Australian Broker Call

Credit Suisse rates AGL as Underperform (5) -

AGL Energy announced a structural separation into New AGL and Prime Co. Credit Suisse highlights there is a view that New AGL deserves to get a large premium given its carbon neutral status.

The broker forecasts only modest operating income growth for New AGL - 6% over FY21-26 driven by inflationary prices and reductions in retail opex via scale/digitisation.

The broker values New AGL at 11x of the operating income, implying PrimeCo is trading at 7x gross of provisions.

Credit Suisse retains its Underperform rating with the target price falling to $7 from $9.70.

Target price is $7.00 Current Price is $8.47 Difference: minus $1.47 (current price is over target).
If AGL meets the Credit Suisse target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.66, suggesting upside of 13.5% (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 AQR as Add (1) -

APN Convenience Retail REIT is making a debt-funded acquisition of a portfolio of six assets for $59m. Additionally, new 10-year leases across the 13 sites leased to EG Group were recently completed.

Morgans points out revaluations on these assets resulted in a 25.9% increase in book value. Management's FY21 guidance is unchanged. Currently, net tangible assets stand at $3.49. The Add rating is maintained and the broker increases the target price to $4.10 from $4.01.

Target price is $4.10 Current Price is $3.60 Difference: $0.5
If AQR meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates ASB as Buy (1) -

Recent commentary from the Senate Armed Services Committee (SASC), suggests to Citi an increased focus on autonomous ships, which should be positive for Austal. The Buy rating and $3.30 target are retained.

The broker explains the size of these vessels are likely to be similar to what Austal has proven it can build. Also, the company has been previously awarded a $50 million contract to convert an expeditionary fast transport (EPF) into an autonomous vessel.

Target price is $3.30 Current Price is $2.26 Difference: $1.04
If ASB meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting upside of 26.7% (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

UBS rates AST as Neutral (3) -

AusNet Services' FY21 earnings missed the broker by -15% due to an unexpected impairment of geospatial assets and higher operating expense in electricity distribution. However, the focus for the broker was on FY22 guidance.

The company guided to flat FY22 distributions in order to maintain its credit rating and ahead of significant capex required for the newly acquired Mondo business from FY23. An earnings uplift from Mondo is now not expected until at least FY25.

Target falls to $1.80 from $1.90, Neutral retained.

Target price is $1.80 Current Price is $1.77 Difference: $0.03
If AST meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.85, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Credit Suisse rates AWC as Outperform (1) -

Credit Suisse has upgraded its aluminium price deck and has materially lifted its price forecast by 18-51% over 2021-25. The broker expects the aluminium market will be heading into deficits from next year, given China maintains its 45mtpa capacity cap.

While Alumina Ltd may not directly benefit, Credit Suisse expects solid alumina demand may allow the price to reach US$350/t by 2023. Post the update, the broker's Alumina Ltd earnings forecasts increase by 13% in 2021 but lift by 11-32% for 2022-23.

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

Target price is $2.00 Current Price is $1.79 Difference: $0.21
If AWC meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Credit Suisse rates BHP as Neutral (3) -

Resilient demand in China along with stimulus-supported demand recovery ex-China are the main drivers for Credit Suisse's upward revision to copper and aluminium prices between 16- 51% over the forecast periods.

The broker has raised its long term copper price assumption to US$3.5/lb from US$3/lb to reflect what is believed to be a structural shortage of supply in the mid-to-long term. Nickel outlook is moderated due to Tsingshan's proposed expansion plans.

While BHP Group has a larger copper exposure and thus would benefit from the upgraded long term copper outlook, the broker also highlights the downward revision in met coal and nickel price forecasts. Thus, Credit Suisse prefers Rio Tinto ((RIO)) over BHP Group. 

Neutral rating with the target rising to $46 from $42.

Target price is $46.00 Current Price is $50.35 Difference: minus $4.35 (current price is over target).
If BHP meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.28, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Credit Suisse rates CRN as Outperform (1) -

Credit Suisse notes the US$100m cash injection will help Coronado Global Resources address its balance sheet concerns. The broker expects net debt will decline to US$160m by the end of 2021.

Further, the company's capital structure has been rejigged, with US$350m in senior secured notes and US$100m in asset-backed loan replacing the existing syndicate facility agreement (SFA).

Even then, downgrades to the broker's met coal forecast in the June quarter and December half reduces Credit Suisse's 2021 net profit forecast by circa -67%. 

Outperform rating with the target reduced to $1.35 from $1.60.

Target price is $1.35 Current Price is $0.63 Difference: $0.72
If CRN meets the Credit Suisse target it will return approximately 114% (excluding dividends, fees and charges).

Current consensus price target is $1.06, suggesting upside of 68.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

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

Morgan Stanley reads through results from overseas peer Haemonetics, after the company reported a reduction of -28.3% in fourth quarter organic plasma growth. These results imply to the broker downside to CSL collection volume estimates.

On an FY21 basis, Haemonetics' organic plasma revenue growth of -26.4% compares to the analyst's CSL collection volume estimate of -32%. The Equal-weight rating and target of $275 are maintained. Industry view: In-Line.

Target price is $275.00 Current Price is $277.51 Difference: minus $2.51 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $299.04, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates CSR as Downgrade to Neutral from Outperform (3) -

A good cost outcome more than offset the decline in CSR's FY21 building products revenue, observes Credit Suisse. Group net profit was 3% higher than consensus while operating cash flow was 11% above Credit Suisse's forecast.

Building products revenue was in line with consensus and the operating income was $10m higher than expected which can be attributed to SG&A savings of $31m, $11m greater than expected.

The broker increases its average end-market growth to 6.3% and -1.8% for FY22-23, an increase of 4.3% and 8.5% led by stronger housing approvals data and less negative non-residential segment.

Credit Suisse downgrades to Neutral from Outperform with the target rising to $6 from $5.60.

Target price is $6.00 Current Price is $5.97 Difference: $0.03
If CSR meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.32, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates CSR as Neutral (3) -

In a "snapshot" response to CSR's result the broker notes a 3% beat of earnings forecasts on better than expected cost control. The result was slight ahead on Building Product margins and Aluminium earnings.

With 95% of the aluminium book hedged, the division is expected to produce positive FY22 earnings. The broker sees further near term upside, but with housing nearing peak levels, the risk/reward outlook is more balanced.

Neutral and $5.73 target retained.

Target price is $5.73 Current Price is $5.97 Difference: minus $0.24 (current price is over target).
If CSR meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.32, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates CWN as Upgrade to Buy from Hold (1) -

After reading into the board’s silence over the two recent offers, Ord Minnett sees Crown Resorts offering additional upside at current share price levels and lifts the target price to $15 from $11. The rating is upgraded to Buy from Hold.

The broker estimates the company’s real estate value alone (on an FY23 basis) provides $5.85bn of value and $8.60 per share of total value to shareholders.

While the announcement of the NSW casino levy was no surprise, it did remove the discount bidders applied on fears the Independent Liquor & Gaming Authority (ILGA) would never grant a NSW casino licence, explains the analyst.

Target price is $15.00 Current Price is $12.75 Difference: $2.25
If CWN meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $12.52, suggesting downside of -4.0% (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 DXS as Outperform (1) -

Dexus recently announced its intention to acquire APN Property Group ((APD)) for $320m, to be funded by existing liquidity.

Macquarie notes as of 31 December 2020, APN Property had $2.9bn of funds under management of which 51% consisted of listed equities and 44% was accounted for by two listed REITs - APN Industria REIT ((ADI)) and APN Convenience Retail REIT ((AQR)).

At the current price, the broker notes Dexus seems to be paying a higher multiple for the funds management business and that Dexus will need to grow its assets under management to justify the price. 

Outperform retained with a target of $10.60.

Target price is $10.60 Current Price is $10.01 Difference: $0.59
If DXS meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.36, suggesting upside of 1.2% (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

Citi rates ELD as Buy (1) -

Boding well for Elders, the improved winter cropping conditions highlighted by GrainCorp ((GNC)) could see upside to ABARES’ current winter wheat crop forecast this year, highlights Citi.

The broker forecasts second half sales for Rural Products to grow by over 12%. Sales are also considered supported by strong crop input prices, increased rural spending and inorganic initiatives.

The winter rain may also provide support for re-stocker appetite and thus livestock prices into the second half, predicts the analyst. The Buy rating and $13.20 target are retained.

Target price is $13.20 Current Price is $12.12 Difference: $1.08
If ELD meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.95, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates EVN as Hold (3) -

Morgans ranks and reviews ASX gold stocks under coverage on a number of metrics to consider if relative valuations are fair.

The broker believes there has been good progress at Cowal underground and Red Lake projects, which is likely to underpin Evolution Mining's next stage of growth. The Hold rating and $4.68 target are retained.

Target price is $4.68 Current Price is $4.88 Difference: minus $0.2 (current price is over target).
If EVN meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.53, suggesting downside of -6.7% (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

Morgans rates FCT as Upgrade to Speculative Buy from Hold (1) -

Third quarter results were announced along with a $6m placement and a Share Purchase Plan for up to $2.5m (both at 9cps). Morgans estimates a balance of 12-15m of cash after the raise, which should fund the company for 12-24 months.

The broker highlights meaningful progress with nine Level 1 and 49 billing partners already signed. These existing partners are considered to have the potential to generate around $70m of revenue and make the company profitable.

Morgans reduces the target to $0.16 from $0.18, which represents significant upside to the current share price. The rating is increased to a Speculative Buy from Hold.

Target price is $0.16 Current Price is $0.08 Difference: $0.08
If FCT meets the Morgans target it will return approximately 100% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Credit Suisse rates GNC as Downgrade to Neutral from Outperform (3) -

GrainCorp upgraded its FY21 guidance with the higher grain carry-out providing additional support for FY22. Credit Suisse notes the weather forecasts point to above-median winter rainfall and therefore production upside for 2021-22.

While the upgrade is likely due to favourable trading outcomes, Credit Suisse notes the company did achieve a substantial structural improvement in efficiency. The broker expects $242m from Agribusiness in FY21 - a circa $100m improvement in operating income.

Credit Suisse downgrades to Neutral from Outperform with the target price decreasing marginally to $5.54 from $5.59.

Target price is $5.54 Current Price is $5.43 Difference: $0.11
If GNC meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates GNC as Outperform (1) -

GrainCorp's first-half net profit at $51m was modestly higher versus Macquarie's estimated $48m. Macquarie deems GrainCorp's result was "solid" and supports the broker's view that earnings momentum will continue into FY22. 

The company had upgraded its earnings estimate in March to $240m from $200m and has again upgraded its FY21 guidance. Operating income is now expected to be $255-285m with net profit estimated between $80-105m.

As a result, the broker predicts $274m in operating income and $101m in net profit.

Outperform rating with the target rising to $6.66 from $6.01.

Target price is $6.66 Current Price is $5.43 Difference: $1.23
If GNC meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates GNC as Add (1) -

Morgans assesses GrainCorp’s first half result was strong. FY21 guidance was also materially upgraded. The initial outlook for the 2021/22 east coast winter crop is considered encouraging. Add rating and target increases to $6.28 from $6.17.

The broker highlights strong first half demand for Australian grain and oilseed (boosting margins), contribution from operational initiatives and favourable crush margins in the Processing business. 

The broker makes large upgrades to FY21 forecasts, and FY22-23 will benefit from higher carry-over grain. The ABARES initial forecast for the upcoming winter crop is awaited before further adjusting forecasts.

Target price is $6.28 Current Price is $5.43 Difference: $0.85
If GNC meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates GNC as Buy (1) -

GrainCorp's first half earnings were up 33% on last year and 14% ahead of the broker. The company benefitted from a bumper FY21 crop and strong demand for grains, but also solid execution.

There remains significant upside if FY22 also produces a bumper crop, but for now the broker assumes an average crop based on increased soil moisture levels thanks to FY21 rainfall. A solid balance sheet offers M&A or capital return potential.

Buy retained, target rises to $6.70 from $6.60.

Target price is $6.70 Current Price is $5.43 Difference: $1.27
If GNC meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates HUM as Outperform (1) -

Humm Group's guidance remains unchanged and is consistent with its first half result outlook. The company expects net profit in the second half to be lower than the first half. Macquarie expects a net profit of $33.9m in the second half.

Further, provision releases in FY22 are expected to provide support to earnings in the upcoming periods.  

Outperform rating with the target dropping to $1.30 from $1.35.

Target price is $1.30 Current Price is $0.87 Difference: $0.43
If HUM meets the Macquarie target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $1.37, suggesting upside of 43.9% (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

UBS rates HUM as Buy (1) -

Humm Group has delivered a solid third quarter update, with a volume growth run-rate ahead of the broker's forecast. Credit performance also improved, with losses down -31% on last year.

The key now is to demonstrate offshore traction, launching in the UK this year and Canada next year. The broker does not see the stock priced for potential growth, making it somewhat of a forgotten BNPL stock and thus a value play in that sector.

Buy and $1.60 target retained.

Target price is $1.60 Current Price is $0.87 Difference: $0.73
If HUM meets the UBS target it will return approximately 84% (excluding dividends, fees and charges).

Current consensus price target is $1.37, suggesting upside of 43.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates IGO as Neutral (3) -

Credit Suisse has reduced its nickel price forecasts by -6-19% over 2022-23 while copper price forecasts have increase by a further 6-7% over 2022-23.

The net impact is the broker increases its earnings forecast for IGO by 9% in FY22 and reduces the forecast by -36% over FY23. If its nickel price forecast proves to be correct, Credit Suisse expects IGO’s share price to come under pressure.

Neutral maintained. Target drops to $6.85 from $6.90.

Target price is $6.85 Current Price is $7.39 Difference: minus $0.54 (current price is over target).
If IGO meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.70, suggesting downside of -9.0% (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

Morgans rates NCM as Add (1) -

Morgans ranks and reviews ASX gold stocks under coverage on a number of metrics to consider if relative valuations are fair. Despite softer gold prices, Newcrest Mining is considered set to benefit from higher copper and silver prices. Circa 20% of revenue is from copper.

There was softer production again in the March quarter, with gold production down -4% quarter-on-quarter due to planned maintenance at Lihir and Cadia, explains the broker. The Add rating and target price of $30.95 are retained. 

Target price is $30.95 Current Price is $27.82 Difference: $3.13
If NCM meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $31.56, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Credit Suisse rates NHC as Upgrade to Outperform from Neutral (1) -

Post the heavy rainfall during late March in Australia, Credit Suisse notes an already tightly supplied thermal coal market was further squeezed, leading the NEWC Index benchmark prices to remain elevated above the circa US$90/t levels.

The broker has increased the near-term thermal coal price forecast to US$82/US$70 per tonne from US$75/US$65. As a result, New Hope Corp's earnings forecasts have been lifted by 14-44% in FY21-22 with minor flow-on impacts to outer years.

Credit Suisse upgrades to Outperform from Neutral with a target price of $1.30.

Target price is $1.30 Current Price is $1.19 Difference: $0.11
If NHC meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates NHC as Neutral (3) -

New Hope Corp's share price decreased -20% in the past 12 months while thermal coal prices rose 91% over the same period.

Spot prices are materially above Macquarie's forecasts and the broker expects significant upside to the operating income, margins and free cash flow. The broker believes strong cash flow yields highlight potential for higher shareholder returns in terms of dividends.

Thermal coal prices are driving earnings upside momentum, notes the broker who increases its earnings forecasts by 120-270% for FY22 and FY23. 

Neutral rating. Target is $1.40.

Target price is $1.40 Current Price is $1.19 Difference: $0.21
If NHC meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates NHF as Neutral (3) -

With international borders expected to remain closed for longer than expected, Macquarie analyses the international workers health insurance (IWHI) market to understand the shape of the recovery.

Macquarie notes nib Holdings’ above-market revenue growth seen in recent years was driven by the skew towards graduates and Indian customers.

According to the broker's forecasts, this benefit is expected to continue until the second half of FY22 post which the portfolio mix could lead to relative underperformance versus peers.

The broker expects the IIHI division to gradually improve by FY24 as repricing flows through and new sales recover.

Neutral maintained. Target is raised to $5.95 from $5.90.

Target price is $5.95 Current Price is $6.20 Difference: minus $0.25 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.27, suggesting upside of 1.2% (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 NIC as Outperform (1) -

Credit Suisse has reduced its nickel price forecasts by -6-19% over 2022-23 leading to downgrades to Nickel Mines earnings forecasts over FY22-23 by -8-47%.

Lower nickel prices also lead to the target price for the company dropping to $1.40 from $1.50 with an Outperform rating.

Target price is $1.40 Current Price is $1.05 Difference: $0.35
If NIC meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.40, suggesting upside of 40.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates OML as Outperform (1) -

Led by good macro indicators and improvement in audiences across more-challenged formats, Credit Suisse finds it hard not to see oOh!media close the gap to pre-covid levels in the coming months.

The broker's forecasts remain virtually unchanged with 2021 revenue expected to be at about 87% of pre-covid levels. By end 2021, Credit Suisse sees a net debt of $91m for the company.

Outperform rating with the target rising to $2.35 from $2.30.

Target price is $2.35 Current Price is $1.63 Difference: $0.72
If OML meets the Credit Suisse target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $2.10, suggesting upside of 28.8% (ex-dividends)

The company's fiscal year ends in December.

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 ORI as Upgrade to Buy from Neutral (1) -

After first half results, Citi upgrades the rating to Buy from Neutral in the belief the cyclical low for ammonium nitrate (AN) volumes has been reached. An increase in group volumes into FY22 is expected, and FY22 will likely be more representative of a normalised year.

