Australian Broker Call

Macquarie rates 29M as Outperform (1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers OZ Minerals and 29Metals in copper.

Outperform retained for 29Metals, target rises to $3.60 from $3.30.

Target price is $3.60 Current Price is $2.64 Difference: $0.96
If 29M meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates AD8 as Overweight (1) -

To allow incorporation of video compression directly into its AV offer, explains Morgan Stanley, Audinate has acquired Silex Insight's video business for US$6.5m. It's thought the deal will accelerate the build-out of the video strategy by around 18-24 months.

The broker maintains its Overweight rating and $12 target price. Industry view is In-Line.

Target price is $12.00 Current Price is $9.81 Difference: $2.19
If AD8 meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $11.25, suggesting upside of 14.7% (ex-dividends)

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

UBS rates AD8 as Buy (1) -

According to UBS, an opportunity now arises to opportunity to enhance and accelerate the Dante Video offering, following Audinate Group's acquisition of Silex Insights. The Belgium company produces video networking products for manufacturers of AV equipment. 

The broker maintains its Buy rating, believing the company is positioned to take material share of the digital AV networking market in the long term. The target price of $10.75 is unchanged.

Target price is $10.75 Current Price is $9.81 Difference: $0.94
If AD8 meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.25, suggesting upside of 14.7% (ex-dividends)

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

Macquarie rates BHP as Outperform (1) -

Macquarie estimates that on BHP Group's reunification, its market cap weighting in the ASX200 will rise from around 5.7% to around 9.5%. This, and a loss of franking credits for off-market buybacks, will be critical for passive index investment funds.

Macquarie estimates it would take 30 days for index funds to acquire enough stock to meet the up-weight. The broker notes S&P is considering implementing the up-weight in two tranches.

Otherwise, BHP retains short term earnings upgrade momentum at spot prices, the broker suggests, with the stock trading on an FY22 free cash flow yield of 16%. Outperform retained, target rises to $52 from $51.

Target price is $52.00 Current Price is $41.04 Difference: $10.96
If BHP meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $43.80, suggesting upside of 6.2% (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 BKW as Hold (3) -

Brickworks has provided materially stronger-than-expected 1H guidance for the Property segment due to ongoing cap rate compression, explains Morgans. Moreover, material development profits were recognised for the Amazon facility (nearing practical completion).

As Property comprises 68% of group earnings, the analyst lifts the FY22 group earnings (EBIT) forecast by 47.1% to around $500m, and lifts the target price to $26.10 from $25.72. The Hold rating is maintained as the share price is hovering around the broker's target price.

Target price is $26.10 Current Price is $24.49 Difference: $1.61
If BKW meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $27.11, suggesting upside of 10.5% (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 BKW as Accumulate (2) -

Ord Minnett highlights the one-off nature of cap rate compression and higher-than-expected development profits for Brickworks. This follows raised 1H22 Property earnings (EBIT) guidance to $290m-$310m, a significant beat to the analyst's $130m estimate.

The analyst also points out the increase in Property assets has been insufficient to offset the declining value of the company's investment in Washingtom H Soul Pattinson & Company ((SOL)).

The target price falls to $26.20 from $27.50 and the Accumulate rating is unchanged.

Target price is $26.20 Current Price is $24.49 Difference: $1.71
If BKW meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $27.11, suggesting upside of 10.5% (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

Citi rates CGC as Upgrade to Buy from Neutral (1) -

With both an improved improved outlook for Produce earnings for Costa Group in FY22 and a recently-declining share price, Citi upgrades its rating to Buy from Neutral. The target price falls to $3.45 from $3.64 on a potential loss of quality for the late-season citrus crop.

Target price is $3.45 Current Price is $2.84 Difference: $0.61
If CGC meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.56, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates CHC as Buy (1) -

Citi raises its target price for Charter Hall Group to $24 from $21.80 following the second upgrade to FY22 guidance in two months. Around 75% of  the upgrade is estimated to be driven by performance fees, with the balance from higher funds under management (FUM).

The broker retains the group as its top pick in the sector and believes guidance still appears conservative. As a result, the analyst raises the EPS forecast by 30%, which is now 12% ahead of guidance. The Buy rating is maintained.

Target price is $24.00 Current Price is $20.85 Difference: $3.15
If CHC meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 2.7% (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

Credit Suisse rates CHC as Neutral (3) -

Its latest upgrade now has Charter Hall Group guiding to earnings of no less than $1.05 per share, and Credit Suisse notes although potential for further upgrade had been previously noted this increase was larger than expected.

The broker estimates performance fees for the year to be in the $300m range, and accordingly updates earnings per share forecasts 24.9%, 4.4% and 5.7% through to FY24.

The Neutral rating is retained and the target price increases to $21.19 from $19.37.

Target price is $21.19 Current Price is $20.85 Difference: $0.34
If CHC meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 2.7% (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

Macquarie rates CHC as Outperform (1) -

Charter Hall Group has upgraded FY22 operating earnings guidance by a full 26.5%, to be 14% above Macquarie's prior forecast. The group reported a 17% increase in funds under management since end-June, which is again well above the broker.

The bulk of the upgrade represents performance fees which can be transitory, but Charter Hall is exhibiting strong growth with or without performance fees, the broker notes.

Outperform retained, target rises to $22.90 from $20.12.

Target price is $22.90 Current Price is $20.85 Difference: $2.05
If CHC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 2.7% (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

Morgan Stanley rates CHC as Overweight (1) -

To allow for a revaluation of the entire portfolio and account for the $1.7bn Ale Property Group ((LEP)) acquisition, Charter Hall Group has lifted its FY22 EPS guidance to $1.05cps from $0.83cps.

Morgan Stanley estimates 75% of the upgrade was from recognising performance fees across a range of industrial and long weighted average lease expiry (WALE) funds. Management also stated an undisclosed amount of 2H21 potential acquisitions are also included.

 Overweight rating. Target raised to $23.15 from $20.30. Industry view is In-Line.

Target price is $23.15 Current Price is $20.85 Difference: $2.3
If CHC meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 2.7% (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 CHC as Accumulate (2) -

Ord Minnett lifts its target for Charter Hall Group to $23 from $20 after a material earnings upgrade, only six weeks after the last upgrade. It's thought 1H growth in funds under management (FUM) as well as higher transactional and performance fees drove the upgrade.

The broker lifts its EPS forecasts by 10% and points out the group remains highly leveraged to the continuing asset cycle. The Accumulate rating is unchanged.

Target price is $23.00 Current Price is $20.85 Difference: $2.15
If CHC meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 2.7% (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

UBS rates CHC as Neutral (3) -

An independent portfolio valuation ($3.5bn revaluation gains) has led Charter Hall Group to issue its second earnings upgrade in six weeks. After including acquisitions, assets under management (AUM) are a 6% beat versus the prior expectation of UBS.

The analyst believes the earnings upgrade is driven by high quality funds under management (FUM) fees, acquisition fees largely relating to ALE Property Group ((LEP)) and performance fees.

The broker upgrades FY22-24 earnings estimates by 25%, 13% and 4%, respectively, and raises its price target to $21.00 from $19.60. The Neutral rating is unchanged.

Target price is $21.00 Current Price is $20.85 Difference: $0.15
If CHC meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 2.7% (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

Macquarie rates CHN as Outperform (1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

Chalice Mining is the broker's preferred exploration play.

Outperform retained, target rises to $10.75 from $10.70.

Target price is $10.75 Current Price is $8.87 Difference: $1.88
If CHN meets the Macquarie target it will return approximately 21% (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

Citi rates CLW as Buy (1) -

Aided by a strong backdrop for long weighted average lease expiry (WALE), Charter Hall Long WALE REIT reported an 8% rise in asset values versus Citi's 7% expectation. The analyst assesses the stock is now at a -12% discount to net tangible assets (NTA).

The Buy rating is retained and the analyst expects the NTA discount to narrow, as the historical average has been a 10% premium. The $5.59 target price is unchanged.

Target price is $5.59 Current Price is $5.14 Difference: $0.45
If CLW meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.42, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates CLW as Overweight (1) -

Morgan Stanley resumes coverage of Charter Hall Long Wale REIT with an Overweight rating and $5.85 target price. Industry view: In-Line. The broker likes the portfolio diversification with around 21% exposure to the office, hospitality and industrial sub-sectors.

The weighted average lease expiry (WALE) of 12.6 years provides a stable and secure earnings stream and modest long-term growth, points out the analyst.

