Australian Broker Call

Citi rates A2M as Buy (1) -

Citi notes the entry of domestic Chinese brands Wandashan and Junlebao into the a2-protein junior nutrition market amid further dairy herd expansion in that category.

Competition from these products is currently limited for a2 Milk but the competitive intensity is expected to increase. Moreover, Citi assesses the brand equity is at risk of erosion should smaller players price in their offerings to appeal to the mass market.

Still, a2 Milk is well-placed as Chinese consumers continue to stockpile essential items. The broker envisages upside to the FY20 margin guidance and consensus revenue forecast for FY21 appear undemanding. Buy rating and $21.50 target maintained.

Target price is $21.50 Current Price is $19.49 Difference: $2.01
If A2M meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $18.22, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

This company reports in NZD. 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

Citi rates ABP as Neutral (3) -

FY20 earnings were ahead of Citi's estimates. This was driven primarily by one-off transaction profits and storage acquisitions. FY21 distribution guidance is for a pay-out ratio of 85-95% of free funds from operations.

The outlook is weak and Citi retains a Neutral rating, given the sell-down of high yielding non-core investments and despite strong growth in the storage portfolio. Target rises to $2.53 from $2.47.

Target price is $2.53 Current Price is $2.63 Difference: minus $0.1 (current price is over target).
If ABP meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.90, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates ABP as Outperform (1) -

FY20 results were slightly ahead of Credit Suisse estimates. The broker observes rent collection in the fourth quarter was 90% for office, 98% for storage and 49% for retail although, of note, retail represents only 6% of assets.

The balance sheet appears in good shape to the broker, which notes the company's intention regarding the strategic investment in National Storage ((NSR)) remains as a long-term hold in a key sector. Outperform rating retained. Target rises to $2.90 from $2.86.

Target price is $2.90 Current Price is $2.63 Difference: $0.27
If ABP meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 11.2% (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 ABP as Outperform (1) -

FY20 results were marginally ahead of forecasts. No FY21 guidance was provided, as expected. Macquarie notes rent collection was solid in the June quarter and rent relief has been minimal.

The distribution outlook is intact and the broker considers the relative valuation attractive. FY21 estimates are raised by 15% and FY22 by 11%, to reflect less pandemic-related rent relief. Target rises to $3.08 from $2.81. Outperform retained.

Target price is $3.08 Current Price is $2.63 Difference: $0.45
If ABP meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 11.2% (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 AHY as Buy (1) -

Citi notes, over the past two years, the company has invested in brands and reduced net debt significantly. Hence, the stock is assessed as deserving a higher P/E ratio of 17x 2020.

Two catalysts going forward include earnings ahead of guidance and a resumption of dividends at the end of 2020. Gross margins expanded in the first half, with lower pulp pricing contributing significantly.

Citi retains a Buy rating and $1.30 target.

Target price is $1.30 Current Price is $1.04 Difference: $0.26
If AHY meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Credit Suisse rates AHY as Outperform (1) -

The company has upgraded 2020 operating earnings guidance to the upper end of $84-87m. No dividend was declared in the first half and debt was retired.

Interest savings have enhanced 2021 forecasts, although Credit Suisse suspects growth may stall as the company cycles pandemic panic buying.

The impact of the pandemic has aided earnings margins, perhaps temporarily the broker observes, because of high-volume essential items like tissue and feminine care products and reduced promotional activity. Outperform retained. Target is raised to $1.28 from $1.25.

Target price is $1.28 Current Price is $1.04 Difference: $0.24
If AHY meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Macquarie rates AHY as Neutral (3) -

First half net profit was ahead of estimates. Asaleo Care has upgraded guidance to the upper end of the $84-87m range for underlying EBITDA.

The company increased market share across most categories in the first half, supported by a combination of increased brand investment and local manufacturing.

However, Macquarie notes there are stranded costs continuing from discontinued operations and businesses that were previously offloaded. Neutral retained. Target is raised to $1.10 from $1.02.

Target price is $1.10 Current Price is $1.04 Difference: $0.06
If AHY meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Ord Minnett rates ALD as Accumulate (2) -

Ampol announced the establishment of an unlisted property trust to hold 203 core freehold convenience retail sites, with Charter Hall Group (CHC) and Singapore sovereign wealth fund GIC to acquire a 49% interest in the trust, explains Ord Minnett.

The property trust is valued at $1.4bn, with proceeds for Ampol of $682m pre tax. The company announced the proceeds would be used to reduce leverage.

The broker observes the property trust holds fewer sites than expected, reducing proceeds, with value per site attractive, but expected given the quality. Also the capitalisation rate appears fair and conservatism is being applied in the use of the proceeds.

The Accumulate rating and the target price of $30 are maintained.

Target price is $30.00 Current Price is $28.90 Difference: $1.1
If ALD meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $27.53, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Credit Suisse rates AMC as Neutral (3) -

FY20 results suggest to Credit Suisse the company is on track for further growth. Flexibles were weaker than expected while rigids were stronger.

Credit Suisse upgrades estimates by 2-4% for FY21, predominantly as currency has moved in the company's favour. Growth in earnings per share of 11% is now projected for FY21.

As the broker assesses some of the earnings growth has been priced in, the new target of $16.10, raised from $15.65, reflects a modest diminution of forward PE. Neutral retained.

Target price is $16.10 Current Price is $15.72 Difference: $0.38
If AMC meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.40, suggesting upside 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: 0.6

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

Macquarie rates AMC as Outperform (1) -

Macquarie observes Amcor has simply delivered yet another solid set of numbers, modestly ahead of forecasts.

The company continues to enjoy the benefits from "home consumption" under lockdowns and elsewhere.

Probably the most important feature is management's guidance for growth between 5-10% in FY21. Macquarie points out, this makes Amcor one of few companies only on the ASX to give quantitative guidance this season.

Latin America remains the company's weak spot, the broker points out. Amcor is Macquarie's favourite exposure in the packaging sector.

Target price is $17.00 Current Price is $15.72 Difference: $1.28
If AMC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.40, suggesting upside 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: 0.6

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

Morgan Stanley rates AMC as Overweight (1) -

FY20 results were slightly ahead of expectations. Morgan Stanley observes the business is performing well against a difficult backdrop and has a defensive earnings stream that supports an attractive yield.

The broker expects this will be the focus, given low interest rates going forward. More than 7% growth in earnings per share is expected in FY21.

Overweight reiterated. Target rises to $18.00 from $16.50. Industry view: Cautious.

Target price is $18.00 Current Price is $15.72 Difference: $2.28
If AMC meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $16.40, suggesting upside 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: 0.6

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

Morgans rates AMC as Add (1) -

Amcor’s FY20 result was broadly in-line with Morgans expectations.

Management has guided to FY21 underlying earnings (EPS) growth (constant currency) of 5%-10%, with expected Bemis synergy benefits of US$50-US$70m.

Total DPS of US46.0cps was slightly below the broker’s forecast.

The analyst notes the key standout was the Flexibles division with strong organic improvement and along with Bemis synergy benefits drove an improvement in EBIT margin to 13.7%.

The broker expects earnings should remain resilient going forward with potential upside from stronger-than-expected cost out and (to mention again) Bemis synergy benefits.

Morgans makes minor changes to earnings forecasts and maintains the Add rating and lifts the target price to $$17.10 from $16.80.

Target price is $17.10 Current Price is $15.72 Difference: $1.38
If AMC meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $16.40, suggesting upside 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: 0.6

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

Ord Minnett rates AMC as Accumulate (2) -

Amcor's FY20 result outpaced the broker and consensus on several metrics, posting strong earnings  growth and cash flow, the latter benefiting from a good working capital performance and a one-off from the US Coronavirus Aid, Relief and Economic Security Act.

Management guided to constant-currency EPS growth of 5-10% in FY21 and free cash flow of US$1.0-$1.1bn, which includes the pre-tax synergy benefits associated with the accretive Bemis acquisition.

Accumulate rating retained. Target price rises to $16.50 from $15.72.

Target price is $16.50 Current Price is $15.72 Difference: $0.78
If AMC meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.40, suggesting upside of 4.1% (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

Ord Minnett rates ANZ as Hold (3) -

In initial response to today's Q3FY20 update, Ord Minnett points out the headline number looks strong, but revenue ex-Markets was probably down -4% in the quarter, and that looks rather soft compared to the other banks.

ANZ Bank did declare a dividend of 25c. While credit risk migration was only a modest drag this quarter, analysts at Ord Minnett expect it to pick-up in coming periods.

Target price is $20.00 Current Price is $18.07 Difference: $1.93
If ANZ meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $21.61, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgans rates AQR as Add (1) -

APN Convenience Retail REIT reported a solid result reflecting the resilience of the underlying portfolio, states Morgans.

An uplift in funds from operations (FFO) was mainly driven by a 2.8% increase in like for like property rental growth as well as contributions from 12 acquisitions (offset by three disposals during the period)

FY21 (FFO) guidance is 21.8-22 cents and includes income from contracted acquisitions year to date, notes the broker.

DPS guidance is expected to be at least 21.8 cents, in-line with FY20. Morgans suggests the trust remains well placed and offers an attractive distribution yield.

The Add rating is maintained. The target price is increased to $3.92 from $3.78.

Target price is $3.92 Current Price is $3.72 Difference: $0.2
If AQR meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates AQR as Accumulate (2) -

APN Convenience Retail's FY20 demonstrates resilience, comments Ord Minnett believing the REIT is strongly positioned for growth in FY21. 

The broker is bullish on the service station market as it continues to gain traction. With low gearing levels and circa $50m in liquidity, the broker feels there is scope for the REIT to increase its earnings in FY21 via accretive acquisitions.   

Ord Minnett retains its Accumulate recommendation with the target price increasing to $3.82 from $3.72.

Target price is $3.82 Current Price is $3.72 Difference: $0.1
If AQR meets the Ord Minnett 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: 0.8

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

Citi rates ARB as Neutral (3) -

Citi upgrades FY21 and FY22 net profit estimates by 25% and 13%, respectively, amid better-than-expected FY20 results and July sales.

The broker suspects the 27x FY21 PE multiple is not reflecting the medium-term downside risks stemming from a moderation of pent-up demand and the scaling back of JobKeeper.

Neutral rating retained. Target rises to $23.45 from $19.10.

Target price is $23.45 Current Price is $23.21 Difference: $0.24
If ARB meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $21.70, suggesting downside of -10.3% (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

Credit Suisse rates ARB as Neutral (3) -

FY20 results beat estimates. Credit Suisse observes earnings growth is gaining another lever from a surging Australian dollar against the Thai baht.

No guidance was provided but the company has flagged a record July. Credit Suisse upgrades FY21-22 estimates by 5-6%. Some slippage is allowed for supply shortages and the impact on demand from the Victorian lockdown.

Neutral retained. Target rises to $23.60 from $22.00.

Target price is $23.60 Current Price is $23.21 Difference: $0.39
If ARB meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $21.70, suggesting downside of -10.3% (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 ARB as Neutral (3) -

Macquarie found the FY20 result stronger than previously expected. This was driven by rapid recovery in demand and activity. June and July produced record sales and underpin a robust order book.

Macquarie expects the strong trading will continue through the first half. The main risk is around the demand profile in the second half as the order book normalises. Neutral retained. Target is $22.25.

Target price is $22.25 Current Price is $23.21 Difference: minus $0.96 (current price is over target).
If ARB 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 $21.70, suggesting downside of -10.3% (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

Citi rates BHP as Neutral (3) -

FY20 underlying profit was in line with Citi's estimates. The company is looking to exit thermal coal and Bass Strait.

Citi assesses the coal exit could be by way of de-merger. The main requirement, in the broker's view, is that value is delivered for BHP shareholders.

Divestments have potential value of up to $7bn on the broker's estimates. Citi retains a Neutral rating and $40 target.

Target price is $40.00 Current Price is $39.65 Difference: $0.35
If BHP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $39.49, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Credit Suisse rates BHP as Neutral (3) -

Credit Suisse found FY20 numbers a little soft. The broker expects in a couple of years time the company may be somewhat different, given the intention of divesting Bass Strait and BMC, which have been added to the list of assets that may be exited.

The broker suspects Jansen will be sanctioned despite difficulties in getting the numbers to work. Credit Suisse retains its Neutral rating with a target price of $37.

Target price is $37.00 Current Price is $39.65 Difference: minus $2.65 (current price is over target).
If BHP meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.49, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Macquarie rates BHP as Outperform (1) -

FY20 earnings were broadly in line with Macquarie's forecasts. The decision to exit thermal coal and Bass Strait was in line with expectations although the planned sale of BMC was somewhat a surprise.

BMC includes the South Walker Creek & Poitrel mines and Wards Well development.

FY21 guidance for capital expenditure is US$7bn, which Macquarie expects includes expenditure on Jansen, Scarborough and Trion.

Buoyant iron ore prices underpin earnings upgrade momentum and the broker maintains an Outperform rating. Target is raised to $42 from $39.

Target price is $42.00 Current Price is $39.65 Difference: $2.35
If BHP meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $39.49, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgan Stanley rates BHP as Overweight (1) -

BHP Group's results were in line with Morgan Stanley's expectations. The dividend equates to a pay-out ratio of 67% of FY20 underlying earnings.

Cost guidance is broadly in line with expectations as is capital expenditure. At a divisional level, copper, iron ore and coal beat estimates which was offset by lower profits from petroleum and unallocated items.

Morgan Stanley retains an Overweight rating and $36.85 target. Industry view: Attractive.

Target price is $36.85 Current Price is $39.65 Difference: minus $2.8 (current price is over target).
If BHP meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.49, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgans rates BHP as Hold (3) -

Morgans describes the BHP Group result as healthy, but just short of expectations.

The company also announced plans to reshape both its coal and petroleum portfolios.

Unit costs are expected to rise in FY21 across iron ore, copper, met coal and petroleum, notes the broker. In addition, the analyst observes a final dividend of US55 cents, the EBITDA margin coming in at 53% with gearing at the low end of the range.

Morgans highlights the company is trading at the higher end of its historical EBITDA multiple range, but says unlike other cycles this high multiple is the result of investors rewarding the company for strong earnings fundamentals, where typically high multiples in resources are driven by commodity price weakness.

The Hold rating is maintained. The target price is increased to $37.60 from $37.20.

Target price is $37.60 Current Price is $39.65 Difference: minus $2.05 (current price is over target).
If BHP meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.49, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Ord Minnett rates BHP as Accumulate (2) -

BHP Group's FY20 result fell -4% short of consensus and -4% short of Ord Minnett's forecasts. The dividend disappointed by -2c.

Management guided to weaker metallurgical coal volumes and costs and weaker petroleum output.

The miner has announced it will exit thermal coal assets in NSW and Colombia, the BHP Mitsui metallurgical coal joint venture and the Bass Strait petroleum JV, indicating the growing financial pressure on diversified miners to exit fossil fuels.

The broker cuts EPS forecasts -3% but notes the miner's valuation and dividend yield remain attractive; the balance sheet is strong; and iron-ore prices promise upgrades. Target price rises to $44 from $43. Accumulate rating retained.

Target price is $43.00 Current Price is $39.65 Difference: $3.35
If BHP meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $39.49, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

UBS rates BHP as Buy (1) -

BHP Group's FY20 result was broadly in line with UBS's forecasts but net profit after tax and the dividend disappointed.

CEO Mike Henry foreshadowed portfolio rationalisation expecting to divest from thermal coal within two years, as BHP Mitsui Coal, NSW Energy Coal and Cerrejon roll off; and to also exit Bass Strait in similar time frame.

This year BHP is focusing on production delivery with FY21 production guidance unchanged. The higher capital expenditure forecast was in line with expectations. Not so FY22 capex, which added US$0.5bn to the tab; deferred projects and debottlenecking (another US$0.5bn); and more for unapproved projects and maintenance capital.

UBS suspects merger-and-acquisition activity is on the horizon. Buy rating retained. Target price $40.00.

Target price is $40.00 Current Price is $39.65 Difference: $0.35
If BHP meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $39.49, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Citi rates BPT as Neutral (3) -

Further to the FY20 results, Citi does not consider the five-year outlook to be a material downgrade relative to prior disclosures and the majority of the difference is explainable by phasing

 While this may be negative to valuation, the share price has also fallen significantly so the market has appropriately accounted for delays in projects as oil prices fell, suggests the broker.

Where Citi differs is that its volume forecasts are more conservative because developments are yet to be proven. Neutral/High Risk rating retained. Target is raised to $1.94 from $1.76.

Target price is $1.94 Current Price is $1.59 Difference: $0.35
If BPT meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.91, suggesting upside of 22.4% (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 CAR as Neutral (3) -

Upon first glance, Macquarie concludes today's FY20 release is broadly in-line. Equally important: Carsales has made a strong start into FY21.

Also, the analysts observe SK Encar is a clear positive for the business, with continued strong momentum in that business with good structural drivers.

Target price is $18.00 Current Price is $19.40 Difference: minus $1.4 (current price is over target).
If CAR 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 $16.54, suggesting downside of -17.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Ord Minnett rates CAR as Hold (3) -

Upon first glance, Ord Minnett observes FY20 EBITDA of $231.8m landed at the top end of the company's guidance range of $228 – 232m.

All in all, this results shows resilience, comment the analysts, adding Carsales is starting to see positive trends.

Equally important, full-year DPS was 47.0 cps, +18.2% up on expectations, according to the broker.

Target price is $17.06 Current Price is $19.40 Difference: minus $2.34 (current price is over target).
If CAR meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.54, suggesting downside of -17.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

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

FY20 results were largely in line with expectations. Citi reduces FY21-22 estimates for earnings per share by -24-27%. The broker expects flat sales compared with FY20, with growth returning in FY22.

The broker acknowledges Cochlear could increase its implant market share given continued investment, potentially helped by the recall from Advanced Bionics.

Rating is downgraded to Sell from Neutral on valuation. Target is lowered to $184 from $203.

Target price is $184.00 Current Price is $217.74 Difference: minus $33.74 (current price is over target).
If COH meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $201.33, suggesting downside of -4.6% (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

Credit Suisse rates COH as Neutral (3) -

FY20 net profit was below Credit Suisse estimates and costs significantly underperformed expectations.

The broker considers the earnings outlook uncertain, although the fact implant sales in developed markets were back in line with prior year levels in June and July is a positive surprise.

Estimates for FY21 are lowered by -11% and FY22 by -6% because of the weaker performance on costs. Neutral rating retained. Target raised to $215 from $192.

Target price is $215.00 Current Price is $217.74 Difference: minus $2.74 (current price is over target).
If COH meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $201.33, suggesting downside of -4.6% (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 COH as Outperform (1) -

FY20 results were ahead of expectations. Market share gains support above-industry implant unit sales growth over the forecast period, Macquarie assesses.

However the recovery in services/acoustics is slower, being 70% of previous levels over June and July. Processor upgrades are being limited by reduced clinic capacity and surgical restrictions in the UK.

Outperform rating retained. Target rises to $236.00 from $208.50.

Target price is $236.00 Current Price is $217.74 Difference: $18.26
If COH meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $201.33, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Morgan Stanley rates COH as Overweight (1) -

FY20 results beat estimates and there was no FY21 guidance provided, with a trading update due in October. Morgan Stanley observes the trajectory in developed markets is back to pre-pandemic levels, helped by a catch-up in surgery and market share gains.

However, upgrade & service revenue remains at 70% of pre-pandemic levels, likely as the system is geared towards the prioritisation of surgery.

The broker also notes emerging markets are also stymied at 50% of pre-pandemic levels. Overweight retained. Target is raised to $229 from $211. Industry view: In-line.

Target price is $229.00 Current Price is $217.74 Difference: $11.26
If COH meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $201.33, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Morgans rates COH as Hold (3) -

FY20 results for Cochlear were negatively impacted by covid-19 deferral of elective surgeries, with sales declining across all divisions, margins contracting, underlying profit falling by double digits and the dividend remaining suspended, notes Morgans.

The analyst notes key positives including greater than 80% Cochlear Implants (CI) surgery started in developed markets by the end of June, China’s strong recovery, solid balance sheet and strong liquidity.

Some negatives included ‘catchup’ surgeries supported recovery of CI, little visibility on the new candidate pipeline, with uncertainty around the typical 9-12 months of referrals and scheduling, gross margins are expected to fall and no dividend is expected until profitability is sustained.

Additionally, clinical capacity is below historic levels and patient volumes prioritised, highlights Morgans. No FY21 guidance was provided

The Hold rating is maintained. The target price is increased to $195.34 from $169.31.

Target price is $195.34 Current Price is $217.74 Difference: minus $22.4 (current price is over target).
If COH meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $201.33, suggesting downside of -4.6% (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 COH as Lighten (4) -

Cochlear's FY20 result slumped -42% in response to the rapid covid-induced fall in second-half sales as a result of surgery deferrals.

Ord Minnett notes the medium-term outlook remains attractive, given pent-up demand, the lack of an alternative treatment and the weakening of competitors during covid, but expects the recovery will be slow.

The broker tips a solid 10% rise in profits in FY21 to be weighted to the second half. Earnings forecasts fall -10% as costs bite, even though cost control outpaced forecasts.

Lighten recommendation retained. Target price rises to $175 to $165.00.

Target price is $175.00 Current Price is $217.74 Difference: minus $42.74 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $201.33, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

UBS rates COH as Sell (5) -

Cochlear's profit fell short of the broker's forecast as higher than expected revenues were more than offset by higher than expected costs.

Management highlighted increased market share due to competitor recalls and Cochlear's differentiated product offering, but also warned not to expect elective surgery to come rushing back. No guidance was provided.

The broker has updated its key modelling assumptions, leading to a 15% increase in forecast FY21 earnings. Target rises to $175.00 from $160.50, Sell retained.

Target price is $175.00 Current Price is $217.74 Difference: minus $42.74 (current price is over target).
If COH meets the UBS target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $201.33, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Citi rates COL as Buy (1) -

Citi found the FY20 results solid. Sales are being boosted by better volumes in the first quarter of FY21.

The broker downgrades FY22 estimates by -2.6% and maintains a Buy rating, slightly revising the target to $21.00 from $21.40.

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 $19.06, suggesting upside of 0.5% (ex-dividends)

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

Credit Suisse rates COL as Neutral (3) -

FY20 results slightly missed Credit Suisse estimates largely because of lower earnings in the convenience segment and higher-than-forecast corporate costs.

The broker suspects guidance in terms of supermarket earnings margins is conservative, provided sales revenue continues to grow at high single-digit rates. The broker retains a Neutral rating and raises the target to $19.97 from $18.70.

Target price is $19.97 Current Price is $18.71 Difference: $1.26
If COL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $19.06, suggesting upside of 0.5% (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

Macquarie rates COL as Outperform (1) -

The online channel has become the key to the company's growth strategy, Macquarie believes. In the first six weeks of FY21 online supermarket sales are up 60%, underpinned by the Victorian lockdown.

Sales trends into the first quarter have been positive, although fourth quarter like-for-like sales of 7.1% were slower than the third quarter. Outperform rating and $19.80 target retained.

Target price is $19.80 Current Price is $18.71 Difference: $1.09
If COL meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $19.06, suggesting upside of 0.5% (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

Morgan Stanley rates COL as Overweight (1) -

FY20 results were broadly in line with Morgan Stanley's estimates. The broker suggests the result is likely to be priced into the stock given the recent performance.

In the first six weeks of FY21 like-for-like sales growth was 10%. The broker remains positive on the outlook for supermarkets and retains an Overweight rating. Target is $19.75. Industry view: Cautious.

Target price is $19.75 Current Price is $18.71 Difference: $1.04
If COL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $19.06, suggesting upside of 0.5% (ex-dividends)

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

Morgans rates COL as Hold (3) -

The Coles Group FY20 result (pre-AASB16) was slightly above Morgans expectations.

The broker notes key positives included a strong balance sheet, good cashflow realisation, and the ongoing benefit from increased demand for in-home consumption.

A key negative was limited operating leverage due to higher incremental costs, despite solid sales growth. The total DPS of 57.5cps was broadly in-line with the broker's forecast.

Morgans increases FY21 underlying earnings (EBIT) estimates by 30% due to the inclusion of AASB16 related adjustments.

The Hold rating is maintained. The target price increases to $18.90 from $15.20.

Target price is $18.90 Current Price is $18.71 Difference: $0.19
If COL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $19.06, suggesting upside of 0.5% (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

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

Coles Group's FY20 reported a mixed FY20 result: underlying net profit disappointing Ord Minnett; earnings from the core food business in-line on expanded margins; and liquor, convenience and corporate segments underperforming.

Operating cash flow was strong, the company boasting 111% cash conversion.

The broker is adopting a cautious outlook noting flattening food margins in the first quarter, growth challenges and continued weakness in convenience, liquor and corporate segments.

Ord Minnett downgrades to Hold from Accumulate and the target price falls to $19 from $19.50.

Target price is $19.00 Current Price is $18.71 Difference: $0.29
If COL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $19.06, suggesting upside of 0.5% (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

Ord Minnett rates CSL as Hold (3) -

It is Ord Minnett's initial observation that today's FY20 release slightly beat market consensus, while FY21 guidance is below consensus.

Collection of plasma is responsible. Declared dividend of $2.02 was -3% below the broker's estimate of US$2.09.

Target price is $280.00 Current Price is $293.29 Difference: minus $13.29 (current price is over target).
If CSL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $301.74, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates DMP as Sell (5) -

Upon initial assessment, it appears Domino's Pizza's FY20 has slightly missed and Citi points into the direction of covid-related costs.

Higher costs are the key reason as to why Citi thinks investors are pricing in too much covid-related growth in the share price, even though short term the expectation is the shares will remain supported.

Target price is $47.80 Current Price is $76.87 Difference: minus $29.07 (current price is over target).
If DMP meets the Citi target it will return approximately minus 38% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $61.50, suggesting downside of -26.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.4

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

Macquarie rates DMP as Neutral (3) -

Today Domino's Pizza released FY20 financials and Macquarie, upon initial glance, concludes the performance is slightly below expectations, but guidance for FY21 looks strong.

Japan moving into lockdown seems to be the secret ingredient for the company's success, so to speak. Europe, on the other hand, underwhelmed.

The analysts do make a comment that the valuation looks too stretched in light of the pace of growth that is likely to be achieved.

Target price is $77.30 Current Price is $76.87 Difference: $0.43
If DMP meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $61.50, suggesting downside of -26.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.4

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

UBS rates EHE as Neutral (3) -

Estia Health's FY20 result met the broker, as covid and the Royal Commission damaged the company's (and sector's) outlook.

UBS precised its evaluation with the observation that Estia Health remains its preferred exposure in the aged care sector.

Strong cost control and strong operating cash flows helped cut net debt by -10%, although staff costs rose 6% thanks to covid measures. No final dividend was announced.

Target price is steady at $1.55. Neutral rating retained, reflecting low visibility around covid and the Royal Commission.

Target price is $1.55 Current Price is $1.49 Difference: $0.06
If EHE meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.63, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates FPH as Underperform (5) -

The FY21 trading update includes an upgrade to net profit guidance to NZ$365-385m. FY21 revenue guidance is now NZ$1.61bn.

The updated guidance now assumes global hospitalisation requiring respiratory support steadily returns to normal by the end of 2020.

Credit Suisse upgrades estimates and retains an Underperform rating on valuation. The target is increased to NZ$30.00 from NZ$25.08.

Current Price is $33.25. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.5

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

UBS rates FPH as Sell (5) -

While an update from Fisher & Paykel Healthcare ((FPH)) ahead of its AGM highlighted greater than expected virus-related equipment sales, the broker believes this is now captured in consensus forecasts. Demand will fade over the next 18 months, the broker suggests, leading to a material drop in earnings.

Negative FY21 earnings momentum, overvaluation and a likely general shift out of virus winners once the crisis is contained keep the broker on Sell. Target rises to NZ$20.20 from NZ$19.50.

Current Price is $33.25. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.5

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

Ord Minnett rates HLS as No Rating (-1) -

Healius is due to report its FY20 result on Friday, August 21 and Ord Minnett forecasts underlying earnings (EBIT) of $103m and a net profit of $56m.

According to the broker, management generally does not provide guidance until the AGM later in the year.

The analyst expects a strong first half for pathology and does not expect routine imaging and pathology testing to drop as much as was seen during the initial lockdown.

The broker is currently research restricted and cannot provide a recommendation or target price.

Current Price is $3.18. Target price not assessed.

Current consensus price target is $3.35, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

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

FY20 results were in line with the July update and net profit was well down on FY19. Morgan Stanley notes all three segments contributed to the decline.

The broker suspects construction margins may remain low in the aftermath of the pandemic and the construction backlog indicates revenue could be -10% below FY20.

Development earnings will be the swing factor but the broker also suspects FY21 may not be the easiest, in terms of locking in tenant commitments and capital partners.

Morgan Stanley is under research restriction. Industry view: In-line.

Current Price is $11.60. Target price not assessed.

Current consensus price target is $13.95, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates LYC as Buy (1) -

Lynas Corp announced a $425m capital raise at its second half results. Ord Minnett was surprised by the size of the raise, twice expectations, but believes the dilution is more than offset by providing funding certainty to build Kalgoorlie.

In the broker's view the raise is opportunistic in terms of timing as the company is 12 months away from needing the cash and the above mentioned size being double requirements.

Ord Minnett notes the NdPr price continues to strengthen and is well above its first half 2021 estimates. The Buy rating is maintained. The target price is decreased to $4.05 from $4.50.

Target price is $4.05 Current Price is $2.61 Difference: $1.44
If LYC meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MIN as No Rating (-1) -

Upon first glance, Macquarie's response is Mineral Resources today released a strong FY20 result featuring much better cash flow and a dividend double the size of Macquarie's forecast.

The analysts note both divisions performed strongly, even though the actual profit figure is some -3% below Macquarie's forecast.

The broker's dilemma is probably best captured by the observation that at present spot prices the company could be looking towards 82% and 337% higher earnings for FY21 and FY22 respectively.

Then on the other hand... the share price is up some 50% in the past two months and trading ahead of Macquarie's price target. Rating officially under review.

Target price is $26.50 Current Price is $28.83 Difference: minus $2.33 (current price is over target).
If MIN meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.75, suggesting downside of -24.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Citi rates MND as Buy (1) -

Even with a large amount of deferred revenue, the FY20 result for Monadelphous Group still beat by $48m, implying stronger underlying growth for the group in mining, according to Citi.

The broker leaves FY21-FY22 earnings (EBITDA) forecasts largely unchanged due to commentary by the company that FY21 margins would not be as strong as first half FY20 margins.

Citi lowers profit (NPAT) forecasts for FY21 by -10% and for FY22 by -9%, due to higher depreciation and amortisation going forward.

The Buy rating is maintained. The target price is decreased to $12.63 from $14.35.

Target price is $12.63 Current Price is $10.05 Difference: $2.58
If MND meets the Citi target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates MND as Neutral (3) -

The second half was better than Credit Suisse feared, given concerns over the medium-term downgrade cycle. The business is not altogether out of the woods but the commentary regarding improved productivity signals there is some relief.

No guidance was provided, unsurprisingly. Hence, Credit Suisse derives from the accounts that a good portion of FY21 revenue from construction is covered by work in hand and while, as ever, there is still work to be won, commentary regarding the iron ore opportunities was upbeat.

Neutral retained. Target rises to $10.30 from $8.90.

Target price is $10.30 Current Price is $10.05 Difference: $0.25
If MND meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Monadelphous Group's FY20 net profit (NPAT) is 34% ahead of Macquarie's estimate. Margins, cash flows and dividend were all ahead of the broker's forecasts.

The company sees potential for operating income margins to return to pre-covid-19 levels although the broker considers this too optimistic.

Macquarie upgrades its rating to Outperform from Neutral with the target price increasing to $11.57 from $11.16. 

Target price is $11.57 Current Price is $10.05 Difference: $1.52
If MND meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 1.4% (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 MND as Upgrade to Hold from Lighten (3) -

Ord Minnett notes Monadelphous Group reported net profit of $36.5m for FY20, below the broker's estimate by -10%. The company also pointed due to covid-19, 10% of FY210 revenue has been deferred into FY21.

The year ahead is expected to be strong but a lawsuit worth circa -$500m from Rio Tinto ((RIO)) precludes the broker from being more positive on the stock.

Ord Minnett upgrades its rating to Hold from Lighten with the target price increasing to $10.80 from $10.

Target price is $10.80 Current Price is $10.05 Difference: $0.75
If MND meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates MSV as Add (1) -

Mitchell Services showed impressive operational flexibility and resilience to covid-19 disruption, which saw the company meet unchanged FY20 guidance, according to Morgans.

No dividend was expected or declared, notes the broker, and formal FY21 guidance won't be issued until the first half result in February, 2021.

The broker suggests an improving balance sheet should put the company on the radar of a broader suite of investors, and brings acquisition and capital management flexibility.

The Speculative Buy rating is maintained. The target price is decreased to $0.906 from $0.981.

Target price is $0.91 Current Price is $0.57 Difference: $0.336
If MSV meets the Morgans target it will return approximately 59% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates NST as Neutral (3) -

The near-term outlook for the KCGM joint venture with Saracen Mineral Holdings ((SAR)) is higher-cost at a softer grade than Citi was expecting, but guidance out to FY26 is conservative.

The reserve growth supports a longer mine life from the operation and provides confidence that the operation sits in the joint venture’s  sweet spot of driving productivity and delivering value via the drill bit, says Citi.

The broker models a circa $300m upgrade to the joint venture net asset value (NAV) and maintains a Neutral rating.

Citi reduces earnings estimates (EBITDA) by -5% for FY22 and FY23 and revises down exploration spend at the group level to -$101m, in-line with guidance.

The target price is decreased to $15.80 from $15.90.

Target price is $15.80 Current Price is $14.99 Difference: $0.81
If NST meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $13.93, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Macquarie rates NST as Underperform (5) -

It looks like Northern Star's FY20 release will go down as a clear "miss", if Macquarie's initial assessment is anything to go by.

Clearly, the gold producer has tried to make up for it by announcing a 9.5cps final dividend plus 10cps special dividend.

Target price is $13.30 Current Price is $14.99 Difference: minus $1.69 (current price is over target).
If NST meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.93, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Macquarie rates NST as Underperform (5) -

Northern Star's Kalgoorlie Consolidated Gold Mines (KCGM) joint venture announced an updated resource and reserve estimate along with a long-term outlook for the Super Pit.

Macquarie notes return to pit-slip production will take longer than anticipated. The company points towards the potential for new production from Fimiston South, prompting the broker to include circa 100kozpa in its forecasts from FY26.

The broker considers the outlook in the short and medium-term to be more modest than expected.

Macquarie maintains its Underperform rating with the target price decreasing to $13.30 from $14.

Target price is $13.30 Current Price is $14.99 Difference: minus $1.69 (current price is over target).
If NST meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.93, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

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

Morgan Stanley notes a reserve expansion at Kalgoorlie Consolidated Gold Mines (KCGM) brings reserve life in-line with the broker's estimate. But this comes at a cost - with Northern Star Resources' growth capex exceeding the broker's estimate by about $210m in FY21-22.

FY21 production guidance is softer than expected with gold production guidance -8% below the broker's forecast.  

Equal-weight rating. Target is $12.25. Industry view: Attractive.

Target price is $12.25 Current Price is $14.99 Difference: minus $2.74 (current price is over target).
If NST 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 $13.93, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

UBS rates NST as Sell (5) -

Norther Star Resources has unveiled its Superpit mine plan a month early, albeit not a full reveal.

UBS reckons near-term production is lower than markets expected, triggering near-end earnings downgrades, but notes the plan has greater duration. Net present value rises 3% to $13.86 a share.

Given some details remain hazy, UBS spies potential to increase disappointing FY25-FY27 guidance, and extend the mine life from FY35.

UBS says the miner offers a sector-leading five year production compound average growth rate of 5% out to 2025.

EPS forecasts fall -2% for FY21 and -3% for FY22, driving a -9% and -17% fall in net profit after tax estimates.

Price target rises to $14 from $13.50 but Sell rating retained, UBS noting the miner is trading 8% above valuation.

Target price is $14.00 Current Price is $14.99 Difference: minus $0.99 (current price is over target).
If NST meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.93, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.5

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

Credit Suisse rates NWL as Upgrade to Neutral from Underperform (3) -

FY20 results were slightly ahead of estimates. Guidance for flows of $8bn in FY21 is significantly higher than Credit Suisse's previous forecasts.

While the company pointed to further revenue margin pressure, the broker considers this manageable given the strong growth in funds under administration.

Forecasts are raised by 17% for FY21 and 27% for FY22. Rating is upgraded to Neutral from Underperform as, while the valuation is optically high, it is considered justified by the three-year compound growth rate of around 20%. Target is raised to $14.00 from $8.45.

Target price is $14.00 Current Price is $14.10 Difference: minus $0.1 (current price is over target).
If NWL meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.07, suggesting downside of -29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Macquarie rates NWL as Underperform (5) -

Macquarie notes Netwealth Group's FY20 net profit was up 24% versus last year and in-line with the broker's forecast.

In FY21, the financial platform expects $8bn in net flows but flags back-book re-pricing and lower margins on cash may impact revenues. The broker anticipates more margin pressure and cost growth as the platform's funds under administration (FuA) continues to grow.

Underperform rating retained. Target is raised to $7.25 from $6.80.

Target price is $7.25 Current Price is $14.10 Difference: minus $6.85 (current price is over target).
If NWL meets the Macquarie target it will return approximately minus 49% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.07, suggesting downside of -29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Morgans rates NWL as Hold (3) -

Netwealth Group reported FY20 profit (NPAT) growth of 21.7%, in-line with recent guidance and expectations, according to Morgans.

The broker notes net inflow guidance of $8bn supports a solid growth outlook irrespective of broader investment market conditions.

Advisor transitions continue to assist FUA growth, with the company expecting the end of grandfathered commissions (December 2020) to further increase these transitions.

The Hold rating is maintained. The target price is increased to $12.45 from $8.90.

Target price is $12.45 Current Price is $14.10 Difference: minus $1.65 (current price is over target).
If NWL meets the Morgans target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.07, suggesting downside of -29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates NWL as Sell (5) -

Specialist platform Netwealth Group delivered 21% earnings growth in a challenging year and this, states Ord Minnett, highlights the resilience of the group's business model. The FY20 result was slightly ahead of the broker's forecast.

The group has guided to $8bn of net inflows in FY21, below the broker's expected $8.4bn. Ord Minnett notes management tends to be conservative and expects more upside. 

Driven by valuation, Ord Minnett retains its Sell rating with the target price increasing to $9.99 from $9.55. The broker prefers Hub24 ((HUB)) over Netwealth Group.

Target price is $9.99 Current Price is $14.10 Difference: minus $4.11 (current price is over target).
If NWL meets the Ord Minnett target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.07, suggesting downside of -29.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates OZL as No Rating (-1) -

OZ Minerals has been officially placed under review by Ord Minnett. In initial response to today's FY20 release, the analyst comments the result was in-line, the dividend was a "beat", and cash flow proved a messy affair.

Given the share price has rallied so hard in recent weeks, this has now become a matter of valuation, today's commentary suggests.

Target price is $10.50 Current Price is $14.10 Difference: minus $3.6 (current price is over target).
If OZL meets the Ord Minnett target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.08, suggesting downside of -10.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.5

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

Macquarie rates PGH as Neutral (3) -

At first glance, today's FY20 release by Pact Group was no less then 20% better than expected, reports Macquarie, and that goes for market consensus as well.

The positive surprise extends to a 3c dividend declared when no dividend had been anticipated.

It appears Contract Manufacturing was the stand-out performer, but the company is restarting the process to find a buyer for it.

Target price is $2.60 Current Price is $2.37 Difference: $0.23
If PGH meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Macquarie rates PMV as Outperform (1) -

Premier Investments' second-half trading update beat Macquarie's sales and operating income (EBIT) forecasts by 9% and 18%. The acceleration in e-commerce, cost savings and wage subsidy schemes had been anticipated by the broker.

The diversified nature of the company's balance sheet and exposure to prominent brands will help it move forward in an uncertain environment, comments the broker.

Outperform rating maintained. The target price is increased to $22.13 from $20.11.

Target price is $22.13 Current Price is $18.30 Difference: $3.83
If PMV meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $19.25, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

UBS rates RHC as Neutral (3) -

APRA data confirm a big drop in benefits paid to private hospitals as elective treatment remains on hold during the virus. The outlook is nevertheless one of a big backlog that will ultimately need to be cleared, the broker notes.

The rapid decline in private health insurance participation remains of some concern, as it will impact on future demand for services. The broker expects declines to worsen as JobKeeper benefits reduce and the longer term economic repercussions of the virus are experienced by Australian households.

Neutral and $71.20 target retained for Ramsay Health Care.

Target price is $71.20 Current Price is $67.56 Difference: $3.64
If RHC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $68.45, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Citi rates SAR as Neutral (3) -

The near-term outlook for the KCGM joint venture with Northern Star Resources ((NST)) is higher-cost at a softer grade than Citi was expecting, but guidance out to FY26 looks conservative.

The reserve growth supports a longer mine life from the operation and provides confidence that the operation sits in the joint venture’s  sweet spot of driving productivity and delivering value via the drill bit, says Citi.

The broker models a circa $300m upgrade to the joint venture net asset value (NAV) and maintains a Neutral rating. The broker reduces earnings (EBITDA) estimates by around -11% for each of FY21, FY22 and FY23, respectively.

The target price is reduced to $6.00 from $6.10.

Target price is $6.00 Current Price is $5.75 Difference: $0.25
If SAR meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Macquarie rates SAR as Underperform (5) -

Saracen Mineral Holdings' Kalgoorlie Consolidated Gold Mines (KCGM) joint venture released an updated resource and reserve estimate for the Super Pit, providing a long term outlook for the asset. The update adds 4.8moz to the miner's reserves, reports Macquarie.

The revised outlook prompts the broker to cut earnings growth estimates for FY21-25. The outlook in the short and medium-term is more modest than expected. The miner will release its FY20 results on August 19.

Underperform maintained. Target is reduced to $4.70 from $5.10.

Target price is $4.70 Current Price is $5.75 Difference: minus $1.05 (current price is over target).
If SAR meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.52, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

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

Morgan Stanley notes a reserve expansion at Kalgoorlie Consolidated Gold Mines (KCGM) brings reserve life in-line with the broker's estimate. But this comes at a cost - with Saracen Mineral Holdings' growth capex exceeding the broker's estimate by about -$155m in FY21-22.

FY21 production guidance is softer than expected with gold production guidance -7% below the broker's forecast.  

Morgan Stanley reaffirms its Equal-weight rating with a target price of $5.25. Industry view: Attractive.

Target price is $5.25 Current Price is $5.75 Difference: minus $0.5 (current price is over target).
If SAR meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.52, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

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

Saracen Mineral Holdings has unveiled its Superpit mine plan a month early, albeit not a full reveal.

UBS reckons near-term production is lower than markets expected, triggering near-end earnings downgrades, but notes the plan has greater duration. 

Given some details remain hazy, UBS spies potential to increase disappointing FY25-FY27 guidance, and extend the mine life from FY35.

UBS says the miner offers a sector-leading five year production compound average growth rate of 5% out to 2025.

Broker upgrades to Buy from Neutral noting the miner is trading at a 15% discount to valuation. Target price rises to $6.75 from $6.50.

Production forecasts fall -3% for FY21 and -6% for FY22, driving a -17% and -27% fall in net profit after tax estimates.

Target price is $6.75 Current Price is $5.75 Difference: $1
If SAR meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

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

SG Fleet Group's FY20 net profit beat Macquarie's forecast by circa 11.7% with the fourth quarter performance better than expected. The group did not provide any guidance for FY21.

Trading improved in June continuing into the first half of FY21, notes the broker, along with better than expected novated leads.

Macquarie upgrades its rating to Outperform from Neutral with the target price increasing to $1.92 from $1.85.

Target price is $1.92 Current Price is $1.62 Difference: $0.3
If SGF meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

SG Fleet Group's FY20 result was mostly in-line with Morgan Stanley with net profit missing the forecast by -3%. At 118%, cash conversion was considered robust.

The group did not provide any FY21 guidance but the broker considers the outlook to be improving. There remains uncertainty surrounding the lockdowns, putting earnings at risk as they are more leveraged to the macro backdrop than peers.  

Equal-weight rating maintained. Target is reduced to $2.00 from $2.45. Industry view: In Line.

Target price is $2.00 Current Price is $1.62 Difference: $0.38
If SGF meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates SGM as Buy (1) -

The underlying EBIT loss in FY20 of -$58m was not as large as expected by Citi. This loss was driven by a legacy brand write-off, intangible impairments and asset write-offs.

The company noted all metal divisions returned to profit for July, 2020.

Citi revises FY21 and FY22 profit (NPAT) up by $6m and $2m, respectively, with volume reductions more than offset by cost outs.

The Buy rating is maintained. The target price is unchanged at $9.50

Target price is $9.50 Current Price is $8.36 Difference: $1.14
If SGM meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.23, suggesting upside of 14.9% (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

Credit Suisse rates SGM as Neutral (3) -

Credit Suisse observes trading conditions have improved but remain deeply challenged and cost reductions appear a necessary reaction. The underlying loss at the EBIT line was larger than expected and no final dividend was declared.

While no guidance was provided, July has been profitable across all trading divisions, the company noted. Credit Suisse retains a Neutral rating and raises the target to $8.25 from $7.95.

Target price is $8.25 Current Price is $8.36 Difference: minus $0.11 (current price is over target).
If SGM meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.23, suggesting upside of 14.9% (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 SGM as Upgrade to Outperform from Neutral (1) -

Sims reported a better than expected FY20, observes Macquarie, with some improvement in market and profitability. No dividend was declared.

Macquarie is impressed by how the group managed to reduce its costs in the UK and ANZ while winning four important contracts in FY20 and another three for FY21. The company has not provided any guidance although notes intake volumes are recovering.

The market environment has improved post lockdowns in North America and the UK, assesses the broker, and upgrades its rating to Outperform from Neutral. Target is raised to $9.50 from $7.95.

Target price is $9.50 Current Price is $8.36 Difference: $1.14
If SGM meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.23, suggesting upside of 14.9% (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

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

Sims' FY20 results were in-line with Morgan Stanley's forecasts. Management did not provide any firm guidance but noted the company returned to profit in July despite difficult trading conditions.

The broker expects FY21 operating income will remain unchanged mostly while net profit will improve by 3%. The worst has passed for the company, believes the broker but finds it difficult to have conviction on earnings in the short term.

Equal-weight rating retained. Target is increased to $9.50 from $9. Industry view is Cautious.

Target price is $9.50 Current Price is $8.36 Difference: $1.14
If SGM meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.23, suggesting upside of 14.9% (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

Ord Minnett rates SGM as Hold (3) -

Sims reported an operating loss of -$58m in FY20. This was more than estimated by Ord Minnett at -$32m. No dividend was declared.

With savings of $70m per year budgeted from FY21, the company's main focus is on cost savings, highlights the broker. The broker sees early signs of improvement with the company trading profitably in July.

The broker remains attracted to the company's top-down scrap steel theme but, considering the lack of profitability and low expected margins, Ord Minnett retains its Hold rating with the target increasing to $8.40 from $8.30.

Target price is $8.40 Current Price is $8.36 Difference: $0.04
If SGM meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.23, suggesting upside of 14.9% (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

UBS rates SGM as Buy (1) -

Sims did not lose as much as the broker expected in FY20, although negative cash flow leaves the company with less than the broker expected. The good news showed up in the form of signs of improvement in July, such that management believes a cash balance low has been seen.

The broker warns a low cash balance leaves Sims in a tough position were scrap markets to freeze again on geopolitical tensions or trade disputes, but planned cost reductions and purchasing optimisation should support earnings. Buy and $10.20 target retained.

Target price is $10.20 Current Price is $8.36 Difference: $1.84
If SGM meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $9.23, suggesting upside of 14.9% (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

Ord Minnett rates SSM as Buy (1) -

Service Stream's FY20 result was in-line with expectations. Covid-19 related headwinds were present in the second half but did not appear to escalate through June, comments the broker. 

The FY21 outlook, while measured, demonstrates resilience, according to the broker. The company provided qualitative guidance rather than quantitative. The broker suggests earnings will be dependent on work volumes and resumption of delayed work.

Ord Minnett retains its Buy rating with the target price reduced to $2.55 from $2.65.

Target price is $2.55 Current Price is $1.82 Difference: $0.73
If SSM meets the Ord Minnett target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates TWE as Neutral (3) -

Citi notes the increased risk from China's anti-dumping investigation. Australian wine accounts for 25% of all imports and it's not clear from the data there is dumping.

Citi estimates China accounts for 7% of Treasury Wine's volumes and 35% of its earnings (EBIT). In the longer term, if tariffs were reintroduced then volumes could fall -50% to China, however, the broker considers this probability low at this stage.

Citi also notes the market has reacted swiftly to the risk but awaits more details about the potential ramifications. Neutral rating. Target $12.65.

Target price is $12.65 Current Price is $10.58 Difference: $2.07
If TWE meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $11.94, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates TWE as Neutral (3) -

Treasury Wine Estates has been named among nine other companies as the subject of an investigation by China's Ministry of Commerce regarding dumping of wine.

Credit Suisse points out, if dumping means that the company is exporting goods at below cost then this must be taken in the context of Australia-China relations.

China remains one of the company's highest-margin markets and over 85% of Treasury Wine's Asian sales are premium wines. The broker suspects, at the end of the investigation new tariffs may be imposed on Australian wine.

No earnings or valuation changes are made and the Neutral rating and $12.30 target are retained.

Target price is $12.30 Current Price is $10.58 Difference: $1.72
If TWE meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $11.94, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates TWE as Downgrade to Neutral from Outperform (3) -

Treasury Wine Estates is caught between rising geopolitical tensions between Australia and China, with the latter investigating the winemaker for anti-dumping practices.

Macquarie sees the company as a pawn in a larger game, noting Treasury Wine's Asian division which forms about 40% of the group's operating income may suffer.

China is the winemaker's key export region, highlights the broker, adding any disruption in this market would be "very destructive" for the company.

The rating is downgraded to Neutral from Outperform. The target price is decreased to $10.60 from $14.90.

Target price is $10.60 Current Price is $10.58 Difference: $0.02
If TWE meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $11.94, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates TWE as Lighten (4) -

China's Ministry of Commerce (MOFCOM) has initiated an anti-dumping investigation of Australian wine exports into China, with Treasury Wine Estates one of the wine producers being investigated, which prompts Ord Minnett to lower its target price to $10 from $11.50.

The company stated it remains committed to China as a priority market.

The broker explains the investigation adds uncertainty, possibly weighing on the rate of the company's growth into China.

The rating of Lighten is maintained.

Target price is $10.00 Current Price is $10.58 Difference: minus $0.58 (current price is over target).
If TWE meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.94, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates TYR as Accumulate (2) -

Tyro Payments reported a net loss of -$28.3m for FY20 versus Ord Minnett's expected -$27.1m. Overall, the broker notes the result was a slight miss at the top line led by lower merchant services fee margins. 

Even with uncertainty around covid-19, the broker believes the business is well placed to execute on its merchant acquisition strategy. 

Ord Minnett retains its Accumulate rating with the target price trimmed to $4 from $4.15.

Target price is $4.00 Current Price is $3.20 Difference: $0.8
If TYR meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.55, suggesting upside of 12.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates URW as Neutral (3) -

According to media reports, Unibail-Rodamco-Westfield seems to be considering a EUR3bn rights issue.

Macquarie is of the view this may not be enough to decrease gearing levels. The company will likely use a combination of measures like asset sales, equity and a lower payout ratio to reduce leverage, the broker suggests.

With uncertainty continuing around the balance sheet, Macquarie finds it difficult to be positive and retains its Neutral rating with a target price of $4.09.

Target price is $4.09 Current Price is $3.37 Difference: $0.72
If URW meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.45, suggesting upside of 41.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

This company reports in EUR. 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 VRT as Add (1) -

Virtus Health posted an adjusted profit (NPAT) of $20.6m which was below the Morgans forecast of $23.6m.

The broker likes the solid operating cashflow, the reasonable position of the balance sheet and that pent up demand is likely to continue for some time.

The new CEO is building on the company's dominant market position in key regions and strong technology advantage in genetics and embryo selection, says the broker.

Although no final dividend was declared (as expected), the deferred interim dividend of 12cps will be paid on November 30, notes the analyst.

The Add rating is maintained. The target price is increased to $3.31 from $3.17.

Target price is $3.31 Current Price is $3.14 Difference: $0.17
If VRT meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.57, suggesting upside of 4.4% (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

UBS rates VRT as Buy (1) -

Virtus Health reported a mixed result but UBS perceived a turnaround opportunity for investors, spying scope for an acceleration in the top line; improved profitability as the company optimises domestic and international assets; and a deleveraging of the balance sheet.

Net profit after taxes outpace the broker by 7% but fell -6% short of consensus as covid took its toll, providing a roughly -22% headwind. Impairments were -$25m; cash flow was strong; and net debt fell -19%.

Day hospital revenue growth jumped 38% while the offshore business struggled. No final dividend was announced. EPS forecasts rise 5% in the medium term and UBS notes FY21 is off to a good start. 

Target price is cut to $4.10 from $4.45 to reflect higher capital expenditure assumptions. Buy rating retained.

Target price is $4.10 Current Price is $3.14 Difference: $0.96
If VRT meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $3.57, suggesting upside of 4.4% (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 WBC as Buy (1) -

Third quarter cash earnings by Westpac of around $1.3bn were below Citi's estimate of $1.7bn. The broker explains the miss was driven by the higher bad and doubtful debt expense of -$826m.

The deferred first half dividend is now officially cancelled. Citi believes the bank is showing the most prudent approach in the sector as management favours loan provisioning over dividends.

The broker downgrades FY20 earnings forecasts by -16%, to largely reflect higher bad debts in the third quarter, which the analyst expects to continue into the fourth quarter at around 46 basis points.

The Buy rating is maintained. The target price is unchanged at $23.50.

Target price is $23.50 Current Price is $17.18 Difference: $6.32
If WBC meets the Citi target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $20.03, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Credit Suisse rates WBC as Outperform (1) -

Following the third quarter trading update, Credit Suisse downgrades earnings estimates by -2-3% to incorporate lower revenue, amid fee pressures, and lower net interest margins.

Earnings are still strongly positive for the bank and, given a sub-book valuation, Credit Suisse retains an Outperform rating and $20.60 target.

Target price is $20.60 Current Price is $17.18 Difference: $3.42
If WBC meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $20.03, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Macquarie rates WBC as Neutral (3) -

Westpac's third-quarter trends look challenged, in the view of Macquarie analysts.

The broker highlights many issues are sectoral, suggesting the bank's peers will not be immune. Issues include a tough revenue environment, worsening credit quality, and capital pressures.

Even as the stock remains relatively cheap, given the challenges the broker sees limited scope for any short term re-rating and holds onto its Neutral recommendation. Target remains unchanged at $17.50.

Target price is $17.50 Current Price is $17.18 Difference: $0.32
If WBC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $20.03, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

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

Westpac's earnings and capital continued to be weighed down by the deterioration in the economy in the third quarter, reports Morgan Stanley. The broker expects the margin to fall below 2% in the first half of FY21 given an environment of lower rates and increasing competition.

The broker thinks management has a lot on its plate and is unlikely to make much progress on costs next year. Potential asset sales by the bank may be in the offing, suggest Morgan Stanley analysts.

Led by a combination of potential write-downs in the June quarter, a below peer CET1 ratio and an uncertain outlook, the broker reduces its second half dividend forecast to 30c. FY21 dividend is expected to be 100c.   

Morgan Stanley retains its Equal-weight rating with the target price decreased to $17.40 from $17.90. Industry view: In-line.

Target price is $17.40 Current Price is $17.18 Difference: $0.22
If WBC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $20.03, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates WBC as Add (1) -

Westpac has announced third quarter unaudited cash earnings of $1.32bn and the board has decided to not declare a dividend for the first half FY20. Morgans forecasts a final dividend of 48 cents.

The third quarter net interest margin (NIM) of 2.05% is softer than the broker had expected. The analyst notes the key drags on the margin in the quarter were a strong build-up of liquid asset balances, lower cash rate and higher term deposits.

Credit loss provisioning looks relatively conservative, suggests the broker.

Morgans emphasises there are downside risks to the broker's earnings and dividend forecasts as a result of ongoing pandemic effects.

The Add rating is maintained. The target price is unchanged at $22.50.

Target price is $22.50 Current Price is $17.18 Difference: $5.32
If WBC meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $20.03, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates WBC as Hold (3) -

Westpac's third-quarter trading update disappointed Ord Minnett, as revenue fell -1% and costs rose 3%. The bank's flat common equity tier 1 capital ratio of 10.8% fell shy of the broker's second-quarter forecast of 11.04%.

Key surprises included the level of pressure on net interest margins (down -6 basis points excluding one-offs, liquidity and markets); the tier 1 ratio; and on the upside, a swift response to covid reporting, the bank topping up covid provisions.

Net profit estimates fall -13%, -3% and -5% across FY20,FY21 and FY22.

The broker maintains a Hold rating, perceiving Westpac faces greater challenges than peers and noting the negative jaws of falling revenue and rising expenses. Target price falls to $18.20 from $18.90.

Target price is $18.20 Current Price is $17.18 Difference: $1.02
If WBC meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $20.03, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21: