Australian Broker Call

Macquarie rates ABC as Upgrade to Neutral from Underperform (3) -

Macquarie expects the momentum in housing will last a while and the longer-term concerns around the lack of immigration and the impact on sustainability are considered less pertinent in the current investment thesis.

Accommodating monetary and fiscal policies are being met by a focus on consumer homes like never before, the broker observes.

Macquarie upgrades to Neutral from Underperform as the improving market conditions offset ongoing structural risks for Adbri. Target is $3.05.

Target price is $3.05 Current Price is $3.16 Difference: minus $0.11 (current price is over target).
If ABC meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.05, suggesting downside of -4.3% (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

Macquarie rates AIZ as Underperform (5) -

Macquarie assesses cargo is currently an important part of Air New Zealand's revenue for FY21 and appears to be maintaining solid volumes and yields.

The timing of the trans-Tasman travel bubble appears increasingly delayed although capacity data signals there is potentially more than 100% of pre-pandemic demand being catered for.

The broker retains an Underperform rating, assessing the stock is priced at pre-pandemic earnings despite the risks. Target is raised to NZ$1.15 from NZ$1.05.

Current Price is $1.55. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

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: -1.0

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

Citi rates AMC as Neutral (3) -

Citi highlights volumes grew in almost every region and category as Amcor posted first half results that beat consensus.

The company raised the full-year outlook for earnings growth to 10-14% from 7-12%, primarily attributable to strong volumes and a strong operating performance. In addition, the Bemis synergy forecast has also been narrowed to $70m from $50-$70m.

The broker foresees a softening in retail, which will likely be offset by improvement in healthcare. Also, the company has increased its share buyback program for FY21 to $350m and remains on the hunt for acquisitions.

The Neutral rating is unchanged and the target price is lowered to $16.40 from 16.80.

Target price is $16.40 Current Price is $15.03 Difference: $1.37
If AMC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 17.6% (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: 0.7

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

Credit Suisse rates AMC as Neutral (3) -

Credit Suisse notes Amcor delivered a strong result although flexibles operating income was a tad weaker. FY21 earnings guidance has been upgraded to USc70.6-73.2 with the broker above company guidance at US74.7c.

Raw material recovery is expected to lag somewhat in the second half.

Neutral rating. Target rises to $15.70 from $15.10. 

Target price is $15.70 Current Price is $15.03 Difference: $0.67
If AMC meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 17.6% (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: 0.7

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

Macquarie rates AMC as Outperform (1) -

Amcor remains Macquarie's preferred pick in the packaging segment. Earnings were lower in core flexibles and the rigid segments in the first half while operating cash was ahead of the broker's forecasts.

Bemis synergies continue to track well and the raw material outlook is considered relatively benign. The broker expected a lift to guidance and was not disappointed, as growth in earnings per share is upgraded to 10-14%.

Macquarie retains an outperform rating and reduces the target is $17.19 from $17.85 because of the higher Australian dollar.

Target price is $17.19 Current Price is $15.03 Difference: $2.16
If AMC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 17.6% (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: 0.7

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

Morgan Stanley rates AMC as Overweight (1) -

Amcor reported broadly in line with expectation, featuring 6% earnings growth and another FY21 guidance upgrade, to 10-14% earnings growth from a prior 7-12%. A $200m increase to the company's buyback program was also announced.

The result underscores the broker's Overweight rating for a high-quality defensive, offering slow but steady earnings growth and a 4% yield topped up by capital management. Target rises to $19 from $18.

Industry view: In Line.

Target price is $19.00 Current Price is $15.03 Difference: $3.97
If AMC meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 17.6% (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: 0.7

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

Morgans rates AMC as Add (1) -

The first half result was ahead of Morgans expectations as the Flexibles division‘s earnings (EBIT constant FX) were up 9% and Rigid Plastics by 10%. 

Bemis synergy benefits continue to track ahead of schedule with US$35m delivered in the first half and management now targeting benefits of around US$70m in FY21.

Management has upgraded FY21 underlying EPS growth guidance to 10-14% versus 7-12% previously. 

The company announced an additional US$200m share buyback program on top of the US$150m buyback announced in November.

Morgans maintains the Add rating and the target price falls to $17.10 from $17.30.

