Australian Broker Call

Morgan Stanley rates BBN as Overweight (1) -

Ahead of the February reporting season, Morgan Stanley sees the potential for Baby Bunting to surprise on the upside.

The broker highlights accelerated market share gains from unmatched eCommerce and store network coverage. By comparison to competitors, it's also considered the company has much better data on its customer base and a widening moat on price.

The analyst believes improvements in loyalty, competitive position and supply chain are yet to come.

Overweight rating with a target price of $5.50. Industry view: In-line.

Target price is $5.50 Current Price is $5.00 Difference: $0.5
If BBN meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates BHP as Outperform (1) -

Macquarie remains positive on iron ore shares due to strong cash flow yields and earnings upgrade momentum. The broker notes iron ore pricing has been buoyant in early 2021 and shipments have remained strong in the December 2020 quarter.

However, the broker warns of a risk to iron ore prices from steel margins that have come under pressure due to an increase in input costs (both coking coal and iron ore) recently.

For BHP Group there is significant (22%) FY21 upside to Macquarie's earnings forecasts, with spot prices currently well above the broker's forecasts. For FY23 and beyond the earnings upside risk under a spot price scenario is considered to be 125%. 

The Outperform rating and target price of $51 are unchanged.

Target price is $51.00 Current Price is $45.87 Difference: $5.13
If BHP meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $45.91, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates BIN as Upgrade to Outperform from Neutral (1) -

According to news reports, CPE Capital along with its consortium partners have made an indicative non-binding offer for Bingo Industries at an enterprise value of over $2.5bn. Based on Credit Suisse's December 2020 forecasts, this implies a share price of $3.33.

The broker believes Bingo Industries has the potential to generate $231m in operating income by FY23 and based on the FY23 forecast, the fundamental value of the stock could be over $4 per share.  

Noting the current depressed share price is the result of a cyclical decline in building construction further aggravated by covid, Credit Suisse is of the view any bid for Bingo needs to factor in in the medium-term earnings recovery potential. 

Rating is upgraded to Outperform from Neutral with the target rising to $3 from $2.40.

Target price is $3.00 Current Price is $3.30 Difference: minus $0.3 (current price is over target).
If BIN meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.95, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates BIN as Hold (3) -

Bingo Industries has received a takeover offer from CPE Capital. Morgans lifts the target price to $3.50 to align with the indicative offer price. This is a 28% premium to the last close before the market disclosure of the approach.

The bid is unsolicited, highly conditional (due diligence, financing, minimum and maximum acceptance conditions), non-binding, and indicative.

The broker believes there is potential for another bidder to emerge as the current bid price may understate potential forward earnings. Additionally, it's considered other bidders may also position for upcoming structural change within the industry.

The Hold rating is maintained. The target price is increased to $3.50 from $2.47.

Target price is $3.50 Current Price is $3.30 Difference: $0.2
If BIN meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.95, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS - Cessation of coverage

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates BWP as Neutral (3) -

UBS downgrades BWP Trust to Sell from Neutral reflecting higher leasing risk and a lack of earnings and dividends growth prospects.

The broker believes BWP Trust will see circa 1% funds from operations growth in the next two years with about 1/3 of leases set to expire in 2020-22. UBS sees Centuria Industrial REIT ((CIP)) offering a more defensive exposure.

Target increases to $3.86 from $3.80.

Target price is $3.86 Current Price is $4.38 Difference: minus $0.52 (current price is over target).
If BWP meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.65, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

UBS rates CHC as Upgrade to Buy from Neutral (1) -

Earnings for Charter Hall Group are expected to improve on the back of higher assets under management and higher operating leverage.

Given a better growth outlook for the group in 2021, UBS shifts its preference from Centuria Capital ((CNI)) to Charter Hall.

Rating is upgraded to Buy from Neutral with the target rising to $16.10 from $12.25.

Target price is $16.10 Current Price is $13.34 Difference: $2.76
If CHC meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $15.48, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates CIA as Outperform (1) -

Macquarie remains positive on iron ore shares, due to strong cash flow yields and earnings upgrade momentum. The broker notes iron ore pricing has been buoyant in early 2021 and shipments have remained strong in the December 2020 quarter.

However, the broker warns of a risk to iron ore prices from steel margins that have come under pressure due to an increase in input costs (both coking coal and iron ore) recently.

For Champion Iron there is significant (27%) FY21 upside risk to Macquarie's earnings forecasts, with spot prices currently well above the broker's forecasts.

For FY23 and beyond the earnings upside risk for the pure-play stocks is considered to be over 100% under a spot price scenario.

The Outperform rating is unchanged and the target price is $6.

Target price is $6.00 Current Price is $5.44 Difference: $0.56
If CIA meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

UBS rates CIP as Upgrade to Buy from Neutral (1) -

UBS upgrades Centuria Industrial REIT to Buy from Neutral on the basis that the direct market for industrial assets remains strong in 2021 and will drive cap rate compression.

The broker sees the REIT offering a more defensive exposure as compared to BWP Trust with better growth prospects and a higher weighted average lease expiry. 

Target rises to $3.38 from $3.23.

Target price is $3.38 Current Price is $3.01 Difference: $0.37
If CIP meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.47, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates CNI as Downgrade to Neutral from Buy (3) -

UBS downgrades Centuria Capital Group to Neutral from Buy with the target reducing to $2.43 from $2.46.

While Centuria Capital has strong growth potential, UBS sees less scope to materially grow office and investment bonds, which form circa 50% of the group's assets under management. Organic growth is still expected to be solid.

Target price is $2.43 Current Price is $2.44 Difference: minus $0.01 (current price is over target).
If CNI meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.39, suggesting upside of 0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates COF as Downgrade to Neutral from Buy (3) -

UBS downgrades its rating on Centuria Office REIT to Neutral from Buy due to a lack of catalysts. The target falls to $2.10 from $2.50.

While the REIT has the benefit of a diversified geographic exposure, more than 22% of income is either vacant or expiring in FY21 or FY22. UBS forecasts subdued rental growth of 2% in FY22.

Also, the REIT does not have the cost of equity to grow and its gearing is elevated relative to peers while the cost of debt is unlikely to fall materially from circa 2.4%.

Target price is $2.10 Current Price is $2.03 Difference: $0.07
If COF meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates CPU as Upgrade to Outperform from Neutral (1) -

Macquarie sees long-term value in the US Mortgage Servicing segment with upside risk to consensus forecasts.

The broker regards this segment as a key medium-term growth driver supported by unpaid principal balances (UPB) growth, operating leverage and mix shift (more non-performing loans).

The analyst sees over 10% UPB growth from the second quarter FY21 until the $150bn UPB target is achieved in the second half of FY23.

Macquarie upgrades the rating to Outperform from Neutral and raises the target price to $15.95 from $14.35.

Target price is $15.95 Current Price is $14.38 Difference: $1.57
If CPU meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $13.91, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.2

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

UBS rates CQR as Downgrade to Neutral from Buy (3) -

Despite sales in supermarkets normalising, UBS believes the demand for yield in a low-interest rate environment will support non-discretionary shopping centres.

Preferring Aventus Group ((AVN)) over Charter Hall Retail REIT, UBS downgrades its rating to Neutral from Buy on valuation grounds. Target rises to $3.60 from $3.50.

Target price is $3.60 Current Price is $3.62 Difference: minus $0.02 (current price is over target).
If CQR meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.58, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates CSL as Neutral (3) -

Macquarie sees downside risk for March collections after noting foot traffic for around 100 of the US-based plasma collection centres has eased in recent weeks.

The broker reduces FY22 EPS forecasts capturing lower immunoglobulin (Ig) volume growth relative to previous expectations.

The target price is reduced to $289 from $296 and the Neutral rating is unchanged.

Target price is $289.00 Current Price is $271.14 Difference: $17.86
If CSL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $312.39, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates DRR as Outperform (1) -

Macquarie remains positive on iron ore shares, due to strong cash flow yields and earnings upgrade momentum. The broker notes iron ore pricing has been buoyant in early 2021 and shipments have remained strong in the December 2020 quarter.

However, the broker warns of a risk to iron ore prices from steel margins that have come under pressure due to an increase in input costs (both coking coal and iron ore) recently.

For Deterra Royalties there is significant (27%) FY21 upside risk to Macquarie's earnings forecasts, with spot prices currently well above the broker's forecasts.

For FY23 and beyond the earnings upside risk for the pure-play stocks is considered to be over 100% under a spot price scenario.

The Outperform rating is unchanged and the target price is $5.50.

Target price is $5.50 Current Price is $4.54 Difference: $0.96
If DRR meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.85, suggesting upside of 9.0% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates DXS as Buy (1) -

In the current environment, UBS is tilting towards value over growth stocks, especially when it comes to office stocks.

While incentives are expected to taper in 2021, the broker thinks strength will continue to be driven by low rates, improving mortgage availability and de-urbanisation. Dexus Property Group is expected to be a key beneficiary of these trends.

UBS retains its Buy rating with the target rising to $10.87 from $10.59.

Target price is $10.87 Current Price is $9.03 Difference: $1.84
If DXS meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $9.70, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates FMG as Outperform (1) -

Macquarie remains positive on iron ore shares due to strong cash flow yields and earnings upgrade momentum. The broker notes iron ore pricing has been buoyant in early 2021 and shipments have remained strong in the December 2020 quarter.

However, the broker warns of a risk to iron ore prices from steel margins that have come under pressure due to an increase in input costs (both coking coal and iron ore) recently.

Fortescue Metals Group is Macquarie's preferred large cap exposure and there is significant (38%) FY21 upside to the broker's earnings forecasts, with spot prices currently well above the broker's forecasts.

For FY23 and beyond the earnings upside risk under a spot price scenario is considered to be over 100%.

The Outperform rating is unchanged and the target is $27.20.

Target price is $27.20 Current Price is $24.82 Difference: $2.38
If FMG meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $21.82, suggesting downside of -12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Morgans rates GDG as Add (1) -

Generation Development Group has released its funds under management (FUM) for the December 2020 quarter, which revealed the third highest quarterly sales performance ever.

Morgans feels the underlying business trajectory remains encouraging, highlighted by consistent FUM growth, stable revenue margins and an increasing return on equity.

The broker makes only minor upgrades to EPS estimates and raises the target price to $0.87 from $0.85. The Add rating is unchanged.

Target price is $0.87 Current Price is $0.71 Difference: $0.16
If GDG meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates GMG as Neutral (3) -

Goodman Group is expected to benefit from strong structural trends backed by unprecedented demand for both logistics tenants and capital providers.

UBS believes going ahead, there will be substantial opportunities and flexibility for the group to increase its current run rate. 

Neutral rating is maintained with the price target rising to $19 from $17.50.

Target price is $19.00 Current Price is $17.70 Difference: $1.3
If GMG meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $19.64, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates GPT as Downgrade to Neutral from Buy (3) -

Despite the possibility of the office metrics surprising on the upside, UBS downgrades its rating on GPT Group to Neutral from Buy since the broker believes the group's funds management earnings and acquisition hurdles indicate weaker earnings ahead.

Going forward the broker forecasts -10% growth in assets under management to June 2022. The group also needs to address elevated leverage and a lack of diversification in the GPT wholesale shopping centre fund.

The target price increases to $4.55 from $4.50.

Target price is $4.55 Current Price is $4.41 Difference: $0.14
If GPT meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgans rates HMC as Add (1) -

Morgans notes Home Consortium had an active end to 2020 after spinning off the HomeCo Daily Needs REIT ((HDN)), new acquisitions and a capital raising.

The broker expects 2021 to start with the execution of the Health, Wellness and Government REIT, which currently has $400m in assets under management (AUM) and is expected to grow further.

The company is quickly evolving into a capital light model with income sourced via rental income, distributions, fee income and developments, explains the analyst.

The interim result is due on 24 February.

The Add rating is unchanged and the target price increased to $4.27 from $3.60.

Target price is $4.27 Current Price is $3.98 Difference: $0.29
If HMC meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates HUB as Buy (1) -

The company's December quarter trading update showed numbers that were well ahead of Citi's projections. The broker points out platform flows are typically skewed to H2 and this means, including Clearview transition, flows could top $8bn in FY21, on Citi's calculations.

On top of this, the analysts continue to see risk as skewed to the upside, even though potential weakness in share markets might have a negative impact on flows.

Earnings estimates have gone up by between 1%-5%. Target price has increased 2% to $26.40. Buy.

Target price is $26.40 Current Price is $24.86 Difference: $1.54
If HUB meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $25.23, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates HUB as Upgrade to Outperform from Neutral (1) -

Hub24's second-quarter funds under administration (FuA) at $22bn were up 16% on a quarterly basis and 3% ahead of Credit Suisse's forecast. The platform saw exceptional net inflows of $1.7bn, up circa 25-35% and $322m ahead of the broker's estimated $1.4bn.

Credit Suisse notes the flows were driven entirely by organic growth with no one-offs called out and reflect the fruits of Hub24’s recent investment in its distribution team.

The broker is optimistic on Hub24's prospects and expects the platform to increase its market share to 5.6% by FY25 from 2.1% in FY20.

Rating is upgraded to Outperform from Neutral with the target price rising to $26 from $21.50.

Target price is $26.00 Current Price is $24.86 Difference: $1.14
If HUB meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $25.23, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates HUB as Neutral (3) -

HUB24 reported net inflows for the second quarter of $1.7bn compared to Macquarie's expectation of $1.2bn, with total Custody
funds under administration (FUA) as at 31 December 2020 of $22.0bn.

The broker lifts EPS estimates for FY21 by 5.8% and FY22 by 6.4%, due to better-than-expected flows and market movements.

After recent relative outperformance the analyst's preference is now for Netwealth Group ((NWL)).

Macquarie retains a Neutral rating and raises the target to $25 from $23.50.

Target price is $25.00 Current Price is $24.86 Difference: $0.14
If HUB meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $25.23, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates HUB as Add (1) -

HUB24 ended the second quarter with $22bn in funds under administration (FUA), up 15.5% for the quarter and up 38.7% on previous corresponding period (pcp). Of the quarterly FUA increase, net inflows contributed $1,722m and market movements $1,229m.

Morgans believes upside risk exists from strong acquisition execution and further transition opportunities. It's considered the potential expansion of the recently formed IOOF Holdings ((IFL)) relationship provides the biggest upside risk over the medium term.

Advisers using the platform increased 24% on the previous corresponding period to 2,280.

The analyst notes the ClearView transition remains on track for the second half which will add around $1-1.3bn FUA.

The Add rating is unchanged and the target price is increased to $25.45 from $22.40.

Target price is $25.45 Current Price is $24.86 Difference: $0.59
If HUB meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $25.23, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

Morgan Stanley updates the financial model for IGO after factoring in the recent equity raise for the proposal to buy 24.99% of
Greenbushes plus 49% of the Kwinana hydroxide plants for US$1.4bn from Tianqi.    

The deal has not completed but the company has raised around $766m of equity via issuing around 166m shares.

Equal-weight. Target price rises to $5.45 from $5.15. Industry view: Attractive.

Target price is $5.45 Current Price is $7.21 Difference: minus $1.76 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.38, suggesting downside of -24.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates IPL as Outperform (1) -

Macquarie highlights fertiliser prices have started the year on a bullish note and there is additional impetus from corn prices which are now the highest in 7 years.

The broker believes the share price should be supported by positive fertiliser price momentum amid tight market conditions and with peak demand still to come. It's considered the potential earnings upside for fertiliser outweighs a potential negative impact from Australian coal.

The analyst lifts FY21 and FY22 EPS estimates by 11% and 5%, respectively. The target price rises to $2.82 from $2.67.

The Outperform rating is unchanged.

Target price is $2.82 Current Price is $2.60 Difference: $0.22
If IPL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.61, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

UBS rates LLC as Buy (1) -

UBS expects Lendlease Group to achieve circa 10.4% return on equity in FY22. Landmark projects including Google and Barangaroo apartments are well-positioned for a vaccine-led cyclical recovery.

Some key near term earnings catalysts include office projects at Melbourne Quarter, MIND (Milan) and One Sydney Harbour.

Buy rating retained with a target price of $14.

Target price is $14.00 Current Price is $12.70 Difference: $1.3
If LLC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.21, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates MGR as Buy (1) -

UBS expects Mirvac Group's pre-sales to grow substantially in 2021 with project launches unlikely to settle until FY23-24.

Despite the group's recent strong performance, Mirvac remains UBS's preferred A-REIT since the stock reflects a quality domestic urbanisation play exposed to the benefits of a vaccine through its focus on higher density environments.

Buy rating is maintained. Target rises to $2.95 from $2.72.

Target price is $2.95 Current Price is $2.54 Difference: $0.41
If MGR meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.70, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates MGX as Outperform (1) -

Macquarie remains positive on iron ore shares, due to strong cash flow yields and earnings upgrade momentum. The broker notes iron ore pricing has been buoyant in early 2021 and shipments have remained strong in the December 2020 quarter.

However, the broker warns of a risk to iron ore prices from steel margins that have come under pressure due to an increase in input costs (both coking coal and iron ore) recently.

For Mount Gibson Iron there is significant (38%) FY21 upside risk to Macquarie's earnings forecasts, with spot prices currently well above the broker's forecasts.

For FY23 and beyond the earnings upside risk for the pure-play stocks is considered to be over 100% under a spot price scenario.

The Outperform rating is unchanged and the target price is $1.20.

Target price is $1.20 Current Price is $0.97 Difference: $0.23
If MGX meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

Macquarie remains positive on iron ore shares, due to strong cash flow yields and earnings upgrade momentum. The broker notes iron ore pricing has been buoyant in early 2021 and shipments have remained strong in the December 2020 quarter.

However, the broker warns of a risk to iron ore prices from steel margins that have come under pressure due to an increase in input costs (both coking coal and iron ore) recently.

Mineral Resources is Macquarie's key mid-cap pick and is considered to offer unique leverage to both the iron-ore price and capex cycle.

There is significant (50%) FY21 upside risk to Macquarie's earnings forecasts, with spot prices currently well above the broker's forecasts.

For FY23 and beyond the earnings upside risk for the pure-play stocks is considered to be over 100% under a spot price scenario.

Macquarie maintains its Outperform rating and the target price is $42.

Target price is $42.00 Current Price is $38.35 Difference: $3.65
If MIN meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $37.53, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates MP1 as Hold (3) -

Megaport released its second quarter result which showed 10% quarter-on-quarter constant currency revenue growth. 

Management expects to be operating cashflow positive in FY22 (pre capex) and Morgans forecasts the company will become free cashflow positive (post capex) in FY24.

The broker warns the appreciating Australian dollar means international revenue and costs decrease on translation. 

The broker reduces revenue forecasts marginally and reduces the target price to $13.27 from $15. The Hold rating is unchanged.

Target price is $13.27 Current Price is $12.82 Difference: $0.45
If MP1 meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $13.84, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MP1 as Hold (3) -

Megaport reported revenue of $18.7m for the second quarter, equating to $36m for the entire first half of FY21. This is below Ord Minnett's forecast of $38m and can be explained by currency headwinds and a seasonally soft sales quarter.

Management has reiterated its intention to become operating income run-rate breakeven by the end of FY21 and highlighted some opportunities to expand the reach of the Megaport platform via its new Megaport Virtual Edge (MVE) product.

Ord Minnett retains a Hold rating and reduces the target to $12.80 from $14.

Target price is $12.80 Current Price is $12.82 Difference: minus $0.02 (current price is over target).
If MP1 meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.84, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates MP1 as Buy (1) -

Following a subdued first quarter, Megaport noted an improvement in its monthly recurring revenue (MRR) in the second quarter.

While new ports added were less than expected at 358 versus UBS's forecast of 565, the broker believes this can be attributed to seasonality, as well as the impact of US election uncertainties.

UBS notes the long-term structural story remains unchanged with the shift to cloud. Even so, the broker has pulled back its new port growth assumptions until a re-acceleration is seen coming through. 

UBS maintains its Buy rating. The target price falls to $15.45 from $16.45.

Target price is $15.45 Current Price is $12.82 Difference: $2.63
If MP1 meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $13.84, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MPL as Hold (3) -

Policy volume growth has been positive for Medibank Private over the first quarter due to covid and Ord Minnett believes the insurance sector will see short-to-medium term benefits. 

On the flip side, there remains margin pressure for the insurance sector with underlying claims inflation (excluding covid) ahead of premium rate increases which have been on the lower side.

Ord Minnett prefers nib Holdings ((NHF)) over Medibank mostly on valuation, less margin contraction risk and the chances of a medium-term turnaround in nib Holdings'  travel business once international travel resumes.

The Hold rating is maintained with the target rising to $2.85 from $2.70.

Target price is $2.85 Current Price is $2.93 Difference: minus $0.08 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates NEC as Overweight (1) -

After focusing on Metro TV advertising spend growth (SMI) versus the company's share price, Morgan Stanley calculates $3 is the approximate midpoint for fundamental value.

Overweight rating is retained. Industry view: Attractive.

Target price is $3.00 Current Price is $2.35 Difference: $0.65
If NEC meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates NHF as Accumulate (2) -

Policy volume growth has been positive for nib Holdings over the first quarter as a result of covid.

On the flip side, there remains margin pressure for the insurance sector with underlying claims inflation (excluding covid) ahead of premium rate increases which have been on the lower side.

Ord Minnett prefers nib Holdings over Medibank Private mostly on valuation, less margin contraction risk and the chances of a medium-term turnaround in nib Holdings'  travel business once international travel resumes.

The Accumulate rating is maintained with the target rising to $6.67 from $5.95.

Target price is $6.67 Current Price is $5.81 Difference: $0.86
If NHF meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.58, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates NWL as Neutral (3) -

Following market updates by competitors Praemium ((PPS)) and Hub24 ((HUB)), Citi analysts see positive read-through for Netwealth, given both market updates proved very strong.

As a result, Citi is anticipating a stronger-than-forecast market update, with the added comment the current valuation is far from compelling - hint, hint.

The rating remains Neutral. Target price is $15.50.

Target price is $15.50 Current Price is $15.03 Difference: $0.47
If NWL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.18, suggesting downside of -10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates QAN as Hold (3) -

Qantas Airways offers good leverage to an improving domestic travel market, assesses Ord Minnett.

Even so, the broker does not expect earnings to recover to pre-covid levels until FY23 with a resumption in international travel expected to take time and require the vaccine to be rolled out globally.

Hold rating maintained with a target price of $5.20.

Target price is $5.20 Current Price is $4.88 Difference: $0.32
If QAN meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates RIO as Buy (1) -

Following the release of Rio Tinto's December quarter production report, Citi analysts have made various modest changes to forecasts. Changes have equally been inspired by marking-to-market a strong iron ore price.

Citi analysts wouldn't rule out a special dividend due to a forecast net cash position of $1.5bn by year-end 2020, but they haven't incorporated this as a base case scenario.

Assuming an 80% payout, this translates into an implied yield of 9% and 7.5% for 2021 and 2022 respectively, on the broker's projections. Buy rating retained. Target price unchanged at $125.

Target price is $125.00 Current Price is $119.63 Difference: $5.37
If RIO meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $119.21, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Credit Suisse rates RIO as Neutral (3) -

Rio Tinto finished 2020 on a strong note, observes Credit Suisse with the miner's 2021's iron ore shipment guidance in line with the broker's forecast.

Risks include the impact of the Heritage Act review and progress at its Oyu Tolgoi mine which remains subject to government approvals, funding and power solutions.

With the numbers indicating Rio will finish 2020 in a net cash position, Credit Suisse considers its 70% payout estimate for the second half is almost a worst-case scenario for shareholders, with the miner having the capacity to pay materially more.

Looking at the unknowns leading into 2021, Credit Suisse decides to maintain its Neutral rating. Target is steady at $95.

Target price is $95.00 Current Price is $119.63 Difference: minus $24.63 (current price is over target).
If RIO meets the Credit Suisse target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $119.21, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Macquarie rates RIO as Outperform (1) -

Fourth quarter production was as expected by Macquarie, with iron ore and aluminium in-line, while mined copper was stronger than expected.

The broker's forecasts are largely in line with the mid-point of 2021 guidance provided by the company.

Macquarie remains positive on iron ore shares generally, due to strong cash flow yields and earnings upgrade momentum. The broker notes iron ore pricing has been buoyant in early 2021 and shipments have remained strong in the December 2020 quarter.

However, the broker warns of a risk to iron ore prices from steel margins that have come under pressure due to an increase in input costs (both coking coal and iron ore) recently.

For Rio Tinto there is significant (29%) FY21 upside to Macquarie's earnings forecasts, with spot prices currently well above the broker's forecasts. For FY23 and beyond the earnings upside risk under a spot price scenario is considered to be 80%.

The Outperform rating is unchanged and the target price lowered to $125 from $127.

Rio Tinto will release 2020 financial results on 17 February 2021.

Target price is $125.00 Current Price is $119.63 Difference: $5.37
If RIO meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $119.21, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

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

Western Australia Iron production (WAIO) came in broadly in-line with Morgan Stanley's expectations, driven by performance at Hope Downs.

Iron Ore shipments from the Australian operations were 1% better than the broker's estimates and consistent with recent shipping data from Australian ports.

Mined copper production was -2% below the analyst's estimate, while refined production was around 6% higher.

Finally, bauxite production was behind Morgan Stanley forecasts by -8%, while alumina was ahead by 4%

Equal-weight rating retained, alongside an Attractive industry view. Target price is $114.5.

Target price is $114.50 Current Price is $119.63 Difference: minus $5.13 (current price is over target).
If RIO 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 $119.21, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Morgans rates RIO as Hold (3) -

Morgans highlights a steady fourth quarter result with iron ore slightly ahead of expectations.

The broker warns of uncertainties for 2021 as unknowns around the new Heritage Act could hamper work to replace reserves at the Pilbara iron ore operations. Mongolian government tensions are also considered to remain over the Oyu Tolgoi underground development.

Morgans maintains the Hold rating, while the target price is increased to $109 from $107.

Target price is $109.00 Current Price is $119.63 Difference: minus $10.63 (current price is over target).
If RIO meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $119.21, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Ord Minnett rates RIO as Buy (1) -

Rio Tinto's December-quarter production report shows iron ore shipments of 89mt, exceeding Ord Minnett's previous forecast by about 7% due to inventory destocking.

Iron ore shipment guidance for 2021 is at 325-340mt, in line with the broker but a touch higher than some forecasters had expected, according to the analyst.

December quarter production and guidance was mixed for copper and Ord Minnett has trimmed its 2021 copper production forecasts. The broker has increased its second-half dividend estimate to $3.73 per share, taking the full-year payout to 70%.

With a growing net cash position, Rio Tinto is one of Ord Minnett's key preferences.

Buy rating retained with the target price rising to $151 from $150.

Target price is $151.00 Current Price is $119.63 Difference: $31.37
If RIO meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $119.21, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

UBS rates RIO as Neutral (3) -

Rio Tinto finished 2020 in line with its guidance and ahead of UBS's estimates with total iron ore shipments at 330.6mt. The miner's 2021 guidance is in line with the market but implies less than 1% copper equivalent growth, observes UBS.

The step-up to 360mtpa of iron ore production is likely to be nearing with Gudai-Darri progressing to its targeted 2022 ramp-up. UBS expects the feasibility report for Jadar deposit by end-2021 with best case project start-up in 2025. 

A final dividend of US$3.70 per share is forecast.

The Neutral rating and target price of $115 are unchanged.

Target price is $115.00 Current Price is $119.63 Difference: minus $4.63 (current price is over target).
If RIO meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $119.21, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Credit Suisse rates RMD as Outperform (1) -

Inspired by a covid-led positive structural shift in mask re-supply, Credit Suisse anticipates strong mask growth will dominate ResMed Inc's future earnings. 

Estimating mask re-supply accounted for 85% of ResMed's mask sales during the peak covid shutdowns, the broker believes re-supply will continue at 80% of mask sales and grow to 85% by FY25.

Credit Suisse considers ResMed is "uniquely placed" to benefit from a shift to home healthcare due to increased investment in its out-of-hospital platforms over the past circa 5 years.

Outperform. Target falls to $29.5 from $31 led by fx headwinds.

The company will report its second-quarter results on February 29, 2021.

Target price is $29.50 Current Price is $27.49 Difference: $2.01
If RMD meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $27.54, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

UBS rates SCG as Downgrade to Sell from Neutral (5) -

UBS downgrades Scentre Group to Sell from Neutral on valuation grounds.

The broker believes the retail re-opening trade has mostly played out and expects a deterioration in leasing spreads along with lower occupancy levels in 2021.

Target rises to $2.58 from $2.40.

Target price is $2.58 Current Price is $2.92 Difference: minus $0.34 (current price is over target).
If SCG meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.60, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Morgan Stanley rates SGP as Overweight (1) -

Morgan Stanley highlights an impressive 92% volume increase versus November for new detached home sales, driven by the HomeBuilder stimulus.

This is the strongest month of sales in the last 20 years. The broker notes Stockland's net deposits are typically around 80% correlated with HIA data, suggesting second quarter 2021 volumes should be very strong.

Overweight rating. Target is $4.60. Industry view: In-line.

Target price is $4.60 Current Price is $4.29 Difference: $0.31
If SGP meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.15, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates SGP as Upgrade to Buy from Neutral (1) -

With ongoing strength in the residential sector expected to continue despite expectations of stimulus tapering, UBS expects prices to remain strong in 2021. Low rates will further help increase sales, adds the broker.

Stockland's pre-sales are expected to grow considerably as sales outstrip production and settlements.

Rating is upgraded to Buy from Neutral with the target rising to $4.50 from $3.80.

Target price is $4.50 Current Price is $4.29 Difference: $0.21
If SGP meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.15, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates SYD as Upgrade to Hold from Lighten (3) -

Traffic numbers for Sydney Airport have improved somewhat but international travel remains anaemic and Ord Minnett believes a full recovery will be a long-drawn-out affair.

Post-NSW border restrictions, Ord Minnett has pulled back its second half passenger numbers estimate and now expects Sydney Airport to report net operating receipts of 3.9cps, down -14% on its previous forecast.

Rating is upgraded to Hold from Lighten with a $6 target.

Target price is $6.00 Current Price is $6.15 Difference: minus $0.15 (current price is over target).
If SYD meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.13, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates TCL as Upgrade to Buy from Hold (1) -

Ord Minnett highlights improving traffic growth across Transurban Group’s assets and believes things will normalise in FY22. Completion of the WestConnex and NorthConnex projects will be positive for cash flows and drive strong growth, adds the broker.

The broker forecasts Transurban’s earnings will stabilise at about 20% above pre-covid levels in FY22 and grow 40% higher in FY23. Any price weakness is seen as an opportunity by the broker.

Rating is upgraded to Buy from Hold with the target price rising to $16.50 from $16.

Target price is $16.50 Current Price is $12.94 Difference: $3.56
If TCL meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $14.47, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Macquarie rates TYR as Neutral (3) -

Macquarie downgrades Tyro Payments to Underperform from Neutral after lowering  merchant growth and total transaction volume (TTV) expectations.

The time taken to resolve connectivity issues has done significant reputational damage, in the analyst's opinion.

The broker also sees downside risk to revenue from discounted merchant fee rates and terminal rental fees as well as overhang from a potential class action.

The target price is reduced to $2.55 from $3.50.

Target price is $2.55 Current Price is $2.90 Difference: minus $0.35 (current price is over target).
If TYR 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 $3.85, suggesting upside of 44.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates TYR as Overweight (1) -

Morgan Stanley remains positive on Tyro Payments despite the connectivity failures. It's considered the next phase will be restoring confidence that this was a one-off incident.

The broker's base case still models further meaningful gains in market share over the long term from existing and new verticals. While higher short-term churn is already clear, the analyst believes the company will overcome the problem.

Overweight rating. Target price is $4. Industry view is Attractive.

Target price is $4.00 Current Price is $2.90 Difference: $1.1
If TYR meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $3.85, suggesting upside of 44.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates TYR as Accumulate (2) -

Tyro Payments provides compelling value for small businesses with its market-leading pricing and a history of being an advocate for small business payments, suggests Ord Minnet. 

The broker expects a strong recovery when all merchants have been brought back online and maintains its Accumulate rating on Tyro with a $5 target price.

Target price is $5.00 Current Price is $2.90 Difference: $2.1
If TYR meets the Ord Minnett target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $3.85, suggesting upside of 44.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates VCX as Downgrade to Sell from Neutral (5) -

UBS downgrades its rating on Vicinity Centres to Sell from Neutral on valuation grounds.

The broker believes the retail re-opening trade has mostly played out and expects a deterioration in leasing spreads along with lower occupancy levels in 2021.

Target price rises to $1.46 from $1.38.

Target price is $1.46 Current Price is $1.61 Difference: minus $0.15 (current price is over target).
If VCX meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.59, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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