Higher volumes will see unit opex lower, and combined with modestly improved pricing should lift underlying earnings (EBITDA) from $840m in FY21 to $1.05bn in FY22, forecasts the broker. The target price is increased to $15.40 from $13.60.

Target price is $15.40 Current Price is $13.33 Difference: $2.07
If ORI meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $14.30, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates ORI as Outperform (1) -

Credit Suisse notes Orica's business is materially stronger than recent earnings reflect. The first half result includes a commitment from the new CEO to sustainably reduce cost and create a coal business stream to manage cost and cash flow in the coal sector.

In the broker's view, management is underestimating its price position in the Australian market and the broker sees price as additional upside over the medium term.

Second-half forecasts have been downgraded on the basis of a more prolonged negative margin/mix impact than anticipated. Earnings growth in FY22 is expected to reset on a post covid recovery in mining activity, better pricing and cost reduction.

Outperform rating with the target dropping to $16.47 from $16.84.

Target price is $16.47 Current Price is $13.33 Difference: $3.14
If ORI meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $14.30, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

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 ORI as Neutral (3) -

Orica's first-half operating income at $152m was mostly in-line Macquarie's $154m forecast while net profit was higher than expected at $73m (versus the broker's $58m).

The second half operating income is expected to be lower given a negative FX impact of almost -$40m and additional SAP depreciation and operating costs of about -$30m.

While investors will likely focus on post-covid earnings (FY22-23) Macquarie thinks it prudent Orica gets through FY21 first. 

Neutral rating with the target rising to $14 from $13.65.

Target price is $14.00 Current Price is $13.33 Difference: $0.67
If ORI meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.30, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

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

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

First half underlying profit (NPAT) beat Morgan Stanley's estimate on lower interest expense though management guidance for second half earnings (EBIT) was below forecast and consensus.

The broker expects that covid and trade issues will moderate from here though they are likely to persist into FY22 at least. More broadly, the company has underperformed for some time, and the analyst queries whether issues are structural.

Equal-weight with the target dropping to $13.20 from $14. Morgan Stanley looks for confidence that headwinds are abating, volumes have stabilised and prices have upside momentum before adopting a more positive stance. Industry view is Cautious.

Target price is $13.20 Current Price is $13.33 Difference: minus $0.13 (current price is over target).
If ORI meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.30, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates ORI as Hold (3) -

Morgans assesses the first half result wasn’t as bad as feared and cashflow was materially stronger than expected. Overall the result was considered to suffer due to covid impacts, China’s ban on Australian thermal coal imports and FX headwinds.

Additionally, the broker notes issues with transitioning to a new SAP system. It's expected 2H21 earnings (EBIT) will be down on the 2H20. The Hold rating is maintained given near-term earning uncertainty.

The analyst expects solid earnings growth from FY22 as covid impacts are materially less, there is significant cost-out and five strategic growth priorities contribute more meaningfully. The target price rises to $14.56 from $13.97.

Target price is $14.56 Current Price is $13.33 Difference: $1.23
If ORI meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $14.30, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

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 ORI as Hold (3) -

First half FY21 earnings (EBIT) were ahead of Ord Minnett’s forecast, and underlying net profits were significantly ahead. This was due to lower-than-expected interest charges, explains the broker.

Management guidance points to second half earnings below the same period last year. The analyst had expected guidance to be flat and downgrades the FY21 earnings forecast though models a return to growth from FY22, supported by volume improvement.

The Hold rating is maintained with the target falling to $13 from $14. The broker remains concerned about the structural challenges in the highly profitable NSW thermal coal segment.

Target price is $13.00 Current Price is $13.33 Difference: minus $0.33 (current price is over target).
If ORI meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.30, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates ORI as Neutral (3) -

Orica's first half earnings were down -51% on last year, but in line with recently downgraded guidance, due to mining activity being disrupted by covid. The second half is also expected to be below last year, but better than the first half this year.

The broker has rebased its FY earnings forecasts by -20% to reflect a more conservative view on a mining recovery and increased supply chain costs. A strategic update will be provided with the FY result in November.

Neutral and $13.50 target retained.

Target price is $13.50 Current Price is $13.33 Difference: $0.17
If ORI meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $14.30, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates OZL as Underperform (5) -

Credit Suisse has updated its copper prices forecasts by 6-16% across 2021-23 and has increased its long-term price assumption by 17% to US$3.50/lb from US$3.00/lb.

Credit Suisse views OZ Minerals as a premier ASX-listed exposure commanding a premium due to the lack of investment alternatives. 

Thus, the broker increases the target to $19.70 from $16.15. Underperform rating is retained. 

Target price is $19.70 Current Price is $25.50 Difference: minus $5.8 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.39, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates RED as Add (1) -

Morgans ranks and reviews ASX gold stocks under coverage on a number of metrics to consider if relative valuations are fair.

Despite Red 5 continuing to miss with production from Darlot, the broker sees most value coming from the King of the Hills project, where the company is already progressing development. While likely to disappoint on near-term production, the analyst sees long-term value.

The Add rating and $0.31 target are retained.

Target price is $0.31 Current Price is $0.19 Difference: $0.12
If RED meets the Morgans target it will return approximately 63% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates RIO as Outperform (1) -

Resilient demand in China along with stimulus-supported demand recovery ex-China are the main drivers for Credit Suisse's upward revision to copper and aluminium prices between 16- 51% over the forecast periods.

The broker has raised its long-term copper price assumption to US$3.5/lb from US$3/lb to reflect what is believed to be a structural shortage of supply in the mid-to-long term. Nickel outlook is moderated due to Tsingshan's proposed expansion plans.

Credit Suisse prefers Rio Tinto over BHP Group ((BHP)) given its larger iron ore exposure, improving copper and aluminium economics, and opportunities to restore reputation with a new board. 

Outperform rating with the target rising to $131 from $124.

Target price is $131.00 Current Price is $128.00 Difference: $3
If RIO meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $126.71, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

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

First quarter results for 51%-owned Turquoise Hill in Mongolia beat Morgan Stanley's estimates. Gold output guidance was cut to 400-480koz from 500-550koz to reflect modifications of mine design to resolve geo-technical issues as well as to reflect covid restrictions.

Equal-weight rating retained. Industry view is In-Line. The target price is $106.

Target price is $106.00 Current Price is $128.00 Difference: minus $22 (current price is over target).
If RIO meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $126.71, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Ord Minnett rates RIO as Buy (1) -

The copper price has hit US$4.74/lb, breaching the first-quarter 2011 high to levels not seen since the early 1970s in real terms.

Following a review of Winu, Ord Minnett notes the project is likely to ramp up in 2024. Based on a 7Mtpa mill, and relatively low grades, it will add only about 37,000tpa (initially) to Rio Tinto’s copper production, an increase of 7%.

Further exploration success and satellite deposits such as the nearby gold discovery, should support expansions over a multi-decade timeframe, explains the analyst. The Buy rating and $161 target price are retained.

Target price is $161.00 Current Price is $128.00 Difference: $33
If RIO meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $126.71, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Morgans rates RMS as Add (1) -

Morgans ranks and reviews ASX gold stocks under coverage on a number of metrics to consider if relative valuations are fair. Ramelius Resources remains a key pick in the short and medium term.

The company has near-term news flow on mine life extensions and should see improving margins as the Penny project is brought online next year.

With a pathway to life extension at Edna May and the Eridanus underground deposit continuing to grow (with drilling at Mt Magnet), the analyst sees plenty of upside. The Add rating and $2.24 target are maintained.

Target price is $2.24 Current Price is $1.76 Difference: $0.48
If RMS meets the Morgans target it will return approximately 27% (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

Morgans rates RRL as Add (1) -

Morgans ranks and reviews ASX gold stocks under coverage on a number of metrics to consider if relative valuations are fair. Regis Resources stands out to the broker as most likely to re-rate towards the ASX “majors” with a clear pathway to production growth. 

The broker likes the long-term outlook though thinks it may take time to demonstrate the value of the Tropicana acquisition. Also, it's understood production is going well at the new underground mine at Rosemont. The Add rating and $4.08 target are retained.

Target price is $4.08 Current Price is $2.62 Difference: $1.46
If RRL meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting upside of 45.5% (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

Credit Suisse rates S32 as Downgrade to Neutral from Outperform (3) -

Credit Suisse has increased South32's net profit estimates by 1-4% over the forecast period after considering the broker's updated commodity price deck including higher aluminium and alumina spot prices, partly offset by lower nickel.

The broker, anticipating the market is heading into a protracted deficit from next year, has materially lifted its aluminium price forecast by circa 18-51% over 2021-25. 

Even so, the broker notes South32 has rallied circa 25% year to date led by strengthening demand in materials and pricing and Credit Suisse views the share price as full.

Thus, Credit Suisse downgrades to Neutral from Outperform with the target rising to $3 from $2.90.

