Australian Broker Call

Morgan Stanley rates 3PL as Overweight (1) -

3P Learning has received a conditional proposal of $1.45 per share from the private Ed-tech company BYJU. The board had previously recommended a $1.35 per share acquisition by IXL due to complete on November 20 but is now considering the proposal from BYJU. 

Morgan Stanley believes there is a risk of neither proposal resulting in a transaction but sees greater scope for competitive tension. 

The broker maintains its Overweight rating with a target price of $1.50. Industry view: In-line.

Target price is $1.50 Current Price is $1.37 Difference: $0.13
If 3PL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates APT as Overweight (1) -

Observing signs of a pre-Christmas rush, Morgan Stanley has upgraded its revenue and gross margin value forecasts for the second quarter. In the first four months of FY21, the broker expects active users to rise to 11.9m. Overall, the FY21 revenue forecast rises by 6%.

The broker highlights Afterpay's partnership with Stripe would enable merchants in more than 120 countries to connect with Afterpay while its partnership with Wix.com would help SMEs establish an online presence with no additional Afterpay integration costs.

On the home front, Afterpay's partnership with Westpac is expected to reduce processing costs. 

Morgan Stanley retains its Overweight rating with the target rising to $120 from $115. Industry view: In-line.

Target price is $120.00 Current Price is $101.85 Difference: $18.15
If APT meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $93.22, suggesting downside of -8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates AUB as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage on the insurance brokerage agency AUG Group with a Buy recommendation and a target price of $20.

AUB Group's business units include Australian broking, New Zealand broking and underwriting agencies.

The broker prefers brokers within the insurance sector and in particular the AUB Group because of the strong earnings growth potential (both organic and inorganic) displayed by the group even in the current environment.

This, adds the broker, highlights the resilience of the company’s business model.

Target price is $20.00 Current Price is $17.09 Difference: $2.91
If AUB meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $18.59, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates BRG as Hold (3) -

Breville Group provided earnings guidance for FY21, something the group has avoided in the past during the Christmas trading period. Management guided to FY21 operating earnings of $128-$132m, in line with the market’s expectations.

Ord Minnett considers the revenue growth impressive and expects the company will continue this trajectory in the near and medium-term.

The broker maintains a Hold rating, viewing the stock as relatively fully priced. Target is raised to $24 from $22.00.

Target price is $24.00 Current Price is $26.05 Difference: minus $2.05 (current price is over target).
If BRG meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.63, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates CHC as Accumulate (2) -

Charter Hall Group has formed a new partnership with Dutch pension fund PGGM to acquire around $800m of industrial property through acquisition of assets.

The development reaffirms Ord Minnett’s view that capital sources are allocating or planning to allocate equity to relevant property sectors in far higher quantities than seen before the pandemic. 

Ord Minnett reaffirms its Accumulate recommendation with a target price of $16. 

Target price is $16.00 Current Price is $14.14 Difference: $1.86
If CHC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $14.21, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates CIA as Outperform (1) -

Champion Iron has approved the Bloom Lake Phase 2 expansion. Macquarie points out this will double the miner's production capacity to circa 15mtpa from circa 7.5mtpa. 

Macquarie considers Champion Iron's decision to approve the Bloom Lake Phase II expansion encouraging, and considers the timeline and capex to be better than the broker's previous assumptions.

The broker believes the project can be funded from the miner's cash balance and cash flow generation if iron-ore prices remain buoyant.

Target rises to $4.80 from $4.40, Outperform retained.

Target price is $4.80 Current Price is $3.95 Difference: $0.85
If CIA meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Macquarie rates DHG as Outperform (1) -

Domain Holdings Australia reported a better than expected lift in revenue growth. Macquarie considers the group well placed to benefit from the rebounding volumes post-covid-19 given its cost discipline.

With Domain executing its strategy around yield improvement, the broker sees scope for value creation in the medium-term.

Outperform rating is retained. Target rises to $5.25 from $4.00.

Target price is $5.25 Current Price is $4.48 Difference: $0.77
If DHG meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates LLC as Outperform (1) -

Responding to media reports about cost overruns of -$3.3bn in the Melbourne Metro project and the Victorian Government contributing $1bn to the overruns, Macquarie estimates Lendlease Group's share of these net losses will be about circa -$500m.

The group took provisions for such losses, deemed "broadly sufficient" by the broker.

Outperform retained with a target price of $13.98.

Target price is $13.98 Current Price is $14.28 Difference: minus $0.3 (current price is over target).
If LLC meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.89, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

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

Lendlease confirmed reaching a non-binding agreement with the Victorian government on cost overruns in the Melbourne Metro project in June.

The group, a one-third partner to the Cross Yarra Partnership, also stated taking into account the agreement with the Victorian government when it booked the -$550m exit costs in FY20.

Morgan Stanley believes the agreement implies Lendlease may not have to bear any more expenses in relation to the Melbourne Metro project.

Equal-weight rating is maintained with a $13.55 target. Industry view: In-line.

Target price is $13.55 Current Price is $14.28 Difference: minus $0.73 (current price is over target).
If LLC 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 $13.89, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

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

Citi upgrades to Neutral from Sell as the Beeline acquisition will diversify the global roll-out and boost growth in Europe.

To become more positive from this point, the broker would require evidence of just how the company is navigating the reduced shopping centre traffic post the pandemic, and the structural shift to online.

Strategically, Citi finds the Beeline acquisition sound as it provides instant access to six new markets. Nevertheless, downside risk could exist to investor expectations as the "next to nothing consideration" signals the network was underperforming.

Citi suspects this could be a function of sub-optimal locations that may be difficult to change and integration risks may be elevated. Target is raised to $11.60 from $6.70 as FY21-23 estimates are raised by 32-55% to reflect the acquisition.

Target price is $11.60 Current Price is $11.48 Difference: $0.12
If LOV meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.36, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

Lovisa Holdings' acquisition of the beeline GMbH retail stores will give the company 84 stores across six European countries. Morgan Stanley notes the stores are similar to Lovisa's current portfolio. 

The broker considers the EU acquisition compelling with the improving comps showing the resiliency of the model.

Lovisa is looking to acquire an additional 30 stores in France, expected to be completed in the last quarter of FY21. 

Seeing the risk/reward as evenly balanced, Morgan Stanley maintains its Equal-weight rating with the target rising to $11.50 from $7.15. Industry view: In-line.

Target price is $11.50 Current Price is $11.48 Difference: $0.02
If LOV meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $11.36, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates LOV as Add (1) -

Lovisa Holdings has acquired around 80 beeline stores (European retail) and a put option to acquire a further 30 stores in France. This will increase the company’s global footprint by circa 20%.

The purchase price is negligible and by gaining access to some cash the company is effectively being paid to take on the operation of these stores, explains Morgans. Effectively beeline is considered to be paying the company to take over the operation of their stores.

The broker notes the stores are similar to the company’s in terms of size and fit-out, making the conversion to the Lovisa brand a reasonably simple process.

Separately, same store sales growth over the past 19 weeks was -9.2% (excluding UK/France which are now closed). This implies to Morgans a continuation of the improving sales trend.

The broker makes forecast EPS upgrades of around 18% from FY22 onwards.

The Add rating is unchanged and the target is increased to 12.78 from $10.76.

Target price is $12.78 Current Price is $11.48 Difference: $1.3
If LOV meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $11.36, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates M7T as Add (1) -

Mach7 Technologies has been awarded a $5.3m contract over seven years with Trinity Health in the US for its eUnity enterprise viewer platform.

Trinity is the fifth largest healthcare Integrated Delivery Network (IDN) in the US. The contract will be installed in 92 hospitals across 22 states.

The win pleases Morgans as delays in tenders and contract signings have been a feature across the US hospital sector since the pandemic onset.

The broker makes no changes to forecasts which assume a number of contract wins over the next six months.

The company has previously noted that around $40m of tenders were pending a decision.

The Add rating and target price of $1.49 are unchanged.

Target price is $1.49 Current Price is $1.13 Difference: $0.36
If M7T meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MCR as Outperform (1) -

Macquarie notes the full mobilisation of Mincor Resources' mining contractor Pit N Portal is now underway with development occurring at three separate mining fronts.

The broker expects the development phase will take a little over a year with the Cassini project forming the mainstay of production. The positive exploration result confirming the potential extension of the Cassini North operations present a key near-term catalyst, adds the broker.

The Outperform rating is maintained with a target price of $1.05.

Target price is $1.05 Current Price is $0.96 Difference: $0.09
If MCR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates MPL as Hold (3) -

Medibank Private's AGM update showed very strong growth in policyholders during the first four months of the year. Ord Minnett notes the insurer now aims to increase its market share and achieve 2% policyholder growth versus the less than 1% indicated previously.

Furthermore, management is targeting “modest-sized” inorganic growth opportunities. As a result of increasing its policyholder forecasts, Ord Minnett raises its FY21 earnings estimate by 4%. 

The Hold rating is maintained with a target price of $2.70.

Target price is $2.70 Current Price is $2.90 Difference: minus $0.2 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.84, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MQG as Accumulate (2) -

Ord Minnett is of the view Macquarie Group will see higher near-term capital recycling gains and performance fees.

This view has now been solidified looking at the recent developments including Macquarie Infrastructure Corp's announcement to sell its International-Matex Tank Terminals and the announcement by Macquarie Infrastructure Fund II to sell Elizabeth River Crossing among other notable events.

While the timing on these transactions is uncertain, the broker believes these events are likely to support the strong conditions expected in the second half of FY21 and beyond.

Accumulate retained with a target of $144.

Target price is $144.00 Current Price is $141.17 Difference: $2.83
If MQG meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $136.87, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates NEC as Outperform (1) -

Nine Entertainment's first-half FTA ad revenues are expected to be flat due to improving markets and deferral of major events to the December quarter. Also, Nine Entertainment continues to execute on its digital assets, observes Macquarie, improving the quality of the earnings.

An upside to the broker's valuation depends on if Nine can unlock more revenue from Google/Facebook under the news media bargaining code.

The Outperform rating is maintained. The target price is increased to $2.90 from $1.90.

Target price is $2.90 Current Price is $2.44 Difference: $0.46
If NEC meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates OPC as No Rating (-1) -

Following Uniti Group ((UWL)) successful takeover of  OptiComm, Morgans discontinues Coverage of OptiComm.

Current Price is $6.71. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates RHC as Neutral (3) -

A first quarter trading update signals revenue and costs were negatively affected by the pandemic and Australia is performing better than Europe.

Citi finds a significant amount of uncertainty for the short term because of the pandemic, particularly in France and UK. No FY21 guidance was provided.

Citi retains a Neutral rating and raises the target to $71 from $70. The main issue is how quickly Australian surgical and non-surgical volume is normalised, given European operations are likely to be neutral to earnings in FY21.

Target price is $71.00 Current Price is $66.88 Difference: $4.12
If RHC meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $68.59, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Credit Suisse rates RHC as Neutral (3) -

The first quarter trading update was mixed, Credit Suisse observes, as a second wave of coronavirus makes its impact. Australian surgical volumes have recovered, up 8% in the first quarter and ahead of estimates.

The broker estimates Australian earnings declined -$55-60m in the quarter as management called out additional costs related to cleaning, PPE and changes in staffing requirements.

The majority of the added costs are expected to remain post the pandemic and impact margins by -150 basis points compared with pre-pandemic levels. Neutral retained. Target is reduced to $69 from $70.

Target price is $69.00 Current Price is $66.88 Difference: $2.12
If RHC meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $68.59, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates RHC as Outperform (1) -

Ramsay Health Care's first-quarter activity levels in Australia were favourable with revenues rising by 1.5% (if Victoria us excluded, revenue was up 6.6%). On the flip side, costs were higher due to impacts associated with the pandemic. 

Even so, Macquarie continues to see Ramsay Health Care as well-positioned to grow over the medium–longer term.

Outperform retained. Target rises to $73.65 from $73.15.

