Australian Broker Call

Citi rates ACL as Buy (1) -

Citi forecasts the pathology industry will grow at a compound annual growth rate (CAGR) of more than 5% over FY23-30
compared to around 4.4% growth between FY09-19.

The broker's view is based on population growth, an ongoing increase in the number of tests per capita, and a minimal price/mix
contribution.

As a result, Citi raises its mid-term revenue assumptions and target prices for pathology-exposed companies under its research coverage.

The target for Australian Clinical Labs rises to $4.40 from $4.10, while the Buy rating is unchanged.

Target price is $4.40 Current Price is $3.52 Difference: $0.88
If ACL meets the Citi target it will return approximately 25% (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 AGY as Outperform (1) -

Macquarie recently visited the Argosy Minerals lithium development in Argentina. The Rincon lithium brine project is nearing completion.

The company has a 77.5% interest in the project which will rise to 90% once the development of the 10,000tpa expanded case is undertaken. Securing the outstanding Argentinian government approvals is likely to be the next catalyst, the broker notes.

Outperform and $0.80 target maintained.

Target price is $0.80 Current Price is $0.52 Difference: $0.285
If AGY meets the Macquarie target it will return approximately 55% (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

Macquarie rates APE as Downgrade to Neutral from Outperform (3) -

Macquarie welcomes the FY23 revenue guidance of $9.5-10bn, as it was ahead of expectations, although recent delays at ports and subdued Toyota volumes present some downside risk.

The broker suspects achieving guidance will be contingent on total market volumes accelerating in the second half.

Although BYD Co could provide material upside for Eagers Automotive through the joint venture, longer term aspirations are likely to face competition, the broker asserts. Rating is downgraded to Neutral from Outperform and the target lowered to $15.00 from $15.50.

Target price is $15.00 Current Price is $14.59 Difference: $0.41
If APE meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.54, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Bell Potter rates AVH as Buy (1) -

Avita Medical's March-quarter result appears to have pleased Bell Potter.

Earnings grew 11%, operating costs rose, and gross margins were steady at 84%. Management retains FY23 revenue guidance, and expects Avita's operating loss to fall -$5m during the year.

The key figure, net cash burn, came in at $8.6m and the company closed the quarter with $77.7m in cash and short-term securities advises Bell Potter.

The broker observes the expansion of applications to include soft tissue injury and vitiligo is expected in June and the broker expects the company will submit Recell Go for approval by June 30, which it expects will result in a launch in early 2024 and increase the pace of adoption among clinicians.

Meanwhile, the burns market is up and running and Bell Potter expects strong growth.

Speculative Buy rating retained. Targe price rises 11% to $6.20 fom $5.60.

Target price is $6.20 Current Price is $4.54 Difference: $1.66
If AVH meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $5.78, suggesting upside of 27.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgans rates AVH as Add (1) -

Morgans assesses a strong start to the year for Avita Medical after achieving quarterly guidance and maintaining full year revenue guidance.

The analyst's forecasts are left unchanged yet the target rises to $5.53 from from $4.45 as the long-term growth rate is increased to 7% from 6%. The broker anticipates success from at least one of two approvals pending from the FDA.

In June, Morgans is hoping for device designation for the Recell System and vitiligo. The development of an automated Recell device is also anticipated. Add.

Target price is $5.53 Current Price is $4.54 Difference: $0.99
If AVH meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.78, suggesting upside of 27.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates AVH as Hold (3) -

Avita Medical posted a first quarter net loss of -US$9m, largely in line with expectations, as it expanded the US sales team. Ord Minnett notes the positive valuation effect of a stronger US dollar and time value of money was offset by slightly higher forecasts for general expenses and share-based payments.

The broker considers the shares undervalued, assessing the market under-appreciates the strength of the company's product pipeline and high gross margins. Hold maintained. Target is $5.60.

Target price is $5.60 Current Price is $4.54 Difference: $1.06
If AVH meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $5.78, suggesting upside of 27.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates CHN as Outperform (1) -

Chalice Mining has completed a $70m private placement and launched the $10m share purchase plan at $7.30 a share. The funds should be sufficient to complete the scoping study and pre-feasibility study for Gonneville, while maintaining a commitment to resource extension and regional exploration.

The release of the scoping study, which should confirm costs and metallurgical recovery rates, particularly for palladium and nickel, presents the next catalyst, Macquarie notes. Outperform. Target is $9.60.

Target price is $9.60 Current Price is $7.53 Difference: $2.07
If CHN meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $9.63, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates GNC as Hold (3) -

Graincorp has signalled its third year of bumper harvests. The March Australian crop report has estimated 2023 east coast winter grain production has reached the third highest on record, after 2022 and 2021.

High grain volumes in Australia combined with high prices globally have allowed the company to maximise capacity utilisation in its processing infrastructure and command historically high supply chain margins.

Yet Ord Minnett warns these favourable conditions will not persist, noting grain pricing has continued to moderate since the beginning of FY23.

In the wake of interim earnings, the broker lifts net profit forecasts for FY23 by 30% to $250m. Hold rating maintained. Target is $7.20.

Target price is $7.20 Current Price is $8.27 Difference: minus $1.07 (current price is over target).
If GNC meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.78, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates HLS as Neutral (3) -

Citi forecasts the pathology industry will grow at a compound annual growth rate (CAGR) of more than 5% over FY23-30
compared to around 4.4% growth between FY09-19.

The broker's view is based on population growth, an ongoing increase in the number of tests per capita, and a minimal price/mix
contribution.

As a result, Citi raises its mid-term revenue assumptions and target prices for pathology-exposed companies under its research coverage.

The target for Healius rises to $3.20 from $2.85, while the Neutral rating is unchanged.

Target price is $3.20 Current Price is $3.10 Difference: $0.1
If HLS meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Ord Minnett rates MFG as Accumulate (2) -

Ord Minnett reduces long-term maintainable cash flow assumptions and lowers the target to $10.70 from $11.50. The broker believes prior forecasts were too optimistic.

With the erosion of the Magellan Financial brand, its exclusion from model portfolios and growing adoption of low-cost investments, redemptions are likely to persist, partially offset by periodic mandate wins.

Nevertheless, the broker considers the shares still offer value with the market pricing in much more aggressive contraction in funds under management. Accumulate maintained.

Target price is $10.70 Current Price is $8.45 Difference: $2.25
If MFG meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $8.82, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Morgans rates MVF as Add (1) -

Following an update by management at the investor day, Morgans views recent strength in industry cycle volumes as a positive for Monash IVF.

While there was no trading update, management noted success rates had improved to 38% from 32.6% in 2018.

The analyst toured the new full-service IVF clinic in Cremorne, Victoria, and was also impressed by the high quality of senior management that sit alongside the CEO and CFO.

The Add rating and $1.29 target are unchanged.

Target price is $1.29 Current Price is $1.17 Difference: $0.125
If MVF meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.36, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates NWS as Neutral (3) -

News Corp's March quarter EBITDA of US$320m was ahead of Macquarie's expectations. The broker notes the digital business is resilient and there was a good result in books.

Still, the broker's view on cyclicals is unchanged, in that the appropriate time to purchase a stock is when the pace of the decline in advertising revenue moderates, and the reverse is currently happening.

That said, the broker believes News Corp is "doing a good job" managing the cost base throughout the cycle. Neutral rating retained. Target rises to $24 from $23.

Target price is $24.00 Current Price is $25.96 Difference: minus $1.96 (current price is over target).
If NWS 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 $29.33, suggesting upside of 13.0% (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: 0.3

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

Ord Minnett rates NWS as Hold (3) -

A -10% drop in the News Corp third quarter earnings (EBITDA) to US$324m was in line with Ord Minnett's expectations. The broker finds several encouraging trends in the update.

These include a reduced impact from a marketing downturn and re-setting of the book industry as well as the benefits from the focus on subscriptions and circulations.

The broker also welcomes a continued focus on costs. Ord Minnett retains a Hold rating with a $30 target.

Target price is $30.00 Current Price is $25.96 Difference: $4.04
If NWS meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $29.33, suggesting upside of 13.0% (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: 0.3

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

Morgan Stanley rates PFP as Overweight (1) -

Morgan Stanley expects positive EPS revisions by consensus after Propel Funeral Partners announced two bolt-on acquisitions for $412m. The two businesses (in Sydney and New Zealand) conduct 2,400 funerals per year and earn around $18m of revenue.

Historically, Morgan Stanley doesn't factor in M&A prior to completion, which in this case will occur in the 1Q of FY24.

The Overweight rating and $5.55 target are retained. Industry View: In-Line.

Target price is $5.55 Current Price is $4.43 Difference: $1.12
If PFP meets the Morgan Stanley target it will return approximately 25% (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 QBE as Buy (1) -

Despite an increase in guidance for the combined operating ratio (COR) due to higher CAT claims and an increase in the prior year reserves, Citi still expects higher margins for QBE Insurance in future, especially once inflation recedes.

The analysts prefer to focus on re-accelerating premium rate increases, seemingly stable underlying returns and further modest improvement for investment yield. 

The target rises to $16.30 from $16.20 and the Buy rating is unchanged.

Target price is $16.30 Current Price is $14.61 Difference: $1.69
If QBE meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $16.13, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Morgan Stanley rates QBE as Overweight (1) -

Pricing and growth, as revealed in a 1Q update, were ahead of guidance, though elevated CAT claims led to 1% higher guidance for the combined operating ratio (COR), explains Morgan Stanley.

While the analyst expects a downgrade to the FY23 consensus earnings estimate for QBE Insurance, the FY24 forecast should be upgraded on higher revenue.

The Overweight rating and $17 target are retained. Industry View: In-Line.

Target price is $17.00 Current Price is $14.61 Difference: $2.39
If QBE meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $16.13, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Morgans rates QBE as Add (1) -

While FY23 overall growth guidance for QBE Insurance was increased to 10% (from mid-to-high single digit), Morgans was disappointed by increased guidance for the combined operating ratio (COR) to 94.5% from 93.5%.

A prior year reserve top-up and higher CAT claims were responsible for the higher COR at the 1Q performance update (released at the AGM), explains the analyst. As a result the target falls to $16.50 from $16.96.

Morgans still sees a clear pathway for improved profitability over the next few years and maintains its Add rating.

Target price is $16.50 Current Price is $14.61 Difference: $1.89
If QBE meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.13, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Ord Minnett rates QBE as Lighten (4) -

Gross written premium growth of 10% exceeded Ord Minnett's forecasts in the March quarter. QBE Insurance has lifted guidance for the full year to 10%.

The broker notes rising cash rates are finally delivering better returns on the investment pool and the insurer should be well able to meet forecasts of around US$1.3bn in investment income, implying a return of around 4.5%.

Given that around 90% of the portfolio is fixed income, Ord Minnett is reassured by management commentary that no fall-out from the banking turmoil in the US and Europe has occurred. Lighten rating and $13 target maintained.

Target price is $13.00 Current Price is $14.61 Difference: minus $1.61 (current price is over target).
If QBE 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 $16.13, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

UBS rates QBE as Buy (1) -

UBS found QBE Insurance' first quarter update mixed, as top-line and yield trends were well ahead of forecasts while catastrophe losses were disappointing and a reserve top up was required in respect of events that occurred in 2022.

Gross written premium growth has been raised to around 10% and COR to 94.5%. UBS believes the investment case for QBE Insurance remains attractive and retains a Buy rating. Target is lowered to $18.00 from $18.50.

Target price is $18.00 Current Price is $14.61 Difference: $3.39
If QBE meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $16.13, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Macquarie rates REA as Underperform (5) -

REA Group experienced a slightly softer March quarter, in Macquarie's view, with less cost reductions than previously expected. The main positives were the details around the take-up of Premier+ and price outcomes.

REA Group is making progress on the seller leads product and intends to launch a subscription PremierPro some time in FY24.

Macquarie retains an Underperform rating, based on valuation, and reduces the target to $91 from $93.

Target price is $91.00 Current Price is $139.05 Difference: minus $48.05 (current price is over target).
If REA meets the Macquarie target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $124.28, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

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

Following a 3Q trading update by REA Group, Morgans raises its target to $145 from $133 and downgrades its rating to Hold from Add on valuation. The update indicated a tougher quarter, particularly in terms of listings volumes, which remain subdued.

The new target also takes into account a valuation roll forward and higher medium-term volume growth, as the analyst expects volumes will begin to recover from Q2 FY24.

The broker also highlights solid revenue growth for REA India, which increased by 63% on the previous corresponding period.

Target price is $145.00 Current Price is $139.05 Difference: $5.95
If REA meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $124.28, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Ord Minnett rates REA as Lighten (4) -

REA Group expects limited supply has stabilised property prices and more venders will come to the market as a result. Ord Minnett only agrees with the latter suggestion, believing increased supply will lead to further falls in property prices.

The broker does expect new listings will increase in FY24 as a backlog of deferred listings from FY23 unwinds and distressed sellers come to the market, yet believes the company's plans to keep increasing its listing fees by double digits against the current backdrop is risky.

The Lighten rating and $100 target are unchanged.

Target price is $100.00 Current Price is $139.05 Difference: minus $39.05 (current price is over target).
If REA meets the Ord Minnett target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $124.28, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

UBS rates REA as Neutral (3) -

March quarter results revealed the impact of residential revenue in a tough listings environment. On the positive side, REA Group is comfortable around double-digit yield growth expectations.

UBS adjusts FY23-26 estimates for revenue/EBITDA by -2% to reflect slightly lower depth growth and softer finance revenue. The broker retains a Neutral rating, noting Elara continues to outperform expectations. Target is reduced to $144.10 from $145.70.

Target price is $144.10 Current Price is $139.05 Difference: $5.05
If REA meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $124.28, suggesting downside of -10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Morgan Stanley rates RGN as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley estimates asset level expense for a typical mall will escalate by around 8% next year, due to big increases for insurance, energy, and statutory charges. Administration, security, cleaning, and repairs could also experience 4-5% cost escalation.

The analyst points out landlords generally pass through 30-50% of mall operating expenses to the occupiers.

While the likes of Scentre Group ((SCG)) and Vicinity Centres ((VCX)) recover around 50% of costs from occupiers, the broker notes Region Group only recovers around 30%.

Anchor tenants, who dominate Region's neighbourhood centres, don't pay cost recoveries, explains Morgan Stanley. The rating is downgraded to Equal-weight from Overweight and the target falls to $2.70 from $2.95.

Target price is $2.70 Current Price is $2.54 Difference: $0.16
If RGN meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Citi rates SHL as Buy (1) -

Citi forecasts the pathology industry will grow at a compound annual growth rate (CAGR) of more than 5% over FY23-30
compared to around 4.4% growth between FY09-19.

The broker's view is based on population growth, an ongoing increase in the number of tests per capita, and a minimal price/mix
contribution.

As a result, Citi raises its mid-term revenue assumptions and target prices for pathology-exposed companies under its research coverage.

The target for Sonic Healthcare rises to $40 from $36, while the Buy rating is unchanged.

Target price is $40.00 Current Price is $35.79 Difference: $4.21
If SHL meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $36.04, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Bell Potter rates SHV as Buy (1) -

Select Harvests' 2023 crop update disappointed Bell Potter yet again, the company downgrading production forecasts while expecting average selling prices to rise between 3% and 22%, subject to variety.

The broker's forecast operating (EBITDA) loss widens to -$20m to -$30m, compared with a previous forecast of -$8m.

Banking covenants have risen $30m and management affirms that the company remains within loan limits.

The broker raises its loss forecasts, and increases its earnings (EBITDA) expectations by 1% in FY24 and 8% in FY25.

Buy rating retained. Target price is steady at $5.50.

Target price is $5.50 Current Price is $4.50 Difference: $1
If SHV meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 SHV as Buy (1) -

Select Harvests has indicated a further step down in volume expectations for its almond crop, which is now 97% harvested. The volume downgrade is partially offset by pricing momentum with the company now forecasting average crop price of $7.40-7.80/kg.

UBS increases its forecast EBIT loss for FY23 to -$86m from -$64m, based on a $7.45/kg price. FY24 is expected to return to profitability with more normal yields and further recovery in price. Buy rating and $4.90 target maintained.

Target price is $4.90 Current Price is $4.50 Difference: $0.4
If SHV meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 TNE as Upgrade to Buy from Hold (1) -

Bell Potter upgrades TechnologyOne's rating to Buy from Hold ahead of the company's interim FY23 results on May 23, expecting a good result (including a 10% increase in the interim dividend to 4.62c).

The broker's eye is peeled to total annual recurring revenue, which it expects will have grown 21% to $350m, putting it on track to meet its $500m target by 2026 (although Bell Potter now believes it will meet that goal by the end of FY25) and expects management to guide to such by the end of 2023.

Target price rises 6% to $17.

Target price is $17.00 Current Price is $14.88 Difference: $2.12
If TNE meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.61, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates TNE as Lighten (4) -

TechnologyOne has successfully restored its back-office system after a cyber security incident was identified.

Third-party experts have confirmed the system is secure and no further illegal activity has been detected. The company has emphasised the system is not connected to the customer-facing SaaS platform.

Ord Minnett retains a Lighten rating and $11.20 target.

Target price is $11.20 Current Price is $14.88 Difference: minus $3.68 (current price is over target).
If TNE meets the Ord Minnett target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.61, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates WDS as Neutral (3) -

According to Citi, management at Woodside Energy increasingly believe US LNG may see schedule slippage and fewer financial investment decisions (FIDs).

This outcome would make Scarborough more valuable as a scarce source of uncontracted gas coming online in 2026/27, explains the broker.

Under these circumstances, Citi  suggests Scarborough’s equity value should increase, implying management may defer any farm-down.

The Neutral rating and $32 target are unchanged.

Target price is $32.00 Current Price is $33.66 Difference: minus $1.66 (current price is over target).
If WDS meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.35, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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