Australian Broker Call

Macquarie rates AIZ as Outperform (1) -

United Airlines in its revenue partnership with Air New Zealand will undertake two additional services to New Zealand.

Macquarie expects this will be executed such that negative impacts on both airlines will be minimised, while prices will have to normalise from their current elevated levels.

Operating statistics for January and February was strong in New Zealand. The broker believes current multiples reflect the risks in the outlook for FY24 and FY25. No change to the Outperform rating and NZ$0.90 target.

Current Price is $0.71. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

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

Morgan Stanlley expects the market will react positively to the March quarter update from Atlas Arteria. APRR traffic was up 2% and up 5% compared with 2019.

Chicago Skyway traffic was up 5% while down -3% compared with 2019. Morgan Stanley forecasts traffic on the Skyway will fall -10% over the remainder of this year because of ITR construction works. Meanwhile, Dulles Greenway traffic was up 12% and down -29% compared with 2019.

Equal-weight rating and $6.88 target unchanged. Industry View: Cautious.

Target price is $6.88 Current Price is $6.48 Difference: $0.4
If ALX meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.48, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates ALX as Neutral (3) -

Strike action impacted the French railway network and partly helped lift Atlas Arteria's Q1 APPR toll revenue by 6.2% compared to the previous corresponding period, explains UBS.

Over in the US, Chicago Skyway and Dulles Greenway toll revenues were both weaker than the analyst expected. The former was impacted by a number of factors including aversion by customers to the recent 12% toll increase, effective January 1, and roadworks issues. 

The Neutral rating and $6.55 target are unchanged.

Target price is $6.55 Current Price is $6.48 Difference: $0.07
If ALX meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.48, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates AMP as No Rating (-1) -

Citi considers first quarter flows for AMP were mixed although there is an overall improvement in Australian wealth management. New Zealand flows remain encouraging although assets under management were adversely affected by the sale of a legacy product.

Slow growth in the bank is a sign of funding issues, in the broker's view, as the bank is potentially reliant on high interest deposit funding given minimal transaction accounts. This should be alleviated by the residential mortgage-backed security issue in March and open the path for renewed growth.

The broker's rating and target remain suspended.

Current Price is $1.14. Target price not assessed.

Current consensus price target is $1.22, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Ord Minnett rates AMP as Accumulate (2) -

Ord Minnett envisages earnings support from improving flows to AMP's new platform North along with the advice business breaking even. Meanwhile, the smaller AMP Bank is likely to gain further market share through competitive loan rates.

The broker expects bad debts to rise after below-average losses during 2021-22 but remain manageable, and notes selling AMP Capital's unlisted investments remains a core priority.

Ord Minnett observes good progress has been made in turning around the business but it is unlikely that AMP can improve its competitive position relative to peers, let alone revert to its heyday. Accumulate maintained. Target is steady at $1.35.

Target price is $1.35 Current Price is $1.14 Difference: $0.215
If AMP meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.22, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

UBS rates AMP as Sell (5) -

While Australian Wealth Management (AWM) outflows narrowed in the first quarter, the overall performances of AWM and the Bank were misses against UBS' forecasts for AMP.

For the Bank, the broker suggests management has clearly prioritised margin over volume in a very competitive marketplace.

The Sell rating and $1.00 target are unchanged.

Target price is $1.00 Current Price is $1.14 Difference: minus $0.135 (current price is over target).
If AMP meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.22, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

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

As the share price of AUB Group has moved through the trigger level Ord Minnett downgrades to Hold from Accumulate. Target is steady at $29.

While the acquisition of London-based wholesale broker Tysers is expected to be materially accretive the broker suspects this adds uncertainty to the outlook.

Target price is $29.00 Current Price is $27.24 Difference: $1.76
If AUB meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $29.35, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Shaw and Partners rates BML as Buy (1) -

Boab Metals March quarter report appears to have met Shaw and Partners' expectations, incorporating a 78% increase in Measured Resources, and a 12% rise in ore resources and 53% rise in proved ore reserves.

A Definitive Feasibility Study (DFS) on the company's Sorby Hills Lead-Silver project and the execution of a Engineering Services Agreement with GRES to start of Front-End Engineering & Design (FEED) were the big ticket items. Shaw and Partners expect a Final Investment Decision after offtakes and debt announcements, expected in the June quarter.

The DFS detailed a $245m project, capable of processing 2.25Mtpa of ore and producing 103ktpa of a lead/silver concentrate over 10 years. 

Shaw and Partners estimates a pre-tax net present value of $370m and internal rate of return of 35% and average annualised earnings (EBITDA) of $119m.

Buy High Risk rating and 75c target price retained, the broker considering the company to be sharply undervalued. The broker expects a re-rate once offtake and financing is signed. 

Target price is $0.75 Current Price is $0.25 Difference: $0.505
If BML meets the Shaw and Partners target it will return approximately 206% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates BOQ as Neutral (3) -

Bank of Queensland had already pre-warned last week and today's official release of H1 financials proved in line with those key metrics, with Citi analysts, upon initial reflection, highlighting lower BDDs were offset by materially higher operating costs.

The analysts are baffled as to how management at the bank can reaffirm the longer-term RoE target of at least 9.26% when today's release shows 8.4%.

Headaches, according to Citi, include sluggish loan growth, growing headwinds from Net Interest Margins (NIMs) that peaked in October last year, plus a cost program that looks to add only further to costs.

Not making management's case any easier, mortgages in arrears are ticking up, the broker points out. The broker's so-called Downside Catalyst Watch is now set to expire on May 13.

Neutral. Target $6.50. Noted: on Citi's projections, the dividend will remain at 52c in FY24 (unchanged from this year), before being cut to 48c the next after.

Target price is $6.50 Current Price is $6.29 Difference: $0.21
If BOQ meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.88, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Citi rates BXB as Buy (1) -

Today's quarterly trading update released by Brambles is as good as we've seen in a while, Citi analysts comment post an initial assessment. It's considered a strong market update.

Management has upgraded underlying profit growth to 17-19% (constant currency) compared with 15-18% previously. Free cash flow post dividends is now expected to be positive in FY23.

Buy. Target $14.55.

Target price is $14.55 Current Price is $13.91 Difference: $0.64
If BXB meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.98, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Morgan Stanley rates CTD as Overweight (1) -

Morgan Stanley considers the UK Home Office contract will materially de-risk the outlook  in FY24 as the size of the deal dramatically lessens Corporate Travel Management's reliance on a cyclical rebound.

The broker lifts FY24 EBITDA estimates by $12m and earnings per share by 5%. Morgan Stanley highlights the main downside is that the contract is of fixed duration and may not be part of the sustainable earnings base.

Overweight rating maintained. Target is raised to $28.60 from $28.00. Industry view: In-line.

Target price is $28.60 Current Price is $21.25 Difference: $7.35
If CTD meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $23.02, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates CXO as Hold (3) -

Morgans believes the life of the Finniss lithium project near Darwin will be extended, following news Core Lithium has increased its measured and indicated mineral resource estimate.

The estimate has been raised by by 46% to 19.4Mt at an average grade of 1.37%. The broker raises its target to $1.00 from 90c.

The analyst reminds investors the Finniss is  higher-cost operation given the dispersed nature of the resource, and is also a relatively small asset compared to peers. Hold.

Target price is $1.00 Current Price is $1.01 Difference: minus $0.015 (current price is over target).
If CXO meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.98, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

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

As the Dalrymple Bay Coal Terminal is around 40 years old, Morgans points out a meaningful amount of non-expansionary capex (NECAP) is required.

Because such an investment will deliver incremental earnings once commissioned, the broker is pleased by the announcement Dalrymple Bay Infrastructure will proceed with around $280m of NECAP. 

The analyst feels this initiative will help offset the expensive bond issue that Dalrymple Bay undertook last month to part-fund this commitment.

The broker's rating is downgraded to Hold from Add on recent share price strength, and the target increases to $2.71 from $2.63.

Target price is $2.71 Current Price is $2.72 Difference: minus $0.01 (current price is over target).
If DBI meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates DHG as Buy (1) -

Despite listing volumes that are trending lower, UBS sees potential for a high-single-digit to low-teens price increase on a national basis for REA Group ((REA)), and upgrades its yield growth assumptions.

The broker expects Domain Holdings Australia will follow and raises its target to $3.90 from $3.70. It's felt the company can drive double digit yield growth over the medium term, particularly given early signs of stabilisation in property markets.

The Buy rating is unchanged. Domain will provide a 3Q update in early May.

Target price is $3.90 Current Price is $3.26 Difference: $0.64
If DHG meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Morgans rates GDG as Add (1) -

Favourable market movements in the 3Q largely offset the impact of softer-than-expected Investment Bond (IB) sales inflows for Generation Development due to the more difficult macro/market environment, explains Morgans.

The broker now forecasts lower future IB sales and higher Annuity business loss estimates in the near term, and lowers its target to $1.42 from $1.56.

The investment thesis of a compound earnings growth story over time remains, as does the broker's Add rating. It's felt the Lonsec business (particularly Lonsec Investment Solutions) and the new Lifetime annuity product have the potential to accelerate growth.

Target price is $1.42 Current Price is $1.20 Difference: $0.22
If GDG meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Shaw and Partners rates GDG as Buy (1) -

Generation Development's March-quarter update broadly met Shaw and Partners' forecasts, but the broker observes the trading environment remains difficult.

Net flows missed the broker's forecast by roughly -10% given continuing withdrawals and maturities but the broker considers the result to be in line with the experiences of the bulk of rivals. Sales inflows were in line, investment growth was solid and redemptions fell -11%. Total funds under administration met the broker's forecasts.

Shaw and Partners suspects proposed super changes could help the company double funds under management, given it should bode well for Investment Bonds, for which the company leads the market, and the broker expects a material re-rate once the industry stabilises.

Buy High Risk rating and $1.90 target price retained.

Target price is $1.90 Current Price is $1.20 Difference: $0.7
If GDG meets the Shaw and Partners target it will return approximately 58% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates GOZ as Accumulate (2) -

Growthpoint Properties Australia posted a quarterly update that was in line with expectations. The main concern for Ord Minnett is gearing, which rose to 35.7% as of March 31, up from 34.5% at the end of 2022. This is higher than most office A-REITs.

The issue is that interest costs could keep rising as fixed-rate debt expires. As a result, the company's interest rate coverage ratio could approach its covenant threshold if more interest rate rises occur. The broker is also cautious about the ongoing security buyback.

While the stock is undervalued, the broker believes larger A-REITs with higher-quality portfolios have stronger balance sheets. Accumulate rating and $4.05 target retained.

Target price is $4.05 Current Price is $3.17 Difference: $0.88
If GOZ meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates JRV as Neutral (3) -

Tonnage was broadly in line previous resource in the update released for ICO. Around 10,000m of new drilling was incorporated and importantly the resource is open at depth and along strike.

Movements in commodity prices present the most significant upside/downside for Jervois Global, in Macquarie's view. Neutral rating retained. Target is raised to 9c from 7c.

Target price is $0.09 Current Price is $0.10 Difference: minus $0.01 (current price is over target).
If JRV meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Shaw and Partners rates KYP as Buy (1) -

Kinatico's March quarter result outpaced Shaw and Partners' forecasts by a decent clip, thanks largely to a beat on SaaS revenues (up 143% year on year and 50% on the previous quarter). Ex-SaaS revenue was also strong, outpacing by 12%.

Gross profit margins rose and the company closed the quarter with positive cashflow of $240,000 (excluding the company's buyback), no debt, and closing cash of $10.4m.

Sales staff rose 25% while admin staff fell, resulting in a net headcount reduction. The broker believes the company is sharply undervalued, boasting a market capitalisation of $33m and annualised revenue of $28m, and enterprise value of $23m, and is profitable.

Shaw and Partners observes the company is trading well below peers, many of which are subject to bidding wars.

Buy rating retained. Target price rises to 14c from 13c.

Target price is $0.14 Current Price is $0.08 Difference: $0.063
If KYP meets the Shaw and Partners target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Shaw and Partners rates LAU as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage of Australia's largest specialist transport, logistics and rural supply company Lindsay Australia with a Buy, High Risk rating, and a target price of $1.60.

The broker observes the company is trading at a sharp discount to rivals, offers a 30% return on investment, double-digit organic earnings growth, and that the company's FY23 guidance suggests a 25% to 26% jump in original underlying earnings (EBITDA).

Strong post-covid momentum, combined with rail expansion, all point to strong tailwinds, says the broker.

Shaw and Partners considers the company to be ideally positioned for long-term profitable growth.

Target price is $1.60 Current Price is $1.32 Difference: $0.285
If LAU meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Citi observes the shares have shrugged off the cyber incident at Latitude Group but the consequences are unlikely to be few. The broker believes this event signals a material IT upgrade is required on top of any civil penalty that may be imposed by regulators.

Coupled with the loss of momentum this increases the focus on the balance sheet and the dividend is likely to be zeroed in the short term.

Moreover, Citi expects costs to amount to $70m and drive a statutory loss in FY23. As the issue will take time to settle down and given the considerable uncertainty the broker downgrades to Sell from Neutral. Target is reduced to $1.10 from $1.30.

Target price is $1.10 Current Price is $1.29 Difference: minus $0.19 (current price is over target).
If LFS meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.15, suggesting downside of -11.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.7

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

Macquarie rates LM8 as Outperform (1) -

Lunnon Metals has positive drilling results from East Trough. Intersections included a high-grade 1.47m at 3.91% nickel. Macquarie expects multiple updates from the company in the next few months, including the Baker maiden reserve and prefeasibility study.

The broker finds Lunnon Metals "interesting" as its tenements border those of Mincor Resources ((MCR)), which is currently under takeover bid by Wyloo Metals ((WYL)). Outperform rating and $1.30 target maintained.

Target price is $1.30 Current Price is $1.12 Difference: $0.18
If LM8 meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Shaw and Partners rates PPS as Buy (1) -

Praemium's March quarter funds under administration result nosed out Shaw and Partners' forecasts, total funds under management up 3.6% for the quarter.

Net flows were positive with inflows particularly strong, albeit still -50% below the previous March quarter, observes the broker. The company also grew market share by 2.2%, albeit less than some major rivals, although rivals suffered greater falls in inflows.

The broker observes costs are falling relative to sales, a turnaround on recent trends, and that the company is trading at a "resounding" discount to peers and half Netwealth's ((NWL)) original bid price of $1.50, making it an attractive target to the two majors. The broker posits its acquisition would make either of the two "unassailable".

Buy, High Risk rating and $1.30 target price retained.

Target price is $1.30 Current Price is $0.71 Difference: $0.59
If PPS meets the Shaw and Partners target it will return approximately 83% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates PRU as Neutral/High Risk (3) -

Citi notes another strong quarter from Perseus Mining with a cash margin of US$850/oz on higher realised pricing and steady costs. The company is monitoring the conflict in Sudan ahead of a possible final investment decision on the Meyas Sand project.

This project is expected to be funded from existing cash flow and is currently fully permitted with agreed fiscal terms.The company is also looking at M&A with a focus on pre-development stage projects in Africa.

Citi maintains a Neutral/High Risk rating and raises the target to $2.40 from $2.20.

Target price is $2.40 Current Price is $2.35 Difference: $0.05
If PRU meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates PRU as Outperform (1) -

Perseus Mining's March quarter production was higher than expected. Guidance for the second half has been retained for 230-260,000 ounces at AISC of US$1000-1200/oz.

Incorporating the stronger result for the quarter means Macquarie lifts its estimates for earnings per share by 8% in FY23 and 4% for FY24 and FY25. Target is raised to $2.80 from $2.70. Outperform maintained.

Target price is $2.80 Current Price is $2.35 Difference: $0.45
If PRU meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates PWH as Add (1) -

Morgans remains comfortable with its FY23 forecasts for PWR Holdings following a review of the weaker-than-expected 1H results back in February and prior misses in the first halves of FY18 and FY19.

The broker finds that in the latter two occasions, the full year result came in either in line or better-than-anticipated. Comparisons were also made between current assumptions for margins and growth and those of the recent past.

The Add rating and $12.05 target are left unchanged.

Target price is $12.05 Current Price is $10.16 Difference: $1.89
If PWH meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $11.29, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates REA as Underperform (5) -

Macquarie expects REA Group to report a contraction in listings of around -12% in the third quarter while the outlook for the fourth quarter could be down -20-30%.

Outlook commentary is expected to be subdued, given the June quarter is seasonally slow for residential listings.

Underperform retained as the valuation appears full. Target is raised to $93 from $87, reflecting a lower cost base as the company requests staff take full FY23 annual leave allocations.

Target price is $93.00 Current Price is $140.89 Difference: minus $47.89 (current price is over target).
If REA meets the Macquarie target it will return approximately minus 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $122.96, suggesting downside of -12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates REA as Neutral (3) -

Despite listing volumes that are trending lower, UBS sees potential for a high-single-digit to low-teens price increase on a national basis for REA Group, and upgrades its yield growth assumptions to average 13% per year over FY24-26.

As a result, the broker lifts its price target to $145.70 from $123.60. It's felt the company can drive double digit yield growth over the
medium term, particularly given early signs of stabilisation in property markets.

The Neutral rating is unchanged. REA Group will provide a 3Q update on May 12.

Target price is $147.50 Current Price is $140.89 Difference: $6.61
If REA meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $122.96, suggesting downside of -12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Bell Potter rates RTR as Buy (1) -

Rumble Resources' Initial Mineral Resource for Earaheedy Zinc and Lead project appears to have pleased Bell Potter, who considers it a positive step for the project.

The broker says that while resource estimates will be important catalysts for the company, further discoveries or strategic investor interest could add to the picture.

Bell Potter calculates a net present value for the project of $1.22bn after initial capital expenditure of $600m.

Speculative Buy rating and 45c target price retained.

Target price is $0.45 Current Price is $0.22 Difference: $0.23
If RTR meets the Bell Potter target it will return approximately 105% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates SGR as Buy (1) -

UBS lowers its target for Star Entertainment to $1.59 from $1.75 following a guidance downgrade for FY23 earnings (EBIDTA) to $280-310m from the $330-360m.

Management cited "a significant and rapid deterioration in operating conditions, particularly at The Star Sydney and The Star Gold Coast" due to "emerging weakness in consumer discretionary behaviour" and recent regulatory restrictions and exclusions.

The analyst lists some alternate explanations for the downgrade including demand not meeting the company's previous expectations
(that potentially assumed more recovery from omicron, a slower return of Chinese tourism).

The broker's FY23-25 earnings forecasts are lowered by -13%, -8% and -3%, respectively. The Buy rating is unchanged.

Target price is $1.59 Current Price is $1.26 Difference: $0.33
If SGR meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.71, suggesting upside of 34.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates STO as Neutral (3) -

Santos released a quarterly market update this morning and Citi, upon initial assessment, believes the performance was, overall, in line with its forecasts but when stripping out third party sales, the broker believes market consensus was positioned for better.

The drilling schedule for Barossa seems to have been delayed as well, another negative.

All in all, Citi believes Santos shares are probably fairly valued as things stand, but the onus is on energy producers to prove to the market why full value should be paid for growth projects, assures the broker.

Citi seems happy to stick with its Neutral rating. Target price $7.75.

Separately, Citi had prior updated its modelling, marking to market on gas bulletin data and shipping traffic data for GLNG and DLNG.

As a result, the target was raised to $7.75 from $7.40.

Target price is $7.75 Current Price is $7.12 Difference: $0.63
If STO meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 31.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Citi rates ZIP as Sell/High Risk (5) -

Citi finds the near-term trends for Zip Co encouraging and cash EBTDA losses are expected to decrease in the second half of FY23.

Nevertheless, risks to the balance sheet exist with the potential for proceeds from the divestments of the Indian business to be lower than generally expected.

US app downloads in the March quarter were the strongest relative to competitors albeit down -24% quarter on quarter from the seasonal peak in December.

Citi also suspects transaction growth will remain affected by lower consumer spending/inflationary pressures and measures to manage customer losses.

Sell/High Risk rating retained. Target price is steady at 47c.

Target price is $0.47 Current Price is $0.52 Difference: minus $0.05 (current price is over target).
If ZIP meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.82, suggesting upside of 54.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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