Morgan Stanley also likes the tenant quality with around 50% of income comes from Telstra ((TLS)), Endeavour Group ((EDV)) and government agencies.

Target price is $5.85 Current Price is $5.14 Difference: $0.71
If CLW meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.42, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates CQE as Hold (3) -

Charter Hall Social Infrastructure REIT has announced $3.5bn of revaluations across its portfolio, which Ord Minnett points out will cause a slight earnings dilution. This is because management fees are based on gross asset value (GAV). 

Nonetheless, the revaluations will allow balance sheet capacity to debt-fund some future acquisitions, thereby offsetting any earnings dilution, explains the analyst. The target price rises to $3.70 from $3.60 and the Hold rating is unchanged.

Target price is $3.70 Current Price is $3.92 Difference: minus $0.22 (current price is over target).
If CQE meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Citi rates CQR as Neutral (3) -

Charter Hall Retail's 1H22 distribution was 0.8% ahead of consensus estimates and a -0.8% miss versus Citi's forecast. First half asset
values increased by around 8%, resulting in a circa 12% increase in net tangible assets.

Tightening cap rates were considered by the analyst to be the main driver of increased asset values. The Neutral rating and $3.61 target price are retained.

Target price is $3.61 Current Price is $4.29 Difference: minus $0.68 (current price is over target).
If CQR meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.09, suggesting downside of -6.7% (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 CWN as Buy (1) -

Ord Minnett now allows for three months of FY22 trading for the Sydney casino (gambling opens March 2022) and makes other minor adjustments to forecasts, following Crown Resorts' investor day.

Barangaroo will open 160 tables with scope to expand, and the broker notes materially less space is expected to be used compared to original projections by management. The Buy rating and $15 target price are unchanged.

Target price is $15.00 Current Price is $11.45 Difference: $3.55
If CWN meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $13.40, suggesting upside of 18.3% (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 DOW as Outperform (1) -

Covid has created some first half headwinds for Downer EDI but Macquarie believes investor focus is on re-opening, as state borders lift and restrictions ease. On that basis the broker shifts its earnings forecast skew more to the second half than is typical.

More "normal" conditions should be expected in the second half.

Target falls to $6.68 from $6.84 but Outperform retained given a positive outlook boosted by the energy transition.
 

Target price is $6.68 Current Price is $5.90 Difference: $0.78
If DOW meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.42, suggesting upside of 8.3% (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

Citi rates DXS as Sell (5) -

After recent company updates by Australian peers, Citi concludes that the likes of funds-management-exposed Dexus stands to benefit. This is considered due to the impact of rising property values on funds under management (FUM).

The read through from strong revaluations reported by Charter Hall Group ((CHC)) is of particular relevance and should help support sector pricing, suggests the analyst. The Sell rating and $9.54 target price are unchanged.

Moreover, REITs exposed to industrial, long weighted average lease expiry (WALE) and neighbourhood shopping centre assets will also benefit, believes Citi.

Target price is $9.54 Current Price is $11.31 Difference: minus $1.77 (current price is over target).
If DXS meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.22, suggesting downside of -1.7% (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

UBS rates GEM as Buy (1) -

G8 Education provided a trading update that was materially ahead of UBS's earnings (EBIT) forecasts, and was a 6% beat versus consensus estimates. Despite covid uncertainty, the stock is still regarded as a reopening play.

The broker highlights recovering occupancy and notes gains versus 2019 levels in WA and QLD, which were not impacted by lockdowns. The Buy rating and $1.20 target price are retained.

Target price is $1.20 Current Price is $1.10 Difference: $0.1
If GEM meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in December.

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 GMG as Buy (1) -

After recent company updates by Australian peers, Citi concludes that the likes of funds-management-exposed Goodman Group stands to benefit. This is considered due to the impact of rising property values on funds under management (FUM).

The read through from strong revaluations reported by Charter Hall Group ((CHC)) is of particular relevance and should help support sector pricing, suggests the analyst. The Buy rating and $26 target price are unchanged.

Target price is $26.00 Current Price is $25.62 Difference: $0.38
If GMG meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $25.29, suggesting downside of -3.5% (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

Citi rates GPT as Neutral (3) -

After recent company updates by Australian peers, Citi concludes that the likes of funds-management-exposed GPT Group stands to benefit. This is considered due to the impact of rising property values on funds under management (FUM).

The read through from strong revaluations reported by Charter Hall Group ((CHC)) is of particular relevance and should help support sector pricing, suggests the analyst. The Neutral rating and $4.90 target price are unchanged.

Moreover, REITs exposed to industrial, long weighted average lease expiry (WALE) and neighbourhood shopping centre assets will also benefit, believes Citi.

Target price is $4.90 Current Price is $5.34 Difference: minus $0.44 (current price is over target).
If GPT meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.19, suggesting downside of -3.7% (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 ICT as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage on iCollege with a Buy rating and $0.21 target price. The provider of English language, vocational and higher education courses in Australia has six registered training organisations operating 10 brands in Australia.

The broker likes the strong offshore agent network (bringing student volumes from South America and the Indian subcontinent) and leading English language offering. Moreover, there's considered to be a broad range of quality courses.

The company should benefit benefit from the recovery trade (international students returning) and revenue synergies from the takeover of Redhill Education, suggests Ord Minnett.

Target price is $0.21 Current Price is $0.12 Difference: $0.09
If ICT meets the Ord Minnett target it will return approximately 75% (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

Macquarie rates IGO as No Rating (-1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers Nickel Mines, Mincor and Panoramic Resources in nickel, and is currently restricted on IGO.

Current Price is $10.58. Target price not assessed.

Current consensus price target is $8.91, suggesting downside of -16.2% (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

Credit Suisse rates IPL as Neutral (3) -

Incitec Pivot has acquired a majority interest in Australian Bio Fert for $38m, with the company's investment being used to develop a production scale plant with capacity to produce 75,000 tonnes organic fertiliser annually as noted by Credit Suisse.

Commissioning of the production facility is expected in mid-2023. The broker likes that the purchase further diversifies Incitec Pivot's portfolio and offers exposure to the rapidly growing fertiliser segment.

The Neutral rating and target price of $3.14 are retained.

Target price is $3.14 Current Price is $3.14 Difference: $0
If IPL meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.60, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates KLL as Outperform (1) -

Kalium Lakes has completed its $58m placement and SPP and Macquarie returns from restriction with an unchanged Outperform rating and 40c target.

The miner is now well funded, the broker notes, to complete the ramp-up of Beyondie’s 90ktpa sulphate of potash plant and to also undertake an expansion to a 120ktpa production rate.

The ramp-up is key to Kalium cashing in on current high SOP prices and realising the longer term value the broker believes the project has to offer.

Target price is $0.40 Current Price is $0.16 Difference: $0.24
If KLL meets the Macquarie target it will return approximately 150% (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

Citi rates LLC as Buy (1) -

After recent company updates by Australian peers, Citi concludes that the likes of funds-management-exposed Lendlease Group stands to benefit. This is considered due to the impact of rising property values on funds under management (FUM).

The read through from strong revaluations reported by Charter Hall Group ((CHC)) is of particular relevance and should help support sector pricing, suggests the analyst. The Buy rating and $14.27 target price are unchanged.

Moreover, REITs exposed to industrial, long weighted average lease expiry (WALE) and neighbourhood shopping centre assets will also benefit, believes Citi.

Target price is $14.27 Current Price is $10.71 Difference: $3.56
If LLC meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $12.69, suggesting upside of 18.4% (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

Macquarie rates LTR as Outperform (1) -

Macquarie has returned from restriction on Liontown Resources post the company's $450m institutional placement and an SPP expected to raise $40m, which will be used to fund the development of the Kathleen Valley spodumene project.

With the project now fully funded, the broker expects Liontown's stronger financial position to provide negotiating strength in offtake and
downstream collaboration agreement discussions.

Outperform and $1.95 target.

Target price is $1.95 Current Price is $1.63 Difference: $0.32
If LTR meets the Macquarie target it will return approximately 20% (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

Macquarie rates MCR as Neutral (3) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers Nickel Mines, Mincor and Panoramic Resources in nickel.

Outperform retained on Mincor, target rises to $1.55 from $1.40.

Target price is $1.55 Current Price is $1.26 Difference: $0.29
If MCR meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

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 NIC as Outperform (1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers Nickel Mines, Mincor and Panoramic Resources in nickel.

Outperform retained for Nickel Mines, target rises to $1.70 from $1.45.

Target price is $1.70 Current Price is $1.36 Difference: $0.34
If NIC meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.53, suggesting upside of 11.3% (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 NXT as Outperform (1) -

NextDC has acquired its first Edge DC. An Edge DC is a data centre located outside the main capitals in towns and cities with populations between 10,000 and one million to provide rapid digital access.

Macquarie estimates there are 389 of these in Australia, with 92% yet to have an Edge DC.

The broker expects Edge DCs to yield higher returns relative to the company’s current DC offering and believes they will help offset any potential dilution from the increasing share of hyperscale contribution as DC projects grow in scale.

Outperform and $16.10 target retained.

Target price is $16.10 Current Price is $12.19 Difference: $3.91
If NXT meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $14.73, suggesting upside of 18.7% (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

Credit Suisse rates ORI as Outperform (1) -

Orica has received $180m for the divestment of its Mivova business, with the sale set to complete in the first quarter of 2022 according to Credit Suisse.

Given the continuing rise of ammonia pricing in December the broker also downgrades first half forecasts for Australia Asia Pacific, assuming a price peak in December and cost catchup in the second half and into FY23.

The Outperform rating is retained and the target price decreases to $17.10 from $17.26.

Target price is $17.10 Current Price is $13.77 Difference: $3.33
If ORI meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $15.93, suggesting upside of 15.9% (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 ORI as Neutral (3) -

Orica has finally sold its Minova non-core business, to a European investment firm, reducing its exposure to coal. The sale price of $180m is a slight premium on written-down book value, Macquarie notes, but a long way from the $1.6bn paid in 2007.

The long-awaited sale improves Orica's strategic focus on core business, the broker notes, namely four key verticals - mining, quarrying & construction, digital and mining chemicals.

The broker cuts earnings forecasts to reflect the loss of revenue but sees the divestment as a positive. Neutral retained, target falls to $14.92 from $15.01.

Target price is $14.92 Current Price is $13.77 Difference: $1.15
If ORI meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $15.93, suggesting upside of 15.9% (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 OZL as Outperform (1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers OZ Minerals and 29Metals in copper.

Outperform retained for OZ Minerals, target rises to $33 from $32.

Target price is $33.00 Current Price is $27.50 Difference: $5.5
If OZL meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $25.27, suggesting downside of -8.8% (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

Macquarie rates PAN as Outperform (1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers Nickel Mines, Mincor and Panoramic Resources in nickel.

Outperform retained for Panoramic, target rises to 30c from 28c.

Target price is $0.30 Current Price is $0.24 Difference: $0.06
If PAN meets the Macquarie target it will return approximately 25% (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

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

A new accounting treatment sees Regis Healthcare adjusting the carrying value of its bed licences, explains Morgans. The company will now write down their value over the next 2.5 years, which has no impact on the broker's valuation.

In a separate exercise, the analyst lowers the multiple used previously to reflect the take-over activity in the sector. As a result, the rating falls to Hold from Add and the target price is decreased to $1.89 from $2.33. Morgans believes industry conditions will remain challenging.

Target price is $1.89 Current Price is $1.70 Difference: $0.19
If REG meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting upside of 27.9% (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

Citi rates RHC as Neutral (3) -

Because Ramsay Health Care's -$1.4bn acquisition of UK-based Elysium Healthcare is 100% debt funded, Citi estimates around 6% EPS accretion for FY23. The target price rises to $76 from $73.

The broker likes diversification away from surgical hospitals into mental health though notes increasing exposure to the financially-constrained NHS system. While the Neutral rating is unchanged, the analyst sees upside risk for earnings as the pandemic ends.

Target price is $76.00 Current Price is $68.85 Difference: $7.15
If RHC meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $70.52, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

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 RHC as Neutral (3) -

Ramsay Health Care is moving into mental health with the acquisition of the UK's Elysium Healthcare for GBP775m. Credit Suisse reports the transaction is debt funded, noting despite a high multiple the purchase aligns with expansion strategy into adjacent services.

Elysium Healthcare operates 72 mental health, complex care and neurological sites, and partners closely with the NHS. While the UK mental health market has grown at 4% per annum, Elysium has grown revenue at an 18.6% rate from 2018-2020.

Credit Suisse expects the purchase to 4-5% earnings per share accretive in FY23 and FY24, and to increase Ramsay Health Care UK's revenue and underlying earnings by 64% and 58% respectively in FY23.

The Neutral rating is retained and the target price increases to $72.50 from $68.00.

Target price is $72.50 Current Price is $68.85 Difference: $3.65
If RHC meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $70.52, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates RHC as Outperform (1) -

Ramsay Health Care has acquired Elysium Healthcare in the UK, which operates hospitals and complex care homes for individuals with mental health conditions. Macquarie sees the acquisition as supplementing an assumed recovery in surgical activity over the medium-term.

The broker estimates potential 6% earnings accretion in FY23.

Outperform and $75.50 target retained.

Target price is $75.50 Current Price is $68.85 Difference: $6.65
If RHC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $70.52, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates RHC as Hold (3) -

Morgans views the debt-funded acquisition of Elysium Healthcare for -$1.4bn as reasonably priced, when taking into account potential synergies and a pipeline of opportunities. Overall, the transaction is thought to create a platform for further diversification and growth.

The broker raises its target price to $65.10 from $62.78 and maintains its Hold rating. Elysium Healthcare is an independent operator of long-term medium and low secure hospitals and complex care homes focusing on mental health conditions.

Target price is $65.10 Current Price is $68.85 Difference: minus $3.75 (current price is over target).
If RHC meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $70.52, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates SFR as No Rating (-1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker is currently on research restriction for Sandfire Resources.

Current Price is $6.34. Target price not assessed.

Current consensus price target is $6.59, suggesting upside of 3.1% (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

Citi rates SGP as Buy (1) -

After recent company updates by Australian peers, Citi concludes that the likes of funds-management-exposed Stockland stands to benefit. This is considered due to the impact of rising property values on funds under management (FUM).

The read through from strong revaluations reported by Charter Hall Group ((CHC)) is of particular relevance and should help support sector pricing, suggests the analyst. The Buy rating and $5.03 target price are unchanged.

Moreover, REITs exposed to industrial, long weighted average lease expiry (WALE) and neighbourhood shopping centre assets will also benefit, believes Citi.

Target price is $5.03 Current Price is $4.41 Difference: $0.62
If SGP meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates SRL as Neutral (3) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers Nickel Mines, Mincor and Panoramic Resources in nickel.

Sunrise Energy Metals' cobalt to nickel ratio offers unique leverage to cobalt. However the broker sees downside risks from the capex and the uncertainty over the timing of the project.

Neutral retained, target falls to $1.80 from $2.10.

Target price is $1.80 Current Price is $1.79 Difference: $0.01
If SRL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

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

Ord Minnett rates TLS as Buy (1) -

Following a recently-released ACCC Mobile Infrastructure Report, Ord Minnett highlights Telstra is growing its competitive advantage in regional and remote locations across Australia. 

Moreover, another recent announcement shows the company is substantially extending its lead in 5G infrastructure in 2021 with the
company now operating 4,000 mobile sites. The Buy rating and $4.60 target price are retained.

Target price is $4.60 Current Price is $4.05 Difference: $0.55
If TLS meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 7.3% (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

Ord Minnett rates TPG as Hold (3) -

Following a recently-released ACCC Mobile Infrastructure Report, Ord Minnett highlights Telstra Corp ((TLS)) is growing its competitive advantage over TPG Telecom and others in regional and remote locations across Australia. 

Moreover, another recent announcement shows Telstra is substantially extending its lead in 5G infrastructure in 2021 with the
company now operating 4,000 mobile sites. TPG Telecom continues to lag both Telstra and Optus by -45% and -28%, respectively.

Ord Minnett maintains its Hold rating and $6.80 target price.

Target price is $6.80 Current Price is $6.12 Difference: $0.68
If TPG meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $7.64, suggesting upside of 26.6% (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

Macquarie rates WSA as No Rating (-1) -

A Communist Party meeting in China last week reconfirmed a key economic policy pivot from tightening to pro-growth. Macquarie has upgraded base metals miners’ earnings forecasts to incorporate its updated commodity prices.

The broker prefers Nickel Mines, Mincor and Panoramic Resources in nickel, and is currently restricted on Western Areas.

Current Price is $3.26. Target price not assessed.

Current consensus price target is $3.10, suggesting downside of -6.8% (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