Australian Broker Call

Ord Minnett rates A1M as Speculative Buy (1) -

AIC Mines recently raised $57.2m through an institutional placement at an -11.9% discount to the last closing price, to fund the development of a 3.6km link drive to Jericho from Eloise.

Ord Minnett highlights the plan is different from the original boxcut/UG design and is aimed to improve near-term scheduling risk and potentially benefit from additional mineralisation from Swagman, as an example.

This decision is expected to reduce initial capex and provide earlier monetisation opportunities, notes the analyst.

Ord Minnett points to the deferred development timeline for ore assumptions by around nine months, impacting FY26-27 earnings estimates, which have been reduced by -21%.

The Speculative Buy rating is retained while the target falls to 65c from 85c.

Target price is $0.65 Current Price is $0.54 Difference: $0.115
If A1M meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates A1M as Buy, High Risk (1) -

Shaw and Partners raises its target for AIC Mines to $1.20 from 90c to reflect expanded production and a longer mine life.

This change by the broker comes after management provided additional detail around development at the Jericho mine, as well as the proposed Eloise plant expansion.

The analysts' forecasts are adusted to reflect dilution from a $57.2m capital raising (to develop the Jericho link drive directly from the Eloise decline), along with an increased near-term capital spend on the link drive and mill modification.

The Buy, High Risk rating is retained.

Target price is $1.20 Current Price is $0.54 Difference: $0.665
If A1M meets the Shaw and Partners target it will return approximately 124% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates A2M as Buy (1) -

Post assessing the latest New Zealand (NZ) port data in relation to a2 Milk Co, the Citi analyst confirms management is performing well against a challenging macro backdrop.

The analyst highlights NZ infant milk formula exports fell -11% in the January to April 2024 period compared to 28% growth in the 1H24, which is attributed to the company stocking channels with the company's new China label and the comparision of results in the previous corresponding period.

Citi highlights the potential market share gains from new product developments in the English label which reported growth in volumes to Hong Kong of 145% over the four-month period.

The supply chain partnership with Yashili is seen as a positive step that may lead to broader collaborations. Buy rating and $7.85 target price.

Target price is $7.85 Current Price is $7.12 Difference: $0.73
If A2M meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.54, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

This company reports in NZD. 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

Morgan Stanley rates ASX as Underweight (5) -

Morgan Stanley notes futures trading and OTC clearing represented 21% of ASX revenues in FY23.

Based on volumes for May this year of interest rate futures, volumes may be up 15% in the 2H of FY24 compared to the broker's 9.5% forecast.

Conversely, cash market trading and capital raising activity was tracking below the broker's forecast as at April.

Underweight. The $53.50 target is maintained. Industry view: In-Line.

Target price is $53.50 Current Price is $63.21 Difference: minus $9.71 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $62.68, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Citi rates BSL as Neutral (3) -

Citi points to a decline in US steel prices on weaker demand for most sub-sectors ex-autos, while US steel demand should benefit from infrastructure spending.

The analyst views steel prices as bottoming out and adjusts the EBIT forecast for BlueScope Steel by -1% for FY24 and -8% for FY25.

Management's restructuring efforts and the company's strong balance sheet support resilience and potential for higher dividends, according to Citi.

The Neutral rating is retained and the target price decreases to $24.00 from $24.50.

Target price is $24.00 Current Price is $21.60 Difference: $2.4
If BSL meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $23.09, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates BXB as Buy (1) -

UBS analysts maintain their Buy rating for Brambles with an unchanged price target of $17.30.

As per the broker, Brambles has seen retailer stock levels stabilise while supplier stock remains elevated. CHEP volumes were down -1% in the nine months to March 2024, with mixed performance across regions.

The company is expected to show a positive fourth quarter with growing confidence in free cash flow recovery driving a potential re-rating.

UBS sees Brambles shares trading -24% below the ASX industrials, suggesting the market underestimates its earnings and cash flow sustainability.

Target price is $17.30 Current Price is $14.38 Difference: $2.92
If BXB meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $16.28, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Morgans rates CKF as Add (1) -

Prior to FY24 results on June 25, Morgans lowers forecasts for Collins Foods after recent peer reporting by Restaurant Brands and YUM! Brands highlighted moderating sales trends in Australia over January to March.

Despite lowering the target to $11.50 from $12.40, (due to lower forecasts and after assuming a lower multiple), the broker believes the recent decline in the company's shares is overdone and retains an Add rating.

Target price is $11.50 Current Price is $9.30 Difference: $2.2
If CKF meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $12.13, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates CMW as Accumulate (2) -

Ord Minnett assesses the unexpected recent sale of the European fund management platform and associated assets of Cromwell Property.

The broker views the sales as far from ideal given that markets are under pressure, but stresses the strategic move is expected to streamline operations and improve the overall financial position of the group with gearing moving to 25% by the September quarter. 

Post the sales, Ord Minnett notes the business should be more predictable as an Australian business with the financial strength improved.

Accumulate rating. The target falls to 66c from 75c.

Target price is $0.66 Current Price is $0.47 Difference: $0.19
If CMW 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 FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates COL as Buy (1) -

The Citi analyst has reviewed the local supermarket giants with in store aisle visits to check out the pricing strategy for Coles Group and Woolworths Group.

The analyst views the Woolworths rollout of electronic ticketing may be harming its price perception and sales growth compared to Coles which uses colourful paper tickets to highlight specials.

Coles is expected to lead in like-for-like sales growth in 4Q24, driven by better value perception and execution, while Woolworths is anticipated to boost sales growth in 1Q25 with a promotional campaign during the Olympic Games.

Buy rating. $19 target price. Both companies are Buy rated with Citi preferring Coles Group over Woolworths on a better earnings outlook.

Target price is $19.00 Current Price is $16.11 Difference: $2.89
If COL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $17.53, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates FBU as Sell (5) -

Due to  recent decline in the Fletcher Building share price and M&A activity in the building materials sector, speculation about potential private equity interest has prompted Citi to run a ruler over the company's net asset value (NTA).

The broker estimates the NTA has declined to NZ$2.85 per share from NZ$3.47 in June 2022, and NZ$2.94 iin the 1H24.

The revised NTA per share includes a NZ$300m positive adjustment for land re-valuation and around a NZ$200m estimate for iplex pipes and a -NZ$150m provision for legacy projects and defect work post-handover.

Citi assesses the stock is still trading at a premium to its adjusted NTA estimate. No meaningful changes were made to earnings forecasts.

Sell rating unchanged with a NZ$3.10 target price.

Current Price is $2.77. Target price not assessed.

Current consensus price target is $2.77, suggesting downside of -2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 GNE as Hold (3) -

A reduction in the expectations for Genesis Energy's 46% owned Kupe oil and gas field due to failed works on improved flows is disappointing according to Ord Minnett.

Management guided to FY24  EBITDA between NZ$400-NZ$450m, some -4% below the analyst's previous estimates.

Ord Minnett adjusts FY24 EBITDA forecasts by -4% and FY25 by -10%. The target is lowered by -8% to NZ$2.50. Hold rating unchanged.

Current Price is $2.01. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Bell Potter rates HMC as Hold (3) -

Bell Potter assesses the strategic acquisition of Payton Capital for -$127.5m, funded via $130m equity raising by HMC Capital

The analyst sees this as a significant move into the credit sector and is in line with the strategic goal to grow assets under management (AUM).

The broker posits the $50m sell down of HomeCo Daily Needs Reit ((HDN)) as part of the funding may pose questions given the strength of the balance sheet, equity raising capacity and the -14% discount to NAV the REIT is currently trading at.

Bell Potter adjusts EPS estimates by -3%  for FY24 and 4% for FY25. Hold rating unchanged and the target lifts to $7.40 from $7.30.

Target price is $7.40 Current Price is $6.92 Difference: $0.48
If HMC meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

Morgan Stanley approves of HMC Capital's acquisition of commercial real estate private debt fund manager, Payton Capital. The target has $1.5bn of assets under management (AUM) and a $500m approved financing line to help warehouse products.

The broker believes HMC Capital's target of around $5bn credit AUM in the near-term is achieveable, with success ultimately dependent on flow/capital churn.

The Equal Weight rating and $7.05 target are maintained. Industry View: In-Line. 

Target price is $7.05 Current Price is $6.92 Difference: $0.13
If HMC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates IEL as Neutral (3) -

UBS analysts maintain their Neutral rating for IDP Education with an unchanged price target of $17.65 in response to the UK government's recent policy update on student visas, which is seen as more benign than expected.

UBS highlights there are no material changes to post-study work rights. While there remain downside risks to near-term earnings, UBS remains positive on the company's long-term structural story and market share gains opportunities, particularly in the US.

Target price is $17.65 Current Price is $16.32 Difference: $1.33
If IEL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $21.74, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Citi rates IMD as Neutral (3) -

Citi assesses the April junior financings which showed a increase to US$1.4bn, marking a 143% year-over-year increase and a 179% rise from March.

Despite this positive momentum, Citi remains cautious, noting  sustained elevated junior raisings are necessary to drive meaningful exploration activity and volume recovery for Imdex.

The broker highlights the company's revenue is largely driven by gold, which represents around 50% of its total revenue and most of the recent financings have been more skewed towards base and specialty metals.

Citi envisages an improvement in exploration from juniors could be more than twelve months away.

Neutral rating and $2 target unchanged,

Target price is $2.20 Current Price is $2.18 Difference: $0.02
If IMD meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates INA as Buy (1) -

In a quick response to today's trading update released by Ingenia Communities, Citi comments management's forecast for FY24 underlying EPS near the top end of guidance is slightly above market consensus, but also slightly below Citi's forecast.

The release is labeled as "strong" with the new CEO indicating the focus is on efficiencies and cost savings, and on assessing individual project level returns, the broker highlights.

Citi reiterates its Buy rating with a target price of $5.30.

Target price is $5.30 Current Price is $4.72 Difference: $0.58
If INA meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.14, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Citi rates LLC as Neutral (3) -

Lendlease Group has used its strategy day today to announce its exit from international operations and Citi analysts, in a quick response, comment the move was widely expected and is estimated to release some $4.5bn in capital, of which $2.8bn should occur in FY25.

Further cost reductions should deliver an incremental $125m in cost savings, pre-tax, over and above the $300m-plus announced already.

The drawback comes in the form of -$1.15-$1.475bn in impairments. While the broker thinks all of the above will ultimately prove a positive for Lendlease and its shareholders, the execution requires time.

There are multiple conditions attached to management's FY24 guidance for 7% return on equity (RoE), Citi emphasises.

Neutral rating and $6.90 target.

Target price is $6.90 Current Price is $5.89 Difference: $1.01
If LLC meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $8.56, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates LLC as Neutral (3) -

In response to Lendlease Group's strategy update, communicated earlier this morning, UBS, in a quick response, highlights the retreat from international ambitions (with only a small global investment management business maintained) translates into $4.5bn in asset sales over the next 2-4 years.

The broker argues this is management responding to key investor concerns around the unprofitability of offshore while proposing an orderly exit.

UBS also highlights the move will leave Lendlease with a $13bn development pipeline locally currently lacking scale. For reference, Mirvac Group's ((MGR)) pipeline is $31bn, the broker adds.

Neutral. Target/valuation is $7.10.

Target price is $7.10 Current Price is $5.89 Difference: $1.21
If LLC meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $8.56, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates MGR as Neutral (3) -

Lower apartment completions, reduced commercial development profits, asset sale dilution (over $1bn), and lower retail income are expected to place downside pressure on earnings for Mirvac Group in FY25 according to Citi.

The analyst also anticipates Mirvac's office valuations will experience significant declines, contributing to a potentially third consecutive year of earnings decline.

Despite these challenges, Mirvac Group offers exposure to the residential market, which may benefit from rising demand, highlights the broker

Earnings forecasts are  revised, with an -8% reduction in FY25 EPS. Neutral rating retained and the target revised to $2.10 from $2.30.

Target price is $2.10 Current Price is $1.98 Difference: $0.12
If MGR meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.43, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates NHC as Initiation of coverage with Hold (3) -

Bell Potter initiates coverage of New Hope with a Hold rating and $4.70 target price.

New Hope  operates low-cost coal mines, including the Bengalla and New Acland mines, which are positioned in the lowest quartile of the global seaborne thermal coal cost curve, asseses the broker, which will help the company underpin margins through the coal cycle.

The broker forecasts FY24 EBITDA of $944m from 9.2Mt of sales excluding Malabar, rising to in excess of 13Mt from FY27.

The 19.9% equity investment in Malabar Resources provides the company with low-risk exposure to metallurgical coal markets, the broker posits.

Bell Potter antisipates strong dividend yields from FY24 to FY27 and points to the return via dividends and buyback of 70% of net profits from 2018 as a good indicator.

Hold rating and $4.70 target.

Target price is $4.70 Current Price is $4.98 Difference: minus $0.28 (current price is over target).
If NHC meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.90, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

UBS rates NIC as Buy (1) -

UBS had only initiated coverage of Nickel Industries with a Buy rating and a maiden price target of $1.10 in late April.

In today's update the broker observes nickel prices have risen 22% YTD, driven by supply cuts and volatility, but UBS does not see fundamental reasons to update its medium-term forecast of US$7.50/lb.

Nickel Industries is expected to reap benefits from its exposure to low-cost assets in Indonesia, and its ENC growth project will increase its Class 1 nickel exposure, the broker highlights.

Target price is $1.10 Current Price is $1.00 Difference: $0.105
If NIC meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.18, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Morgans rates NUF as Hold (3) -

Nufarm's 1H results materially missed consensus estimates, notes Morgans, and the midpoint of management's new FY24 underlying earnings (EBITDA) guidance also missed the consensus forecast by -15%.

Management expects a return to growth in the 2H, with the mid-point of guidance implying to the broker 2H earnings will be up 25% on the previous corresponding period.

Attaining management's unchanged revenue growth aspiration of between $4.4-4.6bn in FY26 appears challenging to the broker.

The Hold rating is unchanged given near-term earnings uncertainty, explains Morgans. The target falls to $5.22 from $5.40.

Target price is $5.22 Current Price is $4.57 Difference: $0.65
If NUF meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.69, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Bell Potter rates PNR as Hold (3) -

Pantoro recently raised $100m via an equity placement to repay its US$29.6m Term Loan Facility and accelerate resource definition drilling for a third high-grade underground mine, and commence studies for the Norseman Mainfield restart.

Management offered guidance for the 100% owned Norseman Gold Project of 100kz-105loz in FY25 and all-in-sustaining costs of $1,700-$1,800/oz, with a long-term production goal of 170-200kozpa.

Bell Potter adjusts EPS forecasts slightly in FY24, to a lower loss and lifts the FY25 EPS estimate by 20% on the increased production outlook offset by equity dilution from the placement.

Hold. Target rises to 10c from 8c.

Target price is $0.10 Current Price is $0.09 Difference: $0.011
If PNR meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates SFR as Outperform (1) -

The ramp-up at the Motheo operations remains on track for the expanded 5.2mtpa rate, notes the analyst at Macquarie, following a site tour hosted by Sandfire Resources.

Management is aiming to bring forward metal production into the FY27-FY30 period, which is a positive signal for the A1 pit to fill production beyond FY30, suggests the broker.

The current copper outlook and increased exploration by the company at Motheo are considered positive for the longer-term outlook.

The $10.80 target and Outperform rating are maintained.

Target price is $10.80 Current Price is $9.37 Difference: $1.43
If SFR meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.02, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

UBS rates TWE as Buy (1) -

UBS analysts maintain their Buy rating for Treasury Wine Estates with an unchanged price target of $15.25.

It is the broker's view the acquisition of DAOU accelerates the company's shift towards luxury in the Americas, with luxury expected to comprise over 70% of the division's EBIT.

Despite current industry challenges, Treasury Wine Estates' ongoing repositioning to luxury and expansion in China are seen as positive for the long-term outlook.

Earnings estimates remain unchanged.

Target price is $15.25 Current Price is $11.51 Difference: $3.74
If TWE meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $13.58, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Citi rates WOW as Buy (1) -

The Citi analyst reviews the supermarket giants with in store aisle visits to check out the pricing strategy for Coles Group and Woolworths Group .

The analyst views the Woolworths rollout of electronic ticketing may be harming its price perception and sales growth compared to Coles which uses colourful paper tickets to highlight specials.

Coles is expected to lead in like-for-like sales growth in 4Q24, driven by better value perception and execution, while Woolworths is anticipated to boost sales growth in 1Q25 with a promotional campaign during the Olympic Games. 

Both companies are Buy rated with Citi preferring Coles over Woolworths on a better earnings outlook.

Buy, $39 target.

Target price is $39.00 Current Price is $31.08 Difference: $7.92
If WOW meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $32.83, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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