump in the share price.

The broker reflects the revised outlook in its forecasts, reducing the target to $1.50 from $1.60. Buy rating retained as the company is considered ideally positioned for profitable growth over the longer term.

Target price is $1.50 Current Price is $1.06 Difference: $0.445
If LAU meets the Shaw and Partners target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 40.6% (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 LFG as Neutral (3) -

The first half result from Liberty Financial missed estimates for underlying net profit largely because of higher finance expenses. After earnings peaked in the first half of FY22 the broker observes there has been a progressive downgrade cycle.

With that latest results Citi is more confident that the trough is closer, yet while higher earnings may ultimately drive the share price this is unlikely in the near term until mortgage economics improve.

As the stock is trading on a relatively full 9-10x PE a Neutral rating is maintained with the target lowered to $4.00 from $4.10.

Target price is $4.00 Current Price is $4.10 Difference: minus $0.1 (current price is over target).
If LFG meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates LFG as Neutral (3) -

While at headline level margins were still compressed for Liberty Financial, pleasingly, notes Macquarie, funding cost pressures appear to have eased, with a first half margin that was only -2bps lower than the exit in 2H23.

While the broker still expects some pressures to roll through as Liberty refinances its wholesale issuances, perhaps the worst of the funding cost headwinds is now past, as spreads from issuances start trending lower towards longer-term averages.

But Macquarie warns of higher loan impairments as the lending book shifts away from traditional mortgages and towards more asset finance and personal lending segments, coupled with a predicted rise in unemployment.

Target rises to $4.30 from $3.65, Neutral retained.

Target price is $4.30 Current Price is $4.10 Difference: $0.2
If LFG meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates LTM as Outperform (1) -

Arcadium Lithium has signalled it is going to grow 2024 sales by 5-11%, with lithium chemicals production share increasing from 60% in 2023 to 76% in 2024.

Capex guidance is lower than the broker's prior forecast as the company slows down investment against a backdrop of softer lithium prices, which is a prudent approach in Macquarie's view.

Arcadium is an integrated lithium chemicals producer with significant brine and hard-rock resources feeding into an integrated network. Macquarie suggests production growth into a premium paying end-market and a NYSE listing provides re-rating potential in the medium term.

Outperform and $11.00 target retained.

Target price is $11.00 Current Price is $7.24 Difference: $3.76
If LTM meets the Macquarie target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $11.56, suggesting upside of 60.1% (ex-dividends)

The company's fiscal year ends in December.

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

Bell Potter rates LYC as Buy (1) -

While Lynas Rare Earths' first half result was largely foretold with its second quarter release, Bell Potter considers the half a near miss. The company reported revenue of $234m, earnings of $62.6m, and net profits of $39.5m. 

The company has retained second half guidance, targeting 500 tonnes per month. Bell Potter points out rare earth prices remain depressed amid low demand from traditional sectors.

The Buy rating is retained and the target price decreases to $7.20 from $7.60.

Target price is $7.20 Current Price is $5.90 Difference: $1.3
If LYC meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.35, suggesting upside of 29.2% (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 LYC as Neutral (3) -

First half earnings from Lynas Rare Earths beat Citi's estimates albeit were down -67% year-on-year because of lower rare earth prices. The broker observes key projects are on track but highlights the near-term earnings risk.

Citi expects REO production unit costs to stabilise at $23/kg amid higher unit costs from operations outside of Malaysia. Neutral rating and $6.70 target unchanged.

Target price is $6.70 Current Price is $5.90 Difference: $0.8
If LYC meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $7.35, suggesting upside of 29.2% (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

Macquarie rates LYC as Outperform (1) -

Lynas Rare Earths' earnings came in well ahead of consensus and of Macquarie's prior above-market forecast. Free cash flow and cash balance were broadly in line.

Management has a strong focus on continued cost reduction, against a backdrop of current subdued NdPr prices. Cost
performance in a low price environment remains a key focus area in the near term, the broker suggests.

The Kalgoorlie cracking and leaching facility received the first material feed in December. Production from Kalgoorlie is set to be shipped to the Malaysian plant late in the March Q, which is a near-term catalyst for the stock.

Outperform and $7.00 target retained.

Target price is $7.00 Current Price is $5.90 Difference: $1.1
If LYC meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.35, suggesting upside of 29.2% (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

UBS rates LYC as Buy (1) -

Lynas Rare Earths beat UBS estimates for earnings in the first half because of better costs. The main highlight for the broker was positive cash flow, despite a production-disrupted quarter and the low price environment.

Headroom on the balance sheet could still narrow as rare earths prices continues to decline and capital expenditure, while ending at Kalgoorlie, is picking up at Mount Weld.

UBS estimates the company is pricing in US$65/kg yet concedes this is based on an above-consensus view of capacity and more work probably needs to be done to build conviction. Buy rating retained. Target is reduced to $8.50 from $9.20.

Target price is $8.50 Current Price is $5.90 Difference: $2.6
If LYC meets the UBS target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $7.35, suggesting upside of 29.2% (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 MHJ as Upgrade to Buy from Neutral (1) -

Citi suspects gross margins for Michael Hill may have troughed and, with a positive outlook for retail sales, could improve from here on. Sales trends could improve from FY25 as Citi's forecast for a rebound in retail expenditure materialises.

A recovery in diamond sales is anticipated and this represents 73% of the company sales from March 2022 to February 2023. There are also several growth levers including the roll-out of Bevilles and TenSevenSeven.

Rating is upgraded to Buy from Neutral and the target lifted to $0.92 from $0.86.

Target price is $0.92 Current Price is $0.70 Difference: $0.22
If MHJ meets the Citi target it will return approximately 31% (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 MHJ as Outperform (1) -

Michael Hill reported first half earnings in line with recently update guidance, with comparable earnings down -43% year on year. Core revenue in A&NZ was down -10%, Macquarie notes, with Canada more resilient.

Sales deleveraging and higher input costs underpinned a -350bp gross profit margin hit.

Macquarie expects the well-managed Michael Hill to leverage any near-term economic recovery and retains an Outperform recommendation. Despite obvious near-term headwinds, the broker expects a change in earnings momentum in FY25.

Target falls to $1.05 from $1.10.

Target price is $1.05 Current Price is $0.70 Difference: $0.35
If MHJ meets the Macquarie 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

Bell Potter rates NAN as Hold (3) -

Weaker than expected sales in the US saw Nanosonics report a revenue decline over the first half of -2%, to $79.6m. Bell Potter points out US capital sales declined -13%, and consumables revenue increased 2%, despite an increase in the installed base.

The broker explains operating conditions for the company remain very tight, pointing to inflationary pressures in the cost base of the US hospital sector and small increases in reimbursement as creating budget pressure for device suppliers. 

The company has, however, already reported several orders for upgrade sales over the second half, including a single order for upgrades to 170 units, underpinning Bell Potter's confidence that revenues will grow half-on-half.

The Hold rating is retained and the target price decreases to $3.00 from $3.20.

Target price is $3.00 Current Price is $2.63 Difference: $0.37
If NAN meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 20.0% (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

Citi rates NAN as Sell (5) -

First half results from Nanosonics were in line with prior releases. The company has updated guidance, expecting FY24 sales to be flat which Citi points out is a significant change from the 15-20% growth guidance back in August.

Pressures on US hospital budgets are expected to continue and in response the business is now offering US customers a rental model to acquire or upgrade Trophon hardware.

Citi reduces FY24-26 estimates for EBIT by -66-85% and lowers the target to $2.70 from $3.90. Sell rating maintained.

Target price is $2.70 Current Price is $2.63 Difference: $0.07
If NAN meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 20.0% (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

Morgans rates NAN as Add (1) -

As management at Nanosonics had provided a trading update in late-January, there were few surprises for Morgans in 1H results. In line with that update, revenue fell by -2%, while earnings (EBIT) of $3m were also in line with the broker's forecast.

While budgetary strains at hospitals are unlikely to subside for at least another half, the analysts note the company can massage costs to soften the delayed capital sales impact to profitability.

Management guided to revenue growth after the 1H of 6-15%, implying to the broker a FY24 sales range of between $164-$171m.

Morgans sees no necessity to buy shares in Nanosonics at this time, based on 1H results and management commentary, but retains an Add rating, given long-term value potential for patient shareholders. The target falls to $3.50 from $3.88.

Target price is $3.50 Current Price is $2.63 Difference: $0.87
If NAN meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 20.0% (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

Ord Minnett rates NAN as Accumulate (2) -

Ord Minnett trims FY24 revenue and EBIT forecast by -5% and -53%, respectively, after the first half results from Nanosonics. Budget constraints at hospitals provided a material hit to earnings with new global Trophon unit sales down -13% and replacement sales down -23%.

The broker still forecasts the North American installed base to grow by 5% per year to around 37,000 by 2028 before slowing as the market matures. First launches of Coris will be in Australia and Europe in FY25. Accumulate and $4 target maintained.

Target price is $4.00 Current Price is $2.63 Difference: $1.37
If NAN meets the Ord Minnett target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 20.0% (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

Macquarie rates NEM as Outperform (1) -

Newmont's 2024 guidance was soft, Macquarie suggests, with weak production more than outweighed by better costs. Fourth quarter earnings were affected by non-cash items.

The miner will divest six non-core assets to focus on its Tier-1 portfolio with a five-year production target broadly in line with the broker's prior outlook. However, the broker's production expectations over 2025-27 were 5-7% above the production targets presented by Newmont.

The updated dividend strategy is a US$1.00 annual dividend, broadly in line with Macquarie's forecast, and Newmont also announced a US$1bn buyback over the next 24-months. However, the buyback will be subject to achieving a net debt position of US$5bn.

The company would need to yield the best part of US$1bn from asset sales to achieve the net debt target that would trigger the buyback, Macquarie warns. Target falls to $67 from $69, Outperform retained.

Target price is $67.00 Current Price is $47.50 Difference: $19.5
If NEM meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $67.67, suggesting upside of 47.7% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates NEM as Buy (1) -

The 2023 results from Newmont were weaker than Ord Minnett expected. After its recent purchase of Newcrest, the broker believes management has the opportunity to reset expectations and update mine plans.

The company is also targeting the sale of six smaller, higher-cost mines. The broker now forecasts 2024 attributable gold sales of around 6.9m ounces, rising to around 8.5m ounces midcycle from 2028.

Ord Minnett would prefer Newmont devote most of the sale proceeds from mine sales to buying back shares as this would be value accretive, but a share repurchase program of up to US$1bn has been introduced, funded from the proceeds of mine sales after debt is reduced. A Buy rating is maintained. Target is $76.

Target price is $76.00 Current Price is $47.50 Difference: $28.5
If NEM meets the Ord Minnett target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $67.67, suggesting upside of 47.7% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates NHF as Buy (1) -

First half results from nib Holdings beat Citi's estimates, reflecting releases from the insurer's liability for incurred claims. Factoring this in, the broker lifts estimates for EPS in FY24 by 5% and FY25 by 3%.

Service cost inflation remains a challenge in New Zealand with the insurer asserting the 10.8% increase in service costs is an industry and not a company specific factor. 

Citi retains a Buy rating and raises the target to $8.60 from $8.35.

Target price is $8.60 Current Price is $7.72 Difference: $0.88
If NHF meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.12, suggesting upside of 7.4% (ex-dividends)

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

Macquarie rates NHF as Neutral (3) -

Like all insurers, nib Holdings has moved to new accounting standards. Changes to disclosures were structural, making this announcement difficult for Macquarie to interpret.

Furthermore, nib has not disclosed the divisional P&L for 2H23, which could leave consensus "open to interpretation" at the divisional level, the broker suggests, for the coming six months.

Management left FY24 guidance unchanged, but noted covid factors continue to play out. Profitability for IIHI and Travel are not recovering as quickly as it expected. But Macquarie notes the dividend was a positive surprise.

Target falls to $7.30 from $7.70, Neutral retained.

Target price is $7.30 Current Price is $7.72 Difference: minus $0.42 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.12, suggesting upside of 7.4% (ex-dividends)

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

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

nib Holdings' 1H group premium revenue was an 8% beat against the consensus forecast due largely to Australian Residents Health Insurance (ARHI) premium revenue/policy growth of 5%. Consensus was forecasting -0.3% growth, explains Morgan Stanley.

For ARHI, net policyholders growth of 3.7% was in line with FY24 growth guidance of 3-4%. 

Management reaffirmed FY24 guidance.

The Equal-weight rating is maintained and the broker's target falls to $7.35 from $8.15 due to higher assumed claims costs and lower policyholder growth. Industry view: In-Line.

Target price is $7.35 Current Price is $7.72 Difference: minus $0.37 (current price is over target).
If NHF meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.12, suggesting upside of 7.4% (ex-dividends)

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 NHF as Hold (3) -

Policyholder growth in the first half was better than Ord Minnett expected and a more positive view on nib Holdings has been taken over the medium term.

Australian resident health insurance profit increased 28% and management maintains full year guidance for 3-4% policyholder growth, yet the broker suspects the business is over-earning, with a profit margin of 9.7%.

Over the next five years Ord Minnett assumes 2.5% annual policyholder growth and a profit margin of 6.8% in FY28.

Ord Minnett believes the business will continue to take market share, helped by investments that differentiate the offering. Hold rating and $7.70 target.

Target price is $7.70 Current Price is $7.72 Difference: minus $0.02 (current price is over target).
If NHF meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.12, suggesting upside of 7.4% (ex-dividends)

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

UBS rates NHF as Buy (1) -

First half results from nib Holdings were ahead of forecasts. UBS asserts the positive investment view that margins will remain higher for longer is intact. Market debate around margin quality and visibility on claims inflation may ensue nonetheless.

The  broker found policy numbers reasonable and probably signalling market share gains over the six months, although since the AGM in October sales momentum has clearly slowed. FY24 guidance has not been altered.

Buy rating maintained. Target is reduced to $9.30 from $9.50.

Target price is $9.30 Current Price is $7.72 Difference: $1.58
If NHF meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.12, suggesting upside of 7.4% (ex-dividends)

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

Bell Potter rates NXD as Buy (1) -

A soft first half result from NextEd Group, according to Bell Potter. Revenue growth was as flagged, up 36% year-on-year to $59.2m, but both earnings (up 24% year-on-year) and net profit (down -$0.7m) disapointed the broker.