Target price is $73.65 Current Price is $66.88 Difference: $6.77
If RHC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $68.59, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates RHC as Underweight (5) -

Ramsay Health Care refrained from providing any guidance for FY21 due to the pandemic. 

Morgan Stanley observes Australia is doing better than expected with the first-quarter revenue up 1.5%. Operating income was down versus last year led by a decrease in surgical activity in Victoria and increase in costs.

The UK trended lower than anticipated during the quarter with revenue declining by -9.9%.

Underweight with a target price of $61. Industry view: In-line.

Target price is $61.00 Current Price is $66.88 Difference: minus $5.88 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $68.59, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Ord Minnett rates RHC as Accumulate (2) -

The latest trading update from Ramsay Health Care lacked in specifics but Ord Minnett is encouraged by the rising surgical volumes across the group’s major markets during the first quarter, considering it evidence of the business recovering.

What the broker didn't like was the higher cost burden from covid-19, following which the broker has reduced its domestic forecasts and pushed out the expected recovery in the group’s UK and European operations.

Even so, the broker remains confident Ramsay is well placed to benefit from a pickup in elective surgery volumes over the next 1–2 years and maintains its Accumulate rating with a target price of $72.

Target price is $72.00 Current Price is $66.88 Difference: $5.12
If RHC meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $68.59, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

UBS rates RHC as Neutral (3) -

First quarter revenue was up 1.5% in Australia, including a 1.7% increase in surgical admissions. This was offset by lower non-surgical activity. Ramsay Sante reported surgical volume growth of 5.4% while Ramsay UK revenue was down -9.9%.

Given the complexities across the company's different operating regions, UBS finds forecasting earnings for the short term problematic. On a medium-long term basis organic private hospital volume growth is expected to return to 2-3%.

The broker retains a Neutral rating and $71.20 target.

Target price is $71.20 Current Price is $66.88 Difference: $4.32
If RHC meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $68.59, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

UBS rates SSR as Buy (1) -

The third quarter dividend surprised UBS and more capital returns are flagged. The results are not indicative that the underlying strength, the broker suggests, because the acquisition of Alacer Gold has meant Copler only contributed two weeks of financials.

A maiden dividend of 5c was announced. Management has also indicated that buybacks may form part of capital returns, which would make sense in the broker's view given the large share price discount to valuation.

Buy rating and $33 target retained. Guidance for 2020 is for 680-760,000 ounces of production at an all-in sustainable cost of US$965-1040/oz.

Target price is $33.00 Current Price is $27.15 Difference: $5.85
If SSR meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates SWM as Outperform (1) -

Seven West Media's ad revenue was down -5% in October (year to date) although the company managed to more than offset this decline via its cost-saving initiatives. The company expects ad revenue to be down -5% for the first half.

While the company is positively leveraged to an upside from a recovery in the ad markets, the broker also notes the debt is high. 

The Outperform rating is maintained. The target price is increased to $0.32 from $0.18.

Target price is $0.32 Current Price is $0.22 Difference: $0.1
If SWM meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $0.29, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates TCL as Downgrade to Hold from Accumulate (3) -

Ord Minnett lowers its recommendation on Transurban Group to Hold from Accumulate post the recent strong share price gains. The target price falls to $15.50 from $16.

The broker assumes lower long-term growth and has revised down its earnings estimates accordingly. Traffic growth is expected to be around 2% per annum over the medium to long term which is at the lower end of the group's historical range of 2-4%.

Target price is $15.50 Current Price is $15.26 Difference: $0.24
If TCL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $14.48, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates WSA as Buy (1) -

With production from the Forrestania operation falling off faster than the company's ability to replace it with its Odysseus operation, investing in Western Areas is not without its fair share of risks, cautions Ord Minnett.

The broker finds it unlikely that the Forrestania operations will get any easier on account of the declining production and increased costs while risks remain at Odysseus with respect to construction and funding. 

These concerns are offset partly by nickel, which has lifted by 10% since the quarter-end and Ord Minnett decides to maintain its Buy rating. The target is lowered to $3 from $3.35.

Target price is $3.00 Current Price is $2.05 Difference: $0.95
If WSA meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $2.40, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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