Australian Broker Call

Citi rates A2M as Sell (5) -

Citi retains its Sell rating on a2 Milk with the target falling to $9.40 from $9.50.

The broker believes a2 Milk is in for a challenging second half given the resurgence of domestic brands, uncertainties surrounding market access and the ongoing weakness in the daigou market.

The broker remains concerned about the structural pressures Australian infant formula market brands are facing.

Target price is $9.40 Current Price is $10.23 Difference: minus $0.83 (current price is over target).
If A2M meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.09, suggesting upside of 16.1% (ex-dividends)

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: 0.3

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

Macquarie rates AFG as Outperform (1) -

Australian Finance Group recently reported circa $19.9bn in lodgements in the second quarter. Macquarie calculates a 60% conversion of lodgements in FY21 would drive a minimum 2.2% increase in the broker's forecast FY21 profit (NPAT).

The analyst reminds profitability is most sensitive to net interest margin, followed by AFG Securitisation book growth and then third party funded settlements.

The Outperform rating is unchanged and the target is lifted to $3.13 from $3.03 by Macquarie as conditions remain supportive.

Target price is $3.13 Current Price is $3.02 Difference: $0.11
If AFG meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.94, suggesting downside of -3.8% (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

Macquarie rates AGI as Outperform (1) -

After analysing Australian game performance data, Macquarie notes Ainsworth Game Technology was the only supplier showing improved performance over the last 12 months. However, in aggregate newer titles are still performing below floor average, notes the broker.

The company, at 14% of floor, has the second largest floor share amongst the major manufacturers.

The Outperform rating and $0.65 target are unchanged.

Target price is $0.65 Current Price is $0.71 Difference: minus $0.06 (current price is over target).
If AGI meets the Macquarie target it will return approximately minus 8% (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: 0.0

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

Macquarie rates ALL as Neutral (3) -

Australian game performance data illustrates to Macquarie the product advantage that Aristocrat has over peers, which is also being seen in other regions like North America.

In the broker's opinion, the company still has the best content supported by new “Dragon Link” titles and “Choy’s Kingdom”.

Macquarie also believes recent operational trends are better than expected, in particular within North American land-based and social casinos. It's considered there's a pathway to $1bn profit (NPATA) in FY22, subject to currency moves. Each 1cent move has around a $11m impact.

Neutral rating and target of $32 retained.

Target price is $32.00 Current Price is $34.29 Difference: minus $2.29 (current price is over target).
If ALL meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.26, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in September.

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 ANN as Accumulate (2) -

Ansell will report its first-half FY21 result on February 16.

The company had confirmed in a prior update it benefited immensely from covid related demand in the December half. Ord Minnett sits near the middle of Ansell's pre-guided first-half earnings range of 81-84c at 83c.

Target price is $40.80 with an Accumulate rating.

Target price is $40.80 Current Price is $37.97 Difference: $2.83
If ANN meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $40.96, suggesting upside of 8.9% (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: 0.5

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

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

Ord Minnett looks at some key issues investors should look for in the interim result. In the broker's view, ASX has reached the bottom of its earnings and the broker expects to see some rebound in FY22.

Rating is upgraded to Hold from Lighten with the target price reducing to $73.78 from $77.28.

Target price is $73.78 Current Price is $70.59 Difference: $3.19
If ASX meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $69.94, suggesting upside of 0.1% (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

Ord Minnett rates BHP as Buy (1) -

Ord Minnett has lifted its 2021 iron ore price forecast by 6% to US$134/t, thereby leading to higher net profit forecasts for Australian miners in FY21-22. 

The broker notes BHP is well placed and could direct a part of its excess capital towards an on-market share buyback. The company will report its first-half result on February 16 and Ord Minnett expects earnings of US$5.9bn.

Buy rating retained with the target price rising to $53 from $52.

Target price is $53.00 Current Price is $44.84 Difference: $8.16
If BHP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $46.54, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in October.

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: 0.6

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

Citi rates BLD as Buy (1) -

In its initial assessment of Boral's first-half result, Citi notes the company's operating income at $486m is down -1% versus last year driven by better results in North America and offset by weaker performance in Australia.

Core net profit of $156 million was 10% ahead of Citi's forecast. No interim dividend was declared.

Citi assesses Boral's result as solid with more consensus upgrades to follow given the stronger North America market and a positive market outlook in 2021. 

Buy and $5.30 target retained.

Target price is $5.30 Current Price is $5.41 Difference: minus $0.11 (current price is over target).
If BLD meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.24, suggesting upside of 4.8% (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 BPT as Outperform (1) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

The analysts maintain a preference for Beach Energy and expect updated FY21 guidance to incorporate acquisitions of Cooper Basin and Bass Basin. 

The Outperform rating and $2.30 target are retained.

Target price is $2.30 Current Price is $1.87 Difference: $0.43
If BPT meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting upside of 15.1% (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 BUB as Sell (5) -

Citi retains its Sell rating on Bubs Australia with a target of $0.51.

The broker believes a2 Milk is in for a challenging second half given the resurgence of domestic brands, uncertainties surrounding market access and the ongoing weakness in the daigou market.

The broker remains concerned about the structural pressures Australian infant formula market brands are facing.

Target price is $0.51 Current Price is $0.66 Difference: minus $0.15 (current price is over target).
If BUB meets the Citi 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: -1.0

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

Macquarie rates CGF as Outperform (1) -

The initial impressions of Challenger's first-half result are slightly weak, observes Macquarie, with a circa -1% miss to net profit before tax versus consensus.

FY21 guidance remains intact but the broker notes the circa $11m benefit to rental abatement implies an almost -2.7% downgrade to the mid-point of the guidance.

Macquarie likes Challenger's long-term growth thematic coupled with the capital benefits of the acquisition of the bank licence.

Outperform retained with a target of $4.60.

Target price is $4.60 Current Price is $7.22 Difference: minus $2.62 (current price is over target).
If CGF meets the Macquarie target it will return approximately minus 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.44, suggesting upside of 4.1% (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

Macquarie rates CHN as Outperform (1) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

The broker has Chalice Gold Mines as one of the preferred exploration exposures.

The Outperform rating and $5.40 target are unchanged.

Target price is $5.40 Current Price is $4.39 Difference: $1.01
If CHN meets the Macquarie 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

Macquarie rates CLQ as No Rating (-1) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

Indonesia may look to ban deep sea tailings, which could delay the development of high-pressure acid leaching (HPAL) plants and provide a further tailwind for nickel prices, explains the broker.

Macquarie is currently under research restriction on Clean Teq Holdings.

Current Price is $0.28. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Citi rates CLW as Buy (1) -

Charter Hall Long WALE REIT’s first-half earnings at 14.5c are 1.4% ahead of Citi and consensus estimates.

Despite the beat, the REIT has left its FY21 guidance unchanged although Citi sees upside given accretion from the circa $700m acquisitions in the first half and lower debt costs. 

Citi retains its Buy rating with the target price falling to $5.30 from $5.32.

Target price is $5.30 Current Price is $4.70 Difference: $0.6
If CLW meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 10.9% (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 CLW as Outperform (1) -

Charter Hall Long WALE REIT has reported operating results directly in-line with Macquarie's estimates. The FY21 operating EPS/DPS guidance of at least 29.1 cents was reaffirmed by management.

The broker highlights the outcome on lease up and/or sale of the Bowen Hills asset remains a key catalyst. Lease-up and hold or lease-up and divest are considered to be superior options.

Outperform rating. Target is increased to $5.38 from $5.34.

Target price is $5.38 Current Price is $4.70 Difference: $0.68
If CLW meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgan Stanley rates CLW as Overweight (1) -

Charter Hall Long WALE reported first half results ahead of Morgan Stanley's estimates. FY21 profit guidance has been maintained at more than 29.1c per share.

Morgan Stanley considers the results "good", although was a little surprised by the $494,000 of pandemic-related rent relief. Moreover, the broker notes around half of the rent deferral grant has been provisioned.

Morgan Stanley retains an Overweight rating, In-Line industry view and $5.35 target.

Target price is $5.35 Current Price is $4.70 Difference: $0.65
If CLW meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 10.9% (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

Ord Minnett rates CLW as Hold (3) -

Charter Hall Long WALE REIT released its first-half result, broadly in line with Ord Minnett's expectations. The operating earnings per share at 14.5c were slightly below the broker's forecast of 14.7c but the broker sees some upside to its earnings forecasts for FY21.

Although the REIT's portfolio has shown resilience during the first half, the gearing levels have increased to 39.3%.

Hold rating retained. Target rises to $4.82 from $4.81.

Target price is $4.82 Current Price is $4.70 Difference: $0.12
If CLW meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 10.9% (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

UBS rates CLW as Neutral (3) -

First half operating earnings per share of 14.5c reflected a respectable growth rate of 3.6%, UBS assesses. Rental abatements were immaterial. The company has maintained guidance for no less than 29.1c per share.

UBS finds the distribution yield of 6% attractive relative to other passive A-REITs. Performance is expected to be capped by concerns about rising long-term bond yields and ongoing equity issuance.

UBS retains its Neutral rating with a target price of $5.20.

Target price is $5.20 Current Price is $4.70 Difference: $0.5
If CLW meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 10.9% (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 COE as Neutral (3) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

One potential positive for Cooper Energy envisaged by the broker is a resolution to the Orbost plant issues.

Neutral and target of 38 cents unchanged.

Target price is $0.38 Current Price is $0.32 Difference: $0.06
If COE meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $0.40, suggesting upside of 28.1% (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

Macquarie rates COH as Outperform (1) -

In anticipation of the February reporting season, Macquarie looks at key considerations for each stock covered by the broker within the healthcare sector. 

The broker continues to see domestic/Australian exposures as well positioned relative to those with an global focus, due to lower covid-19 cases and improving activity trends.

The analyst's forecasts for Cochlear assumes improved activity in the second half, supplemented by incremental market share gains. This positive view is premised on above-industry growth. 

Outperform rating and target of $241 are maintained.

Target price is $241.00 Current Price is $206.63 Difference: $34.37
If COH meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $206.05, suggesting downside of -0.3% (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 COH as Upgrade to Hold from Lighten (3) -

After an encouraging first-half update and positive feedback from the US, Ord Minnett is confident Cochlear will a report a strong earnings recovery led by market share gains and flat operating costs. No guidance is expected.

Earnings estimates have been increased by 8% in FY21 and 7% in FY22.

Cochlear will report its first-half FY21 result on February 19.

Rating is upgraded to Hold from Lighten with the target rising to $200 from $175.

Target price is $200.00 Current Price is $206.63 Difference: minus $6.63 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $206.05, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates CSL as Neutral (3) -

In anticipation of the February reporting season, Macquarie looks at key considerations for each stock covered by the broker within the healthcare sector. 

The broker continues to see domestic/Australian exposures as well positioned relative to those with an global focus, due to lower covid-19 cases and improving activity trends.

The analyst expects the near-term focus will remain on covid-19-related impacts including plasma collection volumes, donor fees, and finished product demand. Strong growth for Seqirus is expected from increased flu vaccine volumes and vaccination rates. 

In a separate note, Macquarie notes plasma collection centre foot traffic remains subdued. Recent government stimulus has been highlighted as contributing to lower industry collection volumes and further stimulus presents additional risks.

The Neutral rating and $290 target are unchanged.

Target price is $290.00 Current Price is $277.09 Difference: $12.91
If CSL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $306.20, suggesting upside of 11.5% (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: 0.4

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

Macquarie rates CVN as Neutral (3) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

One positive contemplated by the broker is the successful completion of the Buffalo farm-out.

The Neutral rating and $0.31 target are unchanged.

Target price is $0.31 Current Price is $0.28 Difference: $0.03
If CVN meets the Macquarie target it will return approximately 11% (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 DXS as Hold (3) -

An initial assessment of Dexus Property Group's first-half result shows funds from operations at 34.4c were ahead of Ord Minnett's expected 32.4c.

The broker notes asset values have been stable so far but may see some softness due to softening fundamentals. Funds management operating income declined -18% to $27.3m driven by lower leasing fees and revenue skewed towards the second half.

The rating for Dexus Property Group is maintained at Hold with a target price of $9.90.

Target price is $9.90 Current Price is $8.73 Difference: $1.17
If DXS meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.75, suggesting upside of 15.4% (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

Macquarie rates ECX as Outperform (1) -

After incorporating used car prices and operating conditions, Macquarie upgrades earnings forecasts for EclipX Group. FY21-23 EPS forecasts are lifted by 6.4%, 7.1% and 9.2%, respectively.

The supply of used cars (three-five years old vehicles), having peaked in 2020, is set to decline from 2021 through to 2023, explains the broker.

Outperform retained and target rises to $2.22 from $2.01.

Target price is $2.22 Current Price is $1.97 Difference: $0.25
If ECX meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in September.

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 ELD as Buy (1) -

Meat and Livestock Australia's (MLA) latest cattle industry projections suggest 2021 could see record cattle prices on the back of a prolonged herd rebuild phase and high restocker demand.

As a result, Citi continues to see upside risk to its livestock agency earnings for Elders in FY21 (almost 26% of the group's gross profit). 

A recovery in beef exports is in store in 2021, suggests Citi, with volumes expected to grow by 10% over the next three years. Also, the broker expects net profit to grow at a compounded annual growth rate of 9% to FY23 led by livestock prices and seasonal conditions.

Citi retains its Buy rating and $13 target.

Target price is $13.00 Current Price is $11.20 Difference: $1.8
If ELD meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $12.89, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates FMG as Outperform (1) -

With Fortescue Metals Group set to report first half results on February 18, Macquarie expects a strong result with half-on-half revenue, earnings (EBITDA) and profit (NPAT) up 48%, 61% and 78%, respectively.

The broker estimates an interim dividend of $1.37, as buoyant iron ore prices continue to drive earning's upgrade momentum.

In a spot price scenario, the analyst's forecast earnings increase by 15%, 100% and 275% for FY21, FY22 and FY23, respectively.

Outperform and $26.50 target maintained.

Target price is $26.50 Current Price is $23.72 Difference: $2.78
If FMG meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $22.98, suggesting downside of -4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates HLS as Outperform (1) -

In anticipation of the February reporting season, Macquarie looks at key considerations for each stock covered by the broker within the healthcare sector. 

The broker continues to see domestic/Australian exposures as well positioned relative to those with an global focus, due to lower covid-19 cases and improving activity trends.

The analyst sees upside risk to consensus expectations for Healius, reflecting strong contributions from covid-19/PCR testing. Base pathology trends are considered to have shown improvement in Australia, but with trends in other regions less clear.

Recent Medicare data indicates improved base pathology and diagnostic imaging (DI) volumes, highlights Macquarie.

The broker retains an Outperform rating and $4.35 target.

Target price is $4.35 Current Price is $4.13 Difference: $0.22
If HLS meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.16, suggesting upside of 1.7% (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 HVN as Downgrade to Hold from Accumulate (3) -

Ord Minnett downgrades its recommendation on Harvey Norman to Hold from Accumulate due to the lack of valuation support. Target rises to $5.50 from $5.25.

The broker expects Harvey Norman's underlying pre-tax profit for the first half to be up 91% at $545.7m.

The broker awaits more comments on the tailwinds from rising home investment and the extent to which this can moderate sales and margin declines.

Target price is $5.50 Current Price is $5.62 Difference: minus $0.12 (current price is over target).
If HVN 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 $5.69, suggesting upside of 1.1% (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 IDX as Outperform (1) -

In anticipation of the February reporting season, Macquarie looks at key considerations for each stock covered by the broker within the healthcare sector. 

The broker continues to see domestic/Australian exposures as well positioned relative to those with an global focus, due to lower covid-19 cases and improving activity trends.

The analyst sees upside risk for Integral Diagnostics, reflecting improved activity trends in recent months. Also, contributions from acquisitions (IQ, Ascot) are considered likely to supplement organic growth.

Macquarie retains an Outperform rating and the target of $5.20.

Target price is $5.20 Current Price is $4.68 Difference: $0.52
If IDX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 1.1% (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 IGO as No Rating (-1) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

Earnings risk has shifted to a positive for IGO at spot prices, notes the broker. This is driven by the re-basing of the broker's nickel forecasts and the gold exposure from Tropicana, with 45-100% upside for FY21-24.

Macquarie is under research restriction for IGO.

Current Price is $6.35. Target price not assessed.

Current consensus price target is $6.09, suggesting downside of -7.3% (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

UBS rates IMD as Neutral (3) -

First half was ahead of expectations and UBS notes a positive start to the second half with record levels of instruments on hire in January. High margin instrument revenue is growing 13%, offsetting a -17% decline in lower margin month sales.

UBS considers the valuation risks are evenly balanced and awaits more attractive entry point, retaining a Neutral rating and raising the target to $1.90 from $1.45. FY21 estimates are upgraded by 29% while FY22-23 are unchanged.

Target price is $1.90 Current Price is $1.85 Difference: $0.05
If IMD meets the UBS target it will return approximately 3% (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

Citi rates JHX as Neutral (3) -

James Hardie's December quarter result shows the company's net profit rose by 59% versus last year and is 15% ahead of Citi estimate. Citi notes the beat was driven by a broad-based rebound in all divisions. A special dividend of US 7c was declared.

In its initial assessment, Citi considers the result strong and believes upside to its expectations could come from new product innovation expected in mid-2022.

The company also upgraded its net profit guidance to US$440-US$450m from US$380-420m. Ordinary dividends are expected to be reinstated in FY22.

Neutral retained with a target of $36.35.

Target price is $36.35 Current Price is $40.75 Difference: minus $4.4 (current price is over target).
If JHX meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.43, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in March.

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: 0.6

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

Macquarie rates JHX as Outperform (1) -

James Hardie Industries reported its third quarter results with net profit rising by 59% to USD123.3m versus Macquarie's estimated USD112.1m. The company announced a special dividend of US$0.70, leaving Macquarie surprised.

In the initial assessment, Macquarie considers this an exceptionally strong result in a good operating environment, pointing to execution gains. The broker also notes the company aims at rolling out new products which should aid medium-term growth prospects.

Outperform retained with a target of $45.25.

Target price is $45.25 Current Price is $40.75 Difference: $4.5
If JHX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $41.43, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in March.

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: 0.6

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

Ord Minnett rates JHX as Accumulate (2) -

In an initial assessment of James Hardie’s third-quarter results, the top-line was slightly ahead of Ord Minnett's forecast bolstered by stronger margins across all three divisions. A special dividend of US70c was announced.

For the North America Fiber cement (NAFC) division, the operating income was 14.3% above Ord Minnett's estimate with volumes growing 17%. Operating income for Asia Pacific and Europe beat the broker's forecasts by 11.5% and 11%.

The company has updated its FY21 net profit guidance to $440-$450m from $380-420m with the broker expecting $427m.

Target price is $42. Accumulate rating is retained.

Target price is $42.00 Current Price is $40.75 Difference: $1.25
If JHX meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $41.43, suggesting upside of 0.4% (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: 0.6

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

Macquarie rates KAR as Outperform (1) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

Some negatives contemplated by the broker are sharper-than-expected production declines at Bauna and poor execution at the Neon/Goia development assets.

The Outperform rating and $1.35 target are unchanged.

Target price is $1.35 Current Price is $1.09 Difference: $0.26
If KAR meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 35.8% (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

Morgan Stanley rates KAR as Overweight (1) -

Morgan Stanley notes, in Brazil, there has been rising investor interest across the energy industry, evidence through IPOs and asset transactions.

Costs have been declining and at Karoon Energy's Bauna production costs have been guided at near US$27/bbl. Morgan Stanley expects this will decrease over time as production has increased.

Outside the pre-salt area, the regulatory regime has been stable, although risks remain in Brazil given the pandemic and an election due in 2022.

Morgan Stanley considers Karoon Energy a key by in the sector, retaining an Overweight rating, Attractive industry view. The broker raises the target to $1.50 from $1.30.

Target price is $1.50 Current Price is $1.09 Difference: $0.41
If KAR meets the Morgan Stanley target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.49, suggesting upside of 35.8% (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

Macquarie rates MCR as Outperform (1) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

Mincor Resources provides significant leverage to nickel on the mooted resumption of mining, with the net present value (NPV) increasing 22% for a 10% change in nickel prices, calculates the broker.

The Outperform rating and $1.40 target are unchanged.

Target price is $1.40 Current Price is $1.08 Difference: $0.32
If MCR meets the Macquarie target it will return approximately 30% (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 MIN as Hold (3) -

Ord Minnett has lifted its 2021 iron ore price forecast by 6% to US$134/t, thereby leading to higher net profit forecasts for Australian miners in FY21-22. 

The broker expects first-half operating earnings of $776m as mining services growth continues to track above expectations and provides additional leverage to continued elevated iron ore prices. 

Hold rating retained with the target rising to $38.20 from $37.40.

Target price is $38.20 Current Price is $36.94 Difference: $1.26
If MIN meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $39.70, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MPL as Hold (3) -

Post Medibank Private's announcement of the purchase of a 33.4% stake in MyHealth Medical Group, management estimates the group would deliver operating earnings of $21m in FY21. Ord Minnett suggests Medibank’s share of this would be $7m in operating income.

Medibank expects the transaction to be immediately earnings accretive and contribute one quarter of a year to Medibank’s FY21 result. Ord Minnett believes the cash will be used by MyHealth to fund a change of ownership after the exit of some non-clinical partners.

The Hold rating is maintained with a target of $2.85.

Target price is $2.85 Current Price is $2.96 Difference: minus $0.11 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting upside of 0.8% (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

Macquarie rates NIC as Outperform (1) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

Nickel Mines is the broker's preferred nickel exposure, with strong forecast free cash flow yields, which increase further in a spot price scenario.

The Outperform rating and $1.50 target are unchanged.

Target price is $1.50 Current Price is $1.22 Difference: $0.28
If NIC meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 22.2% (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: 1.0

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

Ord Minnett rates NST as Hold (3) -

Ahead of Northern Star resources' first-half result, Ord Minnett has made some adjustments and reduced FY21 net profit forecast by -9% due to timing adjustments at Super Pit operations.

Hold rating with the price target falling to $14.30 from $14.40.

Target price is $14.30 Current Price is $11.98 Difference: $2.32
If NST meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $13.77, suggesting upside of 15.4% (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

Macquarie rates NWS as Outperform (1) -

The second quarter result for News Corp was well ahead of Macquarie's expectations, driven by cost-out and operating leverage.

The broker highlights the digital businesses of REA Group ((REA)), Move, Books and Dow Jones continued to perform strongly as covid-19 accelerates the move to digital.

Macquarie lifts EPS forecasts for FY21-FY23 by 47%, 41% and 27%, respectively, and notes shareholder value realisation remains an option via core assets (Dow Jones / REA Group).

Outperform retained, target rises to $36.10 from $25.55.

Target price is $36.10 Current Price is $27.55 Difference: $8.55
If NWS meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $32.53, suggesting upside of 16.3% (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 OSH as Underperform (5) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

The analyst lowers PNG LNG operating cost drivers/forecasts for Oil Search, resulting in forecast EPS upgrades of around 30% and 16% in FY21 and FY22.

The target price is increased to $3.75 from $3.50 and the Underperform is retained.

Target price is $3.75 Current Price is $4.13 Difference: minus $0.38 (current price is over target).
If OSH meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.11, suggesting downside of -0.6% (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: -0.1

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

Macquarie rates OZL as Outperform (1) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

At spot prices, OZ Minerals boasts upside to earnings driven by the gold exposure and recent increases in the copper price, notes the broker. The company’s potential earnings upside is considered circa 40-75% over the next 4 years.

The company remains Macquarie's preferred exposure to copper with the company boasting several key organic catalysts headlined by the Prominent Hill Expansion update later this year.

The Outperform rating and $22 target are unchanged.

Target price is $22.00 Current Price is $19.25 Difference: $2.75
If OZL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $18.17, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates PAN as Neutral (3) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

Indonesia may look to ban deep sea tailings, which could delay the development of high-pressure acid leaching (HPAL) plants and provide a further tailwind for nickel prices, explains the broker.

The Neutral rating and $0.17 target are unchanged for Panoramic Resources.

Target price is $0.17 Current Price is $0.16 Difference: $0.01
If PAN meets the Macquarie target it will return approximately 6% (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

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

Credit Suisse downgrades its rating to Neutral from Outperform with the target rising to $0.95 from $0.40.

The broker expects lessons learned over the past 24 months including a period of significant lithium oversupply leading to low utilisation rates and prices to translate into more controlled future expansion.

Even so, the likelihood of going back to a period of extreme oversupply and price depression is considered low by Credit Suisse. Pilbara continues to be the broker's preferred pick.

Target price is $0.95 Current Price is $1.00 Difference: minus $0.05 (current price is over target).
If PLS 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 $0.83, suggesting downside of -17.5% (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

Macquarie rates RHC as Outperform (1) -

In anticipation of the February reporting season, Macquarie looks at key considerations for each stock covered by the broker within the healthcare sector. 

The broker continues to see domestic/Australian exposures as well positioned relative to those with an global focus, due to lower covid-19 cases and improving activity trends.

Surgical activity trends in Australia appear incrementally positive to Macquarie for Ramsay Health Care, albeit with increased covid-19 cases in the UK/Europe a potential limiting factor to the near-term volume recovery.

In addition, NHS data to November 2020 highlights improvement in UK elective procedures, with opportunities to reduce NHS waiting lists.

Outperform and target of $73.65 are maintained.

Target price is $73.65 Current Price is $66.65 Difference: $7
If RHC meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $68.47, suggesting upside of 4.5% (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 RIO as Buy (1) -

Ord Minnett has lifted its 2021 iron ore price forecast by 6% to US$134/t, thereby leading to higher net profit forecasts for Australian miners in FY21-22. 

This reporting season, the broker expects Rio to report 2020 earnings of US$12.2bn and lead the way on earnings payouts.

Buy rating retained with the target price rising to $153 from $151.

Target price is $153.00 Current Price is $117.20 Difference: $35.8
If RIO meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $124.07, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

UBS rates S32 as Buy (1) -

The NSW Independent Planning Commission has recommended against the approval of the Dendrobium extension project because of concerns about the impact on Sydney's water.

UBS envisages three options: appealing against this decision (only possible if there is an error in law), re-designing the mine and resubmitting the environmental impact statement or accepting the decision.

The latter would mean the closure of Dendrobium when reserves are depleted in 2024 and could result in the closure of Appin as well. Buy rating retained. Target is reduced to $3.00 from $3.05.

Target price is $3.00 Current Price is $2.62 Difference: $0.38
If S32 meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Macquarie rates SFR as Outperform (1) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

At spot prices, Sandfire Resources boasts upside to earnings driven by the gold exposure and recent increases in the copper price, notes the broker. Potential earnings upside over the next four years is considered 70-1,000%, although forecast earnings are up off a low base.

The company has the greatest leverage to copper prices for the next three years, highlights the analyst.

The broker maintains an Outperform rating and $6.10 target.

Target price is $6.10 Current Price is $4.92 Difference: $1.18
If SFR meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.91, suggesting upside of 18.7% (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

Macquarie rates SHL as Neutral (3) -

In anticipation of the February reporting season, Macquarie looks at key considerations for each stock covered by the broker within the healthcare sector. 

The broker continues to see domestic/Australian exposures as well positioned relative to those with an global focus, due to lower covid-19 cases and improving activity trends.

The analyst sees upside risk to consensus expectations for Sonic Healthcare, reflecting strong contributions from covid-19/PCR testing. Base pathology trends are considered to have shown improvement in Australia, but with trends in other regions less clear.

Neutral and $37.20 target retained.
 

Target price is $37.20 Current Price is $34.78 Difference: $2.42
If SHL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $37.31, suggesting upside of 8.0% (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 SIG as Buy (1) -

Sigma Healthcare's update for FY21 showed operating income will be circa $80m versus the consensus's estimated $77m and in-line with Citi's forecast of $80m.

Citi expects the announcement will be well-received due to the lack of previous guidance and limited cost visibility. The broker suggests the update will give the market more confidence in the company’s ability to reach its target of $100m in operating income in FY23.

The company will declare its result on March 23, 2021.

The Buy rating is unchanged with a target price of $0.75.

Target price is $0.75 Current Price is $0.73 Difference: $0.02
If SIG meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $0.68, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in January.

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

Macquarie rates SIG as Neutral (3) -

Sigma Healthcare issued a trading update and provided FY21 underlying earnings (EBITDA) guidance of $80m. This implies to Macquarie 35% growth on the previous corresponding period.

The Neutral rating is unchanged as the broker sees medium-term risk around Chemist Warehouse (CWH) gaining scale. The company has a supplier contract with CWH.

Macquarie raises the target to $0.70 from $0.64, in-line with a re-rating of sector peers and earnings changes resulting from the trading update.

Target price is $0.70 Current Price is $0.73 Difference: minus $0.03 (current price is over target).
If SIG meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.68, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in January.

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

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

Underlying operating earnings were up 35% and broadly in line with Morgan Stanley's estimates. Management continues to target operating earnings returning to FY19 levels and Morgan Stanley captures upside in its bull case forecasts.

Nevertheless the update suggests the near-term outlook is more in line with the base case. Equal-weight. In-Line industry view. Target is $0.60.

Target price is $0.60 Current Price is $0.73 Difference: minus $0.13 (current price is over target).
If SIG meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.68, suggesting downside of -2.3% (ex-dividends)

The company's fiscal year ends in January.

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

Macquarie rates STO as Neutral (3) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

The analyst will be looking for commentary on many topics including the Northern Territory Beetaloo appraisal. The company intends to drill two horizontals to better understand the Tanumbirini-1 results.

The Neutral rating is unchanged and the target lifted to $6.60 from $6.55.

Target price is $6.60 Current Price is $7.04 Difference: minus $0.44 (current price is over target).
If STO meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.46, suggesting upside of 5.8% (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: 0.6

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

Macquarie rates SUN as Outperform (1) -

In its initial commentary, Macquarie's considers Suncorp Group's first-half result strong driven by strong gross written premium growth. The business interruption provision moved just slightly while reserve releases were 2.1%.

With upside risk to the broker's earnings forecasts, Suncorp is its preferred recommendation in the Australian General Insurance sector.

Macquarie maintains its Outperform rating with a target of $11.50. 

Target price is $11.50 Current Price is $10.44 Difference: $1.06
If SUN meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.17, suggesting upside of 3.9% (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

Macquarie rates SXY as Outperform (1) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

Some negatives contemplated by the broker may include poor execution of Roma North and the Atlas expansion projects.

Outperform and 45c target retained for Senex Energy.

Target price is $0.45 Current Price is $0.35 Difference: $0.1
If SXY meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $0.45, suggesting upside of 28.1% (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

Ord Minnett rates TYR as Accumulate (2) -

Tyro Payments' update for the week ended 5 February showed comparables rising 14% on a weekly basis but decelerating -10% over January.

Ord Minnett expects both downloads and trading volumes to recover supported by Tyro’s superior point-of-sale integration and pricing. 

Accumulate rating with a $5 target price.

Target price is $5.00 Current Price is $2.60 Difference: $2.4
If TYR meets the Ord Minnett target it will return approximately 92% (excluding dividends, fees and charges).

Current consensus price target is $3.85, suggesting upside of 48.6% (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

Macquarie rates UMG as Outperform (1) -

United Malt Group will close one of its facilities in the UK (Grantham) in March 2021 and consolidate the processing volumes into other facilities to provide greater asset utilisation and lower production costs per tonne. Macquarie considers this is not material to earnings.

The broker forecasts FY21 Group volumes will increase by 7-8% versus pcp.

The company also noted construction at Inverness is continuing despite covid-19, but completion has been delayed to May 22 from the end of 2021, due to increased social distancing requirements on site.

Outperform retained. Target falls to $4.92 from $5.09, largely due to foreign exchange forecasts adjustments.

Target price is $4.92 Current Price is $4.09 Difference: $0.83
If UMG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.74, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates UMG as Buy (1) -

United Malt has pushed back the completion of the Inverness plant to May 2022 because of government regulations requiring increased social distancing on site.

The company has also announced the closure of the Grantham plant in March because of its lower utilisation rate and higher costs.

UBS considers United Malt a recovery play and the value attractive. Estimates for FY21-24 are cut by -1-3%. Buy rating retained. Target is reduced to $5.05 from $5.10.

Target price is $5.05 Current Price is $4.09 Difference: $0.96
If UMG meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.74, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in September.

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 VOC as No Rating (-1) -

Vocus Group has received a non-binding, indicative proposal from Macquarie Infrastructure and Real Assets Holdings (MIRA) ((MQG)) to acquire 100% of Vocus's shares via a scheme of arrangement at a price of $5.50/share.

With investments in telco infrastructure across multiple continents and as the majority shareholder in Australian mobile phone tower operator Axicom, the broker suspects MIRA has a good understanding of both telco assets and the Australian market.

Credit Suisse is restricted from providing a target price or rating.

Current Price is $4.94. Target price not assessed.

Current consensus price target is $4.70, suggesting downside of -5.6% (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

Morgan Stanley rates VOC as No Rating (-1) -

Vocus Communications has received its third bid in two years. Morgan Stanley notes the company is well advanced on a turnaround strategy that will make it a stronger business.

The broker considers the bid, from Macquarie Infrastructure & Real Assets, highlights the strategic value of the infrastructure assets. The bid, 100% at $5.50 a share, is subject to multiple conditions in including due diligence.

Morgan Stanley is unable to provide a rating or target at present. Industry view: In-line.

Current Price is $4.94. Target price not assessed.

Current consensus price target is $4.70, suggesting downside of -5.6% (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

Morgans rates VOC as Hold (3) -

Vocus Communications has received a confidential, non-binding, indicative proposal from Macquarie Infrastructure and Real Asset Holdings (MIRA) to acquire 100% of the company at $5.50 per share.

Due diligence has been granted to enable MIRA to potentially put forward a binding proposal. Morgans notes in the last few years there has been three quasi bids for the company and none of these became firm offers.

Morgans retains a Hold rating and increases the target price to $5.50 from $3.35.

Target price is $5.50 Current Price is $4.94 Difference: $0.56
If VOC meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.70, suggesting downside of -5.6% (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

Ord Minnett rates VOC as Hold (3) -

Macquarie Infrastructure and Real Assets Holdings (MIRA) has tabled an indicative proposal at $5.50 per share for 100% shares of Vocus Group.

Ord Minnett considers the MIRA proposal as very credible given the cost of capital advantage and Vocus's existing operational momentum but also sees the potential for a competing proposal to emerge.

Hold rating with the target rising to $5.50 from $4.50.

Target price is $5.50 Current Price is $4.94 Difference: $0.56
If VOC meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.70, suggesting downside of -5.6% (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

Macquarie rates WPL as Outperform (1) -

Macquarie revises target prices and forecasts for the coming energy sector results. Generally, the broker expects management teams will be more confident than last reporting period, with higher oil prices and a LNG super-spike having improved customer contracting.

The broker believes Australian energy companies will need to accelerate projects and think more broadly in order to win the support of
increasingly ESG-focused institutional investors.

The analysts maintain a preference for Woodside Petroleum.

Macquarie doesn't expect the company to raise equity unless there is a major acquisition or a Scarborough final investment decision (FID). 

Outperform retained. Target is increased to $28.65 from $28.30. The 2020 results are expected on February 18.

Target price is $28.65 Current Price is $25.59 Difference: $3.06
If WPL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $27.46, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Macquarie rates WSA as Neutral (3) -

In a review of base metal miners, Macquarie notes a remarkable surge in electric vehicles in the fourth quarter, which has has propelled nickel sulphate, cobalt and lithium prices sharply higher amid concerns over potential short-term material shortages.

Western Areas offers the greatest leverage on average to nickel prices in FY21, highlights the broker.

The Neutral rating and $2.70 target are unchanged.

Target price is $2.70 Current Price is $2.51 Difference: $0.19
If WSA meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 7.5% (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