Bell Potter explains the revenue result was largely driven by growth in average English language students, but lower deferred revenue impacted on other metrics. The company does not anticipate the same level of negative operating cashflow in the second half.

The Buy rating is retained and the target price decreases to 80 cents from $1.05.

Target price is $0.80 Current Price is $0.35 Difference: $0.45
If NXD meets the Bell Potter target it will return approximately 129% (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 NXD as Buy (1) -

First half results from NextEd Group have been largely overlooked, Ord Minnett asserts, because of the impact of the deterioration in trading conditions following changes to government policy.

Given the uncertainty, the withdrawal of second half guidance was not completely unexpected and the broker now expects revenue of $52.1m.

The timing of expanded campuses now appears to have been unfortunate and, going forward, the broker expects FY24 and FY25 will be challenging.

A Buy rating is maintained and the target lowered to $0.85 from $1.12, with Ord Minnett asserting the patient investor will be rewarded.

Target price is $0.85 Current Price is $0.35 Difference: $0.5
If NXD meets the Ord Minnett target it will return approximately 143% (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

Bell Potter rates PBH as Buy (1) -

While PointsBet Holdings reported an in line revenue result of $117.6m, according to Bell Potter, both statuatory and normalised earnings proved higher than the broker had anticipated. 

The broker explains the result as driven by a lower than expected performance in Australia, with Canada close to in line. 

All key guidance metrics for the full year were reiterated, including normalised earnings of negatve -$13.3m, implying a breakeven or positive result over the second half.

The Buy rating and target price of $1.08 are retained.

Target price is $1.08 Current Price is $0.77 Difference: $0.31
If PBH meets the Bell Potter target it will return approximately 40% (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 PBH as Buy (1) -

Management at PointsBet Holdings reiterated guidance for a FY24 underlying group earnings (EBITDA) loss of -$9-14m, when presenting 1H results. The results were well guided given recent trading updates, notes Ord Minnett.

While there was an earnings loss of -$13.3m in H1, the analysts note the company is on track to reach earnings profitability during H2. 

Also, the broker observes the sale of the remainder of the US business remains on track, with the final distribution $0.39-0.44cps expected to be paid in the June quarter this year.

The Buy rating and $1.05 target are maintained.

Target price is $1.05 Current Price is $0.77 Difference: $0.28
If PBH meets the Ord Minnett target it will return approximately 36% (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

Citi rates PLS as Downgrade to Sell from Neutral (5) -

Following the recent rally in the share price, Citi has downgraded Pilbara Minerals to Sell from Neutral. The broker notes the shares are trading above its $3.60 target price, which remains unchanged.

No further changes have been made.

Target price is $3.60 Current Price is $3.88 Difference: minus $0.28 (current price is over target).
If PLS meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.59, suggesting downside of -7.4% (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

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

Margins continue to decline in the 1H for PeopleIN due to a challenging economic environment, explains Morgans. By way of explanation, management noted a decline in contract rates, permanent recruitment fees and government subsidies.

While these explanations are not new to the broker, the level of margin degradation quarter-on-quarter has surprised, largely due to the declining contract rate. As conditions are unlikely to improve in the next year, the rating is downgraded to Hold from Add.

While in line with the consensus forecast, earnings (EBITDA) for the half fell by -38% on the previous corresponding period. No quantitative guidance was provided.

The target falls to $1.05 from $1.85.

Target price is $1.05 Current Price is $1.13 Difference: minus $0.08 (current price is over target).
If PPE meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 PPS as Buy, Higher Risk (1) -

Praemium's 1H underlying earnings (EBITDA) were in line with both management guidance and Ord Minnett's forecast.

Higher interest revenue and a lower D&A charge resulted in $1.9m reported profit beat compared to the broker's estimate.

The analysts believe Praemium faces a significant execution task after acquiring the OneVue adviser platform from Iress ((IRE)), though note potential value creation and EPS accretion in FY26.

The Buy, Higher Risk rating is maintained along with the 55c target.

Target price is $0.55 Current Price is $0.41 Difference: $0.14
If PPS meets the Ord Minnett target it will return approximately 34% (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 PRU as Outperform (1) -

Perseus Mining's underlying earnings were 24% better than Macquarie expected, largely due to lower operating cost adjustments and lower-than-expected exploration expensing.

Profit was closer to the broker following a higher tax charge but still 10% better than estimated. The dividend was -43% below as the broker had notionally anticipated a stronger payout given the strong balance sheet.

While the dividend was softer than expected, the payout rate was consistent with policy, and Macquarie notes Perseus has a history of roughly doubling the half-year payout.

Outperform and $2.60 target retained.

Target price is $2.60 Current Price is $1.71 Difference: $0.895
If PRU meets the Macquarie target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $2.17, suggesting upside of 29.0% (ex-dividends)

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 PWH as Lighten (4) -

Robust growth in aerospace and defence was behind a 26% rise in 1H profit for PWR Holdings, explains Ord Minnett. Motorsport revenue increased by 19% as demand for emerging technologies (e.g cold plates for battery cooling) was strong, notes the broker.

An interim dividend of 4.8cps was declared, and Ord Minnett, pointing to a pristine balance sheet, forecasts 15cps for the full financial year.

The analyst raises the FY24 profit forecast by 4%, around 23% higher than the previous corresponding period, and the target rises by 6% to $9.00.

The Lighten rating is kept as the broker expects shares will come back to earth after a period of market (over) optimism due to the company's foray into aerospace and defense.

Target price is $9.00 Current Price is $12.60 Difference: minus $3.6 (current price is over target).
If PWH meets the Ord Minnett target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.40, suggesting downside of -10.6% (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 PXA as Overweight (1) -

Pexa Group's 1H results were in line with Morgan Stanley's expectations (based on the disappointing December 20 trading update), and all FY24 guidance was reiterated.

First half revenue and earnings increased over the previous corresponding period by 15% and 7%, respectively, which beat consensus forecasts by 1% and 7%, respectively.

Management confirmed this June as the month for break-even for the Australian Digital businesses, but there was no commitment as to when PEXA UK earnings losses will end, note the analysts.

Target $14. Overweight rating. Industry view: Attractive.

Target price is $14.00 Current Price is $12.39 Difference: $1.61
If PXA meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $14.58, suggesting upside of 15.0% (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

Ord Minnett rates PXA as Accumulate (2) -

Following 1H results for Pexa Group, Ord Minnett raises its target by 15% to $17.25 and retains an Accumulate rating. It's felt the shares are materially undervalued as the market concentrates too heavily on the loss-making UK business.

The broker incorporates $1.75/share of value for the international business, based on a 25% probability of success, but doesn't ascribe any value for the digital growth business.

The exchange business registered an 11% revenue increase on the previous corresponding period due to the recovering property market, explains the analyst, resulting in a 3% rise to 55% for this division's margin. Ord Minnett is predicting 57% for FY24.

Target price is $17.25 Current Price is $12.39 Difference: $4.86
If PXA meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $14.58, suggesting upside of 15.0% (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

Macquarie rates REG as Outperform (1) -

Regis Healthcare's first half revenue and earnings were 4% and 12% above Macquarie's forecasts, primarily driven by better-than-expected government funding.

Improving occupancy and increased government funding support a solid earnings growth profile over the forecast period, the broker suggests. Looking ahead, Macquarie sees balance sheet flexibility for acquisitions.

The upcoming Aged Care Taskforce report will potentially provide further funding support from resident co-contributions, the broker notes.

Target rises to $3.85 from $3.55, Outperform retained.

Target price is $3.85 Current Price is $3.61 Difference: $0.24
If REG meets the Macquarie target it will return approximately 7% (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 REG as Buy (1) -

Regis Healthcare delivered a strong first half result, Ord Minnett suggests, with all key operating and financial metrics trending positively and ahead of expectations.

Earnings were up 16% compared to the broker's 4% forecast, with stronger occupancy (93.6%) and government revenue per bed day (up 26% year on year) driving the beat.

While staff costs ramped up significantly (27%) as award wage hikes and care minute mandates came through, importantly, Ord Minnett notes, the sector’s improved funding framework supported a preservation of operating margins. M&A remains on the table.

Target rises to $3.90 from $3.50, Buy retained.

Target price is $3.90 Current Price is $3.61 Difference: $0.29
If REG meets the Ord Minnett target it will return approximately 8% (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 REH as Sell (5) -

In an initial commentary post H1 result release earlier today, UBS analysts mention a "strong beat", primarily driven by USA margin. The outlook remains for softening demand in A&NZ (though the margin 'beat' here as well).

The broker lauds management's ability to keep costs in check, which is considered the key standout feature of today's result. Top line is in line.

In light of ongoing challenges ahead, the broker sees the multiple as too elevated. Sell rating. Target $16.60.

Target price is $16.60 Current Price is $24.09 Difference: minus $7.49 (current price is over target).
If REH meets the UBS target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.70, suggesting downside of -48.8% (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

Bell Potter rates RPL as Buy (1) -

Regal Partners doubled funds under management over FY23, in what Bell Potter described as an upbeat result. The asset manager also reported 32% growth in normalised net profits and 17% growth in revenue.

Already looking at the coming year, Bell Potter notes as of December 54% of funds were above or near high water mark, in likely good news for performance fees in the coming year. 

The broker expects management fees to double to $126m in the year, and $0.4bn in new committments, which turn to inflows over the year, sit within the broker's expected full year inflows of $1.4bn. 

