Australian Broker Call

Ord Minnett rates AIS as Buy (1) -

Aeris Resources's pre-reported June-quarter result was in line.

The broker is awaiting formal cost guidance, due this quarter, after the Round Oak acquisition but expects it to be in line with FY23 cost guidance.

Meanwhile, costs at Tritton were higher than forecast, driving a -13% fall in FY22 estimates.

Buy rating retained. Target price steady at 75c.

Target price is $0.75 Current Price is $0.54 Difference: $0.21
If AIS meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates AMI as Buy (1) -

Aurelia Metals' pre-flagged June quarter result was "grim", says Ord Minnett, as shock-costs and weak production hit earnings.

The broker looks past the result to the upcoming Fed feasibility update and FY23 guidance in August.

Buy rating retained. Target price falls to 70c from 95c to reflect rising costs and lower metal output.

Target price is $0.70 Current Price is $0.27 Difference: $0.43
If AMI meets the Ord Minnett target it will return approximately 159% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Morgan Stanley believes current pricing on term deposits and rate-sensitive savings accounts provides a material near-term margin tailwind for major banks. Most Australian deposit rates have risen by less than the cash rate. This benefit is expected to unwind in 2023. 

Taking into account funding and geographic mix, the broker sees a greater FY22 tailwind for CommBank and Westpac Bank over National Australia Bank and ANZ Bank.

For ANZ Bank, the Equal-wight rating and $23.10 target price are maintained. Industry View Attractive.

Target price is $23.10 Current Price is $22.70 Difference: $0.4
If ANZ meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $26.93, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates BGL as Outperform (1) -

As part of Bellevue Gold's pre-production development activities at the Bellevue Gold Project, first ore has been intersected and development continues to track to plan, according to Macquarie.

Importantly for the broker, the new mining contractor has initiated an immediate improvement in development meters and management has flagged further near-term productivity gains.

The Outperform rating and $1.20 target are maintained.

Target price is $1.20 Current Price is $0.90 Difference: $0.3
If BGL meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates BRG as Outperform (1) -

Macquarie reviews results for peer De'Longhi to obtain a read through for Breville Group. Geographic performance in the 1H for De'Longhi was mixed and weakened in the 2Q in all regions, but was better in regions where Breville has greater exposure, explains the broker.

Weakness in Europe was impacted by inflation and the Ukraine war denting confidence, according to management at De'Longhi.

The broker makes no changes to its Outperform rating and $23.35 target for Breville Group.

Target price is $23.35 Current Price is $23.04 Difference: $0.31
If BRG meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $25.62, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates BRG as Buy (1) -

Ord Minnett reads through competitor DeLonghi's June-quarter result to Breville Group.

DeLonghi experienced a strong slowing in European sales and margin erosion in the quarter, the fall only slightly ameliorated by growth the Americas and Asia Pacific. Earnings (EBITDA) slumped -52.2% and margins nearly halved as higher promotional costs combined with higher warehousing costs and product cost inflation.

EBITDA guidance fell -13% short of consensus.

Ord Minnett notes Breville has a different geographical exposure to DeLonghi, deriving 73% of its sales and earnings from the Americas and APAC but doubts the fledgling European operations can escape unscathed. EPS forecasts fall -4% to -9% over FY23 to FY24.

Buy recommendation retained. Target price falls to $27 from $30.

Target price is $27.00 Current Price is $23.04 Difference: $3.96
If BRG meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $25.62, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley believes current pricing on term deposits and rate-sensitive savings accounts provides a material near-term margin tailwind for major banks. Most Australian deposit rates have risen by less than the cash rate. This benefit is expected to unwind in 2023. 

Taking into account funding and geographic mix, the broker sees a greater FY22 tailwind for CommBank and Westpac Bank over National Australia Bank and ANZ Bank.

For CommBank, the Underweight rating and $79 target are unchanged. Industry view: Attractive.

Target price is $79.00 Current Price is $101.28 Difference: minus $22.28 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.48, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Morgans rates CBL as Speculative Buy (1) -

While the 4Q cashflow report for Control Bionics was in-line with expectations, Morgans lowers its forecasts and the target falls to $0.89 from $1.32, though retains its Speculative Buy rating.

The analyst believes covid delays are largely finished and the sales pipeline will begin to convert. Additionally, there's considered to be an opportunity in Japan and upside from the launch of new products.

Target price is $0.89 Current Price is $0.21 Difference: $0.68
If CBL meets the Morgans target it will return approximately 324% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates COL as Buy (1) -

Citi reviews Australian retailers and expects an acceleration in like for like sales for supermarkets in FY23, buoyed by rising inflation over the next year.

In discretionary retail, Citi observes that most of its recession-modelled declines are already factored into FY24 consensus and that price-earnings multiples are near historical lows.

EPS forecasts rise 4% for Coles in FY23.

Buy rating retained. Target price rises to $21 from $19.30.

Target price is $21.00 Current Price is $18.71 Difference: $2.29
If COL meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $19.32, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates CSL as Buy (1) -

Citi reports that recent figures from Grifols and Takeda show the plasma industry continues to improve, thanks to strong demand and rising prices, with plasma collections well above those of pre-covid.

Margins also improved.

Buy rating retained for CSL. Target price is $345. 

Target price is $345.00 Current Price is $296.97 Difference: $48.03
If CSL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $322.32, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Macquarie rates CSL as Outperform (1) -

Macquarie notes foot traffic trends for CSL’s US-based collection centres showed sequential improvement in July, as the trend continues from March.

The broker notes foot traffic is approaching peaks recorded in May/June of last year for CSL's key states and recent commentary from peers suggests current collection volumes are above pre-covid levels.

The Outperform rating and $312 target are maintained.

Target price is $312.00 Current Price is $296.97 Difference: $15.03
If CSL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $322.32, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Macquarie rates CTM as Outperform (1) -

Macquarie makes only modest changes to its earnings outlook for Centaurus Metals after incorporating the 2Q cash flow report. The company is estimated to be well funded for ongoing exploration over the next 12 months.

Management highlighted strong infill drilling results. The broker maintains its Outperform rating and $1.30 target.

Target price is $1.30 Current Price is $1.02 Difference: $0.28
If CTM meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates HVN as Buy (1) -

In discretionary retail, Citi observes that most of its recession-modelled declines are already factored into FY24 consensus and that price-earnings multiples are near historical lows.

So while target prices ease -5% to -14% across the sector, Citi spies an opportunity to pick up stocks in the down-cycle.

Buy rating retained for Harvey Norman. Target price falls to $4.70 from $5.

Target price is $4.70 Current Price is $4.32 Difference: $0.38
If HVN meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.52, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates ICT as Buy (1) -

iCollege's June-quarter update sharply outpaced Ord Minnett's forecasts and management provided bullish guidance for student enrolments.

Enrolments are 12 months in advance of the broker's forecasts.

Ord Minnett admires the strong balance sheet and spies room for accretive mergers and acquisitions, not to mention solid organic growth.

Buy Higher Risk recommendation retained. Target price rises to 22c from 21c.

Target price is $0.22 Current Price is $0.14 Difference: $0.08
If ICT meets the Ord Minnett target it will return approximately 57% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates JBH as Buy (1) -

In discretionary retail, Citi observes that most of its recession-modelled declines are already factored into FY24 consensus and that price-earnings multiples are near historical lows.

So while target prices ease -5% to -14% across the discretionary sector, Citi spies an opportunity to pick up stocks in the down-cycle.

Buy rating and $47 target price retained for JB Hi-Fi.

Target price is $47.00 Current Price is $44.26 Difference: $2.74
If JBH meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $46.69, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates JHG as Neutral (3) -

Janus Henderson reported a miss on June quarter earnings, coming in -5% below Credit Suisse expectations and -2% below consensus, off the back of higher investment losses and lower revenue from reduced management fees.

The company experienced a -17% fall in AuM to US$300bn compared to the previous quarter resulting from the negative markets.

Credit Suisse downgrades earnings forecasts by -9.7% in FY22 and -15% for FY23 while highlighting Janus Henderson is entering a period of transition involving longer dated benefits from investments.

 Short term challenges for funds flow remain.

A Neutral rating is retained and the price target reduces to $31.50 from $36.00

Target price is $31.50 Current Price is $36.48 Difference: minus $4.98 (current price is over target).
If JHG meets the Credit Suisse target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $37.30, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.3

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

Morgans rates MX1 as Speculative Buy (1) -

Following Micro-X's 4Q cash flow report showing lower than expected cash receipts/sales, Morgans lowers its FY22 sales forecasts by -3.8% to a net loss of -$16m. Management has now initiated a number of cost cutting initiatives, with only two quarters of cash remaining.

The broker also lowers its sales order forecasts for the Argus 25 and the Mobile DR and the forecast loss for FY23 increases to -$11.0m from -$8.0m. In FY24, the profit forecast is also reduced to $0.6m from $5.0m. 

The launch of the Argus (x-ray camera for explosive detection) is scheduled for August, with sales orders expected in 2Q23. The analyst retains a Speculative Buy rating and lowers the target to $0.36 from $0.51.

Target price is $0.36 Current Price is $0.14 Difference: $0.22
If MX1 meets the Morgans target it will return approximately 157% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Morgan Stanley believes current pricing on term deposits and rate-sensitive savings accounts provides a material near-term margin tailwind for major banks. Most Australian deposit rates have risen by less than the cash rate. This benefit is expected to unwind in 2023. 

Taking into account funding and geographic mix, the broker sees a greater FY22 tailwind for CommBank and Westpac Bank over National Australia Bank and ANZ Bank.

For National Australia Bank, the Equal-weight rating and $26.60 target are unchanged. Industry view: Attractive.

Target price is $26.60 Current Price is $29.81 Difference: minus $3.21 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.26, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Macquarie rates OGC as Outperform (1) -

Second quarter production results for OceanaGold registered slight beats on production, all-in sustaining costs (AISC) and cash flow compared to Macquarie's forecasts.

Haile (US) and Didipio (Phillipines) continue to beat the broker's expectations, which resulted in a production guidance upgrade at the two mines, which was offset by reconciliation issues at Waihi in New Zealand. Overall 2022 production guidance was maintained.

2022 group AISC guidance rose US$100/oz to US$1,375-1,475/oz on inflationary impacts. Macquarie retains its Outperform rating and lowers its target by -5% to $3.50. 

Target price is $3.50 Current Price is $2.60 Difference: $0.9
If OGC meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Macquarie rates ORG as Outperform (1) -

Following Origin Energy's 4Q update, Macquarie notes the gas commodity cycle is offsetting temporary Energy Market (EM) challenges. It's believed certainty around coal costs will lift certainty around an EM earnings recovery.

APLNG remains a cash cow, according to the analyst, with FY23 likely to be the peak for cashflow. Production for the quarter was in-line with the broker's forecast, while revenue was a beat with higher spot realisation.

The Outperform rating and $6.87 rating are unchanged.

Target price is $6.87 Current Price is $6.12 Difference: $0.75
If ORG meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.40, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates ORG as Hold (3) -

Origin Energy's June-quarter production report proved a mixed bag, says Ord Minnett.

The broker notes the pre-announced $2.2bn non-cash impairment relates to sharply higher wholesale prices on the carrying value of derivative contracts, but will not affect depreciation expense or tax, and will not be included in normalised result.

In fact, the broker says it should benefit cash flow and future revenue revenue.

Energy market sales were strong but margins lower, APLNG was also mixed with margin pressure a feature as fuel costs rise.

Hold rating retained. Target price rises to $6.45 from $6.15.

Target price is $6.45 Current Price is $6.12 Difference: $0.33
If ORG meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.40, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates PAC as Buy (1) -

Pacific Current Group's June-quarter trading update nosed out Ord Minnett's forecasts, the company posting 3.2% growth in funds under management, once again proving its resilience, says the broker.

Net flows of nearly $1bn were another big positive (the broker had expected zero net flows) and the pipeline is strong.

EPS forecasts rise 2% to 3% across FY22 and FY23. 

Buy rating retained, Ord Minnett noting the company is trading below small industrials peers and offers a 5.8% dividend yield. Target price is steady at $11.

Target price is $11.00 Current Price is $7.90 Difference: $3.1
If PAC meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates PBH as Neutral (3) -

Credit Suisse noted PointsBet Holdings reported 4Q22 performance metrics which have yet to show the change in strategic direction of generating "sustainable" revenues and not chasing market share.

The broker considers revenue to be the number one factor to drive share price performance and expectations are revenues were lower in this quarter from lower market share.

The technology is highly rated but Credit Suisse assesses investors can "sit this out" while the company increases the brand awareness and revenues follow.

The Neutral rating is retained and the target price increases to $3.30 from $2.65 for a lower discount rate.

Target price is $3.30 Current Price is $3.66 Difference: minus $0.36 (current price is over target).
If PBH meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates PBH as Hold (3) -

PointsBet Holdings' June'quarter result proved mixed. The net win margin missed Ord Minnett's forecasts by -12%, as did turnover, due to strong competition, says the broker.

The broker spies rising competition and costs and awaits further clarity from the August result.

Hold rating retained. Target price falls to $2.90 from $3.20.

Target price is $2.90 Current Price is $3.66 Difference: minus $0.76 (current price is over target).
If PBH meets the Ord Minnett target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates PGL as Neutral (3) -

Following a 4Q trading update by Prospa Group, Macquarie points out momentum for originations continued, driving closing gross loans to $701.3m, up 20% during the quarter.

The broker continues to apply a -20% discount to its valuation for the group due to a lower (nil) dividend yield by comparison to non-bank financial institutions such as Pepper Money ((PPM)), and the target falls to $0.83 from $0.98. The Neutral rating is unchanged.

Target price is $0.83 Current Price is $0.80 Difference: $0.03
If PGL meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates PLY as Buy (1) -

Playside Studios's June-quarter trading update appears to have disappointed Ord Minnett.

While the work-for-hire backlog was a solid $16m with a large amount to be recognised in FY23, cash burn rose to $2m from $1.2m in the March quarter, excluding one-off sales and non-fungible tokens.

But the broker admires the balance sheet.

Speculative Buy rating retained. Target price falls to 85c from 95c.

Target price is $0.85 Current Price is $0.74 Difference: $0.11
If PLY meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates PMV as Buy (1) -

In a review of the discretionary retail sector, Citi observes that most of its recession-modelled declines are already factored into FY24 consensus and that price-earnings multiples are near historical lows. 

So while target prices ease -5% to -14% across the sector, Citi spies an opportunity to pick up stocks in the down-cycle.

Buy rating retained for Premier Investments. Target prices fall to $25 from $29.

Target price is $25.00 Current Price is $21.38 Difference: $3.62
If PMV meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $25.68, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates RMS as Add (1) -

Morgans assesses strong 4Q production for Ramelius Resources with the highest production for the year and labour impacts now coming under control.

However, the broker notes industry-wide cost inflation has hit the miner hard, with FY23 cost guidance sitting around $300/oz above the FY22 result. The high-grade Penny mine (under development) was expected to reduce overall unit costs in FY23.

Morgans lowers its target to $1.32 from $1.86 as wider cost pressures lower margin forecasts. The Add rating is maintained.

Target price is $1.32 Current Price is $1.09 Difference: $0.23
If RMS meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.21, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates SDR as Upgrade to Buy from Neutral (1) -

SiteMinder's June-quarter result outpaced Citi's forecasts thanks mainly to a beat on transaction revenue growth arising from add-on products and international travel. The broker expects transaction growth will ease as the economy softens, but overall remains positive.

Property growth outpaced Citi but missed consensus; and Citi observes an uptick heading into FY23 and expects net adds will double in FY23 on reopening themes, improved labour dynamics, investment in go-to-market, and the launch of LH Basic.

Cash burn was worse than Citi forecast, albeit in line with guidance relative to revenue, but the broker expects the burn will slow as the company shifts to cheaper jurisdictions (it is moving operations to Manila).

Rating upgraded to Buy from Neutral. Target price rises to $5 from $4.95.

Target price is $5.00 Current Price is $4.29 Difference: $0.71
If SDR meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.94, suggesting upside of 38.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates SGP as Neutral (3) -

Despite Stockland highlighting taxable gains on the sale of its retirement business, Macquarie makes no change to its $3.74 target price, given tax does not impact the net asset value (NAV) metric.

Stockland also announced it expects FY22 funds from operations (FFO) to attain the top end of the guidance range. The Neutral rating is unchanged.

Target price is $3.74 Current Price is $3.85 Difference: minus $0.11 (current price is over target).
If SGP 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 $4.55, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates SGP as Overweight (1) -

Stockland has upgraded its FY22 EPS guidance to the 'top end' of its previous range of 35.1cps-35.6cps. Morgan Stanley keeps its estimate at 35.2c.

Management also provided an update on its tax position following the sale of its Retirement business, which the broker regards as an "optical headwind". The Overweight rating and $4.75 target are maintained. Industry View: In-Line.

Target price is $4.75 Current Price is $3.85 Difference: $0.9
If SGP meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates SGR as Neutral (3) -

Post the FY22 trading update from Star Entertainment, Credit Suisse upgrades revenue forecasts, but earnings forecasts remain largely unchanged.

The company is experiencing better gaming revenues, in line with the pubs and clubs which the analyst attributes to pent up demand for travel and entertainment.

Star Entertainment has delayed the opening of Star Grand at the Queens Wharf Brisbane until October 2023, according to the broker.

Credit Suisse earnings forecasts included AUSTRAC fines of $350m (investigation ongoing) and the analyst notes the start of the Queensland public inquiry as well as the final report from the Sydney Bell inquiry.

A Neutral rating and a target price of $2.95 are retained.

Target price is $2.95 Current Price is $2.91 Difference: $0.04
If SGR meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates SGR as Outperform (1) -

In the wake of a trading update by Star Entertainment, Macquarie trims its target price to $3.60 from $4.10 to reflect forecast earnings downgrades and the application of a higher risk free rate to cash flows.

A six month construction delay at the Queen’s Wharf Brisbane and capex increases were also taken into account for the analyst's lower FY23/24 earnings (EBITDA) forecasts.

However, with improving earnings and moderating leverage, the broker spies a re-rate opportunity for the shares and maintains its Outperform rating.

Target price is $3.60 Current Price is $2.91 Difference: $0.69
If SGR meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates SGR as Accumulate (2) -

Star Entertainment's FY22 trading update appears to have satisfied Ord Minnett, costs pleasantly surprising (although still a hit), and revenue guidance outpacing consensus by 6%.

Ord Minnett expects regulatory, cost and wage challenges to continue for the domestic business but acknowledges NSW and Queensland investigations should end in August and September, and this is expected to drag on earnings.

Accumulate rating retained, the broker believing the company is trading well below fair value. Target price eases to $4.20 from $4.40.

Target price is $4.20 Current Price is $2.91 Difference: $1.29
If SGR meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates SHL as Accumulate (2) -

Ord Minnett reviews sonic Healthcares latest data sets and comparables, and finds the slowing in demand for PCR testing is less than expected, and bumps up EPS forecasts 12% in FY23 and 6% in FY24 and beyond.

While testing revenues are now expected to hold up, falling covid reimbursement, cost inflation and weak pricing power cause the broker to cut margin forecasts.

Accumulate rating retained. Target price rises to $37.50 from $36.

Target price is $37.50 Current Price is $34.87 Difference: $2.63
If SHL meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $37.13, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates SUL as Buy (1) -

In a review of the discretionary retail sector, Citi observes that most of its recession-modelled declines are already factored into FY24 consensus and that price-earnings multiples are near historical lows. 

So while target prices ease -5% to -14% across the sector, Citi spies an opportunity to pick up stocks in the down-cycle.

Buy rating retained for Super Retail. Target price falls to $13.30 from $14.

Target price is $13.30 Current Price is $10.36 Difference: $2.94
If SUL meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $11.83, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates TRP as Speculative Buy (1) -

While there were no major surprises for Morgans from Tissue Repair's 4Q cash flow report and operational update, clinical progression was marginally slower than expected.

Commercial launch timelines for the company's aesthetic product have also been potentially delayed. The analyst pushes out TRP-987 Ph3 trial commencement into FY24 from FY23 and the target falls to $0.77 from $1.43 

The broker expects further share price upside (after a bounce from recent lows) as progression hurdles are removed and the pathway becomes clearer. The Speculative Buy rating is maintained.

Target price is $0.77 Current Price is $0.31 Difference: $0.46
If TRP meets the Morgans target it will return approximately 148% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates WBC as Overweight (1) -

Morgan Stanley believes current pricing on term deposits and rate-sensitive savings accounts provides a material near-term margin tailwind for major banks. Most Australian deposit rates have risen by less than the cash rate. This benefit is expected to unwind in 2023. 

Taking into account funding and geographic mix, the broker sees a greater FY22 tailwind for CommBank and Westpac Bank over National Australia Bank and ANZ Bank.

For Westpac, the Overweight rating and $22.30 target are maintained. Industry view: Attractive.

Target price is $22.30 Current Price is $21.90 Difference: $0.4
If WBC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $24.23, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates WES as Sell (5) -

In a review of the discretionary retail sector, Citi observes that most of its recession-modelled declines are already factored into FY24 consensus and that price-earnings multiples are near historical lows. 

So while target prices ease -5% to -14% across the sector, Citi spies an opportunity to pick up stocks in the down-cycle.

Wesfarmers is the exception. Sell rating retained. Target price falls to $40 from $42. 

Target price is $40.00 Current Price is $47.57 Difference: minus $7.57 (current price is over target).
If WES meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.10, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Citi rates WOW as Buy (1) -

Citi reviews Australian retailers and expects an acceleration in like for like sales for supermarkets in FY23, buoyed by rising inflation over the next year. Gross margins are forecast to be steady or higher by roughly 25-40 basis points.

In discretionary retail, Citi observes that most of its recession-modelled declines are already factored into FY24 consensus and that price-earnings multiples are near historical lows. 

EPS forecasts for Woolworths Group rise 3%.

Buy rating retained. Target price rises to $42.50 from $40.30.

Target price is $42.50 Current Price is $38.15 Difference: $4.35
If WOW meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $37.59, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates ZIP as Downgrade to Sell from Neutral (5) -

Citi lowers growth forecasts for Zip Co, expecting a fall in net bad debts will hurt time to value and that cash burn could rise in line with cost inflation.

The broker also expects transaction volume to weaken and fears an equity raising could emerge in FY24.

The broker downgrades to Sell, High Risk from Neutral, High Risk.

Target price halves to 70c from $1.40.

Target price is $0.70 Current Price is $1.25 Difference: minus $0.55 (current price is over target).
If ZIP meets the Citi target it will return approximately minus 44% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.71, suggesting downside of -43.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.5

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