Australian Broker Call

Credit Suisse rates AKE as Neutral (3) -

Analysts at Credit Suisse are now seriously contemplating the prospect of economic recession ahead. A general sector update highlights near-term downside risks for iron ore and EV battery materials while spot prices for base metals have now fallen below the broker's forecasts.

All in all, Credit Suisse remains constructive on iron ore, coal and aluminium, but thinks copper has further to fall. For the miners, the broker is concerned about rising costs.

Credit Suisse is worried a recession might have a rather pronounced impact on the lithium price, and thus the sector. Target price for Allkem has been reduced to $11 from $14.70. Neutral.

Target price is $11.00 Current Price is $10.46 Difference: $0.54
If AKE meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.83, suggesting upside of 47.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates ALU as Downgrade to Accumulate from Buy (2) -

The -10.3% decline across the Australian All Technology Index in June contributes to a year to date sector decline of -36.4%, with Ord Minnett noting its sector coverage underperformed the market in the last month. 

The broker highlights notable divergence between the share price performance of profitable and non-profitable companies, with nonprofitable stocks in particular being weighed by increasing interest rates and the impacts of inflation. 

For Altium, the rating is downgraded to Accumulate from Buy and the target price of $32.00 is retained.

Target price is $32.00 Current Price is $29.16 Difference: $2.84
If ALU meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $31.73, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.1

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

Morgans rates ASX as Reduce (5) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials sector.

For ASX, the broker lifts FY23 and FY24 EPS forecasts by 3% and 0.5%, respectively, in reaction to the latest monthly trading statistics. The target rises to $74.05 from $73.05, while the Reduce rating is unchanged.

Target price is $74.05 Current Price is $85.14 Difference: minus $11.09 (current price is over target).
If ASX meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $80.97, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Credit Suisse rates BHP as Neutral (3) -

Analysts at Credit Suisse are now seriously contemplating the prospect of economic recession ahead. A general sector update highlights near-term downside risks for iron ore and EV battery materials while spot prices for base metals have now fallen below the broker's forecasts.

All in all, Credit Suisse remains constructive on iron ore, coal and aluminium, but thinks copper has further to fall. For the miners, the broker is concerned about rising costs.

In case of a recession, Credit Suisse sees BHP Group as remaining more resilient than Rio Tinto. $40 target and Neutral rating retained.

Target price is $40.00 Current Price is $39.22 Difference: $0.78
If BHP meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $44.34, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Citi rates CCX as Buy (1) -

Citi cuts FY22 to FY24 EPS forecasts for City Chic Collective -5% to -13% to reflect poorer-than-forecast website visits in the June quarter, which is expected to continue into FY23.

Buy rating retained. Target price falls to $3 from $4.

Target price is $3.00 Current Price is $2.16 Difference: $0.84
If CCX meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 42.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

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

The citrus season is not living up to Credit Suisse's expectations to date, with lower quality and disease impacting on harvests in the southern states, as well as issues with freight capacity and costs, but the broker notes Costa Group appears to be navigating the situation better than competitors. 

The company's 2PH Farms acquisition means it has exposure to the currently better quality Queensland citrus. Elsewhere, avocado pricing has not recovered to the broker's estimates. Current pressures drive a -5% decrease to the broker's earnings estimate in FY22.

The rating is downgraded to Neutral from Outperform and the target price decreases to $2.80 from $3.70.

Target price is $2.80 Current Price is $2.88 Difference: minus $0.08 (current price is over target).
If CGC meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.41, suggesting upside of 29.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates CGF as Neutral (3) -

With Challenger reporting -$27m in investment experience losses in the third quarter, Credit Suisse is estimating wider credit spreads and lower equity markets will see the company record a further -$180m loss in the fourth quarter. 

Despite this, the broker notes widening credit spreads and annuity rates pricing improvement could deliver as much as a 60 basis point improvement to Challenger's cost of equity margins. 

Improved margin trends are largely attributable for increases of 2-3% to the broker's forecast. The Neutral rating is retained and the target price decreases to $7.30 from $7.60.

Target price is $7.30 Current Price is $6.97 Difference: $0.33
If CGF meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.23, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgans rates CGF as Add (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials category.

The analyst makes no changes to underlying earnings for Challenger and maintains the Add rating and $8.21 target price.

Target price is $8.21 Current Price is $6.97 Difference: $1.24
If CGF meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.23, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates CHN as Outperform (1) -

Macquarie says Chalice Mining's recent 70% upgrade for Gonneville's indicated resources demonstrates the world-class potential of the site.

The larger mining inventory extends Macquarie's mine life from FY54 to FY56. The broker expects a scoping study will be published within two months, which could prove a near-term catalyst.

Target price rises to $7.50 from $7.30. Outperform rating retained.

Target price is $7.50 Current Price is $4.01 Difference: $3.49
If CHN meets the Macquarie target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates CPU as Upgrade to Add from Hold (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials category.

The broker makes the largest changes in FY23  and FY24 for Computershare by raising EPS forecasts by around 18% on a lift to earnings from higher bond yields.

The rating is lifted to Add from Hold as there is now greater than 10% upside to the amended target price of $27.53, up from $23.97.

Target price is $27.53 Current Price is $24.40 Difference: $3.13
If CPU meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $26.98, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Citi rates CQR as Neutral (3) -

Charter Hall Retail proved the laggard in Citi's latest review of the Australian Real Estate/Property, in which the broker states convenience is more defensive when interest rates are rising. 

While peers generally receive the thumbs up, Citi is relatively neutral on Charter Hall, but the broker appreciates its stronger dividend yield and short-term valuation metrics.

Fundamentals are positive but the REIT has marginally higher gearing and shorter hedge terms than some peers.

EPS forecasts fall to 28c from 29c in FY22, and to 27c from 28c in FY23.

Neutral rating retained. Target price falls to $3.98 from $4.13.

Target price is $3.98 Current Price is $3.92 Difference: $0.06
If CQR meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.16, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Citi rates DMP as Buy (1) -

Citi examines Domino's Pizza Enterprises prospects in response to rising inflation, labour shortages and growing competition.

While these are all expected to have negative implications, the broker retains a Buy rating to reflect potential mergers and acquisitions and the store rollout, which the broker expects will trigger a sales rebound late in 2022.

The broker's one proviso to this is if inflationary pressures force the company to reduce delivery areas to cut delivery costs.

Target price falls to $92.95 from $100.95.

Target price is $92.95 Current Price is $75.51 Difference: $17.44
If DMP meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $90.76, suggesting upside of 28.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates FMG as Neutral (3) -

Analysts at Credit Suisse are now seriously contemplating the prospect of economic recession ahead. A general sector update highlights near-term downside risks for iron ore and EV battery materials while spot prices for base metals have now fallen below the broker's forecasts.

All in all, Credit Suisse remains constructive on iron ore, coal and aluminium, but thinks copper has further to fall. For the miners, the broker is concerned about rising costs.

Credit Suisse's target for Fortescue Metals has dropped to $17 from $20, Neutral rating retained.

Target price is $17.00 Current Price is $17.30 Difference: minus $0.3 (current price is over target).
If FMG meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.11, suggesting upside of 1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.3

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

Morgans rates GDG as Add (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials sector.

For Generation Development, the broker makes no changes to earnings forecasts and the Add rating and $1.69 target price are unchanged.

Target price is $1.69 Current Price is $1.30 Difference: $0.39
If GDG meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates IAG as Upgrade to Add from Hold (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the General Insurers category.

For Insurance Australia Group, the broker downgrades its FY22 EPS estimate by -19% on negative mark-to-market investment impacts. The FY23 EPS forecast rises by 5-6% on the benefits of higher interest rates.

Morgans lifts its rating to Add from Hold and raises its target price to $5.09 from $4.99.

Target price is $5.09 Current Price is $4.36 Difference: $0.73
If IAG meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates IAG as Buy (1) -

Ahead of Insurance Australia Group's full year results release in August, Ord Minnett expects margins in the second half will have benefited from rising yields, although slightly offset by elevated inflation. 

Looking ahead, the broker notes margins will likely be pressured by headwinds in the coming year, including increased perils allowances and reinsurance costs. 

The company remains Ord Minnett's second stock preference in the sector, behind QBE Insurance ((QBE)).The Buy rating and target price of $5.50 are retained.

Target price is $5.50 Current Price is $4.36 Difference: $1.14
If IAG meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates KSL as Add (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials sector.

For Kina Securities, the broker makes no changes to earnings forecasts and the Add rating, though raises the target price to $1.29 from $1.20 on a valuation roll forward.

Target price is $1.29 Current Price is $0.85 Difference: $0.44
If KSL meets the Morgans target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgans rates LNK as Downgrade to Hold from Add (3) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials sector.

For Link Administration, the broker reduces EPS estimates across the forecast period by -4-8%. The rating is lowered to Hold from Add as the gap has closed to the unchanged $4.33 target price.

Target price is $4.33 Current Price is $4.02 Difference: $0.31
If LNK meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.96, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates MFG as Neutral (3) -

A fourth quarter update from Magellan Financial confirmed large outflows have continued, to the tune of -$5.2bn in the quarter, and Credit Suisse notes a small funds under management beat by the company was offset by a larger net outflow profile into FY23.

The broker notes fund performance improvement is crucial to a more positive outlook.

The Neutral rating is retained and the target price decreases to $12.00 from $12.40.

Target price is $12.00 Current Price is $11.90 Difference: $0.1
If MFG meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.17, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.5

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

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

Magellan Financial's June-quarter net outflows hit -$5.2bn despite an improved performance, and funds under management (FUM) fell $3.5bn to $61.3bn due to foreign currency and market movements, observes Macquarie.

The main drain came from institutions and the broker expects outflows will continue in the September quarter.

EPS forecasts fall -2.1% in FY22; -10.2% in FY23; and -10% thereafter, to reflect lower forecast FUM and performance fees.

Target price falls to $11.50 from $13.25. Rating upgraded to Neutral from Underperform, Macquarie believing the de-rating is largely complete, pending market movements and performance.

Target price is $11.50 Current Price is $11.90 Difference: minus $0.4 (current price is over target).
If MFG meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.17, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.5

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

Morgan Stanley rates MFG as Underweight (5) -

Morgan Stanley notes investment performance improved in June for Magellan Financial, while longer-term performance is also starting to improve.

The June funds under management (FUM) update showed -$5.2bn in outflows for the quarter and the broker estimates -$1.5bn went out in June, with the majority coming from global equities.

Distributions are in-line with Morgan Stanley's expectations and the group didn't earn performance fees in the 2H.

The Underweight rating and $11.00 target are maintained. Industry View: Attractive.

Target price is $11.00 Current Price is $11.90 Difference: minus $0.9 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.17, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.5

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

Ord Minnett rates MFG as Lighten (4) -

While Magellan Financial remained in a net outflow position in the June quarter with outflows of -$5.2bn, Ord Minnett notes this represents an improvement on the -$18.1bn outflows reported in the March quarter.

The broker has taken a more cautious view on flows moving into FY23, now assuming outflows of -$12bn in the coming year, up $5bn on previous estimates, but does expect stabilisation of funds under management into FY24.

The Lighten rating is retained and the target price decreases to $11.20 from $13.40.

Target price is $11.20 Current Price is $11.90 Difference: minus $0.7 (current price is over target).
If MFG meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.17, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.5

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

Credit Suisse rates MIN as Outperform (1) -

Analysts at Credit Suisse are now seriously contemplating the prospect of economic recession ahead. A general sector update highlights near-term downside risks for iron ore and EV battery materials while spot prices for base metals have now fallen below the broker's forecasts.

All in all, Credit Suisse remains constructive on iron ore, coal and aluminium, but thinks copper has further to fall. For the miners, the broker is concerned about rising costs.

The Outperform rating remains in place for Mineral Resources  while the target price drops to $71 from $73.

Target price is $71.00 Current Price is $46.88 Difference: $24.12
If MIN meets the Credit Suisse target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $72.94, suggesting upside of 57.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates MPL as Downgrade to Hold from Add (3) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Health Insurers category.

For Medibank Private, the broker downgrades its FY22 EPS estimate by -18% on negative mark-to-market investment impacts. The FY23 EPS forecast rises by 3-4% on the benefits of higher interest rates.

Morgans downgrades its rating to Hold from Add as upside to the amended target price of $3.42, down from $3.43, has been reduced.

Target price is $3.43 Current Price is $3.30 Difference: $0.13
If MPL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.48, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates NHF as Hold (3) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Health Insurers category.

For nib Holdings, the broker downgrades its FY22 EPS estimate by -40% on negative mark-to-market investment impacts. The FY23 EPS forecast rises by -1-3% on slightly more conservative margin forecasts.

The Hold rating is maintained and the target price slips to $7.04 from $7.14.

Target price is $7.04 Current Price is $7.46 Difference: minus $0.42 (current price is over target).
If NHF meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.96, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgans rates NVX as Hold (3) -

Morgans dramatically reduces its target price for Novonix as commissioning of the Riverside anode facility has not progressed to ramp-up as quickly as expected. It's also felt the viability of the anode business with blue chip clients at scale remains unproven.

The broker reintroduces a higher cost of equity given rising interest rates and the current risk aversion around growth stocks. The Hold rating is unchanged as no meaningful short-term catalyst is considered likely. Target falls to $2.98 from $4.88.

Target price is $2.98 Current Price is $2.46 Difference: $0.52
If NVX meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates PLS as Neutral (3) -

Analysts at Credit Suisse are now seriously contemplating the prospect of economic recession ahead. A general sector update highlights near-term downside risks for iron ore and EV battery materials while spot prices for base metals have now fallen below the broker's forecasts.

All in all, Credit Suisse remains constructive on iron ore, coal and aluminium, but thinks copper has further to fall. For the miners, the broker is concerned about rising costs.

In case of a recession, demand for EVs and thus for lithium is a worry for Credit Suisse. Target price for Pilbara Minerals has been pulled back to $2.40 from $3. Neutral.

Target price is $2.40 Current Price is $2.35 Difference: $0.05
If PLS meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 49.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates QBE as Add (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the General Insurers category.

For QBE Insurance, the broker downgrades its FY22 EPS estimate by -11% on negative mark-to-market investment impacts. The FY23 EPS forecast rises by 2-4% on the benefits of higher interest rates.

The price target is increased to $14.76 from $14.45. The Add rating is unchanged. 

Target price is $14.76 Current Price is $11.79 Difference: $2.97
If QBE meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $15.59, suggesting upside of 30.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates QUB as Neutral (3) -

UBS decreases its earnings per share forecasts for Qube Holdings by -1%, -3% and -4% through to FY24, noting slowing port container volumes, higher landside charges at Patrick, lower expected crop volumes in FY23, and flat iron ore exports in FY22 as drivers. 

Grain in the first half was a surprise to the upside, with the broker noting this trend could continue moving into the second half, but UBS also highlighted the impact of new contracts and acquisitions were difficult to estimate. 

The Neutral rating is retained and the target price decreases to $3.10 from $3.30.

Target price is $3.10 Current Price is $2.83 Difference: $0.27
If QUB meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates RIO as Outperform (1) -

Analysts at Credit Suisse are now seriously contemplating the prospect of economic recession ahead. A general sector update highlights near-term downside risks for iron ore and EV battery materials while spot prices for base metals have now fallen below the broker's forecasts.

All in all, Credit Suisse remains constructive on iron ore, coal and aluminium, but thinks copper has further to fall. For the miners, the broker is concerned about rising costs.

The analysts are a bit cautious about Rio Tinto embarking on M&A in future facing commodities, but also acknowledge this could turn out well-timed if a recession is around the corner, in particular in lithium.

No changes made to $118 price target or Outperform rating.

Target price is $118.00 Current Price is $97.43 Difference: $20.57
If RIO meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $115.50, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

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

St. Barbara's June-quarter result outpaced Macquarie, thanks to an 11% beat on production (up 40% quarter on quarter) which helped the company romp in to meet guidance.

Volumes rose across all operations and cash generation was admirable, the company closing the June quarter at $98m, a 35% beat on Macquarie's forecast.

EPS forecasts rise 27% for FY22; 14% for FY23 and 1% to 6% for FY24 and FY26.

Target price rises 10% to $1.10. Rating upgraded to Outperform from Neutral, the broker spying several catalysts such as the Simberi sale and consolidation in Leonora, and given the recent share price retreat.

Target price is $1.10 Current Price is $0.91 Difference: $0.19
If SBM meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.26, suggesting upside of 38.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates SCG as Upgrade to Neutral from Sell (3) -

Citi's latest review of the Australian Real Estate/Property favours convenience as more defensive position in a rising-rate environment.

The thesis is that convenience retailing faces less competition from online sales and Citi notes a larger percentage of food items are sold in grocer-anchored convenience stores as department stores lose wallet share.

The broker also prefers companies with defensive interest rate positions.

Cit notes Scentre Group is trading at a -38% discount to net tangible assets and is skewed to inflation-linked leases and stable financial positions and omni-channel retail platforms.

EPS forecasts ease 0.2% in FY22 and rise 7% in FY23, to reflect likely lower than expected covid costs.

Upgrade to Neutral from Sell. Target price rises to $2.81 from $2.55.

Target price is $2.81 Current Price is $2.72 Difference: $0.09
If SCG meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates SCP as Upgrade to Buy from Sell (1) -

Citi's latest review of the Australian Real Estate/Property favours convenience as more defensive in a rising-rate environment.

The thesis is that convenience retailing faces less competition from online sales and Citi notes a larger percentage of food items are sold in grocer-anchored convenience stores as department stores lose wallet share.

The broker also prefers defensive interest rate positions in this context.

Citi notes Shopping Centres Australasia Property is better positioned on both these fronts and considers it defensive against margin erosion given the strength of its tenant base.

EPS forecasts ease to 17c from 18c in FY22; and to 18c from 19c in FY23.

Shopping Centres enjoys a double upgrade to Buy from Sell. Target price rises to $3.14 from $2.56.

Target price is $3.14 Current Price is $2.83 Difference: $0.31
If SCP meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.93, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates SLC as Upgrade to Buy from Accumulate (1) -

The -10.3% decline across the Australian All Technology Index in June contributes to a year to date sector decline of -36.4%, with Ord Minnett noting its sector coverage underperformed the market in the last month. 

The broker highlights notable divergence between the share price performance of profitable and non-profitable companies, with nonprofitable stocks in particular being weighed by increasing interest rates and the impacts of inflation. 

For Superloop, the rating is upgraded to Buy from Accumulate and the target price of $1.25 is retained.

Target price is $1.25 Current Price is $0.74 Difference: $0.51
If SLC meets the Ord Minnett target it will return approximately 69% (excluding dividends, fees and charges).

Current consensus price target is $1.26, suggesting upside of 72.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates SUN as Add (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the General Insurers category.

For Suncorp Group, the broker downgrades its FY22 EPS estimate by -18% on negative mark-to-market investment impacts. The FY23 EPS forecast rises by 2-3% on the benefits of higher interest rates.

The price target is increased to $13.42 from $13.14. The Add rating is unchanged. 

Target price is $13.42 Current Price is $11.05 Difference: $2.37
If SUN meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $13.53, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates TYR as Add (1) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials sector.

For Tyro Payments, while the broker makes minor changes to EPS estimates, the target price falls to $1.62 from $2.68 to incorporate the derating of multiples for peers since the last research note. The Add rating is maintained.

Target price is $1.62 Current Price is $0.74 Difference: $0.88
If TYR meets the Morgans target it will return approximately 119% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 200.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates VCX as Neutral (3) -

Citi's latest review of the Australian Real Estate/Property favours convenience as more defensive in a rising-rate environment.

The thesis is that convenience retailing faces less competition from online sales and Citi notes a larger percentage of food items are sold in grocer-anchored convenience stores.

The broker also prefers defensive interest rate positions in this context and notes Vicinity Centres, while having a lower exposure to the convenience theme than some peers, should still benefit from rising interest rates given its lower gearing and cost of debt.

EPS forecasts rise to 13c from 12c in FY22; and 1c to 13c from 14c in FY23.

Neutral rating retained and target price inches up to $1.91 from $1.90.

Target price is $1.91 Current Price is $1.88 Difference: $0.03
If VCX meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates WTC as Upgrade to Buy from Accumulate (1) -

The -10.3% decline across the Australian All Technology Index in June contributes to a year to date sector decline of -36.4%, with Ord Minnett noting its sector coverage underperformed the market in the last month. 

The broker highlights notable divergence between the share price performance of profitable and non-profitable companies, with nonprofitable stocks in particular being weighed by increasing interest rates and the impacts of inflation. 

For WiseTech Global, the rating is upgraded to Buy from Accumulate and the target price of $52.00 is retained.

Target price is $52.00 Current Price is $41.97 Difference: $10.03
If WTC meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $48.34, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates XRO as Downgrade to Accumulate from Buy (2) -

The -10.3% decline across the Australian All Technology Index in June contributes to a year to date sector decline of -36.4%, with Ord Minnett noting its sector coverage underperformed the market in the last month. 

The broker highlights notable divergence between the share price performance of profitable and non-profitable companies, with nonprofitable stocks in particular being weighed by increasing interest rates and the impacts of inflation. 

For Xero, the rating is downgraded to Accumulate from Buy and the target price of $97.00 is retained.

Target price is $97.00 Current Price is $87.04 Difference: $9.96
If XRO meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $98.88, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Morgans rates Z1P as Hold (3) -

Morgans reviews its earnings assumptions and marks-to-market earnings for stocks under its coverage in the Diversified Financials sector.

For Zip Co, while the broker makes no changes EPS estimates, the target price falls to $0.86 from $1.26 to incorporate the derating of multiples for peers since the last research note. The Hold rating is maintained.

Target price is $0.86 Current Price is $1.21 Difference: minus $0.35 (current price is over target).
If Z1P meets the Morgans target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.24, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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