The Buy rating is retained and the target price increases to $3.86 from $3.25.

Target price is $3.86 Current Price is $2.73 Difference: $1.13
If RPL meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 SDR as Buy (1) -

Judging from Citi's initial response, it appears SiteMinder's H1 financials proved a little below expectations, with reported loss of -$1.2m larger as the gross margin proved below forecasts.

Opex proved slightly lower than forecast. The analysts note there's no change to guidance with Siteminder targeting positive EBITDA and free cash flow (FCF) in 2H24. Management also reiterated medium-term organic growth guidance of 30%.

SiteMinder signed up six new partners, including Agoda and Citi describes this as a stong endorsement of the company's offering.

Buy. Target $5.70.

Target price is $5.70 Current Price is $5.21 Difference: $0.49
If SDR meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 14.4% (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

UBS rates SDR as Buy (1) -

SiteMinder's H1, released earlier today, revealed slightly softer revenue growth, but there were new partners and strong improvements in other key financial metrics, comment UBS analysts in an initial response.

The bottom line equally 'missed' both UBS' and market consensus forecasts, with the broker pointing towards D&A. More efficient lead generation allowed for a -32% reduction in marketing expenses.

Buy. Target $6.55.

Target price is $6.55 Current Price is $5.21 Difference: $1.34
If SDR meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 14.4% (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

Macquarie rates SGP as No Rating (-1) -

Stockland's first half funds from operations were 6% ahead of Macquarie's forecast, driven by greater residential settlements. FY24 FFO guidance is reaffirmed.

The broker highlights a modest recovery in resi, with second quarter sales of 1,200 the highest since the fourth quarter FY22. Stockland also provided a solid operational update in retail and logistics.

Macquarie  is currently on research restriction.

Current Price is $4.52. Target price not assessed.

Current consensus price target is $4.81, suggesting upside of 7.6% (ex-dividends)

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 SKC as Buy (1) -

Ord Minnett lowers its fair value estimate for SkyCity Entertainment by -6% due to structurally higher compliance costs and higher than expected one-off fines. Earnings fell -10% year on year in the first half, in line with expectation.

A weaker discretionary spending environment is weighing on casino earnings, but the broker believes the market is overly concerned about regulatory headwinds, overlooking SkyCity's strong earnings potential.

Target falls to $3.10 from $3.20, Buy retained.

Target price is $3.10 Current Price is $1.80 Difference: $1.3
If SKC meets the Ord Minnett target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $3.10, suggesting upside of 77.1% (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: 1.0

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

Morgans rates SMR as Add (1) -

Revenue and earnings for Stanmore Resources in FY23 were broadly in line with Morgans forecasts, while the final dividend of US8.4cps exceeded forecasts by the broker and consensus for US4cps and US6.5cps, respectively.

Operating cash flow (OCF) of $737m was around $130m better than the broker's forecast on lower cash tax and working capital adjustments.

The analyst suggests recent confirmation of sustainable dividends will widen the company's share price appeal. It's felt Stanmore will become the default ASX-listed coal producer for hard coking coal exposure in time.

The Add rating is retained, while the target eases to $4.15 from $4.20.

Target price is $4.15 Current Price is $3.45 Difference: $0.7
If SMR meets the Morgans target it will return approximately 20% (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

Ord Minnett rates SMR as Buy (1) -

Stanmore Resources' 2023 result came in softer than Ord Minnett expected and the dividend was slightly less, due to reserved funds for the BHP Mitsui Coal transaction earn-out. The broker assumes higher 2024 production and costs with the consolidation of Millennium.

Stanmore’s share price has depreciated sharply this year, Ord Minnett notes, though this doesn’t appear to be anything fundamental (disruption from storms in January was temporary) and is more likely part of a broader sell-off of the met coal sector.

Valuation has become more compelling in the broker's view. Buy and $4.30 target retained.

Target price is $4.30 Current Price is $3.45 Difference: $0.85
If SMR meets the Ord Minnett target it will return approximately 25% (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

Ord Minnett rates SSG as Hold (3) -

Shaver Shop reported first half profit down -8.6% year on year and -5.8% below Ord Minnett. Trading conditions remain challenging, the broker notes, with foot traffic down significantly. The company has nevertheless achieved modest sales growth (0.9%) in the second half thus far.

Shaver Shop maintains a strong market position in the personal care segment, the broker notes, generating high returns on capital. Given the company has recorded exceptional growth in both sales and profit in recent periods, Ord Minnett expects sales and profit are likely to consolidate at current levels.

Target rises to $1.20 from $1.05, Hold retained.

Target price is $1.20 Current Price is $1.20 Difference: $0
If SSG meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates SUN as Downgrade to Neutral from Buy (3) -

The Suncorp Group general insurance business has significant momentum, as Citi highlights 16% gross written premium growth. FY24 gross written premium growth guidance has been upgraded to "low to mid teens" and the broker currently forecasts 14.4%.

The quality of the underlying margin is also improving amid less reliance on reserve releases.

Following a strong rally in the share price and the EPS dilution from the bank sale, the broker struggles to find enough upside to justify a Buy rating and downgrades to Neutral. Target is raised to $16.60 from $15.55.

Target price is $16.60 Current Price is $15.66 Difference: $0.94
If SUN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $16.31, suggesting upside of 6.1% (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

Macquarie rates SUN as Outperform (1) -

Suncorp Group's insurance result was in line with Macquarie but "leaves work to do" in the second half. Gross written permium growth of 16.3% was "exceptionally strong" and representative of all divisions and products.

The bank reported a slightly lower net interest margin than forecast, but as it is about to be sold is now irrelevant, the broker implies.

With the bank sale process now close to conclusion and some $4bn of excess capital to be returned to shareholders over coming years, Suncorp remains Macquarie's preference within the Australian General Insurance sector.

Outperform and $17 target retained.

Target price is $17.00 Current Price is $15.66 Difference: $1.34
If SUN meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $16.31, suggesting upside of 6.1% (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

Morgan Stanley rates SUN as Overweight (1) -

In the wake of Suncorp Group's 1H results, Morgan Stanley remains Overweight-rated and increases its target to $17.05 from $16.10 to account for the Bank's better operating performance, Industry View: In-Line.

This improvement in Bank performance could result in a favourable purchase price adjustment for the bank's proposed sale to ANZ Bank ((ANZ)), point out the analysts.

Gross written premiums (GWP) in the 1H grew by 16.3% year-on-year and beat the broker's forecast by 3%. Cash profit was a -9% miss, and -4% below the consensus forecast, mainly due to a miss in New Zealand and a softer Bank margin, explains Morgan Stanley.

Target price is $17.05 Current Price is $15.66 Difference: $1.39
If SUN meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $16.31, suggesting upside of 6.1% (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

Morgans rates SUN as Add (1) -

Suncorp Group's 1H profit result fell -2% short of the consensus estimate while the 34cps interim dividend was in line with expectation.

While the bank result was weak, Morgans notes the general insurance result was broadly sound, and is suggestive of an improving trajectory in the 2H and for FY25.

Management increased gross written premium (GWP) growth guidance for General Insurance to “low-to-mid” teens from around 10%. The underlying insurance margin (UIM) is expected to be at the mid-point of the target range of 10%-12%.

The Add rating is maintained and the target rises to $16.88 from $16.42 despite lower EPS forecasts due to a valuation roll-forward.

Target price is $16.88 Current Price is $15.66 Difference: $1.22
If SUN meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.31, suggesting upside of 6.1% (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

UBS rates SUN as Buy (1) -

UBS believes the first half result from Suncorp Group is an explanation of why the company wants to exit the bank and focus exclusively on insurance.

The broker assumes a high probability the bank will be sold to ANZ Bank this year and looks through the miss to earnings estimates in the first half result. Underlying earnings in insurance, on the other hand, were in line with expectations.

Suncorp continues to target group GI margins in a 10-12% range and the  broker notes quality is improving as the reserve release contribution reduces. Buy rating maintained. Target unchanged at $16.80.

Target price is $16.80 Current Price is $15.66 Difference: $1.14
If SUN meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $16.31, suggesting upside of 6.1% (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

UBS rates TAH as Neutral (3) -

Tabcorp Holdings delivered earnings that were in line with UBS estimates for the first half. On the other hand EPS excluding significant items were -31% below the broker's expectations, dragged down by net interest and associate losses.

The results have not materially changed the UBS view: operationally the business is demonstrating improvement but the stock is challenged by significant operating leverage in a deteriorating industry context. Neutral rating and target lowered to $0.75 from $1.02.

Target price is $0.75 Current Price is $0.74 Difference: $0.015
If TAH meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $0.94, suggesting upside of 28.8% (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

Macquarie rates TBN as Outperform (1) -

Initial production testing at Shenandoah South-1H has exceeded Macquarie's and Tamboran Resources' own expectations; a new Beetaloo record, the broker notes.

The results led Tamboran to lower its targeted long-run development break-evens in a development scenario and Macquarie suggests financing options are underappreciated.

Longer term flow rates will be important, the broker notes, and more progress on the capital structure for the pilot project may be needed for a market re-rating.

Target rises to 40c from 36c, Outperform retained.

Target price is $0.40 Current Price is $0.20 Difference: $0.205
If TBN meets the Macquarie target it will return approximately 105% (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 TBN as Buy (1) -

Tamboran Resources has posted results from an initial 30-day production flow test at Shenandoah South 1H in the Beetaloo Basin.

Shaw and Partners considers the test a great result, with the well flowing at 3.2mmscfd, which when scaled up to a 3000m fracture interval suggests initial flow rates of 19mmscfd, better than previously assumed.

