Australian Broker Call

Citi rates A2M as Buy (1) -

a2 Milk Company is benefiting from favourable demographic policy, highlights Citi, pointing to China’s proposed “childbirth-friendly society” initiatives within the draft 15th Five-year Plan.

The broker sees expanded maternity insurance coverage, guaranteed maternity leave and broader childcare subsidies as supportive for infant formula demand.

Policies encouraging fertility treatments and family housing incentives are considered positive for both infant and senior nutrition categories.

While the report concedes previous measures produced limited success, a greater policy focus on fertility rates is considered a sales tailwind for the company.

Target $10.55. Buy.

Target price is $10.55 Current Price is $9.96 Difference: $0.59
If A2M meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.92, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

This company reports in NZD. 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 AD8 as Equal-weight (3) -

Audinate Group delivered "broad improvements" in its topline amid greater cost discipline, Morgan Stanley notes on further analysis, although this does not change the likely timing for cash breakeven.

The outlook provided appears to be slightly better in terms of higher FY26 gross profit growth, implying an acceleration in the second half, while costs appear slightly lower.

The broker awaits greater clarity on new product take up and the monetisation pathway, and until clear evidence emerges retains an Equal-weight rating. Target is reduced to $3.00 from $5.00. Industry View: In-Line.

Target price is $3.00 Current Price is $2.85 Difference: $0.15
If AD8 meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.10, suggesting upside of 47.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

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

Ord Minnett rates ALD as Buy (1) -

Ord Minnett now forecasts a 1H2026 Brent crude price of US$75/bbl before it falls back to US$70/bbl in the second half of the year, and an LNG price of US$15/mmBtu in the first half of 2026 before slipping to US$12/mmBtu in the second half of the year.

Ampol and Viva Energy ((VEA)) are the preferred stocks to gain exposure to the current commodity price spike, given the leverage to refining margins versus producers’ leverage to oil and LNG prices.

A Buy rating is reiterated on both Ampol and Viva with a $35 and $2.50 target price, respectively.

Target price is $35.00 Current Price is $30.96 Difference: $4.04
If ALD meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $34.00, suggesting upside of 8.5% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Bell Potter rates AVR as Speculative Buy (1) -

Anteris Technologies continues to advance DurAVR toward approval, with Bell Potter highlighting the opening of the US Investigational Device Exemption and a US$320m capital raise.

DurAVR is a transcatheter aortic valve replacement (TAVR) device to treat severe aortic stenosis.

The broker notes the funding round has left incoming investors with 57% ownership, while estimated cash at December 31 reaches around US$313m.

The analyst expects first US patient enrolment in the approval study before the June quarter ends, with around 80 global trial sites involved.

Bell Potter considers US-based Medtronic’s $90m placement a validation of DurAVR technology and potential strategic pathway toward future acquisition interest.

Bell Potter raises its target price to $13.00 from $10.00 and retains a Buy (Speculative) rating.

Target price is $13.00 Current Price is $9.00 Difference: $4
If AVR meets the Bell Potter target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

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

Macquarie rates BPT as Underperform (5) -

Macquarie makes higher oil and LNG price assumptions following disruption risk around the Strait of Hormuz. Oil prices are expected to unwind sharply if the Strait reopens, while LNG prices may remain elevated longer given potential delays restarting Qatar LNG supply.

The analyst views Santos as its preferred exposure to the theme.

For Beach Energy, EPS forecasts for FY26 and FY27 are raised by 22% and 7%, respectively. The target is increased by 8% to 70c. Underperform rating retained.

Target price is $0.70 Current Price is $1.15 Difference: minus $0.45 (current price is over target).
If BPT meets the Macquarie target it will return approximately minus 39% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.07, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.6

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

Morgan Stanley rates BPT as Underweight (5) -

Morgan Stanley notes the US-Iran conflict adds higher prices to all its Australian energy stocks under coverage, albeit there is uncertainty as to when conditions will stabilise.

The broker favours Santos and Karoon Energy with its least favourites being Beach Energy and Origin Energy.

Morgan Stanley maintains its Underweight rating for Beach Energy and raises the target to $1.15 from $1.13. Industry View is In-Line.

Target price is $1.15 Current Price is $1.15 Difference: $0
If BPT meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.07, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.6

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

Morgan Stanley rates COL as Overweight (1) -

Morgan Stanley reassesses the valuation gap between Coles Group and Woolworths Group. Coles out traded Woolworths in the first half, even accounting for the impact of industrial action.

As comparables get sequentially easier for Coles in the fourth quarter, the broker envisages potential for the gap to Woolworths to narrow.

Yet, the earnings upgrade potential in FY27 is considered higher for Woolworths as the benefits to Coles from the ramp up of Witron/Ocado facilities are now largely factored into estimates.

The broker concludes the valuation gap between the two on FY28 earnings estimates is unjustified. Overweight retained with a $24 price target. Industry View: In-Line.

Target price is $24.00 Current Price is $21.15 Difference: $2.85
If COL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $23.21, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Macquarie rates GMG as Outperform (1) -

Macquarie highlights ASX-listed REITs have underperformed the broader market by around -12 percentage points so far in 2026, despite December quarter 2025 results beating consensus by 1.8% on average.

The sector has de-rated following changes in the interest rate outlook, despite only modest EPS reductions, notes the analyst.

Internally-generated growth is becoming increasingly important, in the broker's view, driven by access to third-party capital and exposure to the right assets across attractive sectors and markets.

Macquarie’s preferred exposures remain skewed toward quality and growth at a reasonable price, including Goodman Group, Mirvac Group, and Charter Hall. In the smaller caps, the broker likes Qualitas and Arena REIT.

Outperform and $32.20 target are retained for Goodman Group, which remains the highest-quality name, suggests the analyst, offering resilient double-digit earnings growth supported by its data centre opportunity.

Target price is $32.20 Current Price is $27.78 Difference: $4.42
If GMG meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $36.05, suggesting upside of 32.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

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

Citi rates JDO as Buy (1) -

Judo Capital has underperformed recently, with Citi suggesting market concerns around economic risk, private credit and AI disruption appear overdone.

The “high beta” banks fell more sharply than major bank peers amid heightened volatility linked to Middle Eastern conflict and macro uncertainty, the analysts explain.

The analysts see supportive deposit costs and a strong lending pipeline benefiting Judo despite ongoing economic growth concerns.

Buy. Target $2.20.

Among the smaller banks Judo is preferred over Buy-rated Bank of Queensland ((BOQ)), and over Bendiogo & Adelaide Bank ((BEN)) which Macquarie rates as a Sell.

Target price is $2.20 Current Price is $1.59 Difference: $0.61
If JDO meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 41.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Macquarie rates KAR as Underperform (5) -

Macquarie makes higher oil and LNG price assumptions following disruption risk around the Strait of Hormuz. Oil prices are expected to  unwind sharply if the Strait reopens, while LNG prices may remain elevated longer given potential delays restarting Qatar LNG supply.

The analyst views Santos as its preferred exposure to the theme.

For Karoon Energy, the 2026 EPS forecast rises by 141%, also due to a recent minor increase in Bauna production. Target is increased by 6.7% to $1.60. Underperform rating maintained.

Target price is $1.60 Current Price is $1.82 Difference: minus $0.215 (current price is over target).
If KAR 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 $1.91, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. 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

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

Morgan Stanley notes the US-Iran conflict adds higher prices to all its Australian energy stocks under coverage, albeit there is uncertainty as to when conditions will stabilise.

The broker favours Santos and Karoon Energy with its least favourites being Beach Energy and Origin Energy.

Equal-weight retained. Target is raised to $1.77 from $1.70. Industry view: In-Line.

Target price is $1.77 Current Price is $1.82 Difference: minus $0.045 (current price is over target).
If KAR meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.91, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

This company reports in USD. 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

Citi rates MQG as Neutral (3) -

Macquarie Group has underperformed recently, with Citi suggesting market concerns around economic risk, private credit and AI disruption appear overdone.

The “high beta” banks fell more sharply than major bank peers amid heightened volatility linked to Middle Eastern conflict and macro uncertainty, the analysts explain.

Macquarie Group faces risks from private credit and technology exposure, in the broker's view, though commodity volatility and asset realisations could provide near-term offsets.

Neutral rating and $210 target retained.

The broker's order of preference among the big four banks places Buy-rated ANZ Bank ((ANZ)) on top, followed by Westpac (WBC)) on Neutral, then Sell ratings for National Australia Bank ((NAB)) and CommBank ((CBA)).

Target price is $210.00 Current Price is $200.30 Difference: $9.7
If MQG meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $229.30, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

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

Morgan Stanley assesses its existing view on the structural pressure for Metcash grocery lines is reinforced by recent peer commentary. The broker also notes a delayed recovery is likely in hardware amid relative resilience in liquor.

Given Metcash has a higher exposure to commercial end markets in hardware, this amplifies the downside risk to its hardware earnings.

In contrast, the business has relative strength in convenience-led local liquor retailing despite momentum moderating.

Target cut to $3.30 from $3.50. Equal-weight reiterated. Industry View: In-Line.

Target price is $3.30 Current Price is $3.11 Difference: $0.19
If MTS meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.4

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

Citi rates NXT as Buy (1) -

NextDC is added to Citi’s Pan-Asia Focus List as strong hyperscale and colocation demand support a favourable data centre environment and long-term sector growth.

The broker sees rising enterprise adoption driving continued capacity absorption across the sector through 2026 and beyond.

The analyst highlights around $750m in contracted earnings (EBITDA), providing funding flexibility through debt facilities including subordinated notes currently in the market.

Citi sees upside to FY27-28 consensus earnings amid potential further Melbourne customer agreements.

Target $19. Buy.

Target price is $19.00 Current Price is $13.69 Difference: $5.31
If NXT meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $20.73, suggesting upside of 62.3% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Morgan Stanley rates ORG as Underweight (5) -

Morgan Stanley notes the US-Iran conflict adds higher prices to all its Australian energy stocks under coverage, albeit there is uncertainty as to when conditions will stabilise.

The broker favours Santos and Karoon Energy with its least favourites being Beach Energy and Origin Energy.

Target is raised to $11.01 from $10.88 and an Underweight rating is retained for Origin Energy. Industry View: In-Line.

Target price is $11.01 Current Price is $11.94 Difference: minus $0.93 (current price is over target).
If ORG meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.05, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.2

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

Ord Minnett rates RHC as Downgrade to Lighten from Hold (4) -

Ord Minnett downgrades Ramsay Health Care to Lighten from Hold with an unchanged target price of $38.25 on valuation grounds.

Post the results from UK peer Spire, EPS forecasts are lowered by -3.8% for FY26 and -0.9% for FY27 with Spire not expecting much upside from the new fiscal year UK budget on April 1.

The UK peer now forecasts a decline in NHS revenue of -25% in the MArch quarter with no return to growth on an annual basis for NHS revenue in 2026.

Target price is $38.25 Current Price is $44.52 Difference: minus $6.27 (current price is over target).
If RHC meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $40.69, suggesting downside of -2.3% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.2

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

Citi rates SSM as Buy (1) -

Citi sees Service Stream’s outlook improving, citing solid earnings growth supported by utilities margin expansion and stronger defence activity through the second half.

The broker highlights first-half sequential utilities margin improvement and sees risk to forecasts skewed to the upside despite assuming more moderate gains later.

The analysts see defence work volumes lifting toward peak run-rate late in the second half while Telco margins should revert to around 9% as NBN activity accelerates.

Target price falls to $2.55 from $2.65. Buy rating retained.

Target price is $2.55 Current Price is $1.93 Difference: $0.62
If SSM meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.65, suggesting upside of 42.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Citi rates STO as Buy (1) -

Further details from last week’s research by Citi on Santos show the broker raised its target price to $8.00 from $7.00 while retaining a Buy rating.

The following is a summary of the broker’s research.

Citi compares the potential implications for Woodside Energy and Santos from further supply disruptions stemming from the US/Israel-Iran conflict.

While both companies benefit from elevated crude prices, Woodside is more leveraged to spot LNG pricing, explains the broker. 

Santos has greater oil exposure through its contracted LNG portfolio and liquids sales, which account for around 90% of total sales.

The broker estimates the Woodside share price implies oil of around US$65/bbl, compared with US$59/bbl for Santos.

Target price is $8.00 Current Price is $7.46 Difference: $0.54
If STO meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.70, suggesting upside of 0.1% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.7

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

Macquarie rates STO as Outperform (1) -

Macquarie makes higher oil and LNG price assumptions following disruption risk around the Strait of Hormuz. Oil prices are expected to  unwind sharply if the Strait reopens, while LNG prices may remain elevated longer given potential delays restarting Qatar LNG supply.

Macquarie views Santos as its preferred exposure to the theme, lifting its 2026 and 2027 EPS forecasts by 66% and 4% respectively, and noting the cuurent valuation implies an oil price of $60.25/bbl.

The valuation also benefits from increased inclusion of Papua LNG, Pikka phase two and Dorado developments, explains the analyst.

Target rises by 7% to $8.10. Outperform retained.

Target price is $8.10 Current Price is $7.46 Difference: $0.64
If STO meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.70, suggesting upside of 0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.7

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

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

Morgan Stanley notes the US-Iran conflict adds higher prices to all its Australian energy stocks under coverage, albeit there is uncertainty as to when conditions will stabilise.

The broker favours Santos and Karoon Energy with its least favourites being Beach Energy and Origin Energy.

Equal-weight. Industry view In-Line. Target is raised to $7.10 from $6.66.

Target price is $7.10 Current Price is $7.46 Difference: minus $0.36 (current price is over target).
If STO meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.70, suggesting upside of 0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.7

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

Citi rates TUA as Buy (1) -

Subscriber momentum remains strong at Tuas, Citi comments. The broker expects Simba’s mobile offering to continue attracting customers in Singapore’s competitive telecom market.

It's felt first-quarter FY26 subscriber growth (July year-end) has set a solid foundation for the year given the company’s attractive pricing proposition.

The analysts adopt a conservative view on upcoming second-quarter net additions though see risk skewed to the upside amid ongoing promotional activity.

Citi expects management commentary to highlight solid subscriber momentum through the second half, while regulatory approval for the M1 deal remains a matter of timing.

Buy rating and target of $9.95 maintained.

Target price is $9.95 Current Price is $6.23 Difference: $3.72
If TUA meets the Citi target it will return approximately 60% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Ord Minnett rates VEA as Buy (1) -

Ord Minnett now forecasts a 1H2026 Brent crude price of US$75/bbl before it falls back to US$70/bbl in the second half of the year, and an LNG price of US$15/mmBtu in the first half of 2026 before slipping to US$12/mmBtu in the second half of the year.

Ampol ((ALD)) and Viva Energy are the preferred stocks to gain exposure to the current commodity price spike, given the leverage to refining margins versus producers’ leverage to oil and LNG prices.

A Buy rating is reiterated on both Ampol and Viva with a $35 and $2.50 target price, respectively.

Target price is $2.50 Current Price is $2.10 Difference: $0.4
If VEA meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 18.7% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.8

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

Citi rates WDS as Neutral (3) -

Further details from last week’s research by Citi on Woodside Energy show the broker raised its target price to $30 from $28 while retaining a Neutral rating.

The following is a summary of the broker’s research.

Citi compares the potential implications for Woodside Energy and Santos from further supply disruptions stemming from the US/Israel-Iran conflict.

While both companies benefit from elevated crude prices, Woodside is more leveraged to spot LNG pricing, explains the broker. 

Santos has greater oil exposure through its contracted LNG portfolio and liquids sales, which account for around 90% of total sales.

The broker estimates the Woodside share price implies oil of around US$65/bbl, compared with US$59/bbl for Santos.

Target price is $30.00 Current Price is $30.75 Difference: minus $0.75 (current price is over target).
If WDS meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.73, suggesting downside of -8.4% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

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

Macquarie rates WDS as Neutral (3) -

Macquarie makes higher oil and LNG price assumptions following disruption risk around the Strait of Hormuz. Oil prices are expected to  unwind sharply if the Strait reopens, while LNG prices may remain elevated longer given potential delays restarting Qatar LNG supply.

The analyst views Santos as its preferred exposure to the theme.

For Woodside Energy, EPS forecasts for 2026 and 2027 are raised by 122% and 16%, respectively.

Woodside has greater exposure to spot LNG prices than Santos, the analyst explains, though lower profit margins reflect higher unit depreciation and amortisation costs.

The analyst explains around 18MMboe of 2026 production is hedged at about US$70/bbl, partially moderating earnings sensitivity to oil prices.

Target rises to $30.00 from $27.00. Neutral rating retained.

Target price is $30.00 Current Price is $30.75 Difference: minus $0.75 (current price is over target).
If WDS meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.73, suggesting downside of -8.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

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 WDS as Downgrade to Underweight from Equal-weight (5) -

Morgan Stanley notes the US-Iran conflict adds higher prices to all its Australian energy stocks under coverage, albeit there is uncertainty as to when conditions will stabilise.

Woodside Energy is downgraded to Underweight from Equal-weight because of the cash flow uncertainty in the near term and the valuation, estimating the last closing share price implies US$83/bbl for a long-term oil price.

The broker favours Santos and Karoon Energy with its least favourites being Beach Energy and Origin Energy.

Target is steady at $26. Industry view: In-Line.

Target price is $26.00 Current Price is $30.75 Difference: minus $4.75 (current price is over target).
If WDS meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.73, suggesting downside of -8.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY26:

Forecast for FY27:

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

Ord Minnett rates WDS as Lighten (4) -

Ord Minnett now forecasts a 1H2026 Brent crude price of US$75/bbl before it falls back to US$70/bbl in the second half of the year, and an LNG price of US$15/mmBtu in the first half of 2026 before slipping to US$12/mmBtu in the second half of the year.

Ampol ((ALD)) and Viva Energy ((VEA)) are the preferred stocks to gain exposure to the current commodity price spike, given the leverage to refining margins versus producers’ leverage to oil and LNG prices.

A Lighten rating is retained on Woodside Energy with a higher target of $24.75 from $24. The current spot LNG prices would have to remain for two years, the analyst explains, to make the current share price appear as "fair value".

Target price is $24.75 Current Price is $30.75 Difference: minus $6 (current price is over target).
If WDS meets the Ord Minnett target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.73, suggesting downside of -8.4% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

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 WOW as Equal-weight (3) -

Morgan Stanley reassesses the valuation gap between Woolworths Group and Coles Group. The latter out traded Woolworths in the first half, even accounting for the impact of industrial action. Sequentially harder comparables for Woolworths into the fourth quarter also suggests the sales gap to Coles could narrow.

Yet, the earnings upgrade potential in FY27 is considered higher for Woolworths as the benefits to Coles from the ramp up of Witron/Ocado facilities are now largely factored into estimates.

The broker concludes the valuation gap between the two on FY28 earnings estimates is unjustified. Morgan Stanley retains an Equal-weight rating, $34.40 target for Woolworths. Industry View: In-Line.

Target price is $34.40 Current Price is $35.99 Difference: minus $1.59 (current price is over target).
If WOW meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.26, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.2

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