Target price is $3.00 Current Price is $2.95 Difference: $0.05
If S32 meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates SFR as Outperform (1) -

Credit Suisse has updated its copper prices forecasts by 6-16% across 2021-23 and has increased its long-term price assumption by 17% to US$3.50/lb from US$3.00/lb.

The broker has increased Sandfire Resources' earnings forecast for FY22-23 by 49-77%. The earnings benefit is capped by the DeGrussa operation which has less than 18 months left for completion.

The major value driver, in the broker's view, remains the long-term copper price impact on the Tshukudu project in Botswana with its highly prospective exploration tenement package.

Outperform rating with the target rising to $8.55 from $7.20.

Target price is $8.55 Current Price is $7.69 Difference: $0.86
If SFR meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Citi rates SHV as Buy (1) -

Citi sees downside risk to yields from the worsening water supply situation in California. The broker also expects an improvement in
almond prices for the 2021 crop and subsequently Select Harvest's FY22 earnings.

The company is to report first half results on Friday, 28 May. The broker forecasts earnings (EBITDA) of $17m, -50% below the pcp, driven by the lower almond price ($6.30/kg) and resulting operating deleverage.

The analyst notes the USDA’s subjective forecast for the 2021 almond crop of 3.2bn lbs is above industry expectations of 2.8 to 3.0bn lbs. The Buy rating and $6.50 target are retained.

Target price is $6.50 Current Price is $6.00 Difference: $0.5
If SHV meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 SYD as Neutral (3) -

With the government delaying the reopening of borders and the vaccination program taking longer than hoped, Macquarie, who had been optimistic of the borders opening incrementally in the second half of FY21, thinks this has now slipped to the second quarter of 2022.

Even then, the broker continues to expect passenger traffic will rebound to 2019 levels by 2024-25 and thus the longer-term drivers remain unchanged.

Neutral rating retained with the target reduced to $6.04 from $6.32.

Target price is $6.04 Current Price is $5.74 Difference: $0.3
If SYD meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in December.

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 SYD as Hold (3) -

Ord Minnett has lowered its international passenger assumptions for Sydney Airport following the government’s announcement that it is pushing out the opening of international borders to mid-2022.

The broker believes the domestic travel recovery is on track though international passengers are key. They contribute three times the domestic aeronautical revenue and account for a majority of retail revenue, explains the analyst.

Ord Minnett assumes dividends will be reinstated in 2022 though lowers the payout to 80% from 85% to retain $120m of non-deferrable capital expenditure.The Hold rating is unchanged and the target price falls to $5.60 from $6.40.

Target price is $5.60 Current Price is $5.74 Difference: minus $0.14 (current price is over target).
If SYD meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.18, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in December.

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 TWE as Neutral (3) -

Treasury Wine Estates' FY21 operating income guidance range at $495m-$515m is 8% ahead of Macquarie's forecast and represents 33% growth over last year. The company aims at a long-term target of delivering an operating income margin of 25%.

Also, Treasury Wine Estates' global supply-chain optimisation program is expected to deliver annualised benefits of more than $75m by FY23, higher than the prior guidance of $50m.

Lastly, Macquarie notes the company's 2025 strategy is focused on growth brands and distribution in priority markets to drive premium wine consumption and offset the impact of China.

Neutral rating with a target of $10.50.

Target price is $10.50 Current Price is $10.22 Difference: $0.28
If TWE meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.61, suggesting downside of -2.3% (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 WHC as Upgrade to Outperform from Neutral (1) -

Post the heavy rainfall during late March in Australia, Credit Suisse notes an already tightly supplied thermal coal market was further squeezed, resulting in the NEWC Index benchmark prices to remain elevated above circa US$90/t.

The broker has nudged up its near-term thermal coal price forecast to US$82/US$70 per tonne from US$75/US$65.

While some earnings upside has been offset by a moderated met coal price deck, overall Whitehaven Coal's operating income forecast is lifted by 3-8% over FY21-22.

While still wary of the miner's operational stability, Credit Suisse admits the stock's share price deterioration since the March quarter makes it look cheap and thus the broker upgrades to Outperform from Neutral. The target remains $1.55.

Target price is $1.55 Current Price is $1.25 Difference: $0.3
If WHC meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 40.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates WHC as Upgrade to Outperform from Neutral (1) -

Whitehaven Coal's share price has decreased -32% over the past 12 months while thermal coal prices have increased 91% over the same period. With spot prices higher than expected, Macquarie notes there is upside to operating income, margins and free cash flow.

The broker sees value in the company not targeting growth and rather harvesting cash from existing operations and increasing returns to shareholders over the remaining life of operations.

Led by thermal coal prices, the broker increases its earnings forecasts by 130% and 290% in a spot price scenario for FY22 and FY23.

Macquarie upgrades to Outperform from Neutral with a $1.70 target.

Target price is $1.70 Current Price is $1.25 Difference: $0.45
If WHC meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 40.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgans rates WPR as Add (1) -

After the AGM, Morgans makes immaterial changes to FY22 and FY23 forecasts and sits in-line with 2021 guidance. The Add rating is unchanged and the target price falls to $2.92 from $2.94.

The broker notes 99.5% of fuel income is now contractually secured until May 2026. Also, around 95% of all leases have 3% or greater per annum fixed increases in rent and circa 91% are triple net in nature.

As acquisitions are less likely, management has flagged potential capital management options are on the table, highlights Morgans.

Target price is $2.92 Current Price is $2.53 Difference: $0.39
If WPR meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates WSA as Downgrade to Neutral from Outperform (3) -

Credit Suisse has reduced its nickel price forecasts by -6-19% over 2022-23 leading the broker to reduce earnings forecast for Western Areas.

Credit Suisse lowers its rating to Neutral from Outperform with the target dropping to $2.40 from $2.45.

Target price is $2.40 Current Price is $2.44 Difference: minus $0.04 (current price is over target).
If WSA meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.57, suggesting upside of 10.0% (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

Credit Suisse rates XRO as Outperform (1) -

Credit Suisse notes Xero's group subscribers grew 20% over last year to 2.74m in FY21 while the average revenue per user at NZ$29.30 was down -1% driven by mix shift. Operating income of NZ$196m was up 41% with significant reinvestment seen in the second half.

The broker considers the result solid and is of the opinion the revenue outlook remains roughly the same. Upbeat about growth opportunities, Credit Suisse is comfortable looking through the lower-than-expected FY21 margin and FY22 margin guidance.

Outperform rating with the target price reduced to $130 from $136.

Target price is $130.00 Current Price is $117.39 Difference: $12.61
If XRO meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $117.67, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Macquarie rates XRO as Neutral (3) -

Xero's FY21 results show revenue in line with Macquarie and consensus expectations although with a lower than expected operating income margin. This is expected to remain lower in the short run, according to Xero.

The broker notes while earnings downgrades will be a short-term negative for the company, in the longer term, this won't really matter if Xero can demonstrate that pre-pandemic revenue-growth rates can be restored. 

Neutral maintained. Target rises to $130 from $120.

Target price is $130.00 Current Price is $117.39 Difference: $12.61
If XRO meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $117.67, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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 XRO as Overweight (1) -

A first look by Morgan Stanley suggests earnings (EBITDA) for the second half and FY21 are well below consensus expectations. It's felt this will necessitate a re-calibration lower for FY22 and beyond.

The broker expects FY22 margins will be more like the previous 15-20%, rather than the first half's 30%. On the flipside, a return back to higher spend stimulated higher-than-expected subscriber growth, lower churn and better average revenue per user (ARPU) for FY21.

Morgan Stanley retains the Overweight rating and believes the company has adopted the right strategy for creating long-term shareholder value. Target price of $140. Industry view: Attractive.

Target price is $140.00 Current Price is $117.39 Difference: $22.61
If XRO meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $117.67, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Ord Minnett rates XRO as Lighten (4) -

FY21 revenue was ahead of Ord Minnett’s forecast. It's thought outlook commentary will lead to another step-up in operating expense investment in FY22 to maintain growth. The broker expects this to lead to a delay in material earnings growth.

Operating earnings (EBITDA) rose 37% on FY20 though came in -21% below the analyst's estimate. This was considered due to a sharp increase in sales and marketing, product design and development and general administration expenses.

The broker maintains a Lighten recommendation though raises the target price to $100.00 from $88.00.

Target price is $100.00 Current Price is $117.39 Difference: minus $17.39 (current price is over target).
If XRO meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $117.67, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

UBS rates XRO as Sell (5) -

Xero's FY21 result featured a beat on subscriber growth and 18% increase in revenues, but higher sales & marketing costs leading to an earnings miss of -27% agaist the broker's forecast. The market responded accordingly.

But the broker remains positive on the company's outlook, given structural tailwinds and strong managment execution, as underscored by rising revenues. That said, the stock is still trading well above a level the broker sees as a fair risk/reward trade-off.

Target rises to $81.00 from $79.50, Sell retained.

Target price is $81.00 Current Price is $117.39 Difference: minus $36.39 (current price is over target).
If XRO 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 $117.67, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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