Australian Broker Call

Bell Potter rates AHL as Buy (1) -

Adrad did not update guidance at its investor briefing yet Bell Potter believes the business is on track because a large percentage of budgeted second-half revenue has already been secured.

If anything, the company already signalled at the end of the first half the upper end of the $135-140m range should be met.

The broker suspects there may be some margin pressure because of rent increases but EBITDA guidance of around $16m should be still achievable. Buy rating maintained. Target is steady at $1.55.

Target price is $1.55 Current Price is $0.98 Difference: $0.575
If AHL meets the Bell Potter target it will return approximately 59% (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

Bell Potter rates AIS as Buy (1) -

Aeris Resources produced 11,100t of copper equivalent production in the March quarter. EBITDA guidance for FY23 has been lowered to $50-70m from $80-110m which disappointed Bell Potter as it was hoping for a stronger second half outlook.

Delays to the commencement of production at the Avoca Tank and Budgerygar deposit at Tritton, plus the inability for Mount Colin ore to be treated at the Ernest Henry concentrator were the main drivers of the downgrade.

Still, the broker believes it is now the time to buy the stock as higher copper production and an improved June quarter should result in a re-rating.

The Buy rating is retained and the target price reduces to $0.89 from $0.95.

Target price is $0.89 Current Price is $0.47 Difference: $0.425
If AIS meets the Bell Potter target it will return approximately 91% (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 CBA as Sell (5) -

CommBank's trading update disappointed Citi. Pre-provision earnings missed forecasts by some -2%, though market consensus was still met at the cash earnings level through lower BDDs.

Citi updates its assumptions after the March quarter trading update and revises down cash earnings expectations by -5-12% for FY23-25. Net interest margins are downgraded by -8-16 basis points.

This reflects a stronger asset drag, reduced residual deposit re-pricing benefit and elevated switching to term deposits.

Target of $80 and the Sell rating are unchanged.

Target price is $80.00 Current Price is $97.34 Difference: minus $17.34 (current price is over target).
If CBA meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.98, suggesting downside of -8.0% (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 CBA as Underperform (5) -

CommBank's March-quarter result disappointed Macquarie, the bank suffering from the tight margins and intense retail competition dogging its peers, as funding tailwinds failed to materialise.

But the broker was sitting at the low end of consensus and says its FY24 margin assumptions survived largely intact.

Macquarie says the result suggests banks will need to adopt a more rational approach if they wish to preserve margins, pointing to CommBank's removal of refinancing cashbacks as a good example.

The broker observes back books are sharply more profitable than front books, which is likely to incentivise customers to churn towards front book rates.

On the upside, the balance sheet is solid with high provisioning relative to peers, despite a more attractive book mix, and above-target capital.

Underperform rating and $90 target price retained, Macquarie doubting the company's high price multiple in an environment of heightened competition and falling returns.

Target price is $90.00 Current Price is $97.34 Difference: minus $7.34 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.98, suggesting downside of -8.0% (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

Morgan Stanley rates CBA as Underweight (5) -

CommBank's 3Q cash profit (ex remediation) was a -15% miss compared to Morgan Stanley's forecast. This included an around -2% miss on net interest income, and a quarter-on-quarter margin decline in the high single-digits.

The lower margins resulted from competitive pressures and deposit mix changes, explains the broker.

More positively, higher markets trading income lifted non-interest income by 11% against the analyst's forecast of 8%.

Mangement noted credit quality "remained sound", with troublesome and impaired exposures up to around $6.7bn from $6.3bn.

The Underweight rating and $85 target are retained. Industry view: In-line.

Target price is $85.00 Current Price is $97.34 Difference: minus $12.34 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.98, suggesting downside of -8.0% (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

Ord Minnett rates CBA as Hold (3) -

CommBank continue to grow its loan book in the March quarter and, Ord Minnett observes, is in a stronger position than some of its peers when it comes to managing margins and volumes.

The broker points out the bank is highly profitable and generating sector-leading returns on equity at 14%, so it can operate at lower margins without giving up share.

The short-term earnings outlook does appears softer than the broker expected and a Hold rating is maintained. Target is $87.

Target price is $87.00 Current Price is $97.34 Difference: minus $10.34 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.98, suggesting downside of -8.0% (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

UBS rates CBA as Neutral (3) -

CommBank delivered cash net profit of $2.6bn in the March quarter, down -2.9% quarter on quarter and up 10.2% on the prior corresponding quarter. Volume growth was offset by continued margin pressure from increasing competition in the mortgage market.

The bank has indicated economic outlook has deteriorated and still expects further increases in arrears as the full effect of interest-rate hikes are borne by borrowers.

UBS observes cash earnings appear to have peaked and are now trending lower on softer margins. Neutral rating and $100 target maintained.

Target price is $100.00 Current Price is $97.34 Difference: $2.66
If CBA meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $89.98, suggesting downside of -8.0% (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 CCP as Neutral (3) -

Macquarie ovserves that Credit Corp's US competitors are experiencing a weak March quarter, with US collections and pricing disappointing, although purchased debt ledger volumes continued to recover from covid lows and prices remain above long-term averages.

The broker explains a steady rise in delinquency rate is resulting in higher charge-offs and increased supply, and that management of both Encore and Pra Group are expecting higher NPL volumes in 2023.

Neutral rating retained. Target price falls -15% to 17.70 from $20.70 after Macquarie cut its terminal growth rate forecasts to 1.5% from 3% to reflect growing risks in the US operating environment.

Target price is $17.70 Current Price is $16.89 Difference: $0.81
If CCP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $21.77, suggesting upside of 27.9% (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

Morgan Stanley rates CSL as Overweight (1) -

Morgan Stanley's takeaway from 1Q results by Spanish pharmaceutical company Grifols was a more than -25% decline in compensation to plasma donors from the peak reached in July 2022.

The broker doesn't currently model a material moderation in plasma collection costs for CSL, though suggests the Grifols news lends potential upside to its forecasts.

A -20% reduction in CSL donor fees would result in an around 6% upgrade to Morgan Stanley's FY24 EPS forecast.

The Overweight rating and $339 target are unchanged. Industry View: In-Line.

Target price is $339.00 Current Price is $299.82 Difference: $39.18
If CSL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $337.18, suggesting upside of 11.0% (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: 0.8

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

Bell Potter rates DDH as Buy (1) -

Bell Potter reviews assumptions while considering recent drilling activity and pricing commentary by sector peers and revises revenue growth assumptions lower to account for weaker expected drilling activity and "charge-out rates".

DDH1 has acquired 20.5m shares since its buyback program was initiated in early July 2022 and is on track to achieve 8.3% of shares bought back over the 12-month period, -2% less than the broker forecast.

Bell Potter reduces its estimates as a result. FY23 and FY24 earnings are revised down -6%.

Buy rating maintained. The broker believes the stock is trading at a valuation discount of over -50% to its mining services peers which is seen as unwarranted. Target is reduced to $1.20 from $1.28.

Target price is $1.20 Current Price is $0.83 Difference: $0.37
If DDH meets the Bell Potter target it will return approximately 45% (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

Morgan Stanley rates DDR as Overweight (1) -

A 1Q update by Dicker Data implies to Morgan Stanley its 2023 forecasts are mostly on target. Upside is also expected from redundancy cost savings and imminent profitabilty from Dicker Data Access and Surveillance (DAS).

However, the broker is cautious over the underlying growth trajectory as revenue will likely be flat in FY23 compared to the previous corresponding period.

The Overweight rating and $10.00 target are retained. Industry View: In-Line.

Target price is $10.00 Current Price is $8.33 Difference: $1.67
If DDR meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for 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

Bell Potter rates DRE as Speculative Buy (1) -

After a site visit to Dreadnought Resources' Mangaroon project in Western Australia, Bell Potter has obtained a better understanding of the deposits.

The company continues to rapidly progress the drilling at both the Yin and Carbonatite targets and an updated resource estimate is expected in June.

The broker notes prices for rare earths remain depressed amid lower EV sales in China and increased production quotas, although there are signs a bottom may be nearing.

The Speculative Buy rating is retained. Target is reduced to $0.17 from $0.19.

Target price is $0.17 Current Price is $0.05 Difference: $0.116
If DRE meets the Bell Potter target it will return approximately 215% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 MND as Upgrade to Neutral from Sell (3) -

Citi believes Monadelphous Group is well served by its disciplined approach to pricing, reputation and capacity in E&C which should be reflected in the awarding of work as momentum in the industry returns.

There are $2-2.5bn in E&C projects to be awarded before the end of FY23 on the broker's estimate, primarily in lithium and rare earths.

If the company secures some of the opportunities, this should mean a revenue recovery in FY24. Citi upgrades to Neutral from Sell and raises the target to $12.80 from $12.25.

Target price is $12.80 Current Price is $12.85 Difference: minus $0.05 (current price is over target).
If MND meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.36, suggesting upside of 0.8% (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 NSR as Hold (3) -

Morgans updates its financial model for National Storage REIT following the recent capital raise of $340.4m at $2.41 per security, via a placement and share purchase plan.

The capital raised will be deployed to fund acquisitions and developments as well as repay debt.

The broker retains its Hold rating and the target rises to $2.34 from $2.24.

Target price is $2.34 Current Price is $2.48 Difference: minus $0.14 (current price is over target).
If NSR meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.29, suggesting downside of -9.0% (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

Ord Minnett rates NXD as Buy (1) -

NextEd Group has impressed Ord Minnett with its growth trajectory amid guidance for around 6500 active English language students by June 30, 2023. This has exceeded guidance provided in mid-March of 5600 and is well in excess of the pre-pandemic best of 2027.

The broker also welcomes the news of additional classrooms in Sydney and the new campus on the Gold Coast.  Buy rating maintained. Target is raised to $1.90 from $1.60.

Target price is $1.90 Current Price is $1.74 Difference: $0.165
If NXD meets the Ord Minnett target it will return approximately 10% (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 ORG as Hold (3) -

Ord Minnett observes earnings for Origin Energy are rebounding faster than expected as the LNG export business and the utility business perform strongly. Origin Energy has upgraded FY23 EBITDA guidance for its utility division by 60% at the mid point, to between $950m and $1.2bn.

Earnings are being underpinned by the inexpensive coal being secured for the Eraring power station, thanks to the coal price cap. A turnaround in UK-based Octopus Energy is also helping. The broker increases its FY23 EBITDA estimates by 48% and retains a Hold rating and $8.70 target.

Target price is $8.70 Current Price is $8.43 Difference: $0.27
If ORG meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $8.76, suggesting upside of 4.2% (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

Shaw and Partners rates PEN as Buy (1) -

After some delays, Shaw and Partners notes the Lance Uranium Project in the US is now back on-track, with first production set for mid-2023 with first sales in Q4 FY23.

Capital cost estimates remain in line with the definitive feasibility study, assures the broker. No material changes are made to Shaw and Partners' forecasts and the 34c target and Buy rating are unchanged.

The analyst points out Peninsula Energy is the only ASX company with direct exposure to US Government initiatives which are in favour of domestic mine development.

Target price is $0.34 Current Price is $0.15 Difference: $0.19
If PEN meets the Shaw and Partners target it will return approximately 127% (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

Morgans rates QAL as Add (1) -

Committed funds under management (FUM) growth is a key driver of value for alternative real estate investment manager Qualitas, explains Morgans.

Hence, the broker's target price rises to $3.15 from $2.75 after the recent announcement of a $1.0bn mandate win. The committed FUM forecast is increased to around $9.2bn by FY25, up from $7.4bn.

Morgans sees scope for a further re-rating, should peers re-rate toward their longer-run average multiples. Add.

Target price is $3.15 Current Price is $2.60 Difference: $0.55
If QAL meets the Morgans target it will return approximately 21% (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

Bell Potter rates RFF as Buy (1) -

Bell Potter observes Rural Funds has underperformed despite strong gains in agricultural land values over 2022.

Significantly, the broker points out the current -31% discount to market valuations is implying a downward correction in property values comparable to that seen in US agricultural land in 1932-33 and 1985-87.

Rising interest rates put upward pressure on the company's funding costs, yet the broker notes 47% of FY23 revenues have CPI-linked indexation and a further 29% have market-linked rent reviews, providing some insulation at the top line.

Buy rating and $2.65 target maintained.

Target price is $2.65 Current Price is $1.93 Difference: $0.725
If RFF meets the Bell Potter target it will return approximately 38% (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

Macquarie rates S32 as Outperform (1) -

South32 has announce it has postponed the Taylor Feasibility Study by 3-6 months, but has included the Hermosa Projects (which includes the Taylor and Clark deposits) into its FAST-41 process, in a bid to simplify the approval process.

Macquarie observes South32 is gaining confidence that a High Purity Managanese Sulphate Monohydrate battery grade product can be produced at Clarke, and is moving to pilot stage production and qualification.

The broker shaves FY23-FY26 earnings forecasts, and cuts estimated by roughly -2% to -6% out to 2030.

Outperform rating and $4.80 target price retained.

Target price is $4.80 Current Price is $4.18 Difference: $0.62
If S32 meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 19.0% (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: 0.8

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

Morgans rates SLC as Add (1) -

From FY20 to FY23, revenue at Superloop has grown to $330m from $107m and earnings (EBITDA) to $35m from $13.5m, thereby reaching management's aspirational targets slightly ahead of time, Morgans reminds investors.

As fundamentals are improving, Morgans suggests the share price should follow. Should the new target (set at the company's investor day) be achieved, the analyst believes Superloop's valuation should more than double.

This view also includes the stock trading on an around 3.5% free cash flow yield. The new three-year plan implies the company will generate around $40m of free cash flow by FY26.

The Add rating and $1.06 target are unchanged.

Target price is $1.06 Current Price is $0.68 Difference: $0.38
If SLC meets the Morgans target it will return approximately 56% (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 SND as Buy (1) -

Shaw and Partners believes Saunders International's acquisition of Automation IT (for a maximum -$5.5m price) is a very sound bolt-on purchase that provides additional skills and expands the existing client base.

The company is a specialist automation and control systems engineering business operating in the energy, water, defence and mining industries.

The broker makes no changes to its forecasts at this time and retains its Buy rating and $1.35 target.

Target price is $1.35 Current Price is $1.05 Difference: $0.305
If SND meets the Shaw and Partners target it will return approximately 29% (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 SSR as Buy (1) -

SSR Mining has acquired a 40% stake along with the management of the Hod Maden gold-copper project in Turkey for US$120m in cash followed by a US$150m earn-in nearer production.

UBS observes the project has key permits and environmental approvals and is in contrast to a Western Australia gold sector that is challenged by low grades and difficulty generating positive cash flow. The focus is now on technical studies and exploration over the next half year.

Buy rating maintained. Target is $26.50.

Target price is $26.50 Current Price is $25.40 Difference: $1.1
If SSR meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Morgans rates THL as Add (1) -

Following a negative share price reaction to reiteration of FY23 underlying profit guidance, Morgans feels shares of Tourism Holdings Rentals are oversold.

While the broker was hoping for upgraded synergy targets after the merger with Apollo Tourism & Leisure (and upgraded overall guidance), timing issues are at play, which should boost FY24.

Management warned FY23 guidance could be missed as some vehicle sales deliveries could be delayed by a quarter due to poor weather conditions in North America and dealer uncertainty.

Morgans believes management's merger synergies are conservative and notes the rental yield outlook is more positive than past guidance. The target rises to $5.30 from $5.15. Add.

Target price is $5.30 Current Price is $3.60 Difference: $1.7
If THL meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges).

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: 1.0

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

Ord Minnett rates THL as Buy (1) -

While Tourism Holdings Rentals has reiterated guidance for net profit of more than $48m it has come with a disclaimer. This relates to the potential deferral of the volume of used vehicle sales into FY24.

Ord Minnett, while mindful of the historical volatility in earnings from this business in the region, believes the reaction in the share price following the update is an overreaction.

It appears some investors may have been cutting long positions in anticipation of an upgrade in FY23 which did not eventuate, the broker suggests. Ord Minnett retains a Buy rating and reduces the target to NZ$5.57 from NZ$5.73.

Current Price is $3.60. 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: 1.0

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

Citi rates WBC as Downgrade to Neutral from Buy (3) -

Upon further consideration, Citi analysts believe the outlook, and attraction, for Westpac shares is for now closely correlated with how management can tame the increase in costs.

This is the real reason, the analysts speculate, why the FY24 target has been abandoned. Citi is not taking a positive view.

Costs will be THE problem for Westpac going forward, Citi believes. Earnings estimates have been reduced by -10%, with the broker adding this removes the one key point of differentiation with Australian peers.

It also removes the one key reason as to why investors should own the stock, the broker believes. Downgrade to Neutral from Buy.

Target price drops to $22.50 from $26.25.

Target price is $22.50 Current Price is $21.77 Difference: $0.73
If WBC meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $23.75, suggesting upside of 9.5% (ex-dividends)

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

Citi rates WOR as Buy (1) -

The trading update from Worley implied strong growth in the backlog of work in the coming 12 months while the underlying quality of contracts is also improving that bodes well for margins. Citi observes, for now, FY24 guidance is unchanged.

While many investors appear to be unable to justify the multiple for Worley because of scepticism over margin expansion, Citi asserts management has improved the visibility on how project complexity will earn higher margins.

The Buy rating and $17.50 target are retained.

Target price is $17.50 Current Price is $16.47 Difference: $1.03
If WOR meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $16.48, suggesting upside of 0.4% (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 WOR as Outperform (1) -

Worley showcased an acceleration in its sustainability metrics at its investor day, with "sustainable" projects now constituting 40% of its total backlog of $16.47bn, observes Macquarie. 

Management reiterated guidance, advising FY23 margins ex-procurement would mimic those of FY22, and expected FY24 earnings (EBITA) margins would rise to 7.5% (minimum target) from 7%, reflecting the sale of North American field services. Management advises it aspires to return to high single digit margins, approaching its pre-GFC peaks.

Macquarie observes the company is also targeting double digit earnings (EBITDA) growth in the medium term and the broker pegs a 12% EBITA compound annual growth rate between FY23 and FY26.

Worley's factored sales pipeline has grown 36% in the year to March 2023, comprising 73% sustainability work and 27% traditional. This compares with 66% versus 34% at December 30.

EPS forecasts fall -2.6% in FY23 to reflect higher interest expense but rise post 2026 to reflect higher margin expectations.

Outperform rating retained. Target price is $17.50.

Target price is $17.50 Current Price is $16.47 Difference: $1.03
If WOR meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $16.48, suggesting upside of 0.4% (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

UBS rates WOR as Buy (1) -

Worley has reiterated FY23 earnings guidance  which UBS takes to mean the EBITA margin will be similar to the prior year.

The company is targeting a double-digit medium-term growth rate for EBITA that is supported by market growth and increasing share as well as margin expansion. UBS forecasts a five year annual growth rate of 12%.

UBS also reiterates a Buy rating as the stock offers significant earnings leverage to the surge in global energy investment and decarbonisation. Target is raised to $18.90 from $17.50.

Target price is $18.90 Current Price is $16.47 Difference: $2.43
If WOR meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $16.48, suggesting upside of 0.4% (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