Target price is $17.10 Current Price is $15.03 Difference: $2.07
If AMC meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 17.6% (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: 0.7

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

Ord Minnett rates AMC as Buy (1) -

Amcor's second-quarter result was strong, observes Ord Minnett, with the company achieving earnings growth of 16% in the first half versus Ord Minnett’s estimated 8.1%. A quarterly dividend of US11.75c was declared, in line with the broker's estimate.

FY21 earnings growth guidance has been updated to 10-14%. Amcor remains the broker's key pick in the packaging sector given the stock offers exposure to a highly defensive earnings stream that is expected to grow largely independently of industrial or business cycles.

The Buy rating is maintained and a target of $17.

Target price is $17.00 Current Price is $15.03 Difference: $1.97
If AMC meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 17.6% (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: 0.7

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

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

First half results beat UBS estimates. Earnings growth was supported organically along with the Bemis merger synergies and share buyback accretion. The positive trends have accelerated and Amcor has raised its FY21 constant currency growth guidance to 10-14%.

Nevertheless, UBS expects growth rates will moderate as synergies from the merger fade. The broker is attracted to the company's leading position across global consumer packaging markets and upgrades to Buy from Hold. Target is reduced to $16.60 from $16.66.

Target price is $16.60 Current Price is $15.03 Difference: $1.57
If AMC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $17.00, suggesting upside of 17.6% (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: 0.7

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

Morgan Stanley rates APT as Overweight (1) -

The UK has moved to regulate the BNPL market to protect consumers, broadly in line with recommendations made here and in the US. The broker suggests Afterpay's growth may be impacted at the margin, with underwriting costs modestly increasing.

Given the UK is only around 5% of Afterpay's operations, share price impact should be limited, the broker believes. Overweight and $136 target retained. Industry view: In Line.

Target price is $136.00 Current Price is $144.22 Difference: minus $8.22 (current price is over target).
If APT meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $110.09, suggesting downside of -24.8% (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 ARB as Buy (1) -

As new car sales improve for the third consecutive month, Citi's research indicates SUV/4x4 sales momentum continued in January 2021. 

As a result, the broker sees ARB Corp's medium-term outlook improving. Also, higher household savings and the continuation of international travel restrictions are considered extra tailwinds.

Buy rating retained. Price target $34.25.

Target price is $34.25 Current Price is $37.58 Difference: minus $3.33 (current price is over target).
If ARB meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.76, suggesting downside of -17.6% (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

Citi rates BAP as Buy (1) -

As new car sales improve for the third consecutive month, Citi's research indicates SUV/4x4 sales momentum continued in January 2021. 

Bapcor remains the broker's top pick in the small-cap auto sector, with the defensive business benefiting from consumer mobility changes and multiple long-term growth strategies.

Buy. Target price $8.85.

Target price is $8.85 Current Price is $7.97 Difference: $0.88
If BAP meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.72, suggesting upside of 9.3% (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

Macquarie rates BKW as Neutral (3) -

Macquarie expects the momentum in housing will last a while and the longer-term concerns around the lack of immigration and the impact on sustainability are considered less pertinent in the current investment thesis.

Accommodating monetary and fiscal policies are being met by a focus on consumer homes like never before, the broker observes.

For Brickworks, Macquarie has a Neutral rating and $20.60 target.

Target price is $20.60 Current Price is $19.62 Difference: $0.98
If BKW meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $21.32, suggesting upside of 7.1% (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

Citi rates BWP as Sell (5) -

The first half result for the BWP Trust was overall in line with Citi's estimates, although earnings were -15% lower, due to lower rents and higher net interest.

FY21 DPS is expected by management to be “similar to” FY20 (18.29c), consistent with prior guidance.

The broker notes Bunnings and other large format retailers appear to have traded well through the pandemic. The analyst sees limited read-through to other retail REIT's, given differences in asset mix.

The Sell rating is maintained. The target price is increased to $2.89 from $2.69.

Target price is $2.89 Current Price is $4.22 Difference: minus $1.33 (current price is over target).
If BWP meets the Citi target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.65, suggesting downside of -10.8% (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

Morgan Stanley rates BWP as Underweight (5) -

BWP Trust's first half income missed the broker slightly due to rent relief offered in the period. Guidance to flat FY21 dividend growth is maintained.

The good news is net tangible asset value rose 5% but the bad news was average rent reviews of -14% marks the first time rents have gone backwards, and net operating income of 2.0% is the lowest since inception.

Thirteen rent reviews are pending and seven assets are vacant. Underweight and $3.65 target retained. Industry view: In Line.

Target price is $3.65 Current Price is $4.22 Difference: minus $0.57 (current price is over target).
If BWP meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.65, suggesting downside of -10.8% (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 BWP as Hold (3) -

BWP Trust's first-half distributable profit of $56.9m is 1% above Ord Minnett’s forecast. A flat dividend of 9.02c per share was declared.

While expecting many assets to benefit from the re-rating of infill industrial assets, Ord Minnett believes this is already mostly reflected in the implied capitalisation rate.

Hold rating with the target price falling to $4.20 from $4.40.

Target price is $4.20 Current Price is $4.22 Difference: minus $0.02 (current price is over target).
If BWP 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 $3.65, suggesting downside of -10.8% (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

UBS rates BWP as Sell (5) -

First half results were slightly softer than UBS estimated. Guidance is for similar distributions in FY21 at 18.3c. The main positive news appears to be the renewal of 10 leases, increasing the weighted average lease expiry to 4.5 years.

The company has 19 market rent reviews to complete in the rest of the financial year including six that remain unresolved from FY20.

BWP Trust is priced like a defensive stock despite elevated risks, UBS assesses, and a Sell rating and $3.86 target are retained.

Target price is $3.86 Current Price is $4.22 Difference: minus $0.36 (current price is over target).
If BWP 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 $3.65, suggesting downside of -10.8% (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

Citi rates BWX as Buy (1) -

After reviewing the commentary from peers overseas, Citi feels the US natural skincare category is likely to remain challenged in the short term.

The broker also previews results due Friday, 26 February and forecasts a profit (NPAT) decline of -11% in the first half, with 21% growth forecast for the second half.

The analyst has accounted for 10% growth for both sales and earnings (EBITDA) in FY21, in-line with the company’s outlook.

Citi retains a Buy rating and the target of $5.05.

Target price is $5.05 Current Price is $4.09 Difference: $0.96
If BWX meets the Citi 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

Credit Suisse rates CAR as Neutral (3) -

Credit Suisse believes Carsales.com's recent increase in its used price per lead suggests used car volumes have remained resilient.

Also, the broker expects once dealer relief measures are added to the results, Carsales will see operating income growth in high single digits, reflecting a robust environment in used car sales.

Neutral retained. Target is $18.80.

Target price is $18.80 Current Price is $21.25 Difference: minus $2.45 (current price is over target).
If CAR meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.67, suggesting downside of -7.9% (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

Credit Suisse rates CPU as Neutral (3) -

Computershare’s earnings benefit from the weaker USD, prompting the broker to to upgrade its earnings by 2% in FY21 and 3-4% in FY22-23.

Neutral rating with a target price of $13.90.

Target price is $13.90 Current Price is $14.76 Difference: minus $0.86 (current price is over target).
If CPU meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.18, suggesting downside of -3.5% (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: 0.1

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

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

US-based Haemonetics Corp reported a -22% quarterly drop in plasma collection due to the pandemic. The broker is forecasting a -15% fall in collections for CSL.

As this would represent sequential improvement, the broker remains confident of a recovery to pre-pandemic levels by the September quarter 21. CSL's adoption of Haemonetics' Nex-Sys system could also lead to material improvement in collection yields.

Equal-Weight and $272 target retained. Industry view: In Line.

Target price is $272.00 Current Price is $280.26 Difference: minus $8.26 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $307.63, suggesting upside of 11.7% (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

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

Macquarie expects the momentum in housing will last a while and the longer-term concerns around the lack of immigration and the impact on sustainability are considered less pertinent in the current investment thesis.

Accommodating monetary and fiscal policies are being met by a focus on consumer homes like never before, the broker observes.

Macquarie has been surprised at the momentum in CSR but acknowledges the stock's exposure to the strength in the Australian cycle and upgrades to Outperform with a $6 target.

Target price is $6.00 Current Price is $5.60 Difference: $0.4
If CSR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.42, suggesting downside of -6.5% (ex-dividends)

The company's fiscal year ends in March.

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 DHG as Outperform (1) -

Credit Suisse retains its Outperform rating with a $5.10 target. 

Domain Holdings Australia's guided for the first half operating expense to see a -12% reduction versus last year. With residential depth revenue up 15% in the first quarter, the broker suggests the update shows Domain's leverage to the Sydney market.

With feedback suggesting volumes have continued to trend positively into the second half, the broker considers the near term operating environment favourable.

Target price is $5.10 Current Price is $5.30 Difference: minus $0.2 (current price is over target).
If DHG meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.55, suggesting downside of -15.0% (ex-dividends)

The company's fiscal year ends in May.

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 EHL as Outperform (1) -

Macquarie reviews the stock ahead of the first half results. Emeco has had a tough year in the eastern section but the broker expects the market should find a bottom in FY21 and growth resume in FY22.

Strength in the west is underpinned by buoyant commodity prices. The broker increases the target to $1.30 from $1.15 and retains an Outperform rating.

Target price is $1.30 Current Price is $1.14 Difference: $0.16
If EHL meets the Macquarie target it will return approximately 14% (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 GUD as Buy (1) -

As new car sales improve for the third consecutive month, Citi's research indicates SUV/4x4 sales momentum continued in January 2021. 

The broker sees GUD’s outlook as promising given changes in consumer mobility behavior post covid-19, and the ACAD
acquisition adds new growth opportunities in a fast growing segment. 

Citi has retained its Buy rating  and $14.40 price target.

Target price is $14.40 Current Price is $12.36 Difference: $2.04
If GUD meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $12.98, suggesting upside of 4.7% (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 GUD as Outperform (1) -

Macquarie reviews the outlook ahead of the first half results on February 11. The automotive division is expected to drive a solid result, reflecting the strong trading conditions that continued throughout the second quarter.

The broker increases first half and FY21 revenue forecasts for automotive by 4% and 3%, respectively. Outperform retained. Target rises to $13.00 from $12.60.

Target price is $13.00 Current Price is $12.36 Difference: $0.64
If GUD meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.98, suggesting upside of 4.7% (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 GWA as Upgrade to Outperform from Neutral (1) -

Macquarie reviews housing data, noting approvals continue to strengthen and this will underpin strong growth into FY22. Home building approvals are the highest levels in 65 years.

Previously, Macquarie had expected a rebound in commercial was necessary for a further re-rating in the stock.

While forecasts for commercial business are conservative, commentary from the company indicates it is outperforming broader market numbers by targeting specific categories.

Macquarie upgrades to Outperform from Neutral and raises the target to $3.90 from $3.25.

Target price is $3.90 Current Price is $3.50 Difference: $0.4
If GWA meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.95, suggesting downside of -17.5% (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

Credit Suisse rates HT1 as Outperform (1) -

Credit Suisse notes the market showed signs of recovery in December quarter after a tough 2020. HT&E's Australian Radio Network outperformed the market in the third quarter and Credit Suisse expects this to continue for the remainder of the second half.

With Hong Kong impacted by political uncertainty and lockdown measures in the recent past, the broker expects Cody Outdoor to remain fairly weak but highlight Cody's contribution to earnings and valuation is limited.

 Outperform rating is retained with the target price rising to $2.10 from $1.60.

Target price is $2.10 Current Price is $1.86 Difference: $0.24
If HT1 meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.72, suggesting downside of -7.8% (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 MME as Buy (1) -

MoneyMe had a strong second quarter for originations, observes Ord Minnett, growing by 52% over the first quarter and beating Ord Minnett's forecast of $58m. Gross income was on track for the broker's $56.5m forecast for FY21.

The broker notes recent product launches are experiencing rapid growth with ListReady/RentReady and MoneyMe+ accounting for 9% of the gross loan book as at 31 December 2020.

The Buy rating and $1.92 price target are unchanged.

Target price is $1.92 Current Price is $1.59 Difference: $0.33
If MME meets the Ord Minnett target it will return approximately 21% (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

Credit Suisse rates NEC as Outperform (1) -

Nine Entertainment has guided to first-half operating income growth of more than 40% in December, up from the previous guidance for circa 30% growth. Credit Suisse believed with this upgrade that the stock is now in an upgrade cycle.

The broker's forecast for operating income growth in the first half is 40.5%. Further, the broker notes ad market strength at the end of 2020 has continued into 2021 with Metro TV market expected to see double-digit growth.

Credit Suisse increases the price target to $2.95 from $2.80. Outperform rating.

Target price is $2.95 Current Price is $2.63 Difference: $0.32
If NEC meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.82, suggesting upside of 8.5% (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 NHC as Add (1) -

Morgans is not surprised by the muted share price response to the legal action against Acland 3 as no value had previously been recognised by the market.

The High Court has upheld an appeal against Acland 3’s approvals, ordering the project’s mining lease and environmental authority applications back to the Queensland Land Court for reconsideration.

Although disappointing news to the broker, there is considered to be compelling upside based on Bengalla's cash flow alone. Additionally, a significantly improved thermal coal price is seen as a pathway to de-gearing and resumption of dividends.

The Add rating is unchanged and the target price is increased to $1.60 from $1.53.

Target price is $1.60 Current Price is $1.33 Difference: $0.27
If NHC meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.41, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in July.

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

Credit Suisse rates NWS as Outperform (1) -

On a group basis Credit Suisse expects mixed performance from News Corp’s divisions in the second quarter.

Even so, the broker expects divisions like Dow Jones, book publishing and digital real estate to deliver growth led by a rise in digital subscriptions, higher e-book sales and improving dynamics in the property market both in Australia and in the US.

The second-quarter operating income forecast of US$310m is ahead of consensus at US$295m.

Outperform rating retained. Target rises to $28 from $27.10.

Target price is $28.00 Current Price is $25.52 Difference: $2.48
If NWS meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $27.52, suggesting upside of 9.5% (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: 0.5

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

Macquarie rates PNI as Outperform (1) -

First half net profit was 28% ahead of Macquarie's estimates. The company has delivered on its earnings potential and the broker believes the diversified nature of affiliates and the quality of the performance will support an upgrade cycle.

Pinnacle Investment's share of affiliates net profit was up 80%. Base fee margins also surpassed expectations. Macquarie retains an Outperform rating and considers the risk to the upside. Target is raised to $9.00 from $7.96.

Target price is $9.00 Current Price is $8.03 Difference: $0.97
If PNI meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting upside of 6.4% (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

Morgans rates PNI as Add (1) -

Pinnacle Investment Management Group reported profit (NPAT) up 120% on the previous corresponding period, with significant performance fees the main driver, explains Morgans.

Group funds under management (FUM) closed at 70.5bn, up 20% over six months.

The broker sees a sustainable step-up in base-level earnings and upgrades estimates by circa 32% for the forecast period. Forecast upgrades were largely driven by higher starting FUM, increased second half net inflow assumptions and higher performance fees in outer years.

Morgans retains an Add rating and increases the target price to $9.40 from $7.65.

Target price is $9.40 Current Price is $8.03 Difference: $1.37
If PNI meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting upside of 6.4% (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 PNI as Buy (1) -

According to Ord Minnett, Pinnacle Investment Management's result was "exceptional" with profit well ahead of expectations and driving earnings upgrades of 17-22% in FY21-22.

The company's overheads were "sharply" down due to cost containment and a bumper revenue result, notes the broker who is encouraged by the resilience the company has displayed through a challenging 2020.

Buy with the target rising to $9.68 from $7.85.

Target price is $9.68 Current Price is $8.03 Difference: $1.65
If PNI meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $9.36, suggesting upside of 6.4% (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

Macquarie rates PSI as Outperform (1) -

PSC Insurance has pre-released first half results, noting $28.7m in operating earnings (EBITDA), and reiterated FY21 operating earnings guidance at the top end of the $65-70m range.

Organic growth continues across both Australia and the UK and acquisitions remain in focus, which Macquarie assesses represent upside risk to earnings forecasts.

Outperform retained. Target is $3.60.

Target price is $3.60 Current Price is $3.16 Difference: $0.44
If PSI meets the Macquarie target it will return approximately 14% (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

Credit Suisse rates REA as Neutral (3) -

Credit Suisse expects some of the operating expense decline seen in REA Group's first quarter to reverse in the second quarter.

Neutral retained. Target is $137.70.

Target price is $137.70 Current Price is $154.98 Difference: minus $17.28 (current price is over target).
If REA meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $125.42, suggesting downside of -18.8% (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

Credit Suisse rates SEK as Outperform (1) -

Macro conditions have continued to improve for Seek A&NZ and Zhaopin, observes Credit Suisse, seeing it highly likely that Seek will upgrade its current guidance at its first-half result.

Credit Suisse has upgraded its forecasts and expects A&NZ volumes to decline by -5% instead of -10%. Zhaopin's revenue growth is expected to be 5% rather than 3% in FY21.

Credit Suisse retains its Outperform rating with the target price rising to $31.30 from $28.50.

Target price is $31.30 Current Price is $29.61 Difference: $1.69
If SEK meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $25.52, suggesting downside of -15.2% (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

Macquarie rates SEK as Neutral (3) -

Macquarie reviews forecasts ahead of the first half result. A recovery in the labour market is occurring at better rates than previously expected and this underpins volumes.

The broker moderates its view on a first half decline in Australasian new advertising volume forecasts to -7% year-on-year. Zhaopin revenue forecasts are upgraded to a decline of -1.4%.

The broker considers the stock an attractive growth story albeit fully priced for the recovery and retains a Neutral rating. Target is raised to $28.20 from $21.30.

Target price is $28.20 Current Price is $29.61 Difference: minus $1.41 (current price is over target).
If SEK meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.52, suggesting downside of -15.2% (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

Citi rates SGM as Neutral (3) -

Sims reports first half results on 16 Feb and Citi expects earnings (EBIT) of $37m and underlying profit (NPAT) of $24m. It's also expected  there will be an interim dividend of 6 cents after a return to profitability.

The broker forecasts greater profit momentum in the second half as scrap prices have moved aggressively from late November 2020.

The broker increases the target to $13 from $12.50 largely on market multiple re-ratings and retains a Neutral rating.

Target price is $13.00 Current Price is $12.89 Difference: $0.11
If SGM meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $13.95, suggesting upside of 9.3% (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

Macquarie rates SLK as Neutral (3) -

Macquarie lowers FY21-23 estimates by up to 7%, reflecting an updated view on tourism activity. The broker assumes a return to pre-pandemic marine and tourism earnings in FY23.

The broker retains a Neutral rating and raises the target to $6.70 from $6.18.

Target price is $6.70 Current Price is $6.44 Difference: $0.26
If SLK meets the Macquarie 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: 0.5

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

Credit Suisse rates SWM as Outperform (1) -

Credit Suisse has upgraded its earnings estimates for Seven West Media to reflect its latest FY21 Metro TV ad market forecasts. The broker expects 4% growth versus last year with the first half expected to see market declines of -2%.  

Outperform rating. Target rises to $0.50 from $0.40.

Target price is $0.50 Current Price is $0.42 Difference: $0.08
If SWM meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $0.38, suggesting downside of -12.8% (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 TAH as Lighten (4) -

Ord Minnett notes if reports of a potential acquisition of Tabcorp Holdings’ underperforming wagering and media division come to fruition, Americans may be spending $6.6bn pa on Australian racing very soon.

The broker suspects any would-be buyers will target the Sky Racing media assets and that the bidder is likely to capitalise on the bearish wagering outlook to extract the value of the media business.

Sky Racing and media assets are valued by Ord Minnett at about $900m, with potential upside using US-media rights valuations. 

Ord Minnett retains its Lighten recommendation with a target price of $3.10.

Target price is $3.10 Current Price is $4.57 Difference: minus $1.47 (current price is over target).
If TAH meets the Ord Minnett target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.04, suggesting downside of -10.5% (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

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

No surprise December wine exports to China were down -98% but Hong Kong sympathised, and exports increased 340%. Unfortunately that's a loss of -$170m of business for a gain of $31m, the broker notes.

Malaysia. Indonesia, Thailand and Canada also tried to help, but off low bases.

Net asset value provides a floor but China, covid and US restructuring remain as risks, the broker warns. Recent outperformance leads the broker to pull back to Equal-weight on Treasury Wine from Overweight. Target unchanged at $10.
 

Target price is $10.00 Current Price is $10.43 Difference: minus $0.43 (current price is over target).
If TWE 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 $9.43, suggesting downside of -6.7% (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

Morgans rates VUK as Reduce (5) -

Virgin Money UK has released a December quarter trading update (sans earnings figures) and reaffirmed the FY21 guidance and targets set out at the FY20 results.

The first quarter credit impairment charge is only GBP18m (compared with GBP269m in the second half  of 2020 and GBP232m in the first half of 2020). On a run-rate basis, this charge is significantly lower than Morgan's expectation for FY21.

The analyst believes this outcome, while positive for the company, is of greater import (and positive) for the major Australian banks that have stronger provision coverage levels for their respective mortgage books.

The Reduce rating is unchanged and the target is increased to $2.36 from $2.

Target price is $2.36 Current Price is $2.82 Difference: minus $0.46 (current price is over target).
If VUK meets the Morgans target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.53, suggesting downside of -5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

This company reports in GBP. 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