Australian Broker Call

Morgan Stanley rates 360 as Overweight (1) -

Morgan Stanley raises its target price for Life360 to $16.50 from $14.20 following the acquisition of Tile for -US$205m. It's thought this will increase the monetisation potential of the company's subscription offers. Overweight rating. Industry view: In-line.

Moreover, the analyst feels the transaction will enable upsell to premium tiers and ultimately greater pricing power. The range of potential customers may now extend beyond families with children/pets, thinks the broker.

Target price is $16.50 Current Price is $13.74 Difference: $2.76
If 360 meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

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: 1.0

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

Citi rates A2M as Buy (1) -

Citi upgrades its model for The a2 Milk Company to reflect the minority stake China Animal Husbandry Group holds in Mataura Valley Milk.

EPS forecasts rise 4% to 7% over FY22-FY24.

Target price rises to $7.30 from $7.10. Buy rating retained.

Target price is $7.30 Current Price is $6.31 Difference: $0.99
If A2M meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.96, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

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: 0.2

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

Ord Minnett rates ALQ as Hold (3) -

Following the release of ALS Ltd's first half results, Ord Minnett has adjusted its earnings forecast accordingly, taking into consideration the company's full-year earnings guidance range of $424-252m. 

Additionally, the broker's target price is moved forward to September 30, 2022. The Hold rating is retained and the target price increases to $12.80 from $12.30.

Target price is $12.80 Current Price is $12.41 Difference: $0.39
If ALQ meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.68, suggesting upside of 15.2% (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

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

APA Group's share price has rebounded strongly, Morgans notes, after it was gazumped in its pricey bid for AusNet Services. The broker assumes the gas pipeline utility was looking to diversify away from its fossil fuel dependence.

Morgans believes the organic headwinds the company is facing as higher gas prices impact on demand are more than offset by tailwinds from stronger inflation, given CPI-linked contracts.

Hence despite the rebound, the broker upgrades to Add from Hold. Target rises to $9.98 from $8.71.

Target price is $9.98 Current Price is $9.43 Difference: $0.55
If APA meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.03, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates BAP as Downgrade to Hold from Buy (3) -

Bapcor CEO Darryl Abotomey has announced his intention to retire in February 2022, at what Ord Minnett describes as a challenging time for the company. 

Despite being well-placed for profit growth the news does spark concern of near-term risk, particularly as the company is part way through a supply chain overhaul that includes the consolidation of 13 distribution centres, a project already carrying execution risk. 

The rating is downgraded to Hold from Buy and the target price decreases to $7.20 from $9.00.

Target price is $7.20 Current Price is $7.46 Difference: minus $0.26 (current price is over target).
If BAP meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.66, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Macquarie rates BHP as Outperform (1) -

Macquarie believes the announced binding share sale agreement [with Woodside Petroleum ((WPL)) for the proposed Petroleum business merger] could be a catalyst for a re-rating over the near term.

Exiting the business lowers medium term earnings estimates by around -8% per annum, which is offset by reduced capex, explains the analyst.

Taking into account a strong balance sheet, the broker estimates the payout ratio will be lifted above 80%, sustaining the pre-existing forecast cash returns.

Macquarie maintains its Outperform rating and $52 target price.

Target price is $52.00 Current Price is $38.05 Difference: $13.95
If BHP meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $43.80, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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 BHP as No Rating (-1) -

BHP Group has signed a binding share sale agreement for the merger of the company's oil and gas portfolio with Woodside Petroleum ((WPL)). 

The analyst points out franking credits will be available, which is expected to offset tax payment requirements. This is taken to mean only shareholders with an effective tax rate above the 30% tax rate franking credits available will be worse off.

Morgan Stanley does not have a rating or target at present. Industry view is In-Line.

Current Price is $38.05. Target price not assessed.

Current consensus price target is $43.80, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Morgans rates BHP as Add (1) -

The proposed merger of BHP Group's Petroleum division and Woodside Petroleum ((WPL)) is now binding, but still requires Woodside shareholder approval. BHP will have to pay tax on the investment at end-FY22, Morgans notes, and dividends will drop on the lost revenue.

The broker now values BHP Petroleum in line with the merger ratio, increasing its value to US$21.9bn from US$15.5bn.

Target falls to $45.70 from $46.05, Add retained.

Target price is $45.70 Current Price is $38.05 Difference: $7.65
If BHP meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $43.80, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Macquarie rates BKW as Neutral (3) -

Following a 1Q trading update by Brickworks, Macquarie decreases EPS forecasts on lower margin expectations for the Building Products (BP) Nth America division. Margins are being compressed by supply chain cost pressures and labour shortages, explains the analyst.

In the Australian BP division there was strong brick demand, driven by a robust detached market, while Concrete Products volumes were down on weakness in multi-residential markets, notes the broker.

The target price falls to $26.15 from $26.65 and the broker retains its Neutral rating.

Target price is $26.15 Current Price is $23.74 Difference: $2.41
If BKW meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $27.34, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates COH as Hold (3) -

Given major recalls from two competitors in two years, Ord Minnet notes Cochlear's claim to the most reliable cochlear implants should be a deciding factor for clinicians and recipients but the CI500 recall over a decade ago continues to undermine the assertion. 

Based on multi-year data, the broker is confident that Cochlear's products offer superior reliability to peers across all usage time periods. 

The Hold rating and target price of $227.00 are retained. 

Target price is $227.00 Current Price is $229.69 Difference: minus $2.69 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $224.75, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgans rates LNK as Add (1) -

Link Administration reaffrimed FY22 guidance at its AGM and revealed another bid has been received for its Banking & Credit Management business. Link will also pursue an in-specie distribution of Pexa, which Morgans sees as further unlocking value.

The previous Pexa IPO process has not seen the asset correctly valued, the broker suggests. Overall, a positive update from Link, but no changes to forecasts.

Add and $5.38 target retained.

Target price is $5.38 Current Price is $4.93 Difference: $0.45
If LNK meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.54, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates LNK as Accumulate (2) -

Ord Minnett reports Link Administration Holdings is demonstrating strong trading year-to-date and performing ahead of guidance. The broker sees an increased likelihood of upside from a takeover given the company has indicated it has received further bids.

LC Financial Holdings made a EUR65m bid for the banking and credit management business, days after Pepper European Servicing offered EUR55m for the same segment. Additionally there is clear indication of divestment of the Pexa stake if bids are not compelling.

The Accumulate rating is retained and the target price increases to $5.30 from $5.00. 

Target price is $5.30 Current Price is $4.93 Difference: $0.37
If LNK meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.54, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates LOV as Outperform (1) -

The AGM trading update from Lovisa Holdings was in-line with Macquarie's forecasts. The analyst believes balance sheet metrics support the rollout  required to achieve the top-end of the new CEO’s targets.

The broker expects an annual addition of 75 new stores over FY22-FY24.

Taking into account offshore lockdown risks (Austria) and tough comparatives, Macquarie retains its $25 target. The Outperform rating is unchanged.

Target price is $25.00 Current Price is $21.02 Difference: $3.98
If LOV meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $22.64, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates MND as Outperform (1) -

Monadelphous Group has reiterated its expectation for lower FY22 revenue, while Macquarie forecasts a 7% rebound in FY23 revenue as construction lifts again. The broker maintais its Outperform rating and adjusts its target price to $11 from $11.04. 

Management expects 1H22 revenue to be similar to the previous corresponding period, and the broker forecasts a -5% decline in group revenue for FY22. 

Target price is $11.00 Current Price is $9.32 Difference: $1.68
If MND meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $10.96, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates MND as Neutral (3) -

During its AGM, Monadelphous Group announced 1H22 sales are expected to be similar to the previous corresponding period. This implies to UBS sales of circa $948m versus the broker's forecast of $940m. The Neutral rating and $10.60 target price are left unchanged.

Management anticipates stronger FY23 construction activity due to an improvement in LNG development and the normalisation of deferred maintenance volumes. In the meantime, border closures in WA and the associated skills shortage are impacting productivity.

Target price is $10.60 Current Price is $9.32 Difference: $1.28
If MND meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $10.96, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Citi rates MYX as Buy (1) -

Mayne Pharma has broken with tradition and failed to provide an AGM operational trading update.

Citi is wary, given management says performance in the first four months has not aligned with its full-year expectations and thus it was unable to give guidance. 

The broker takes this as a negative but is refraining from cuts given it already sits -4% below consensus.

Buy (High Risk) rating and 35c target price retained.

Target price is $0.35 Current Price is $0.30 Difference: $0.05
If MYX meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $0.31, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

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 NIC as Accumulate (2) -

Ord Minnett only initiated coverage less than one week ago, but the broker has already had another look and decided to lift its price target by 32% to $1.45 (up from $1.10). While retaining its Accumulate rating, Ord Minnett reiterates its preference for Nickel Mines over IGO ((IGO)).

The big increase in price target follows another review of Nickel Mines' latest growth project, Oracle. The company has signed a memorandum of agreement to acquire 70% of four new lines at Morowali.

The company expects this to add a further 43,000 tonnes per annum to nickel production by 2024, and confirms Ord Minnett's thesis that Nickel Mines is becoming the largest nickel pure play. The company is now the broker's top nickel stock pick. 

All forecasts have received a big bump upwards.

Target price is $1.45 Current Price is $1.32 Difference: $0.13
If NIC meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.46, suggesting upside of 10.8% (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: 0.9

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

Macquarie rates PLS as Outperform (1) -

Pilbara Minerals will increase its senior debt facility by US$30m to fund the staged restart of the Ngungaju Plant. Macquarie retains its Outperform rating and $2.80 target price and notes the restart is a critical step for increased spodumene sales in the 2H of FY22.

Management expects the plant to commence spodumene production in the 3Q of FY22 and achieve full production by the 1Q of FY23.

Target price is $2.80 Current Price is $2.52 Difference: $0.28
If PLS meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates PNI as No Rating (-1) -

Pinnacle Investment Management Group has announced a $105m institutional capital-raise (plus SPP) to fund a -$75m investment for 25% of Five V Capital. Macquarie estimates the transaction will be broadly EPS neutral (pre performance fees).

The analyst notes opportunities are abound for further transactions, after management pointed to 32 candidates that have been reviewed, with two remaining prospective. 

Due to research restrictions, Macquarie cannot update earnings for the transaction or provide a target price and rating.

Current Price is $17.90. Target price not assessed.

Current consensus price target is $17.10, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates PNI as Hold (3) -

Pinnacle Investment Management has announced the acquisition of a 25% stake in Five V Capital via preference shares, a capital rise to fund it and other acquisition possibilities, and a new affiliate start-up in Canada. All of which is expected to be earnings neutral.

Morgans expects key affiliates to drive solid organic growth ahead, improving performance fee potential, and near-term offshore expansion via acquisition to add meaningful scale potential. While acquisitions provide upside risk, valuation is currently full in the brokers view.

Neutral retained, target rises to $17.20 from $14.48.

Target price is $17.20 Current Price is $17.90 Difference: minus $0.7 (current price is over target).
If PNI 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 $17.10, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates PSQ as Overweight (1) -

Morgan Stanley's positive view for the long-term prospects of Pacific Smiles is unchanged following FY22 guidance that exceeded expectations. Management increased the FY22 centre rollout guidance to 15-20 (from 10-15) versus the 12 forecast by the broker.

While lockdowns impacted near term comparisons, the analyst expects metrics to continue to improve (in the absence of further lockdowns). The Overweight rating and $3.20 price target are maintained. Industry view: In-Line.

Target price is $3.20 Current Price is $2.98 Difference: $0.22
If PSQ meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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) -

According to a press report, the Mongolian Prime Minister believes Rio Tinto should be "held liable for the delays in the underground development at Oyu Tolgoi and that it should cover the necessary additional expenditures, and waive the debt on the government's 34% stake".

While Rio Tinto hasn't passed comment, Morgan Stanley calculates an incremental debt burden of US$0.7bn upon a waiver. Regarding the capex overrun, the analyst estimates around -US$1.5bn on a 100% basis. It's thought the outcome remains uncertain.

Morgan Stanley retains an Equal-weight rating, $101 target and In-Line industry view.

Target price is $101.00 Current Price is $95.13 Difference: $5.87
If RIO meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $108.43, suggesting upside of 14.2% (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: 0.4

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

Credit Suisse rates TNE as Neutral (3) -

Credit Suisse increases its target price for Technology One to $12 from $9.50, following FY21 results that came in at the high-end of guidance. Despite a lack of near-term catalysts, the analyst now expects sustainable double-digit profit growth.

By FY24, the broker forecasts a 35% profit (PBT) margin. End of on-premise support is planned for October 2024, which should accelerate the completion of the shift to SaaS. 

In the longer term, the broker weighs positive drivers (product and geographic penetration) versus increased competition. Neutral rating maintained.

Target price is $12.00 Current Price is $12.55 Difference: minus $0.55 (current price is over target).
If TNE meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.16, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

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

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

Following FY21 results for TechnologyOne, Macquarie raises its FY22-24 EPS forecasts by 10%, 15% and15%, respectively, due primarily to lower opex. The broker lifts its target to $11 from $9.20 and notes solid momentum in the SaaS transition.

However, Macquarie reduces its rating to Underperform from Neutral after comparing multiples for domestic and overseas peers. Management's lower revenue growth forecast was also taken into account.

Target price is $11.00 Current Price is $12.55 Difference: minus $1.55 (current price is over target).
If TNE meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.16, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates TNE as Add (1) -

TechnologyOne's profit result was in line with Morgans' forecast and towards the top end of the guiidance range. Both revenues and expenses were lower than forecast but tight cost controls supported earnings.

The transition of customers to SaaS continues with SaaS annual recurring revenue up an "impressive" 43% year on year. The legacy on-premise business will be disconinued in 2024 and management remains comfortable with its $500m SaaS ARR target for 2026.

Add retained, target rises to $13.73 from $10.00.

Target price is $13.73 Current Price is $12.55 Difference: $1.18
If TNE meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.16, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

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 TNE as Downgrade to Sell from Neutral (5) -

UBS assesses a solid FY21 result for TechologyOne though downgrades its rating to Sell from Neutral after a 30% share rally in the last three months. The profit result was a 1% beat versus the broker and towards the top end of guidance, primarily due to cost efficiencies.

Management reiterated the FY26 $500m annual reccuring revenue (ARR) target, after progress on SaaS transitions during 2H21, points out the analyst. The broker lifts its target price to $11.90 from $11.70.

Target price is $11.90 Current Price is $12.55 Difference: minus $0.65 (current price is over target).
If TNE meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.16, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates VHT as Add (1) -

Volpara Health Technologies posted half-yearly earnings in line with expectation. Morgans highlights the importance and significance of the data that are being collected and moved into the cloud, being some 50m images.

This aids further development work in the early detection/prediction of breast cancer as well as monitoring changes over time, the broker notes, and the value of this data is ever-increasing.

Volpara remains on track to meet its FY22 revenue guidance. Add and $1.87 target retained.

Target price is $1.87 Current Price is $1.10 Difference: $0.77
If VHT meets the Morgans target it will return approximately 70% (excluding dividends, fees and charges).

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: 1.0

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

UBS rates VSL as Initiation of coverage with Buy (1) -

UBS initiates coverage on Vulcan Steel with a Buy rating and $9 target. The analyst highlights the company consistently achieves financial metrics well above the industry average and focuses upon maintaining or growing gross profit (GP)/tonne through steel price cycles.

Growth options include new customer wins and adding geographical regions or product categories via acquisitions, explains the broker. GP/tonne from FY21-23 is expected to be broadly flat despite falling carbon steel prices.

In a highly fragmented Australian market, UBS feels the company has a range of options to grow market share.

Target price is $9.00 Current Price is $7.94 Difference: $1.06
If VSL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates WEB as Buy (1) -

At a glance, Webjet's first-half result proved a mixed bag, the net loss surprising to the upside, but disappointing at the EBITDA level. No guidance was provided.

Ord Minnett says the star of the day was cash, the company finishing with a cash ballance of $446.1m and net cash of $142.8m, and a healthy balance sheet, thanks to an acceleration in B2B booking volumes.

Buy rating and $7.12 target price.

Target price is $7.12 Current Price is $5.59 Difference: $1.53
If WEB meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $6.12, suggesting upside of 8.0% (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

Macquarie rates WPL as Neutral (3) -

Macquarie estimates Scarborough returns are just acceptable though importantly materially lengthen the asset duration for Woodside Petroleum. These comments follow the company taking a final investment decision on the Scarborough to Pluto Train 2 LNG project.

On the other hand, the analyst feels the acquisition of the Petroleum division from BHP Group ((BHP)) is transformational, and provides time to develop a renewables and hydrogen portfolio. The target price slips to $23.95 from $24.50 and the Neutral rating is unchanged.

Target price is $23.95 Current Price is $22.45 Difference: $1.5
If WPL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $26.56, suggesting upside of 15.7% (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: 0.6

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

Morgan Stanley rates WPL as No Rating (-1) -

Woodside Petroleum announced a final investment decision on Scarborough and Pluto Train 2. A lower break-even for the investment at Scarborough means the project is more globally competitive, observes Morgan Stanley.

The project is also considered one of the least carbon-intensive upcoming global LNG projects.

The broker is restricted on providing a rating and a target price estimate.

Current Price is $22.45. Target price not assessed.

Current consensus price target is $26.56, suggesting upside of 15.7% (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: 0.6

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

Ord Minnett rates WPL as No Rating (-1) -

Woodside Petroleum announced the approval of the Scarborough/Pluto Train 2 development, as per a binding agreement with BHP Petroleum ((BHP)), although the company otherwise remains committed to the selling down of its Scarborough stake. 

Capital expenditure for the project was marginally above Ord Minnett's expectations, with Woodside contributing -US$6.9bn, but the project is expected to deliver a 13.5% internal rate of return. 

Ord Minnett is research restricted on Woodside Petroleum and is unable to provide a recommendation or target price.

Current Price is $22.45. Target price not assessed.

Current consensus price target is $26.56, suggesting upside of 15.7% (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: 0.6

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

UBS rates WPL as Buy (1) -

In what UBS describes as a transformational week, Woodside Petroleum signed merger documentation relating to the Petroleum business of BHP Group ((BHP)). In addition, the company made a final investment decision on the Scarbourough project.

The analyst expects positive near-term trading for the company's shares. This is based upon a number of upcoming catalysts including a December 8 investor briefing that will likely cover capital allocation. The target price rises to $28.30 from $26.90. Buy rated. 

Target price is $28.30 Current Price is $22.45 Difference: $5.85
If WPL meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $26.56, suggesting upside of 15.7% (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: 0.6

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