The broker notes the focus is now shifting to the commercial issues such as whether drilling costs can be reduced, whether there is enough pipeline capacity, and the market for the gas. Buy rating and $0.37 target retained.

Target price is $0.37 Current Price is $0.20 Difference: $0.175
If TBN meets the Shaw and Partners target it will return approximately 90% (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 TPG as Downgrade to Neutral from Outperform (3) -

While TPG Telecom's result was in line with Macquarie, maiden FY24 guidance is softer than expected due to higher opex and transformation costs.

Working capital from handset receivable repayments is likely to drag on cash flow and limit dividend growth in the next 12 months, the broker warns.

Furthermore, with the group not paying tax due to the Vodafone losses, Macquarie estimates the group will run out of franking credits by the 1H24 dividend, further reducing appeal for investors.

With limited upside surprises expected, the broker downgrades to Neutral from Outperform. Target falls to $5.10 from $5.40.

Target price is $5.10 Current Price is $4.93 Difference: $0.17
If TPG meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in December.

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 TPG as Underweight (5) -

Morgan Stanley assesses mixed FY23 results for TPG Telecom.

While average revenue per user (ARPU) for post-paid mobile increased by 8.5% (versus the broker's 5-6% forecast), mobile churn spiked and led to weaker-than-expected net subscriber growth.

The increase in churn to 15.1% from 13.6% in the previous corresponding period may limit more mobile price increases in 2024, in the analysts' view.

The broker prefers the sustainable and growing dividends of Telstra Group ((TLS)), and notes TPG is borrowing to pay dividends.

Target $4.40. Underweight. Industry View: In-Line.

Target price is $4.40 Current Price is $4.93 Difference: minus $0.53 (current price is over target).
If TPG meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.31, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in December.

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

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

While FY23 results for TPG Telecom were in line with guidance and Morgans expectations, the broker downgrades its rating to Hold from Add to align with weaker outlook commentary by management.

The analyst increases forecasts for opex, as well as D&A and interest expenses, and the target is reduced to $5.10 from $5.50. As net debt for FY25 is now increased as a result of these new forecasts, Morgans considers the company's overall financials less attractive.

A total of 18cps will be paid out in dividends for FY23 after a 9cps final dividend was declared. Management has confidence in an improvement in cash earnings over the next few years.

Target price is $5.50 Current Price is $4.93 Difference: $0.57
If TPG meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates TPG as Accumulate (2) -

TPG Telecom's 7% rise in 2023 earnings, including transformation costs, was only -1% shy of Ord Minnett's forecast. However the 2% rise in revenue, and management's operating cost growth outlook, were underwhelming.

The reasons for a lack of near term cash flow are not new, the broker notes. Capex is likely to remain above -$1bn for the next three years as TPG rolls out its 5G network. There are also higher interest costs, but the balance sheet is sound. Hence the dividend.

Target falls to $6.60 from $7.40, Accumulate retained.

Target price is $6.60 Current Price is $4.93 Difference: $1.67
If TPG meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates TPG as Neutral (3) -

Further to the 2023 results, UBS observes cost growth overshadowed a solid outcome in mobiles for TPG Telecom in 2023. The broker lowers estimates for 2024-26 revenue by an average of -2% and EBITDA by an average of -5%.

A Neutral rating is reiterated as, despite the performance from mobile postpaid, dividend growth is likely to be affected by higher cost reinvestment and gearing. Target is reduced to $4.95 from $5.45.

Target price is $4.95 Current Price is $4.93 Difference: $0.02
If TPG meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates WDS as Sell (5) -

Prior to today's 2023 results release, Citi upgraded 2023 estimates for Woodside Energy's net profit by 10%.

The broker now forecasts US$3bn. Updated Scarborough assumptions partially offset the benefits from the PRRT post 2027.

Target is reduced to $26 and $27 and a Sell rating is maintained. The most important aspect of the results will be whether the outlook for the business has changed compared with the November disclosures, Citi adds.

Target price is $26.00 Current Price is $30.00 Difference: minus $4 (current price is over target).
If WDS 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 $33.38, suggesting upside of 10.2% (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: 0.0

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

Morgan Stanley rates WPR as Underweight (5) -

Waypoint REIT's FY23 distributable income of 16.48cpu was in line with Morgan Stanley's forecast.

Management provided inaugural FY24 guidance for EPS of 16.32-16.48cpu, with the top end assuming no capital recycling, and the bottom end assuming the sale of -$80m of non-core assets, explain the analysts.

This guidance range was -2-3% below the consensus expectation for 16.8cpu due to a higher cost of debt, notes the broker.

Target $2.35. Underweight. Industry view: In-Line. 

Target price is $2.35 Current Price is $2.45 Difference: minus $0.1 (current price is over target).
If WPR meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.48, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25: