Australian Broker Call

Citi rates ABP as Neutral (3) -

Abacus Property Group's first-half funds from operations (FFO) were at the top end of the 8.9-9.1c guidance.

While guidance for the entire year was not provided given the uncertainty around the timing of the deployment of the proceeds raised, management did reconfirm its prior comments about the second half FFO being higher than the first half.

FY21 dividend is expected to be 85-95% of FFO. Neutral rating with the target rising to $2.73 from $2.64.

Target price is $2.73 Current Price is $2.69 Difference: $0.04
If ABP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 8.4% (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 ABP as Outperform (1) -

Abacus Property Group's first half did not come as a surprise given the company had provided guidance.

Funds from operations were down -14% versus last year to 9.06c versus Credit Suisse's estimated 9c. The decline over the last year was due to the winding-up of the development business.

The broker is of the view the core portfolio looks heatlhy and while the company offered no guidance, Credit Suisse believes redeployment of investment capacity is a key swing factor in the group's earnings outlook.

Outperform maintained. Target falls to $3.04 from $3.09.

Target price is $3.04 Current Price is $2.69 Difference: $0.35
If ABP meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 8.4% (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 ABP as Outperform (1) -

Abacus Property Group's 2021 first-half result dovetailed with Macquarie's forecast. The broker spies further room for an equity raising.

FFOps forecasts rise 1.6% for FY21 for FY21 to account for the December equity raising, but rise 3.5% and fall -0.4% in FY22 and FY23 respectively.

Pickings were slim on the acquisition front but the broker notes negotiations on the $130m self-storage acquisitions are advanced.

Target price eases -3.2% to $3.05 from $3.15 to reflect the December net debt figure. Outperform rating retained.

Target price is $3.05 Current Price is $2.69 Difference: $0.36
If ABP meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.90, suggesting upside of 8.4% (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 ADI as Neutral (3) -

APN Industria REIT's 2021 first-half result outpaced Macquarie's forecasts by 6.9% and management reiterated FY21 earnings guidance of 2% to 3%. 

Dealys are forecast for the commencement of the Rhodes project to the first half of 2022 but the broker expects demand should hold, and expects balance sheet deployment could offset some of the impacts of the delay.

The broker upgrades FFOps forecasts 1% for FY21, but downgrades -2.1% for FY22 and -1.1% for FY23 to reflect an uptick in office vacancies and an increase in the SPP from $5m to $20m.

Neutral rating retained. Target price eases to $2.73 from $2.74.

Target price is $2.73 Current Price is $2.84 Difference: minus $0.11 (current price is over target).
If ADI meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates AIA as Neutral (3) -

Auckland Airport's first-half loss of -$10.5m was below consensus but higher than the -$6m expected by Citi, primarily on slower international recovery. FY21 earnings has been guided to a loss of -$35-$55m and dividends remain suspended until December 2021.

Citi reduces its estimates over slower than expected passenger traffic recovery while its target price rises to NZ$7.17 from NZ$6.73.

Neutral rating.

Current Price is $6.35. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Macquarie rates AIA as Outperform (1) -

Auckland International Airport's 2021 first-half result met previous guidance.

Macquarie describes the performance as solid all-covid considered, and notes the airport has strengthened its balance sheet and realigned its operating and capital expenditure profile. 

The broker notes the company is highly leveraged to a resumption of trans-Tasman travel. Macquarie increases FY21 EPS forecasts by 7% to reflect a one-off cost windfall in the first half. 

FY22 EPS jumps 34% in anticipation of an early resumption of trans Tasman travel. Target price rise to NZ$7.61 from NZ$7.06. Outperform rating retained. 

Current Price is $6.35. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

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

Auckland International Airport's loss was largely in line with expectation, as was full year guidance. Unsurprisingly, no dividend was declared, and the broker sees a cut to FY21 capex plans as prudent. Liquidity is down but still ample.

While the company is backing domestic reslience, a Trans-Tasman bubble will require sufficient vaccinations on both sides, which the broker doesn't see until 2022. Thereafter, it's all about a full border reopening and tourists flooding back, but the broker retains Equal-Weight on this unknown.

Target falls to NZ$7.17 from NZ$7.37. Industry view: Cautious.

Current Price is $6.35. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

UBS rates AIA as Neutral (3) -

UBS has noted a recovery in the share price from the lows a year ago. As balance-sheet risks have been removed, the opportunity grows regarding a re-start of international travel, finds the broker. A faster-than-expect a recovery in domestic air travel is considered a positive sign.

While the broker can envisage upside over the medium term, the next 18 months are expected to be challenging. A Neutral rating is retained until there is a more attractive entry price. Target is NZ$7.30.

Current Price is $6.35. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Credit Suisse rates ANZ as Outperform (1) -

ANZ Bank's first quarter cash earnings at $1,810m were well above Credit Suisse's run rate, driven by a higher-than-expected net interest margin with a CET1 of 11.7%. The bank saw market share gains in Australian home loans and volume growth in New Zealand.

The positive result leads the broker to upgrade its headline earnings by 40% in FY21 and by 13-16% in outer years. Underlying profit has been upgraded 4-6% through the forecast period.

The bank is Credit Suisse's preferred recovery play in the sector with balance sheet momentum and cost control likely to deliver greater operational leverage in the broker's view.

Target price rises to $29.50 from $28 with an Outperform rating.

Target price is $29.50 Current Price is $26.55 Difference: $2.95
If ANZ meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $27.99, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgan Stanley rates ANZ as Overweight (1) -

ANZ Bank's quarterly update revealed revenues, loan loss levels and capital all materially better than the broker's forecast. The broker views revenue trends, margin outlook, ongoing cost control, lower loan losses and stronger capital as positives.

Overweight and $26.20 target retained. Industry view: In-Line.

Target price is $26.20 Current Price is $26.55 Difference: minus $0.35 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.99, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgans rates ANZ as Add (1) -

ANZ Bank has announced unaudited cash earnings of $1.810bn for the first quarter, which is 30% better than Morgans expectations on a run-rate basis.

The broker was prescient on the upside risk from potential provision releases that have now occurred. Positive revisions to consensus forecasts are now expected by the broker for both impairment charges and the net interest margin.

As a result the analyst is also expecting potential for capital management initiatives over the forecast period.

The bank’s share price has outperformed National Australia Bank ((NAB)) and Commonwealth Bank ((CBA)) over the last month and Morgans expects this to continue.  Add rating and target is increased to $31 from $28.50.

Target price is $31.00 Current Price is $26.55 Difference: $4.45
If ANZ meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $27.99, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates ANZ as Accumulate (2) -

Ord Minnett observes ANZ Bank provided the strongest revenue performance of the majors in the current reporting season. Net interest margin in the quarter surprised to the upside. The main disappointment relates to costs, although cost savings rhetoric continues.

The bank has elected to write back some of its provisions which leads the broker to factor in $3bn in capital management in the second half of FY22. Ord Minnett maintains an Accumulate rating and raises the target to $28.20 from $26.20.

Target price is $28.20 Current Price is $26.55 Difference: $1.65
If ANZ meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.99, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

UBS rates ANZ as Buy (1) -

UBS observes the first quarter was the first time in a while where all the stars lined up for ANZ Bank. Australia continues to perform well, with market share gains in mortgages and the net interest margin supported by improved deposit pricing.

Meanwhile, New Zealand is benefiting from the housing boom and economic rebound. UBS retains a Buy rating and raises the target to $28.50 from $25.50.

Target price is $28.50 Current Price is $26.55 Difference: $1.95
If ANZ meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $27.99, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates APT as Neutral (3) -

Maquarie's data scrape of Afterpay's merchant database suggests Australian attritions rose in the first two weeks of February but were in smaller brands and the broker doesn't consider them a threat.

Elsewhere, US merchant additions rose; and the UK business continues to post the fastest growth.

Neutral rating and $140 target price retained.

Target price is $140.00 Current Price is $149.99 Difference: minus $9.99 (current price is over target).
If APT 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 $114.96, suggesting downside of -24.4% (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

Morgan Stanley rates APT as Overweight (1) -

Despite rising competition, several BNPL players have reported December quarter results showing sales growth across the board and increased growth rates, the broker notes. This aligns with Afterpay's strong November trading update.

Afterpay drives peer-leading repeat customer usage, hence the broker believes this bodes well for future revenue growth. The company is only in the early stages of building out its ecosystem, with BNPL peers offering many product lines that Afterpay does not.

The broker thus sees untapped potential. Overweight retained, target rises to $170.10 from $136.00. Industry view: In-Line.

Target price is $170.10 Current Price is $149.99 Difference: $20.11
If APT meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $114.96, suggesting downside of -24.4% (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 BGL as Outperform (1) -

Bellevue Gold's Stage One Feasibility Study matches Macquarie's production estimates but inventory grades disappointed, sparking higher all-in sustaining costs (AISC) and capital expenditure.

The broker postpones first gold delivery estimates by 9 months and increases AISC and capital expenditure forecasts. 

This translates to a small negative EPS forecast in FY22; an -88% reduction in FY23; and a -57% reduction in FY24.

Target price falls -33% to $1. Outperform rating retained given production estimates were in line, the scale of the mineral system and the company's track record. 

Target price is $1.00 Current Price is $0.76 Difference: $0.24
If BGL meets the Macquarie target it will return approximately 32% (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 BLX as Buy (1) -

Beacon Lighting Group continues to outperform the broader discretionary retail sector, observes Citi, benefiting from housing sector tailwinds, growth opportunities in trade and industry consolidation.

The broker further believes that as a vertically integrated retailer, the group's gross margins are well placed to expand from the higher AUD. Net profit for the second half is forecast at $9m, 5% above the second half of 2018. 

Beacon Lighting upgraded its rollout target to 184 from 170 but the broker does not expect the group to reach its target and expects 140 stores by FY31 due to growing online sales and the risk of cannibalisation.

Citi reiterates a Buy rating with the target rising to $2.15 from $1.85.

Target price is $2.15 Current Price is $1.84 Difference: $0.31
If BLX meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

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

Morgans rates BLX as Hold (3) -

The pre-released first half result revealed few surprises for Morgans as continued top-line growth across all states led to a strong sales performance and meaningful operating leverage.

The broker highlights ongoing positives including redirection of spend (no offshore travel), rising house prices and a strong Australian dollar. Further upside is contemplated should trade and international sales gain serious traction.

Hold rating and target is increased to $1.81 from $1.66.

Target price is $1.81 Current Price is $1.84 Difference: minus $0.03 (current price is over target).
If BLX meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates BOQ as Outperform (1) -

Bank of Queensland has asked for a trading halt for up to four consecutive days for considering and planning an equity capital raising comprising an entitlement offer and placement to institutional investors to fund a potential acquisition.

According to the Australian Financial Review, the bank wants to acquire ME Bank for $1.3bn. Credit Suisse notes a deal between the two would lead to the formation of the fifth-largest bank in Australia.

The broker advocates the need for consolidation in the banking sector and believes a larger base makes it easier to spread the technology cost burden facing the sector together with earnings diversification.

That said, the broker also believes acquisitions carry significant execution risk and awaits more information.

Outperform rating with a target of $7.60. 

Target price is $7.60 Current Price is $8.41 Difference: minus $0.81 (current price is over target).
If BOQ meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.93, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in August.

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 CCL as No Rating (-1) -

Coca-Cola Amatil reported a -4.2% volume decline in FY20 but experienced a fourth-quarter rebound across all Cola variants.

Indonesia, Fiji and Samoa businesses were hit hard by the virus and economic downturn. The broker tinkers with earnings revisions.

 Macquarie cannot provide a rating or target at present.

Current Price is $13.37. Target price not assessed.

Current consensus price target is $12.52, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

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 CCL as Hold (3) -

2020 earnings were in line with guidance and the trading update in January. A strong performance in the Pacific featured, while Indonesia and PNG earnings were negatively affected by volume declines.

The main driver of the share price is a recently-upgraded offer from Coca-Cola European Partners at $13.50 a share. As a result, Ord Minnett retains a Hold rating and $13.50 target.

Target price is $13.50 Current Price is $13.37 Difference: $0.13
If CCL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.52, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates CCL as No Rating (-1) -

There were few surprises in the 2020 results, given the pre-announcement in January. Cash flow was the incremental positive with second-half trading commentary in line with UBS expectations.

The broker continues to expect a full recovery in earnings to pre-pandemic levels in 2021. UBS remains restricted and cannot provide a rating or target.

Current Price is $13.37. Target price not assessed.

Current consensus price target is $12.52, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

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 CDA as Outperform (1) -

Macquarie's initial response can be found in yesterday's Report. Today, the broker lauds the company's strong growth outlook, with acquisition DTC proving a good fit.

The financial performance itself proved better-than-expected, with record January sales and sales for the communication division equally perking up. Estimates have gone up by 7% and 20% respectively for FY21 and FY22.

Price target lifts to $16.20 from $11.20 prior. Macquarie sees further growth options stemming from monetising Minetec IP, leveraging the combined sales networks post integration of DTC, plus M&A. Outperform.

Target price is $16.20 Current Price is $14.42 Difference: $1.78
If CDA meets the Macquarie target it will return approximately 12% (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 COH as Neutral (3) -

Cochlear reported a first-half net profit of $125m, 48% above Citi's forecast. Sales revenue, down -4% over last year, was still 16% above Citi's estimate. The dividend was re-instated at $1.15.

In its initial response to the result, Citi notes the recovery in surgery has been much quicker than anticipated with the pace strong in developed markets like the US, Japan, Korea, but slower in most emerging markets except China. 

FY21 net profit guidance at $225-245m stands 8% above consensus. Sales in developed markets in the second half are expected to be in-line with the first half with few EU and US regions impacted by recent lockdowns. 

Neutral rating with a target price of $200.

Target price is $200.00 Current Price is $204.50 Difference: minus $4.5 (current price is over target).
If COH meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $206.48, suggesting downside of -7.0% (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) -

Macquarie's initial analysis of Cochlear's first-half numbers shows a result that beat the broker's expectations with in-line guidance for FY21.

Sales of cochlear implants grew 2% ahead of the broker's estimates, implying strong sequential improvement and positive momentum over the half. Key markets noted a recovery in volumes with senior recipient surgeries back to pre-covid levels in most countries.

FY21 net profit is expected to be $225-$245m implying a second-half net profit of $100-$120m. On balance, the broker considers this a better than expected earnings result.

Outperform rating and target of $241 are maintained.

Target price is $241.00 Current Price is $204.50 Difference: $36.5
If COH meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $206.48, suggesting downside of -7.0% (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 CSL as Downgrade to Neutral from Buy (3) -

Citi downgrades to Neutral from Buy with a target of $310.

The broker reduces its earnings forecasts for FY21-23 by -4-12% citing the subdued pace of the recovery in plasma collections.

CSL reported first-half net profit of US$1,810m, 30% above Citi's estimated $1,396m. The result was better than anticipated due to lower operating and R&D expenses but is expected to reverse in the second half.

Demand is expected to remain strong for Behring products while Seqirus is expected to incur losses in the second half. Behring margins are expected to be negatively impacted by the cost of plasma collected in the March to December period.

Target price is $310.00 Current Price is $289.00 Difference: $21
If CSL meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $302.01, suggesting upside of 9.7% (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: 0.1

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

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

Credit Suisse downgrades to Neutral from Outperform with the target falling to $320 from $325. 

CSL's first half net profit of US$1,810m was up 44% versus last year and 24% above Credit Suisse's estimate led by a strong performance by Seqirus and cost management. Immunoglobulin (IG) growth was up 7% but slightly weaker-than-expected.

Despite a "stellar" first half, Credit Suisse notes CSL has kept its guidance intact hinting towards a weaker second half. With plasma collections down circa -20% versus pre-covid levels, the broker doesn't think collections are likely to recover to pre-covid levels until mid-2021.

Target price is $320.00 Current Price is $289.00 Difference: $31
If CSL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $302.01, suggesting upside of 9.7% (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: 0.1

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

Macquarie rates CSL as Neutral (3) -

CSL's bottom line beat Macquarie by some 15% but its reported gross profit was only 2% better-than-expected, reports Macquarie. The problem, however, is with plasma collection remaining under pressure.

Macquarie explains persistent problems with plasma collection put a question mark on CSL's FY22 growth prospect. For now, lower operational costs helped the company beating forecasts over H1.

Only minimal adjustments have been made to forecasts. The Neutral rating remains in place (too much uncertainty) while the price target gains $3 to $293.

Target price is $293.00 Current Price is $289.00 Difference: $4
If CSL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $302.01, suggesting upside of 9.7% (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: 0.1

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

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

CSL's result beat the broker by 26% on surprisingly low costs. But even if costs were normal, it still would have been an 8% beat. Guidance is for a seasonal step-down in earnings in the second half.

The broker suggests it is challenging to see how FY21 guidance is not conservative unless there has been a material step-change in the outlook for plasma of which it is currently unaware, despite challenges in plasma collection.

The broker's base case is for a strong rebound in collections in FY23. Equal-weight retained. Target falls to $276 from $283 (not qualified). Industry view: In-Line.

Target price is $276.00 Current Price is $289.00 Difference: minus $13 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $302.01, suggesting upside of 9.7% (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: 0.1

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

Morgans rates CSL as Hold (3) -

Morgans assesses the near-term future for CSL revolves around plasma collections which dipped in January on government stimulus in the US, and are now impacted by inclement weather.

Coupled with increasing costs (plasma up 20% per litre and R&D circa 10-11% of sales), the broker sees increasing risk to outer year earnings.

The analyst sees the first half results as solid with beats on both the top and bottom lines and margins expanding to 41.1%, though much of these outcomes were driven by one-offs and lower expenditures.

Seqirus was the standout on pandemic-driven demand for influenza vaccines, while Behring gained from Albumin sales on the transition to direct China distribution and cost-outs. FY21 guidance was reiterated, indicating earnings are heavily skewed to the first half.

 Hold rating and target is lowered to $301.1 from $306.7.

Target price is $301.10 Current Price is $289.00 Difference: $12.1
If CSL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $302.01, suggesting upside of 9.7% (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: 0.1

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

Ord Minnett rates CSL as Hold (3) -

First half net profit was well ahead of Ord Minnett's forecasts amid significantly lower operating expenses.

Ord Minnett still believes it possible for the company to deliver earnings growth in FY22 but this will require the rest of the plasma business to perform, particularly if demand for flu vaccinations moderates post the roll-out of the coronavirus vaccine.

Ord Minnett retains a Hold rating and lowers the target to $284 from $294.

Target price is $284.00 Current Price is $289.00 Difference: minus $5 (current price is over target).
If CSL meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $302.01, suggesting upside of 9.7% (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: 0.1

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

UBS rates CSL as Buy (1) -

Despite a robust first half result , UBS expects a significantly lower second half net profit. UBS delays expectations for a recovery in plasma collections until the fourth quarter of 2021 as storms and pandemic-related stimulus are affecting centre attendance.

A roll-out of a coronavirus vaccine should assist in recovery but this is taking time based on the current rate of deployment. A higher Seqirus earnings base partially mitigates the protracted recovery in Behring. Buy rating retained. Target is reduced to $330 from $339.

Target price is $330.00 Current Price is $289.00 Difference: $41
If CSL meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $302.01, suggesting upside of 9.7% (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: 0.1

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

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

Macquarie thinks Corporate Travel delivered a "solid" performance in an otherwise tough market. Moreover, it sees the company as well-positioned for the pending recovery.

Thus far, the broker observes overall travel volumes are low in the company's key regions. Given the outlook is not without risks, the broker adopts the view the stock is fairly valued at present level.

Rating is downgraded to Neutral from Outperform, reversing the upgrade from September. Target price lifts to $18.65 from 16.40.

Target price is $18.65 Current Price is $18.07 Difference: $0.58
If CTD meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $21.15, suggesting upside of 20.0% (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

UBS rates CTD as Buy (1) -

A soft result was expected in the first half as challenging conditions persisted. Nevertheless, there are several positives which have provided UBS with confidence in the recovery.

Revenue is expected to accelerate in the second half and the broker suspects Corporate Travel will be a major beneficiary of future market share gains. UBS retains a Buy rating and raises the target to $21.10 from $20.40.

Target price is $21.10 Current Price is $18.07 Difference: $3.03
If CTD meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $21.15, suggesting upside of 20.0% (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

Citi rates CWN as Neutral (3) -

Citi has a Neutral rating on Crown Resorts with regulatory pressure largely offset by corporate interest. The target rises to $10 from $9.90.

Investors are likely looking through near-term earnings, suggests Citi, as little can be gauged from the first half result to determine Crown's underlying operating performance given restrictions and closures.

The broker notes the January trading update for Melbourne and Perth was encouraging but momentum was interrupted by unexpected lockdowns in February. 

Target price is $10.00 Current Price is $9.73 Difference: $0.27
If CWN meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 4.2% (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

Credit Suisse rates CWN as Upgrade to Outperform from Neutral (1) -

Credit Suisse upgrades to Outperform from Neutral with the target rising to $12 from 10.35.

Management indicated Sydney apartment sales could realise $1.1bn rather than $800m as estimated by Credit Suisse. New capex guidance from the company showed the broker had been overestimating the remaining capex by $100m.

The broker expects Crown Resorts to be in a net cash position at the end of FY22. 

Lastly, Credit Suisse has delayed the opening of Crown Sydney gaming to December 2021 in its model.

Target price is $12.00 Current Price is $9.73 Difference: $2.27
If CWN meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 4.2% (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

Macquarie rates CWN as Neutral (3) -

It appears Crown Resorts reported well above expectations, but the outlook post-NSW inquiry remains filled with risks, acknowledges the broker.

Macquarie does comment it has become apparent the NSW regulator and Crown Resorts have a constructive relationship towards meeting suitability and opening Crown Sydney in a timely manner, suggesting risk is not as high as one might have initially assumed.

Also, the company's balance sheet is approaching a net cash position, leading Macquarie to speculate about capital management. Further out, the broker continues to see strong demand for gaming ("gambling").

On the back of a cheap looking valuation, not without risks near term, Macquarie holds on to its Neutral rating, accompanied by a fresh price target of $10.90, up from $8.30 previously.

Target price is $10.90 Current Price is $9.73 Difference: $1.17
If CWN meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 4.2% (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

Ord Minnett rates CWN as Hold (3) -

The cost base is a critical issue in the first half results. Capacity constraints, specifically table games, are likely to remain a drag on the ability of casinos to recover to pre-pandemic earnings until FY23, in Ord Minnett's view.

With margins in both Perth and Melbourne supported by subsidy in the first half Ord Minnett expects a moderation in the second half. Hold maintained. Target rises to $9.50 from $8.80.

Target price is $9.50 Current Price is $9.73 Difference: minus $0.23 (current price is over target).
If CWN meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.68, suggesting upside of 4.2% (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

UBS rates CWN as Buy (1) -

First half results were heavily disrupted by the lockdowns in Melbourne. Underlying operating earnings, excluding closure costs, were ahead of UBS estimates. Perth was the highlight where domestic revenue grew.

UBS is becoming more confident that the company's properties can stay open from October when a large part of the population will have access to the vaccine. Buy rating retained. Target is raised to $11.20 from $10.00.

Target price is $11.20 Current Price is $9.73 Difference: $1.47
If CWN meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 4.2% (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

Morgans rates DTL as Hold (3) -

The pre-released first half result was largely in-line with Morgans estimates as revenue grew 19% year-on-year and profit (NPAT) increased 8% as opex reduced -1.5%.

The company declared a 5.5 cent fully franked interim dividend. The analyst sees a tailwind for the company from expected growth in the Australian information and communications technology (ICT) sector of 3.6% in 2021.

Hold rating and target is increased to $7.75 from $5.39, following forecast EPS upgrades of 6% in FY21 and 10% FY22.

Target price is $7.75 Current Price is $5.75 Difference: $2
If DTL meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates EBO as Neutral (3) -

Ebos Group recorded a gross profit of $126m, up 16% versus Macquarie's estimate. Macquarie observes positive signals for the group's community pharmacy and institutional healthcare led by market share uplift and higher-margin medical devices revenue.

While momentum across the group is considered positive, Macquarie sees limited upside at the current level. Neutral rating with the target rising to NZ$29.53 from NZ$26.17.

Current Price is $27.01. Target price not assessed.

Current consensus price target is $28.20, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates EQT as Buy (1) -

First half results were in line with Ord Minnett's forecasts. The broker notes good progress in superannuation offset some of the disappointment in other areas.

The company remains leveraged to equity markets and provides a solid growth profile with a "handsome" dividend yield, in the broker's view.

There is upside risk in the event of a major contract win or M&A. Buy reiterated. Target is raised to $37 from $36.

Target price is $37.00 Current Price is $26.63 Difference: $10.37
If EQT meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates EVN as Hold (3) -

First half results were in line with Ord Minnett's expectations. The broker expects production in FY21 to be at the high end of guidance of 670-730,000 ounces.

At Red Lake the broker continues to model delivery of stage 1 by FY23. Red Lake was almost entirely responsible for the increase in both resources and reserves in the latest statement.

The Hold rating and $4.40 target are unchanged.

Target price is $4.40 Current Price is $4.23 Difference: $0.17
If EVN meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 13.3% (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 EXP as Buy (1) -

Ord Minnett believes the interim result reflects a business that has done the hard yards but is constrained by factors beyond its control. The business has been de-risked and there are further surplus asset sales to come.

This should provide a level of confidence once external conditions improve. The broker believes the bottom of the tourism cycle has been passed and the opening of domestic borders should come amid renewed confidence as coronavirus vaccinations are rolled out.

The broker assumes international travel re-starts in early 2022. Buy rating and $0.27 target maintained.

Target price is $0.27 Current Price is $0.22 Difference: $0.05
If EXP meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates FMG as Neutral (3) -

Fortescue Metals Group's net profit of US$4.08bn was within its pre-released profit guidance of US$4.0-$4.1bn. An interim dividend of $1.47 was in line with Citi's forecast. 

With the initial iron bridge magnetite review complete, Citi expects first production expected in the second half of 2022. While FY21 capex guidance remains unchanged at $3-$3.4bn, the miner expects the final result to be toward the top end of this range.

Neutral rating with a $21 target price.

Target price is $21.00 Current Price is $24.88 Difference: minus $3.88 (current price is over target).
If FMG meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.38, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Credit Suisse rates FMG as Outperform (1) -

Fortescue Metals Group's first-half net profit (NPAT) was at the upper end of the guidance range with operating income in-line with consensus. The $1.47 dividend was a beat to Credit Suisse's estimate and equated to a payout of 80%.

Also, 10% of the miner's future net profit will be allocated to fund renewable energy growth through Fortescue Future Industries with another 10% to fund other resource growth opportunities.

Credit Suisse awaits more news on where this capital will ultimately be directed. Outperform rating with a target of $23.50.

Target price is $23.50 Current Price is $24.88 Difference: minus $1.38 (current price is over target).
If FMG meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.38, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates FMG as Outperform (1) -

Fortescue Metals Group's first-half earnings were in line with Macquarie's forecasts with an interim dividend of $1.47, 7% ahead of the broker's estimate. Iron Bridge capex is expected to be circa -US$3.0bn, again in line with Macquarie's expectations.

The group's first half earnings result was solid, assesses the broker, with most key metrics in line. Macquarie notes Fortescue's earnings upgrade momentum remains strong with a spot price scenario generating circa 20% higher earnings for FY21 and circa 115% higher for FY22. 

Outperform rating and $26.50 target retained.

Target price is $26.50 Current Price is $24.88 Difference: $1.62
If FMG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $23.38, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgan Stanley rates FMG as Underweight (5) -

The broker does not qualify Fortescue Metals' result, rather focusing on the better than expected dividend. The payout was 80% when the broker had forecast 65%, in line with a track record of paying this level as an interim and then catching up in the final.

Iron Bridge will see a capex increase of 15% before another assessment in three months, and be delayed by six months. Estimates are preliminary in nature, the broker notes, with a 12 week technical and commercial assessment currently ongoing.

Underweight and $17.45 target retained. Industrry view: Attractive.

Target price is $17.45 Current Price is $24.88 Difference: minus $7.43 (current price is over target).
If FMG meets the Morgan Stanley target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.38, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgans rates FMG as Hold (3) -

The first half result was very close to recent guidance and Morgans forecasts, with the balance sheet now close to a net cash position.

The broker was bracing for worse news than eventuated when the company updated on the Iron Bridge magnetite project. There was a -US$400m increase in the capex budget to -US$3.0bn.

The interim dividend of $1.47 compares with consensus for $1.33, surprised Morgans.

Given a history of undersized returns from renewable energy projects, the analyst is concerned the company plans to invest up to 10% of underlying earnings each year in renewable projects within its new Fortescue Future Industries (FFI) business.

Hold rating and the target is decreased to $21.20 from $21.50.

Target price is $21.20 Current Price is $24.88 Difference: minus $3.68 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.38, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

UBS rates FMG as Buy (1) -

First half earnings were in line with expectations while the dividend was ahead. The interim dividend of $1.47 implies an 80% payout-out ratio.

Fortescue Metals believes a failure in culture and management led to project costs increasing by -US$400m at Iron Bridge and a delayed start to production. The company has also flagged a cash shortfall from a joint venture partner that will have to be remedied.

A technical and commercial assessment of Iron Bridge is due in 12 weeks and UBS suspects there could be further risks to the schedule and final costs. UBS retains a Buy rating and $25 target.

Target price is $25.00 Current Price is $24.88 Difference: $0.12
If FMG meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $23.38, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates GMG as Neutral (3) -

In its initial assessment of Goodman Group's first-half result, Macquarie notes a profit of $1,041.5m with operating income of $614.9m. Earnings per share at 33.1c is up 15% versus last year and 13% ahead of Macquarie's forecasts. 

FY21 guidance for operating earnings has been upgraded to 12% from 9% year on year and is ahead of the broker's 10.8%. Looking at the strength of the first half earnings and continued interest tailwinds, Macquarie feels the guidance could have been higher.

Neutral rating with a target of $18.77.

Target price is $18.77 Current Price is $16.99 Difference: $1.78
If GMG meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $19.34, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates GMG as Hold (3) -

Ord Minnett is pleased with its initial assessment of Goodman Group's first-half result. The group reported half operating profit of $615m, well ahead of Ord Minnett's forecast of $569m, leading to another earnings beat driven by a 32% rise in development earnings.

Further, the broker notes development volumes of the group have risen rapidly, nearly doubling versus 12 months ago while maintaining margins. Development earnings are expected to rise further, in turn driving strong assets under management (AUM) growth, adds the broker.

Hold rating for Goodman Group is retained with a target of $19.

Target price is $19.00 Current Price is $16.99 Difference: $2.01
If GMG meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $19.34, suggesting upside of 12.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgans rates HPI as Hold (3) -

Hotel Property Investments reported distributable earnings of $16.1m. Underlying rental income was up 5.2% on the pcp due to average rent increases of 2.3% and income from new acquisitions, explains Morgans. 

The portfolio is now valued at $872m across 48 hotel and accommodation assets. The first half distribution of 9.6 cents included a capital payment of 0.6 cents (paid on 5 March) and FY21 DPS guidance remains at 19.3 cents.

The Hold rating and target of $3.31 are unchanged.

Target price is $3.31 Current Price is $3.03 Difference: $0.28
If HPI meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

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

Citi rates ING as Buy (1) -

Upon initial glance, Inghams Group's interim report is reflecting good operating leverage, on top of core poultry volume growth in Australia and NZ, comment analysts at Citi.

Inghams Group reported 1H21 sales of $1.36bn, up 5% and earnings (EBITDA) of $101m, up 10%.

Inghams has not provided any quantitative guidance, but early signs of improved operating efficiency look to be showing through. With results suggesting conditions are set for even better growth in 2H21, Citi expects consensus upgrades likely in the order of 3%-5%.

While Inghams inventory rose by 11% to $308m (incl biological assets) year on year, the company noted a -$29m drop since June 2020.

At first sight, Citi noted Inghams has delivered a good first-half result, particularly given the disruptions that have been evident in some markets like Victoria in 1H21.

Citi suspects, quantifiable benefits from the company's operating efficiency program will support the share price. The Buy rating and target price of $3.70 are unchanged.

Target price is $3.70 Current Price is $3.62 Difference: $0.08
If ING meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.67, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Macquarie rates IPH as Outperform (1) -

IPH's first-half operating income result was $61.7m versus Macquarie's expected $62m. The broker finds the result in-line with expectations with fx headwinds offset by synergies and recent acquisition contributions.

The result is solid considering the macro environment, suggests the broker, and highlights the resiliency of the business with its ability to execute on the delivery of synergies and logical bolt-ons.

Macquarie finds IPH attractive given the defensiveness of core filing volumes, organic growth in Asia and M&A opportunities.

Outperform retained with the target falling to $8 from $8.60.

Target price is $8.00 Current Price is $6.72 Difference: $1.28
If IPH meets the Macquarie target it will return approximately 19% (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

Morgans rates IPH as Add (1) -

Despite IPH’s first half result being marginally below Morgans expectations, it was considered commendable given the difficult operating environment facing the group.

There was flat revenue, a lift in earnings (EBITDA) and good cost control, according to the broker. An interim dividend of 14 cents (50% franked) was declared and the company repaid -$32.7m of debt during the half.

The earnings margin for the merged businesses of Griffith Hack (and Watermark) jumped to 28% from 18% (as two standalones), highlighting to the analyst managerial abilities.

Add rating and the target is decreased to $8.27 from $8.42.

Target price is $8.27 Current Price is $6.72 Difference: $1.55
If IPH meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates IRE as Neutral (3) -

Iress reported its FY20 result which was slightly ahead of its guidance.

FY21 segment profit guidance has been set between $164-$168m, translating to net profit guidance of $56m-$63m and earnings of $28.7c-$32c. Macquarie views the timing of client projects (notably in the UK) to be the biggest swing factor to current guidance.

Covid disruptions resulted in a lengthening of the sales cycle but management saw some client activity despite the lockdowns. Near-term share price upside depends on easing of restrictions and positive news on the vaccine, adds the broker.

Neutral rating with a target of $10.50.

Target price is $10.50 Current Price is $10.25 Difference: $0.25
If IRE meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $10.93, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgans rates IRE as Hold (3) -

Iress stated that pro-forma profit (NPAT) ex-acquisitions and constant currency, was up 7% on the pcp. An interim dividend of 46 cents was declared.

Management guidance for profit was for -5% to up 7% on the pcp and flat earnings (EPS) if the top-end of profit guidance is achieved.

Morgans warns investment for growth remains high and conversion of strong revenue growth to underlying EPS has not been delivered to-date. While the broker waits for operating leverage to materialise, the target is reduced to $10.95 from $11.70. Hold rating is maintained.

Target price is $10.95 Current Price is $10.25 Difference: $0.7
If IRE meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.93, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

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

InvoCare pre-released a preliminary result ahead of next week's scheduled release. It was softer than the broker expected but the market had anticipated a tough second half, and focus is now on a strategic update from the new CEO at the official result release.

The broker is keeping an open mind with regard any turnaround but for now sticks with an Equal-weight rating and $10.30 target.

Industry view: In-Line.

Target price is $10.30 Current Price is $10.85 Difference: minus $0.55 (current price is over target).
If IVC meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.17, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates JMS as Neutral (3) -

The distribution of R1.1bn from Tshipi e Ntle mining was stronger than Macquarie expected in FY21. The broker considers Jupiter Mines' dividend yield attractive on its forecasts at 6-10% for FY21-24 with upside risk in a spot price scenario.

Neutral rating retained with the target rising to $0.33 from $0.30.

Target price is $0.33 Current Price is $0.36 Difference: minus $0.03 (current price is over target).
If JMS meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in February.

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 LOV as Neutral (3) -

Due largely to Northern Hemisphere Covid weakness, and slower recovery in Asia sales, Lovisa Holding's 1H21 net profit (NPAT) of $19.5m was around -18% below Citi’s forecast, but 7% above consensus.

In its initial thoughts, Citi notes Lovisa’s $42m of net cash and access to $50m of undrawn facilities should help the company navigate current challenges.

Citi also notes the positive surprise in Lovisa’s stronger than expected balance sheet, which has allowed the company to pay a 20cps interim dividend. Operating cash flow was also better than Citi had expected at $46m with cash conversion at 111% (1H20: 99%).

While rollout -a key driver of Lovisa’s long term growth- is slowing, Citi suspects it is likely to be masked by the Beeline acquisition, where integration risks are elevated.

Neutral, and price target of $11.45, unchanged.

Target price is $11.45 Current Price is $11.00 Difference: $0.45
If LOV meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $12.16, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates M7T as Add (1) -

Once Morgans looks through timing issues for both revenue and costs and extends the forecast period, the net effect is an increase in target price to $1.68 from $1.49 and the Add rating is retained.

Management has guided to a much stronger second half with positive earnings (EBITDA).

The company recorded annualised recurring revenues of $10.2m, while sales orders secured were $10.9m in the first half. For the six weeks into the new half sales are running at $12.0m.

Target price is $1.68 Current Price is $1.45 Difference: $0.23
If M7T meets the Morgans target it will return approximately 16% (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 MOC as Downgrade to Neutral from Buy (3) -

Citi notes Mortgage Choice's first-half cash net profit at $5.6m was just 1% higher than the first half despite 20% growth in settlements.

The loan book was flat with accelerating loan repayments impacting trail commissions although Citi believes this will normalise over the next 12-18 months.

Earnings forecasts have been lowered over FY21-23 by -5-7% primarily driven by lower net commissions as well as higher commission pay-away.

Citi downgrades to Neutral from Buy with the target reduced to $1.40 from $1.45.

Target price is $1.40 Current Price is $1.37 Difference: $0.03
If MOC meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates NGI as Outperform (1) -

Macquarie observes Navigator Global Investments' operating outlook commentary is positive with cash flow from the Dyal transaction above expectations.

The company's comments on flows are supported by a pipeline of opportunities and more possible acquisitions following the Dyal transaction. 

The timing of the Dyal acquisition and treatment of some cash flow as gains on acquisition impacted the first-half dividend of 3.5c versus Macquarie's forecast of 7.2c. 

Outperform rating with the target falling to $2.18 from $2.25.

Target price is $2.18 Current Price is $1.76 Difference: $0.42
If NGI meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

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: 1.0

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

Ord Minnett rates NGI as Buy (1) -

First half results were slightly weaker than Ord Minnett expected. Nevertheless, the broker believes investors should focus on FY22 - when "things get interesting".

The stock may have been sold off post the result but with greater clarity around the cost base, Ord Minnett is comfortable the company can make up ground in the second half.

The lower contribution from Dyal was also a function of accounting and will revert to true cash generation from FY22. A buoyant outlook for Dyal, combined with an improved outlook for Lighthouse, means the broker reiterates a Buy rating. Target is unchanged at $2.40.

Target price is $2.40 Current Price is $1.76 Difference: $0.64
If NGI meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

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: 1.0

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

UBS rates NWH as Buy (1) -

First half results were below UBS estimates, amid larger-than-expected impacts from the pandemic on staffing, which affected productivity.

The implied margin signals the performance, outside of pandemic-affected contracts, would have been tracking ahead of UBS estimates.

The broker envisages a significant opportunity over the medium term and retains a Buy rating. Target is reduced to $3.00 from $3.15.

Target price is $3.00 Current Price is $2.32 Difference: $0.68
If NWH meets the UBS target it will return approximately 29% (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 ORA as Upgrade to Buy from Neutral (1) -

Orora reported 20% earnings growth in the first half and Citi expects 44% in the second half. The company has seen improving revenue trends across both divisions and cost savings have helped profit margins in North America.

Management is conservatively asuming the loss of all wine bottle sales to customers exporting to China which the broker sees as sensible, but the broker expects at least half that volume to be redirected to other markets.

With good margin recovery prospects over the medium term, and capital management potential, Citi is more positive on the stock. Upgrade to Buy from Neutral, target rises to $3.20 from $2.50.

Target price is $3.20 Current Price is $2.88 Difference: $0.32
If ORA meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 1.7% (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 ORA as Neutral (3) -

Credit Suisse highlights beverage can volumes growth carried the day in the first half driven primarily by the beer category but also soft drinks.

Orora's guidance expects flat operating income for the division as China's import ban will impact Orora's wine’s glass operations in the second half. 

Orora expects the overall operating income in the second half to be above last year and Credit Suisse models a rise of 31% in operating income growth.

Neutral retained. Target is $2.80.

Target price is $2.80 Current Price is $2.88 Difference: minus $0.08 (current price is over target).
If ORA 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 $3.00, suggesting upside of 1.7% (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 ORA as Neutral (3) -

Macquarie retains its Neutral rating with the target rising to $3.05 from $2.71.

Orora reported a first-half net profit (pre significant items) of $91m, above Macquarie's $81m forecast with beats by both Australasia and North America. This is somewhat tempered by a weaker second-half outlook for Australasia, assesses the broker.

The broker believes the resumption of the buy-back is likely to be supportive in the near term with 5.6% of Orora's 10% buyback still remaining.

Target price is $3.05 Current Price is $2.88 Difference: $0.17
If ORA meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 1.7% (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 ORA as Equal-weight (3) -

First half results were ahead of expectations. Morgan Stanley was pleased with the progress on the North American turnaround. Nevertheless, the outlook for wine bottle volumes is uncertain and makes the broker somewhat cautious.

A strong balance sheet, capital management support and a 4.5% yield are considered positives. Equal-weight retained. Target rises to $3.20 from $3.00. Industry view: Cautious.

Target price is $3.20 Current Price is $2.88 Difference: $0.32
If ORA meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 1.7% (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 ORA as Hold (3) -

Orora's first half result was comfortably ahead of Morgans expectations and the broker increases underlying earnings forecasts by between 1-2% for FY21-23. Downgrades to Australasia earnings from lower wine volumes were more than offset by upgrades for North America.

North America looks to the broker like it is finally turning around (the first time in three years it recorded growth), though the higher Australian dollar is currently weighing.

Management has guided to higher earnings in FY21 with North America earnings (EBIT) to be higher and Australasia earnings (EBIT) to be broadly in-line with FY20 (the second half will be impacted by lower wine bottle exports to China and the smaller 2020 wine vintage).

Hold rating and the target is increased to $3 from $2.61.

Target price is $3.00 Current Price is $2.88 Difference: $0.12
If ORA meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 1.7% (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 ORA as Neutral (3) -

First half earnings beat UBS' estimates. This was largely driven by stronger sales in both Australasian beverage and North American distribution. Orora has now completed 44% of its recently announced buyback.

UBS believes the balance sheet is very strong and there is capacity to support growth objectives. Neutral retained. Target rises to $2.90 from $2.65.

Target price is $2.90 Current Price is $2.88 Difference: $0.02
If ORA meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 1.7% (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 ORG as Neutral (3) -

Origin Energy's first half result beat the broker by 5%, due to lower costs. As a result of higher free cash flow and a 34% payout ratio versus the broker's expectation of 30%, the dividend of 13c was well ahead of a 9c forecast.

Full year guidance implies notably lower earnings in the second half, reflecting recent regulatory decisions and lower wholesale electricity prices, the broker notes. On this basis the broker believes consensus FY22 forecasts are too high.

Lower wholesale electricity prices, retail regulation, declining Eraring utilisation, and higher gas procurement costs are expected to continue to weigh on Energy Markets' earnings and therefore capital return or capex growth capacity. Neutral and $4.76 target retained.

Target price is $4.76 Current Price is $4.50 Difference: $0.26
If ORG meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 17.2% (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

Credit Suisse rates ORG as Neutral (3) -

Origin Energy's operating income was 12% above consensus but mostly non-recurring, observes Credit Suisse.

The broker notes most of the energy markets' beat was a one-off gain from a large-scale generation certificate shortfall strategy. For integrated gas, the beat was due to a larger fall in royalties.

A 12.5c dividend was above Credit Suisse's forecast of 10c.

Anticipating more downgrades to operating income consensus for energy markets, the broker retains its Neutral rating with the target price decreasing to $4.60 from $4.80  

Target price is $4.60 Current Price is $4.50 Difference: $0.1
If ORG meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 17.2% (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 ORG as Neutral (3) -

Origin Energy's first-half operating income was $1.15bn against Macquarie's forecast of $0.99bn with net profit at $223m versus the broker's estimated $128m. Operating cash flow was up 110% to $607m and ahead of the broker's expectation.

Macquarie finds Origin energy "tempting" but notes uncertainty about long term energy price driven by lower input costs and government policy creates a material swing on value, exacerbated by the leverage. 

Neutral rating with a target of $5.44.

Target price is $5.35 Current Price is $4.50 Difference: $0.85
If ORG meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 17.2% (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 ORG as Equal-weight (3) -

First half operating earnings were ahead of expectations. The company has pointed to continuing gross margin headwinds in energy markets, particularly for gas in the June quarter and electricity into FY22.

Origin Energy expects energy market earnings will decline in the second half owing in part to the re-pricing of the Victorian Default Offer from January 1 2021. The company will also run Eraring at lower capacity as pool prices decline.

Equal-weight retained. Target is reduced to $4.88 from $5.10. Industry view is Cautious.

Target price is $4.88 Current Price is $4.50 Difference: $0.38
If ORG meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 17.2% (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

Morgans rates ORG as Add (1) -

Origin Energy's first half result surprised to the upside with underlying profit (NPAT) over 20% ahead of Morgans expectation, driven by the Integrated Gas division. Operating cashflow also exceeded forecasts though this is expected to reverse in the second half.

The company is maintaining its guidance for FY21, which points to a weaker second half for the Energy Markets business, suggests the broker. Management highlighted that conditions in the electricity market will remain challenging for at least the next 12-18 months.

While maintaining the dividend policy target of 30-50% of free cashflow, the company is toying with the prospect of diverting some of the cash toward buybacks.

The Add rating is unchanged and the target price is decreased to $5.91 from $6.06. Morgans notes international energy prices look to be a strong tailwind for the APLNG business in FY22 to buffer the weakness in electricity.

Target price is $5.91 Current Price is $4.50 Difference: $1.41
If ORG meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 17.2% (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 ORG as Buy (1) -

First half underlying net profit was ahead of Ord Minnett's estimates. The contribution from APLNG was above forecasts while energy market operating earnings were in line.

The broker assesses consensus estimates are very high for FY22-23. A new base for energy markets operating earnings is anticipated in the current half, which will lead to market downgrades.

While this may be a near-term headwind, the broker notes Origin Energy continues to offer a free cash flow yield above 7% and maintains a Buy rating. Target rises to $5.35 from $5.30.

Target price is $5.35 Current Price is $4.50 Difference: $0.85
If ORG meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting upside of 17.2% (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

Citi rates ORI as Buy (1) -

Wesfarmers' CSBP reported -3% lower ammonium nitrate (AN) volumes in the first half impacted by higher supply from a competitor plant in the Burrup. Citi believes this could suggest Orica's Burrup AN plant may be ramping up and gaining share in Western Australia.

While CSBP highlights stronger AN demand from the iron ore sector, sodium cyanide export demand was on the weaker side driven by covid related gold mine closures.

Citi has a cautious view of Orica's Latin America operations and expects -10% lower volumes in the first half. Orica is considered well placed to deliver medium-term earnings growth underpinned by a recovery in global mining activity,

Buy rating maintained with the target falling to $18.65 from $19.45.

Target price is $18.65 Current Price is $15.19 Difference: $3.46
If ORI meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $17.92, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in September.

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 OZL as Underperform (5) -

OZ Minerals' net profit of $213m beat Credit Suisse's estimated $179m. Both operating income and dividend were higher than expected. 

The outlook for FY21 remains unchanged at 120-145kt of production and 90-215koz of gold. Management is increasingly bullish on nickel, suggesting a growing appetite for West Musgrave subject to study refinement.

While the broker likes OZ Minerals for its leverage to copper and portfolio quality, the broker doesn't like its price and retains its Underperform rating with the target rising to $16.15 from $14.80. 

Target price is $16.15 Current Price is $21.84 Difference: minus $5.69 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.91, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in December.

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 OZL as Outperform (1) -

Macquarie notes OZ Minerals' 2020 result was positive with headline financials largely in line while cash flow was a beat. A final dividend of $0.17 was announced.

The broker believes at spot prices, OZ Minerals can fund its impressive organic growth profile from its cash flows and deliver a 10% pa production CAGR (compounded annual growth rate) through to 2028.

Further, earnings upside momentum continue to be driven by rising copper and gold prices with earnings forecasts increasing by 65% and 130% in 2021-22 at spot prices.

Outperform rating with the target rising to $24 from $22.

Target price is $24.00 Current Price is $21.84 Difference: $2.16
If OZL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $18.91, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates OZL as Overweight (1) -

Morgan Stanley was pleased with the 2020 dividend. While underlying net profit was ahead of forecasts, free cash flow was weaker because of higher capital expenditure.

2021 depreciation guidance is ahead of Morgan Stanley's estimates while a lower drawdown of inventory at Prominent Hill is expected. Overweight rating. Target price is $20.30. Industry view: Attractive.

Target price is $20.30 Current Price is $21.84 Difference: minus $1.54 (current price is over target).
If OZL 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 $18.91, suggesting downside of -10.4% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates OZL as Hold (3) -

Morgans lifts the target price to $19 from $17 reflecting higher copper price assumptions, a lower weighted average cost of capital (WACC) and higher recognition of brownfields expansion options. A Hold rating is maintained on valuation versus the current share price.

The only real surprise emanating from 2020 financials was the larger-than-expected 17 cent final dividend, which, according to the broker, reflects confidence in robust multi-asset cash flows.

Target price is $19.00 Current Price is $21.84 Difference: minus $2.84 (current price is over target).
If OZL 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 $18.91, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates OZL as Neutral (3) -

2020 net profit was in line with UBS estimates while the final dividend of $0.17 was marginally ahead. Copper production growth is robust, forecast to double to 200,000tpa by 2030.

The growth outlook is attractive but the broker notes significant capital expenditure is required at Carrapateena and Prominent Hill.

Moreover, the growth profile appears priced into the stock and UBS retains a Neutral rating and $19 target.

Target price is $19.00 Current Price is $21.84 Difference: minus $2.84 (current price is over target).
If OZL meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.91, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in December.

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 PPT as Neutral (3) -

Following Perpetual's result the broker has increased FY21-23 forecast earnings, largely due to a lower tax rate. The dividend was better than expected, leading the broker to suggest the stock now looks more reasonable value, although franking will reduce.

The main issues are an elevated cost base and poor flow momentum. Management has further increased cost guidance in the second half, although an accounting change means the starting point is actually reduced, so it's not as bad as it seems, the broker notes.

Costs also reflect investment for the future. But until the International fund can turn its flows around, the broker cannot warm to the story. Neutral retained, target rises to $33.50 from $32.80.

Target price is $33.50 Current Price is $31.40 Difference: $2.1
If PPT meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 15.8% (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 PPT as Outperform (1) -

Perpetual reports in line with consensus but -5% shy of Credit Suisse, as sharply higher costs offset a slim revenue beat.

The company has guided to a roughly -$20m increase in expenses for FY21, reflecting accelerated investment in distribution opportunities in EU and Asia. As an aside, Credit Suisse has guided to a deregulation-driven supercycle in Chinese equities, starting this calendar year.

The expense rise also reflects higher variables costs relating to business growth, which the broker perceives as a "permanent uplift", and higher accrual for variable remuneration in PAMA given improved fund performance; and accounting policy changes to the Barrow Hanley minorities which will now be expensed.

Forecast EPS falls -2% to -3% across FY21 to FY23 to reflect these expenses. The broker retains an Outperform rating believing the investment reflects on management's confidence in the opportunities ahead for 2021.

Target price eases to $37 from $37.50.

Target price is $37.00 Current Price is $31.40 Difference: $5.6
If PPT meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 15.8% (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 PPT as Neutral (3) -

Perpetual's first-half result was noisy, observes Macquarie, due to recent acquisitions and newly defined underlying profit. While at the top end of the range, the dividend wasn't enough to offset the surprise uplift in costs, which were previously guided lower.

The broker is pleased that circa 90% of funds in Perpetual Asset Management Australia (PAMA) delivered higher than expected returns in the December half. If this level is maintained, the broker believes the negative flow momentum from recent years could be reversed.

Neutral rating with the target falling to $31.75 from $32.50.

Target price is $31.75 Current Price is $31.40 Difference: $0.35
If PPT meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 15.8% (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

Morgan Stanley rates PPT as Overweight (1) -

Morgan Stanley suspects investors are struggling with the accelerated investment in distribution against a backdrop of soft inflows. This situation should improve, as the broker points out there is a natural lag between making the investment and the resultant inflow.

Morgan Stanley was pleased with the revenue growth in the first half, which beat forecasts, and believes the stock offers compelling value. Overweight retained. Target is raised to $40.60 from $39.00. Industry view: In-line.

Target price is $40.60 Current Price is $31.40 Difference: $9.2
If PPT meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 15.8% (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 PPT as Hold (3) -

Morgans summarises the first half result as a good Corporate Trust performance with some earnings benefit from recent acquisitions. This was considered offset by softer performances in Australian Wealth Management and the Perpetual Private businesses.

Overall first half underlying profit (NPAT) was around 5% above Morgans estimates and up 33% on the second half FY20.

The broker feels the recent acquisitions of Barrow Hanley and Trillium are solid foundations that will support the fund manager’s global asset management aspirations.

While Morgans lifts FY21 EPS estimates by around 7%, FY22 is lowered by -1% on more conservatism. Add rating and the target is decreased to $38.11 from $39.76.

Target price is $38.11 Current Price is $31.40 Difference: $6.71
If PPT meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 15.8% (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

Citi rates QBE as Buy (1) -

Upon initial glance, QBE Insurance’s FY20 reported loss of -$1,517m was -US$30m worse than Citi’s -US$1,487m forecast, with reported combined operating ratio (COR) of 107.4%, slightly worse than Citi’s 106.2%.

Citi believes the extent of attritional loss ratio improvement and new 13% expense ratio target, supported by solid pricing momentum should be enough to support the stock.

Citi notes that while falling short of issuing guidance, QBE "expects margin expansion" from what it says is its exit rate COR of around 95%, broadly consistent with the brokers 94% estimate (including 1.2% for extra covid claims).

QBE has already achieved around US$125m of the US$130m net savings targeted by 2021, and is now targeting a 13% expense ratio by FY23.

Premium rate momentum increased further to 12.6% in 4Q20. QBE expects to resume dividends in 1H21 of up to 65% of adjusted cash profits.

Citi analysts retain their Buy rating and price target of $10.40.

Target price is $10.40 Current Price is $8.72 Difference: $1.68
If QBE meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $10.11, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Credit Suisse rates RIO as Outperform (1) -

Riio Tinto's first-half result outpaced Visible Alpha consensus by -2% but fell shy of Credit Suisse's estimates. 

Rio Tinto surprised the market with its second biggest dividend in Credit Suisse's coverage of the company, taking the annualised dividend yield to 9.2%.

Credit Suisse retains an Outperform rating, expecting strong steel production to continue supporting the iron ore price.

The broker eases the target price to $124 from $125.

Target price is $124.00 Current Price is $127.50 Difference: minus $3.5 (current price is over target).
If RIO 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 $127.71, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Citi rates S32 as Buy (1) -

South32's earnings missed the broker by -6% and a dividend of 1.4c fell short of the broker's 2c forecast. The buyback was nevertheless increased.

The broker is bullish base metals, and forecast prices increases flow through to earnings forecasts upgrades. Buy and $3.00 target retained.

Target price is $3.00 Current Price is $2.70 Difference: $0.3
If S32 meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates S32 as Outperform (1) -

South32's first-half result met consensus on nearly all metrics, and outpaced forecasts at Credit Suisse.

Outperform rating retained, the broker believing its forecasts to be conservative and expecting catalysts in the near term, including a bubyback and a continued run in commodities. 

Target price rises to $2.90 from $2.70. 

Target price is $2.90 Current Price is $2.70 Difference: $0.2
If S32 meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Macquarie rates S32 as Neutral (3) -

South32 reported 1HFY21 earnings (EBITDA) of US$633m, 18% better than Macquarie’s expectations on beats at Cannington, Cerro Matoso and Alumar, resulting in an interim dividend of US¢1.4, 40% better than the broker’s forecasts.

Underlying earnings of US$136m were 53% higher than Macquarie’s forecasts, with variations largely due to lower unit costs and lower than expected tax, depreciation and amortisation charges.

In its initial glance, Macquarie notes the Australian assets, Worsley (US$70m), GEMCO (US$147m), and Cannington (US$104m) combined accounted for more than 80% of asset earnings (EBIT), dragged down by the loss at Illawarra.

With stabilising operations having delivered improved costs, Macquarie has upgraded its earnings outlook by 3-7%.

After accounting for changes to production and cost guidance, and asset cost trends outlined in the past six months performance, Macquarie’s FY21 and FY22 EPS estimates increase by 6%, while the FY23 estimate rises 5%.

The broker also expects the longer-term impacts of slightly lower costs, mainly at Worsley and Cannington, to drive 3-4% upgrades to FY24-FY26 forecast earnings.

The Neutral rating is unchanged, and the target price increases to $2.90 from $2.70.

Target price is $2.90 Current Price is $2.70 Difference: $0.2
If S32 meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Morgan Stanley rates S32 as Overweight (1) -

First half earnings were slightly below Morgan Stanley's estimates. No special dividend was declared but this was more than offset by a US$250m buyback, ahead of expectations.

The broker notes Taylor is on track while the Clark scoping study has been delayed six months. Illawarra thermal coal production is now expected to be 9% higher than prior guidance while South African Energy Coal production is downgraded by around -3%

Overweight rating and target price of $3 retained. Industry view: Attractive.

Target price is $3.00 Current Price is $2.70 Difference: $0.3
If S32 meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Morgans rates S32 as Hold (3) -

South32 reported a first half with metrics comfortably ahead of Morgans' estimates.

Management's top priority is completing the divestment of the South African Energy Coal (SAEC) business. The project continues to have a material drag on the company’s overall fundamentals, explains the broker.

The company flexed its payout ratio to deliver an interim dividend of 1.4 cents, in excess of the 1 cent estimated by Morgans.

Hold rating and the target price rises to $2.65 from $2.60.

Target price is $2.65 Current Price is $2.70 Difference: minus $0.05 (current price is over target).
If S32 meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.01, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Ord Minnett rates S32 as Buy (1) -

South32 first half results were well ahead of Ord Minnett's forecasts. The company made a US$250m addition to the buyback, which was unexpected. Production guidance is unchanged.

Ord Minnett is now more confident on the cost outcomes for FY21 and FY22 and continues to believe the disposal of South African Energy Coal is a potential catalyst. Buy rating retained. Target price rises to $3.60 from $3.30.

Target price is $3.60 Current Price is $2.70 Difference: $0.9
If S32 meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

UBS rates S32 as Buy (1) -

Interim results were ahead of UBS estimates. A sequential improvement in net profit was predominantly from stronger commodity prices and reductions in the cost base.

The buyback has been expanded to US$259m as the company continues to envisage value in the current share price. UBS expects this will be well received by the market. Buy rating retained. Target rises to $3.05 from $3.00.

Target price is $3.05 Current Price is $2.70 Difference: $0.35
If S32 meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Ord Minnett rates SBM as Accumulate (2) -

First half results were in line with estimates. The interim dividend was higher than Ord Minnett expected albeit in line with the prior corresponding half.

The broker awaits project news at Gwalia and Simberi in the current quarter. Accumulate rating retained. Target is reduced to $3.30 from $3.40.

Target price is $3.30 Current Price is $2.09 Difference: $1.21
If SBM meets the Ord Minnett target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 50.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22: