Australian Broker Call

Ord Minnett rates ABP as Hold (3) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets, suggests the broker, with listed owners continuing to grow via M&A.

Office and retail malls are expected to face some structural challenges with the full impact on valuations uncertain. This is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Ord Minnett retains its Hold rating on Abacus Property Group with the target falling to $2.76 from $3.00.

Target price is $2.76 Current Price is $2.76 Difference: $0
If ABP meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 4.1% (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

Morgans rates AMC as Add (1) -

Morgans revises exchange rate forecasts for a number of internationally exposed stocks.

After averaging US72.5 cents in the first half of 2021, the broker forecasts an Australian dollar average of US75.5 cents in the second half. The analysts also forecast an average rate of US79 cents in FY22 and US78 cents in FY23, with a long-term rate of US74 cents. 

Morgans also updates AUD/EUR, AUD/GBP and EUR/USD assumptions, amongst others.

Despite a lower US dollar having a positive impact on earnings forecasts for Amcor, when translated into Australian dollars this impact has been more than offset. 

On a constant currency basis, the analyst continues to expect FY21 underlying EPS growth of 10%.

The company remains one of Morgans key picks in the large-cap space due to a global leading market position and strong defensive characteristics.

Morgans maintains the Add rating and the target price falls to $17.30 from $17.80.

Target price is $17.30 Current Price is $14.50 Difference: $2.8
If AMC meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $17.03, suggesting upside of 18.6% (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: 0.5

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

Ord Minnett rates ANZ as Accumulate (2) -

As far as the Australian banking sector is concerned, Ord Minnett believes 2020 was a game of two halves with the first half dominated by worries over covid, provision build-up and interest rate cuts.

In the second half, the broker continues, banks ran strongly as macro-economic concerns waned and support for value stocks emerged.

Ord Minnett notes pre-provision profit multiples are back to pre-covid levels but there is potential for more upside in 2021 given rebounding dividends, non-recurrence of provision top-ups and strong house prices.

Ord Minnett prefers National Australia Bank ((NAB)), ANZ Bank, Macquarie Group ((MQG)), Westpac ((WBC)), Bank of Queensland ((BOQ)), Bendigo and Adelaide Bank ((BEN)) and Commonwealth Bank ((CBA)) in that order.

The Accumulate rating is unchanged with the target rising to $26.20 from $23.40.

Target price is $26.20 Current Price is $24.64 Difference: $1.56
If ANZ meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $25.41, suggesting upside of 3.0% (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

Ord Minnett rates BEN as Hold (3) -

As far as the Australian banking sector is concerned, Ord Minnett believes 2020 was a game of two halves with the first half dominated by worries over covid, provision build-up and interest rate cuts.

In the second half, the broker continues, banks ran strongly as macro-economic concerns waned and support for value stocks emerged.

Ord Minnett notes pre-provision profit multiples are back to pre-covid levels but there is potential for more upside in 2021 given rebounding dividends, non-recurrence of provision top-ups and strong house prices.

Ord Minnett prefers National Australia Bank ((NAB)), ANZ Bank, Macquarie Group ((MQG)), Westpac ((WBC)), Bank of Queensland ((BOQ)), Bendigo and Adelaide Bank ((BEN)) and Commonwealth Bank ((CBA)) in that order.

Bendigo and Adelaide Bank has a Hold recommendation with the target price rising to $9.00 from $8.30.

Target price is $9.00 Current Price is $9.57 Difference: minus $0.57 (current price is over target).
If BEN meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.74, suggesting downside of -8.8% (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

Ord Minnett rates BOQ as Hold (3) -

As far as the Australian banking sector is concerned, Ord Minnett believes 2020 was a game of two halves with the first half dominated by worries over covid, provision build-up and interest rate cuts.

In the second half, the broker continues, banks ran strongly as macro-economic concerns waned and support for value stocks emerged.

Ord Minnett notes pre-provision profit multiples are back to pre-covid levels but there is potential for more upside in 2021 given rebounding dividends, non-recurrence of provision top-ups and strong house prices.

Ord Minnett prefers National Australia Bank ((NAB)), ANZ Bank, Macquarie Group ((MQG)), Westpac ((WBC)), Bank of Queensland ((BOQ)), Bendigo and Adelaide Bank ((BEN)) and Commonwealth Bank ((CBA)) in that order.

Bank of Queensland has a Hold rating with the target rising to $8.30 from $7.50.

Target price is $8.30 Current Price is $8.30 Difference: $0
If BOQ meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $7.79, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in August.

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

Morgans rates BXB as Add (1) -

Morgans revises exchange rate forecasts for a number of internationally exposed stocks.

After averaging US72.5 cents in the first half of 2021, the broker forecasts an Australian dollar average of US75.5 cents in the second half. The analysts also forecast an average rate of US79 cents in FY22 and US78 cents in FY23, with a long-term rate of US74 cents. 

Morgans also updates AUD/EUR, AUD/GBP and EUR/USD assumptions, amongst others.

Despite a lower US dollar having a positive impact on earnings forecasts for Brambles, when translated into Australian dollars this impact has been more than offset.

The company remains one of Morgans key picks in the large-cap space due to a global leading market position and strong defensive characteristics.

The broker continues to see the valuation as attractive and maintains an Add rating. The US$1.65bn on-market buyback should also provide ongoing support for the share price. The target price falls to $11.90 from $12.16.

Target price is $11.90 Current Price is $10.68 Difference: $1.22
If BXB meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.20, suggesting upside of 14.9% (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: 0.8

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

Ord Minnett rates CBA as Hold (3) -

As far as the Australian banking sector is concerned, Ord Minnett believes 2020 was a game of two halves with the first half dominated by worries over covid, provision build-up and interest rate cuts.

In the second half, the broker continues, banks ran strongly as macro-economic concerns waned and support for value stocks emerged.

Ord Minnett notes pre-provision profit multiples are back to pre-covid levels but there is potential for more upside in 2021 given rebounding dividends, non-recurrence of provision top-ups and strong house prices.

Ord Minnett prefers National Australia Bank ((NAB)), ANZ Bank, Macquarie Group ((MQG)), Westpac ((WBC)), Bank of Queensland ((BOQ)), Bendigo and Adelaide Bank ((BEN)) and Commonwealth Bank ((CBA)) in that order.

Hold rating with the target rising to $78.60 from $74.70.

Target price is $78.60 Current Price is $85.09 Difference: minus $6.49 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $75.66, suggesting downside of -11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Citi rates CCL as Neutral (3) -

Coca-Cola Amatil has provided a trading update which indicates to Citi a significant rebound in earnings for the December half, compared with the June half. Milder volume declines and larger cost savings were considered the key drivers.

The company also noted a -$289 million reduction in net debt and capex was $210 million, a reduction from initial plans of $300 million for FY20, explains the broker.

Morgans thinks the takeover offer from CCEP looks increasingly opportunistic given the rapid improvement in second half earnings. It's considered, the biggest dilemma for the Board is contemplating this offer in light of a low interest rate environment.

The Neutral rating is unchanged. The target price is increased to $12.65 from $12.50.

Target price is $12.65 Current Price is $13.03 Difference: minus $0.38 (current price is over target).
If CCL meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.43, suggesting downside of -5.7% (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

Macquarie rates CCL as Neutral (3) -

Coca-Cola Amatil has provided an upbeat Q4 trading update suggesting volume declines are slowing across the group and Australian volumes returned to growth in the quarter. This update, and recent share price performance, may impact on the current $12.75 offer price.

The broker suggests shareholders may wish to hold out for a better price. Neutral and takeover target price of $12.75 retained.

Target price is $12.75 Current Price is $13.03 Difference: minus $0.28 (current price is over target).
If CCL meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.43, suggesting downside of -5.7% (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 CCL as Equal-weight (3) -

Coca-Cola Amatil pre-reported its FY20 results with sales broadly in line with Morgan Stanley's forecasts while operating income was circa 8% ahead led by better cost/margin performance across the group. On-the-go channel continued to play spoilsport.

The result doesn’t imply any alteration in the company's profitability recovery profile, states Morgan Stanley, forecasting FY21 earnings to be broadly in line with FY19.

Morgan Stanley maintains its rating as Equal-weight with a target price of $12.75. Industry view: Cautious.

Target price is $12.75 Current Price is $13.03 Difference: minus $0.28 (current price is over target).
If CCL meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.43, suggesting downside of -5.7% (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

Morgans rates CCL as Hold (3) -

Coca-Cola Amatil's fourth quarter trading and FY20 guidance was materially stronger than Morgans was expecting, due to an easing of covid-19 restrictions.

The beat reflected a stronger than expected fourth quarter recovery across Australia and New Zealand during the important Christmas trading period, explains the broker.

Due to $145m of cost savings targeted by FY22, the analyst thinks the business is well placed in the future. Morgans lifts FY20-22 profit (NPAT) forecasts by 9.1%, 6.1% and 5.2%, respectively.

The company continues to progress with Coca-Cola European Partners (CCEP) takeover offer via a scheme of arrangement.

The Add rating and target price of $12.75 are unchanged.

Target price is $12.75 Current Price is $13.03 Difference: minus $0.28 (current price is over target).
If CCL meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.43, suggesting downside of -5.7% (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

Ord Minnett rates CCL as Hold (3) -

With profit guidance above the broker's forecast and better performance in the fourth quarter, Ord Minnett considers Coca-Cola Amatil's latest trading update positive.

Earnings estimates increased by 2-3% over 2020-22 led by higher volumes in Indonesia, Papua New Guinea and Pacific and lower corporate costs offset by lower volumes and margins in Australia.

Hold rating with a target of $12.75.

Target price is $12.75 Current Price is $13.03 Difference: minus $0.28 (current price is over target).
If CCL 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 $12.43, suggesting downside of -5.7% (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

UBS rates CCL as No Rating (-1) -

UBS notes Coca-Cola Amatil delivered a solid result led by strong cash-flows and solid margins. 2020 operating income was circa 9% ahead of UBS's estimate.

The broker notes the company's channel mix is improving although the on-the-go channel remains a drag, falling by circa -11% in the fourth quarter. UBS expects volumes to recover with stronger second half margins giving higher confidence for 2021.

The broker is restricted on rating and target at present.

Current Price is $13.03. Target price not assessed.

Current consensus price target is $12.43, suggesting downside of -5.7% (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

Ord Minnett rates CDP as Hold (3) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive pricing and healthy balance sheets.

Office and retail malls are expected to face some structural challenges with the full impact on valuations uncertain. This is likely to create volatility and provide selective investment opportunities, assesses the broker.

Expecting retail and office REITs to be the beneficiaries of vaccine roll-outs, Ord Minnett maintains Carindale Property Trust's Hold rating with the target rising to $4.60 from $4.10.

Target price is $4.60 Current Price is $4.37 Difference: $0.23
If CDP meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

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

Ord Minnett rates CHC as Accumulate (2) -

Charter Hall Group is one of Ord Minnett's preferred large-cap REIT exposures in 2021 with the group expected to see strong assets under management (AUM) growth and margin expansion.

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets, suggests the broker, with listed owners continuing to grow via M&A.

Office and retail malls are expected to face some structural challenges with the full impact on valuations uncertain. This is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Accumulate rating retained with the target rising to $16.20 from $16.00.

Target price is $16.20 Current Price is $13.99 Difference: $2.21
If CHC meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $15.52, suggesting upside of 10.4% (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

Ord Minnett rates CMW as Lighten (4) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets, suggests the broker, with listed owners continuing to grow via M&A.

Office and retail malls are expected to face some structural challenges with the full impact on valuations uncertain. This is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Ord Minnett retains Cromwell Property Group’s Lighten rating with the target increasing to $0.80 from $0.77.

Target price is $0.80 Current Price is $0.84 Difference: minus $0.04 (current price is over target).
If CMW meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.94, suggesting upside of 11.5% (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 CNI as Accumulate (2) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Ord Minnett likes sector specialists like Centuria Capital Group and retains its Accumulate rating with the target increasing to $2.90 from $2.85.

Target price is $2.90 Current Price is $2.42 Difference: $0.48
If CNI meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting upside of 11.3% (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

Ord Minnett rates CQE as Accumulate (2) -

Expecting strong valuation growth, Ord Minnett prefers REITs with a long weighted average lease expiry which also includes Charter Hall Social Infrastructure REIT. 

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Accumulate rating is unchanged and the target rises to $3.40 from $3.30.

Target price is $3.40 Current Price is $3.12 Difference: $0.28
If CQE meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

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 CQR as Upgrade to Accumulate from Hold (2) -

Ord Minnett shifts its preference towards non-discretionary convenience retail REITs like Charter Hall Retail REIT and upgrades its rating to Accumulate from Hold. Target is unchanged at $4.

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Target price is $4.00 Current Price is $3.62 Difference: $0.38
If CQR meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.66, 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

UBS rates CTD as Buy (1) -

UBS sees higher short-term headwinds from deteriorating covid conditions in both the US and UK. 

In Australia, the broker believes the chances of any material easing of international restrictions in 2021 look less likely while state border closures continue to impact domestic travel.

While expecting a long term structural impact of -23% to corporate travel, the broker expects Corporate Travel Management to outperform its peers and increase its market share by 8%. 

UBS maintains its Buy rating with the target price rising to $20.40 from $18.70.

Target price is $20.40 Current Price is $16.79 Difference: $3.61
If CTD meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $19.12, suggesting upside of 15.1% (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 DCN as Underperform (5) -

Dacian Gold's December quarter report showed production in line with a pre-release and costs -10% lower than expected. Cash generation was meaningful, the broker notes, and the NTM Gold ((NTM)) merger is expected to be completed by mid-March.

While the merger will add mine life and lift grades, the broker's muted view on the gold price means Underperform and 34c target retained.

Target price is $0.34 Current Price is $0.51 Difference: minus $0.17 (current price is over target).
If DCN meets the Macquarie target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Ord Minnett rates DXS as Hold (3) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

The rating for Dexus Property Group is maintained at Hold with the target price increasing to $9.90 from $9.85.

Target price is $9.90 Current Price is $9.18 Difference: $0.72
If DXS meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $9.75, suggesting upside of 7.2% (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 FMG as Buy (1) -

Fortescue Metals Group's pre-released net profit result for the first half stands at $4-4.1bn, in line with Ord Minnett’s forecast of $4.14bn.

Chairman Andrew Forrest's speech provided insight into the company's future direction, notes the broker, with Fortescue planning to build a commercial-size green steel plant in the Pilbara and undertaking feasibility studies on 300GW of green power opportunities.

The broker highlights a clear strategic shift with the miner likely to make major investments in green hydrogen and green steel.

 Buy rating. Target is unchanged at $29.

Target price is $29.00 Current Price is $24.32 Difference: $4.68
If FMG meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $21.82, suggesting downside of -13.5% (ex-dividends)

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

Citi rates FPH as Sell (5) -

Citi assesses a very strong trading update for Fisher & Paykel Healthcare for the first nine months of FY21. Operating revenue was up 73% in constant currency terms.

The broker believes the result demonstrates demand for the company's products as a result of record high covid-19 hospitalisation rates worldwide.

While not providing actual guidance, the company noted that revenue and profit (NPAT) for FY21 would be higher than the assumptions provided previously.

Sell rating retained. Target rises to NZ$26.50 from NZ$26.25.

Current Price is $32.50. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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 FPH as Sell (5) -

Fisher & Paykel Healthcare Corp's latest trading update showed larger-than-expected covid-led hospital sales. Underlying revenue rose 73% versus last year for the first nine months of FY21 led by hospital sales growth of 113%.

Homecare sales growth were steady at 6% with lower OSA diagnosis rates countered by strong myAiro sales.

UBS sees a material drop in earnings over the next 18 months as hospital equipment and IV consumable sales fade along with a limited acceleration of high flow therapy adoption outside the ICU.

UBS maintains its Sell rating. Target rises to NZ$23.40 from NZ$21.35.

Current Price is $32.50. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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 GMG as Hold (3) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Hold rating for Goodman Group is retained with the target falling to $19.00 from $19.75.

Target price is $19.00 Current Price is $17.75 Difference: $1.25
If GMG meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $19.34, suggesting upside of 6.9% (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 GOR as Outperform (1) -

Gold Road's December quarter production, costs and cash build were all in lne with forecasts. In line with the company's 15-30% free cash flow payout ratio policy, the broker expects a 2c dividend to be announced with the 2020 result.

2021 guidance remains pending but the broker believes it will be the year Gruyere's full processing potential will be unlocked. Outperform and $1.60 target retained.

Target price is $1.60 Current Price is $1.23 Difference: $0.37
If GOR meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates GOR as Buy (1) -

Gold Road Resources' December-quarter numbers ensured a strong finish to 2020, notes Ord Minnett with production of 70.8koz of gold at all-in sustaining costs (AISC) of $1,265/oz at the Gruyere mine. This brings the full-year production to 258koz against the guidance of 250–270koz at $1,273/oz.

The broker is very pleased and considers this a great return for the first full year of production at the Gruyere mine. Going ahead, some drivers include resource to reserve conversion, production growth and further exploration success.

Gold Road Resources remains one of Ord Minnett's preferred stocks among the gold miners.

Buy rating with an unchanged $2.20 target price.

Gold Road and Newcrest Mining ((NCM)) remain the broker's preferred gold stocks.

Buy rating retained with the target rising to $2.20 from $2.15.

Target price is $2.20 Current Price is $1.23 Difference: $0.97
If GOR meets the Ord Minnett target it will return approximately 79% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates GOZ as Hold (3) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Ord Minnett maintains its Hold recommendation on Growthpoint Properties with the target price falling to $3.50 from $3.55.

Target price is $3.50 Current Price is $3.28 Difference: $0.22
If GOZ meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.53, suggesting upside of 8.2% (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 HMC as Hold (3) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Based on the above, Ord Minnett decides to stay with its Hold rating on Home Consortium with the target rising to $3.80 from $3.70.

Target price is $3.80 Current Price is $3.99 Difference: minus $0.19 (current price is over target).
If HMC meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.98, suggesting downside of -1.2% (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 HPI as Accumulate (2) -

Expecting strong valuation growth, Ord Minnett prefers REITs with a long weighted average lease expiry which also includes Hotel Property Investments. 

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Ord Minnett maintains its Accumulate recommendation with the target price rising to $3.60 from $3.50.

Target price is $3.60 Current Price is $3.07 Difference: $0.53
If HPI meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

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 IEL as Buy (1) -

UBS suggests conditions continue to improve for IDP Education. IDP's differentiated technology offering enabled the business to stand out from peers during the pandemic.

The company's outlook over the next 4-5 years looks better driven by higher market share gain opportunities within core Australia, UK and Canada markets and higher-margin computer-based testing within IELTS, asserts the broker.

FY21 earnings forecasts have been increased by 32%. Buy rating is maintained with the target rises to $23 from $21. 

Target price is $23.00 Current Price is $20.41 Difference: $2.59
If IEL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $23.06, suggesting upside of 6.9% (ex-dividends)

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

Ord Minnett rates LNK as Hold (3) -

Link Administration has revised its first-half FY21 guidance with revenue of $597m from $594m, and a net operating profit of $65m from $57m. The upgrade was propelled by stronger trends in PEXA, higher core revenues and improved cash flows.

Ord Minnett remains attracted to Link since the broker sees a valuation disconnect between it and Computershare ((CPU)) and also expects to see some value realised from the sale of PEXA.

The broker retains its Hold rating while a price target of $5.

Target price is $5.00 Current Price is $4.88 Difference: $0.12
If LNK meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 6.1% (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

Morgans rates LVH as Add (1) -

Livehire's second quarter update provides Morgans with the first material evidence of the revenue potential of the North American direct sourcing product.

Despite slightly higher churn and lower average value per client than the broker forecast, the SaaS business had better-than-expected client additions in the quarter.

The analyst highlights cash burn has been dramatically curtailed, and believes the company is funded to cash flow breakeven and beyond.

The Add rating is unchanged and the target price rises to $0.53 from $0.50.

Target price is $0.53 Current Price is $0.30 Difference: $0.23
If LVH meets the Morgans target it will return approximately 77% (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 LYC as Neutral (3) -

Lynas Corp signed an agreement with the US Government’s Department of Defense to build a light rare earth separation facility in Texas at a cost of US$60m with US$30m from the Government.

UBS is pleased and believes this news highlights the strategic value of Lynas' position as being the only non-China producer of separated rare earth products.

While positive, the broker has already modelled Lyans's expansion of capacity to 10.5ktpa of neodymium-praseodymium (NdPr) from the current 7.2ktpa (going by the Lynas 2025 plan).

The broker highlights Lynas is exposed to electric vehicles for which the market for NdPr is expected to triple in size over the next 10 years.

UBS maintains its Neutral rating with a target price of $4.30.

Target price is $4.30 Current Price is $5.56 Difference: minus $1.26 (current price is over target).
If LYC meets the UBS target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 MGR as Downgrade to Hold from Accumulate (3) -

Based on valuation, Ord Minnett downgrades its rating on Mirvac Group to Hold from Accumulate with the target rising to $2.60 from $2.50.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls are expected to face some structural challenges with the full impact on valuations uncertain. This is likely to create volatility and provide selective investment opportunities, assesses the broker.

Target price is $2.60 Current Price is $2.53 Difference: $0.07
If MGR meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

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

As a result of the lower shipments and higher opex revealed in the December production report, Citi  lowers FY21 and FY22 EPS forecasts by -25% and -5%, respectively.

The rating is also lowered to Neutral from Buy, largely due to the 45% share price rally over the last three months.

December quarter production and shipments were in-line with the broker's expectations, while lower shipments are expected for Koolan due to a wet season interruption and a localised rockfall event.

The target price falls to $1.10 from $1.15.

Target price is $1.10 Current Price is $0.97 Difference: $0.13
If MGX meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

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

Macquarie rates MGX as Outperform (1) -

Mt Gibson posted a strong Q4, featuring higher realised prices on in-line sales volumes. Koolan Island sales are expected to be at the bottom end of FY21 guidance but once waste stripping is complete, sales should accelerate and costs reduce, the broker notes.

Buoyant iron ore prices continue to drive significant upside and the company retains 36cps in cash. Outperform retained, target slips to $1.15 from $1.20 on higher costs.

Target price is $1.15 Current Price is $0.97 Difference: $0.18
If MGX meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

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 MX1 as Add (1) -

After a second quarter cashflow report for Micro-X, Morgans calculates sales of the Nano (portable X-ray unit) are growing steadily, and expects momentum to accelerate during 2021.

The broker note a key short term catalyst is a decision on a grant application for development of a system for early stroke detection.

Morgans makes no changes to forecasts. The Speculative Buy rating is maintained and the target price is unchanged at $0.50.

Target price is $0.50 Current Price is $0.36 Difference: $0.14
If MX1 meets the Morgans target it will return approximately 39% (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

Ord Minnett rates NAB as Accumulate (2) -

As far as the Australian banking sector is concerned, Ord Minnett believes 2020 was a game of two halves with the first half dominated by worries over covid, provision build-up and interest rate cuts.

In the second half, the broker continues, banks ran strongly as macro-economic concerns waned and support for value stocks emerged.

Ord Minnett notes pre-provision profit multiples are back to pre-covid levels but there is potential for more upside in 2021 given rebounding dividends, non-recurrence of provision top-ups and strong house prices.

Ord Minnett prefers National Australia Bank ((NAB)), ANZ Bank, Macquarie Group ((MQG)), Westpac ((WBC)), Bank of Queensland ((BOQ)), Bendigo and Adelaide Bank ((BEN)) and Commonwealth Bank ((CBA)) in that order.

Accumulate recommendation on National Australia Bank with the target price moving to $26.50 from $24.20. 

Target price is $26.50 Current Price is $24.12 Difference: $2.38
If NAB meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $23.75, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates NTD as Add (1) -

Morgans highlights National Tyre & Wheel continues to experience strong trading conditions across its various businesses, with Agriculture and 4WD categories exhibiting particular strength.

As a result, the company upgraded first half earnings (EBITDA) guidance materially. The broker advises this guidance does not include any material contribution to earnings from synergies arising from the T4U acquisition.

The analyst remains of the opinion the company will recommence dividends, forecasting an interim dividend of 2.6 cents, and highlights the FY21 dividend forecast represents a yield of around 6.8%.

Morgans upgrades earnings (EBITDA) forecasts by 19% in FY21 and 4-5% in FY22/23.

The Add rating is unchanged and the target is increased to $1.11 from $1.00.

Target price is $1.11 Current Price is $0.95 Difference: $0.16
If NTD meets the Morgans target it will return approximately 17% (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

Morgans rates ORA as Hold (3) -

Morgans revises exchange rate forecasts for a number of internationally exposed stocks.

After averaging US72.5 cents in the first half of 2021, the broker forecasts an Australian dollar average of US75.5 cents in the second half. The analysts also forecast an average rate of US79 cents in FY22 and US78 cents in FY23, with a long-term rate of US74 cents. 

Morgans also updates AUD/EUR, AUD/GBP and EUR/USD assumptions, amongst others.

The broker believes Orora’s strong balance sheet and on-market buyback should provide ongoing support for the share price.

The analyst prefers to see evidence that the recovery can be sustained before potentially becoming more positive on the stock. The Hold rating is unchanged and the target lowered to $2.61 from $2.67.

Target price is $2.61 Current Price is $2.55 Difference: $0.06
If ORA meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.70, suggesting upside of 7.4% (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

Ord Minnett rates PPS as Buy (1) -

Ord Minnett notes improvement in Praemium's operating momentum led by a pick-up in new business, stabilisation in ANZ outflows and the acquisition of Powerwrap.

The company will report its first-half result in mid-February. Ord Minnett warns the result could be messy given the acquisition of Powerwrap and likely incursion of transaction and integration costs.

Even so, the broker expects earnings to show good progress backed by strong second quarter update and potential Powerwrap synergies. Ord Minnett expects first-half operating income of $7.4m.

Buy rating. Target is $0.90.

Target price is $0.90 Current Price is $0.75 Difference: $0.15
If PPS meets the Ord Minnett target it will return approximately 20% (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

Citi rates PPT as Neutral (3) -

Perpetual's second quarter Australian net flows were disappointing to Citi, across both cash, fixed income and Australian equities. Not surprisingly to the broker, the recently acquired businesses also recorded net outflows.

The analyst highlights net outflows from the Australian business are the highest in many years, while outflows from Australian Equities have now continued for seventeen consecutive quarters.

More positively, the broker notes both the Australian and Offshore investment business generated solid alpha (comparison to benchmark index) in the second quarter.

The price target decreases to $32.80 from $33.00. Neutral rating retained.

Target price is $32.80 Current Price is $34.16 Difference: minus $1.36 (current price is over target).
If PPT meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.18, suggesting upside of 7.6% (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

Credit Suisse rates PPT as Outperform (1) -

With funds under management -5% below Credit Suisse's expectations in the second quarter on the back of large outflows, Perpetual's business update was "disappointing". As a result, earnings have been downgraded by -4-6% across the forecast period.

While disappointed, Credit Suisse highlights its Outperform rating is based on a turnaround in flows in 2021 with likely inflows into Trillium.

Outperform rating is maintained with the target falling to $37.50 from $39.00.

Target price is $37.50 Current Price is $34.16 Difference: $3.34
If PPT meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $36.18, suggesting upside of 7.6% (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

Morgan Stanley rates PPT as Overweight (1) -

Perpetual's December quarter group update showed -$3.4bn in outflows versus -$1.5bn estimated by Morgan Stanley, driven by -$2.7bn outflows in Australia.

Funds under management (FUM) were $89.2bn versus Morgan Stanley's $94.2bn noting a circa -$4bn headwind from the strengthening AUD.

Going ahead, expecting better performance across Australia and Trillium, Morgan Stanley believes Perpetual is well placed to return to inflows.

Overweight rating with a target of $42.50. Industry view: In-line.

Target price is $42.50 Current Price is $34.16 Difference: $8.34
If PPT meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $36.18, suggesting upside of 7.6% (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

Morgans rates PWH as Add (1) -

Morgans revises exchange rate forecasts for a number of internationally exposed stocks.

After averaging US72.5 cents in the first half of 2021, the broker forecasts an Australian dollar average of US75.5 cents in the second half. The analysts also forecast an average rate of US79 cents in FY22 and US78 cents in FY23, with a long-term rate of US74 cents. 

Morgans also updates AUD/EUR, AUD/GBP and EUR/USD assumptions, amongst others.

The broker remains confident in the medium-term growth outlook, despite some currency headwinds in the near term.

The Add rating is unchanged and the target is lowered to $5.05 from $5.10.

Target price is $5.05 Current Price is $4.85 Difference: $0.2
If PWH meets the Morgans target it will return approximately 4% (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

Morgans rates REH as Downgrade to Reduce from Hold (5) -

Morgans revises exchange rate forecasts for a number of internationally exposed stocks.

After averaging US72.5 cents in the first half of 2021, the broker forecasts an Australian dollar average of US75.5 cents in the second half. The analysts also forecast an average rate of US79 cents in FY22 and US78 cents in FY23, with a long-term rate of US74 cents. 

Morgans also updates AUD/EUR, AUD/GBP and EUR/USD assumptions, amongst others.

For Reece, downward revisions to earnings forecasts have been due to the stronger Australian dollar.

Morgans calculates the current valuation is stretched and the rating is downgraded to Reduce from Hold. The target price is decreased to $11.45 from $11.60.

Target price is $11.45 Current Price is $16.79 Difference: minus $5.34 (current price is over target).
If REH meets the Morgans target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.52, suggesting downside of -32.4% (ex-dividends)

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

Ord Minnett rates RMD as Lighten (4) -

ResMed Inc will report its second-quarter result on January 29, 2021.

Ord Minnett’s forecasts are mostly aligned with Bloomberg consensus estimates and the broker expects device sales to contract modestly with new patients expected to be below pre-pandemic levels.

Target price rises to $24.60 from $21.30 on account of upgraded long-term gross margin assumptions. Lighten rating.

Target price is $24.60 Current Price is $27.90 Difference: minus $3.3 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.09, suggesting upside of 0.7% (ex-dividends)

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 RWC as Hold (3) -

Morgans revises exchange rate forecasts for a number of internationally exposed stocks.

After averaging US72.5 cents in the first half of 2021, the broker forecasts an Australian dollar average of US75.5 cents in the second half. The analysts also forecast an average rate of US79 cents in FY22 and US78 cents in FY23, with a long-term rate of US74 cents. 

Morgans also updates AUD/EUR, AUD/GBP and EUR/USD assumptions, amongst others.

Despite the broker continuing to see long term growth opportunities, forward visibility remains low in all regions and stronger copper prices and a higher Australian dollar are considered short-term headwinds. The impact from the lockdown in the UK is also unknown.

Morgans retains the Hold rating and reduces the target to $4.08 from $4.39.

Target price is $4.08 Current Price is $4.14 Difference: minus $0.06 (current price is over target).
If RWC meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.31, suggesting upside of 5.3% (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

Ord Minnett rates SCG as Hold (3) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

While industrial and self-storage assets are expected to grow, office and retail malls are expected to face structural challenges with the full impact on valuations uncertain. This is likely to create volatility and provide selective investment opportunities, assesses the broker.

Ord Minnett maintains its Hold recommendation for Scentre Group with the target rising to $2.80 from $2.50.

Target price is $2.80 Current Price is $2.86 Difference: minus $0.06 (current price is over target).
If SCG 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 $2.65, suggesting downside of -6.6% (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

Ord Minnett rates SCP as Downgrade to Hold from Accumulate (3) -

On the basis of price-to-book ratios and dividend yield spreads becoming too wide, Ord Minnett downgrades its SCA Property Group to Hold from Accumulate with the target rising to $2.60 from $2.55.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets, suggests the broker, with listed owners continuing to grow via M&A.

Office and retail malls are expected to face some structural challenges with the full impact on valuations uncertain. This is likely to create volatility and provide selective investment opportunities, assesses the broker.

Target price is $2.60 Current Price is $2.39 Difference: $0.21
If SCP meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.46, suggesting upside of 2.4% (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 SGP as Lighten (4) -

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long-wale assets with listed owners continuing to grow via M&A.

Office and retail malls are expected to face some structural challenges with the full impact on valuations uncertain. This may create volatility and provide selective investment opportunities, assesses the broker.

Lighten recommendation on Stockland is maintained with the target rising to $4.00 from $3.90.

Target price is $4.00 Current Price is $4.54 Difference: minus $0.54 (current price is over target).
If SGP meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.16, suggesting downside 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 SHL as Neutral (3) -

Covid testing rates increased in the December quarter in Sonic Healthcare's key geographies, leading the broker to increase assumptions for FY21.

But while such volumes provide a substantial near term benefit, the broker warns the medium term outlook is less certain. Neutral retained, target rises to $37.20 from $36.00.

Target price is $37.20 Current Price is $35.10 Difference: $2.1
If SHL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $37.35, suggesting upside of 5.5% (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

Citi rates SXY as Buy (1) -

The recently signed Heads of Agreement (HoA) between the Australian Government and the east coast LNG exporters has a positive
read-through for the Atlas expansion final investment decision, in Citi's view.

Separately, quarterly revenue of $27.9m was 16% greater than expected by the broker, on higher gas pricing.

The Buy rating is unchanged and the target price is decreased to $0.43 from $0.44, on higher-than-expected capex and higher net debt. 

Target price is $0.43 Current Price is $0.37 Difference: $0.06
If SXY meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $0.44, suggesting upside of 18.0% (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

Credit Suisse rates SXY as Outperform (1) -

Senex Energy's second-quarter update was solid, observes Credit Suisse, with 16% quarter on quarter rise in Surat Basin gas production and 26% rise in revenue from gas sales led by higher volumes and better realised prices.

All this has culminated into the company's first-half gas production beating Credit Suisse's forecast. The broker notes Senex has a number of catalysts over the next 24 months that could support the share price.

Credit Suisse retains its Outperform rating and increases the target to $0.42 from $0.41. 

Target price is $0.42 Current Price is $0.37 Difference: $0.05
If SXY meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $0.44, suggesting upside of 18.0% (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 SXY as Outperform (1) -

Senex Energy's CSG production continues to ramp up gradually, the broker notes. Project Atlas is now at design capacity. The Roma North expansion is due to come on line later in 2021 while the Atlas expansion is subject to gas contracting.

The broker sees production broadly tripling to FY23 and the company has indicated it remains in the market for new acreages through releases or M&A. Senex boasts strong leverage to the re-tightening of East Coast gas markets, the broker suggests.

Outperform and 45c target retained.

Target price is $0.45 Current Price is $0.37 Difference: $0.08
If SXY meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $0.44, suggesting upside of 18.0% (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

Morgans rates SXY as Add (1) -

Senex Energy reported second quarter production, which was up 21% quarter-on-quarter, and in-line with Morgans estimates. 

The broker calculates the company is trading at a discount to the sector average across Morgans' coverage of energy stocks.

As a result, it's expected the share price will continue to re-rate over the next 12 months as the market gains confidence in the emerging earnings profile and dividend.

The Add rating and $0.53 target price are unchanged.

Target price is $0.53 Current Price is $0.37 Difference: $0.16
If SXY meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $0.44, suggesting upside of 18.0% (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 SXY as Buy (1) -

Senex Energy posted a solid December-quarter production report, observes Ord Minnett, with key metrics in line with the broker's estimates.

The broker is positive on Senex and believes it offers good value, strong growth and leverage to east coast gas prices. Senex Energy remains Ord Minnett's key pick among the small-cap exploration and production companies under its coverage.

Buy rating with a target of $0.44.

Target price is $0.44 Current Price is $0.37 Difference: $0.07
If SXY meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $0.44, suggesting upside of 18.0% (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

Credit Suisse rates SYR as Downgrade to Neutral from Outperform (3) -

Credit Suisse notes no change to the status quo at Syrah’s Balama facility which remains suspended due to soft graphite prices and an adequately supplied market.

Given only a circa 10% increase in graphite fines prices when Syrah has been absent from the market, the broker does not consider the demand sufficient to warrant a restart anytime soon. A Balama restart is forecast for the last quarter of 2021.

Rating is downgraded to Neutral from Outperform with the target price rising to $1.25 from $0.70.

Target price is $1.25 Current Price is $1.31 Difference: minus $0.06 (current price is over target).
If SYR meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.12, suggesting downside of -8.5% (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: 0.0

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

UBS rates SYR as Buy (1) -

With Balama mine operations remaining suspended, no production was reported.

UBS notes Syrah Resources is assessing a potential restart with electric vehicles sales up 89% year on year in the December quarter. Graphite fines pricing is also up 10-15%, according to index providers. 

The broker expects the company needs to see sustained indicators like months of improved electric vehicle demand and price improvements post the Chinese seasonal shut down before restarting its Balama operations.

The target price is increased to $1.50 from $1.30. Buy rating retained.

Target price is $1.50 Current Price is $1.31 Difference: $0.19
If SYR meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.12, suggesting downside of -8.5% (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: 0.0

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

Ord Minnett rates VCX as Buy (1) -

Vicinity Centres is one of Ord Minnett's preferred large-cap REIT exposures in 2021 with the group expected to see strong growth in assets under management (AUM) and margin expansion.

Ord Minnett expects 2021 to be another interesting year for the property sector with relatively attractive sector pricing and healthy balance sheets.

Fundamentals are expected to remain strong for the industrial, self-storage, grocery-anchored retail and long weighted average lease expiry (WALE) assets with listed owners continuing to grow via M&A.

Office and retail malls may face some structural challenges and this is likely to create volatility and provide selective investment opportunities, assesses the broker. 

Buy rating retained with the target rising to $1.80 from $1.70.

Target price is $1.80 Current Price is $1.55 Difference: $0.25
If VCX meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 4.4% (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 VEA as Initiation of coverage with Outperform (1) -

Viva Energy was loss-making in 2020 but the broker expects a recovery in 2021-22 led by the easing of covid travel restrictions, improved refining margins on a global demand recovery, and government support for the Geelong refinery among closures elsewhere.

The fuel industry is a comfortable oligopoly, the broker declares, margin improvement is expected in 2021 and the Coles Alliance should enjoy a recovery. Coverage "initiated" with an Outperform rating on a forecast 23% total shareholder return. Target $2.20.

The broker last covered Viva in February 2020.

Target price is $2.20 Current Price is $1.86 Difference: $0.34
If VEA meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.18, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates WBC as Hold (3) -

As far as the Australian banking sector is concerned, Ord Minnett believes 2020 was a game of two halves with the first half dominated by worries over covid, provision build-up and interest rate cuts.

In the second half, the broker continues, banks ran strongly as macro-economic concerns waned and support for value stocks emerged.

Ord Minnett notes pre-provision profit multiples are back to pre-covid levels but there is potential for more upside in 2021 given rebounding dividends, non-recurrence of provision top-ups and strong house prices.

Ord Minnett prefers National Australia Bank ((NAB)), ANZ Bank, Macquarie Group ((MQG)), Westpac ((WBC)), Bank of Queensland ((BOQ)), Bendigo and Adelaide Bank ((BEN)) and Commonwealth Bank ((CBA)) in that order.

Hold recommendation is retained for Westpac with the target increasing to $22.40 from $20.20.

Target price is $22.40 Current Price is $21.78 Difference: $0.62
If WBC meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $23.21, suggesting upside of 6.7% (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 WEB as Buy (1) -

The aviation sector remains volatile, assesses UBS, seeing higher short-term headwinds from deteriorating covid conditions while even in Australia, a material easing of international restrictions in 2021 looks less likely.

UBS continues to see potential upside risk for leisure travel from pent-up demand upon reopening - both from Australian holiday-makers and European consumers.

Webjet is well-positioned to gain share from struggling peers, claims UBS maintain its Buy rating with the target rising to $5.40 from $4.95.

Target price is $5.40 Current Price is $4.96 Difference: $0.44
If WEB meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.26, suggesting downside of -11.0% (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