Australian Broker Call

Credit Suisse rates A2M as Neutral (3) -

Credit Suisse reports that it's steady as she goes for English Label pricing and freshness in China, and that while activity is typically slow heading into Chinese New Year, management says the market was outpacing expectations.

The broker notes market share remains firm; China label pricing is tracking at the weak end of expectations; Chemist Warehouse has opened a store in Chengdu; domestic competitors are continuing to innovate with another A2 line extension hitting the market. 

Neutral rating and $5.75 target price retained.

Target price is $5.75 Current Price is $5.25 Difference: $0.5
If A2M meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.15, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.2

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

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

Aussie Broadband's December-half trading update missed Credit Suisse's estimates due to higher than expected marketing activity, which the broker expects will unwind in the second half.

Guidance met Credit Suisse forecasts, thanks to forecast customer growth and the broker believes the company is on track to achieve 6.5% market share by June 30 and 9.3% by June 25.

Credit Suisse spies an opportunity after the recent sell-off and upgrades to Outperform from Neutral. Target price falls to $5 from $5.40 to reflect an increased weighted average cost of capital

Target price is $5.00 Current Price is $4.16 Difference: $0.84
If ABB meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Credit Suisse upgrades Adelaide Brighton to Neutral from Underperform after reviewing the Australian Building Materials Industry.

The broker raises industry revenue forecasts 5% to 10% to reflect a forecast rise in volumes as covid restrictions ease, and in response to positive market data. Credit Suisses suspects this will not be reflected in the second-half results, with rising costs and lockdowns weighing.

Credit Suisse raises earnings forecasts for Adelaide Brighton to reflect concrete and quarry acquisitions (5% accretive), extension of the company's lime contract with Alcoa and stronger underlying volumes.

Target price rises to $3 from $2.90.

Target price is $3.00 Current Price is $2.86 Difference: $0.14
If ABC meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in December.

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 AMC as Neutral (3) -

On Citi's early assessment, Amcor's Q2 financial update is broadly in-line with better-than-expected revenues indicating strength in Flexibles is more than compensating for supply chain challenges for Rigids.

The results were underpinned by lower corporate costs, the broker points out.

Similar to packaging peers, Amcor’s FY22 EPS is 2H weighted given cost headwinds in the first half, Citi explains. Neutral. Target price US$13.

Target price is $17.95 Current Price is $16.96 Difference: $0.99
If AMC meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $18.30, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Credit Suisse rates BLD as Neutral (3) -

Credit Suisse reviews the Australian Building Materials Industry and downgrades Boral's target price to $6.48 from $6.90, expecting costs will offset revenue rises and erode margins.

The broker raises industry revenue forecasts 5% to 10% to reflect a forecast rise in volumes as covid restrictions ease, and in response to positive market data. Credit Suisses suspects this will not be reflected in the industry's second-half results, with rising costs and lockdowns weighing.

The broker expects Boral will be particularly hard hit from covid based on industry discussions. 

Credit Suisses says realisation of transformation benefits for the company's Australian operations is the wildcard but the broker doubts Boral can hit its targets.

Meanwhile, the sale price of the Fly Ash business outpaced the broker's carrying value by a decent clip.

Target price is $6.48 Current Price is $6.21 Difference: $0.27
If BLD meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.51, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

Boral has confirmed a return of capital will be paid on 14 February, consisting of a $2.65/share equity capital reduction and $0.07/share unfranked dividend.

While this was well flagged, Morgan Stanley notes an opportunity for investors to now focus on the core Australian construction materials business.

Target price is steady at $6.10. Equal-weight. Industry view: In-Line.

Target price is $6.10 Current Price is $6.21 Difference: minus $0.11 (current price is over target).
If BLD meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.51, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgans rates CBA as Reduce (5) -

In anticipation of 1H results on February 9, Morgans slightly lowers its cash earnings forecast to $4.304bn from $4.320bn, due to a change in accounting treatment and some reinsurance recoveries.

The broker continues to forecast a half-yearly fully franked dividend of $1.74/share.

The Reduce rating and $74 target price are unchanged.

Target price is $74.00 Current Price is $93.93 Difference: minus $19.93 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.83, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Ord Minnett rates CBA as Hold (3) -

Ahead of the release of Commonwealth Bank's first half results, Ord Minnett is forecasting a soft underlying result given the impact of interest margins and cost pressures despite credit growth. 

While a further 2 basis point net interest margin decline in the second quarter is anticipated, the broker expects margins improvement in a wider outlook and will look to the company's trading update for detail on interest margin outlook. 

The Hold rating and target price of $90.00 are retained. 

Target price is $90.00 Current Price is $93.93 Difference: minus $3.93 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.83, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Macquarie rates CCP as Outperform (1) -

Credit Corp's result was -4% below Macquarie's forecast, but adjusting for upfront provisions driven by an acceleration in lending late in the half, it was a 2% beat. FY22 guidance for purchased debt ledger (PDL) purchases was increased by 7%.

The broker sees growth opportunities ahead as conditions normalise, backed by cash flow and balance sheet capacity. The company's US market share has doubled over the past couple of years to 10%.

The broker feels Credit Corp is navigating a period of lower PDL volumes well. Outperform retained, target rises to $38.30 from $36.20.

Target price is $38.30 Current Price is $34.86 Difference: $3.44
If CCP meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $37.37, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates CCP as Add (1) -

Credit Corp Group's 1H reported profit was a -4% miss versus Morgans forecast, as higher upfront loan provisioning resulted from accelerated volumes over November and December.

While A&NZ purchased debt leger (PDL) supply remains subdued, the broker expects improvement over FY23. The company is also expected to grasp the market share opportunity in the US. The Add rating is unchanged and the target rises to $36.80 from $35.60.

Target price is $36.80 Current Price is $34.86 Difference: $1.94
If CCP meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $37.37, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates CCP as Accumulate (2) -

Stronger than expected revenue from Credit Corp Group in the first half was largely offset by higher operating costs, bringing underlying profit broadly in line with Ord Minnett's expectations at $45.7m and representing 8% uplift to the previous comparable period. 

The company also increased acquisition guidance to $300-320m accounting for Radio Rentals, marking an annual capital deployment record. The broker notes reaffirmed profit guidance may be conservative given headwinds that include a Radio Rentals benefit. 

The Accumulate rating is retained and the target price increases to $37.00 from $36.00.

Target price is $37.00 Current Price is $34.86 Difference: $2.14
If CCP meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $37.37, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates CHC as Outperform (1) -

Charter Hall Group and a Dutch pension fund have together made a bid for fund manager Irongate ((IAP)), which if successful will add another $1.5bn of funds under management, Macquarie notes.

The stock has recently de-rated as the market has questioned the strategic rationale of the Paradice Investment Management acquisition and the potential negative signal regarding the outlook for growth in the real estate platform, the broker suggests.

But the Irongate proposal highlights the breadth of the opportunity set that still remains for Charter Hall as well as the ability of the group to execute ahead of market expectations, in the broker's view. Outperform and $22.68 target retained.

Target price is $22.68 Current Price is $16.91 Difference: $5.77
If CHC meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $21.96, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates CIP as Neutral (3) -

Centuria Industrial REIT's December-half result met Credit Suisse's forecasts and management upgraded funds-from-operations (FFO) guidance, albeit less than the broker expected given the amount of recent acquisitions.

The broker says it will take time for the company to capture positive market rent reversion given its lease expiry profile, but notes the balance sheet has room for further acquisitions to boost earnings.

Debt costs outpaced the broker's estimate, and Credit Suisse cuts FY22-FY24 FFO forecasts -0.8% to -2.3%.

Target price inches up to $4 from $3.96. Neutral rating retained, the broker considering the company is a fairly safe earnings bet given industry tailwinds, and also offers increasing rental reversion over time.

Target price is $4.00 Current Price is $3.92 Difference: $0.08
If CIP meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates CIP as Outperform (1) -

Centuria Industrial REIT's first half funds from operations were up 3.7% year on year and 2% ahead of Macquarie. FY22 FFO guidance was ticked up to 18.2c from 18.1c.

However the REIT expects an increase in the average cost of debt from 1.8% in the first half to 2.6% in the second, implying flat FFO growth in the second half despite underlying growth, the broker notes.

But the broker believes the group continues to trade attractively at around a -7% discount to net tangible asset value given tailwinds for the industrial sector. Target falls to $4.27 from $4.37, Outperform retained.

Target price is $4.27 Current Price is $3.92 Difference: $0.35
If CIP meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates CIP as Overweight (1) -

Centuria Industrial REIT's 1H funds from operations (FFO) were a slight beat over Morgan Stanley's expectation.

Management upgraded FY22 FFO guidance to 18.2cps from 18.1cps previously, and the broker sees more upside than downside risk going forward, with higher interest rates the key risk.

The Overweight rating is retained and target price rises to $4.35 from $4.30. Industry view: In-line.

Target price is $4.35 Current Price is $3.92 Difference: $0.43
If CIP meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates CIP as Hold (3) -

Centuria Industrial REIT's 1H results revealed a 11.1% uplift for funds from operations (FFO) versus the previous corresponding period. This resulted from acquisitions and higher rental income, explains Morgans.

FY22 FFO guidance was upgraded to no less than 18.2cpu from at least 18.1cpu, while the DPS guidance of 17.3cpu was unchanged.

Morgans retains its Hold rating and raises its target price to $4.12 from $4.09.

Target price is $4.12 Current Price is $3.92 Difference: $0.2
If CIP meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates CIP as Accumulate (2) -

Strong leasing has helped Centuria Industrial REIT deliver a 3.4% first half funds from operation uplift on the previous comparable period, and a beat on Ord Minnett's forecast. The company has a 99.2% portfolio occupancy rate following a 2.3% leasing increase in the quarter.

Commentary from the company implies full year funds from operations growth guidance of at least 3.4%, which the broker finds achievable. 

The company continues to be Ord Minnett's preferred Australian industrial asset class exposure. The Accumulate rating is retained and the target price increases to $4.30 from $4.20. 

Target price is $4.30 Current Price is $3.92 Difference: $0.38
If CIP meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

A more detailed disclosure released late last year by Computershare has provided much needed improved earnings visibility for investors. UBS has upgraded modeling on the company accordingly, and notes an expected earnings recovery is ahead. 

The recovery should be supported by the integration of the Computershare Corporate Trust, with the broker expecting the company will benefit from an earnings spike in FY24 as integration costs complete.

The rating is upgraded to Buy from Neutral and the target price increases to $22.50.

Target price is $22.50 Current Price is $19.76 Difference: $2.74
If CPU meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $20.44, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

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

Credit Suisse upgrades CSR to Outperform from Neutral after reviewing the Australian Building Materials Industry.

The broker raises industry revenue forecasts 5% to 10% to reflect a forecast rise in volumes as covid restrictions ease, and in response to positive market data. Credit Suisses suspects this will not be reflected in the industry's second-half results, with rising costs and lockdowns weighing.

The broker downgrades FY22 estimates for CSR but upgrades for FY23, expecting an improvement in non-residential and multi-residential projects - it also incorporates a loose -4% hit to account for the Yarraville strike (given volumes could be strong before and after).

All eyes are peeled to interest rates but for now the broker notes building approvals are holding up amid zero migration. Target price steady at $6.70.

Target price is $6.70 Current Price is $5.64 Difference: $1.06
If CSR meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.69, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgan Stanley rates ELO as Overweight (1) -

Following Elmo Software's "strong" 1H business update, Morgan Stanley highlights a strong rebound in demand and a reduced cash burn rate.

Management raised guidance for annual recurring revenue (ARR) to $107-113m from $105-111m.

The Overweight rating and $7.80 target price are unchanged. Industry view: In-line.

Target price is $7.80 Current Price is $4.16 Difference: $3.64
If ELO meets the Morgan Stanley target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates FBU as Outperform (1) -

Credit Suisse raises Fletcher Building's target price after reviewing the Australian Building Materials Industry.

The broker raises industry revenue forecasts 5% to 10% to reflect a forecast rise in volumes as covid restrictions ease, and in response to positive market data. Credit Suisses suspects this will not be reflected in the industry's second-half results, with rising costs and lockdowns weighing.

Credit Suisse downgrades Fletcher Building's FY22 estimates -8% to reflect high uncertainty surrounding covid lockdowns but raises FY23 estimates 2% to reflect strong demand and pricing power.

Fletcher Building is the broker's top sector pick thanks to its strong end markets, margin upside from the company's transformation plan and growing evidence of market share growth. Outperform rating retained.

Target price is $8.60 Current Price is $6.03 Difference: $2.57
If FBU meets the Credit Suisse target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $8.60, suggesting upside of 40.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Morgans rates KLL as Speculative Buy (1) -

In the wake of Kalium Lakes' 2Q report, Morgans feels the risk pertaining to the near-term commissioning of the Beyondie Sulphate of Potash project has lifted. Further detail on the outcome of the company's technical review is awaited.

In the meantime, the broker maintains its Speculative Buy though lowers its target price to $0.15 from $0.25.

Given a delayed startup, investors are advised a potential buying opportunity may arise from a capital raise just prior to the results of the technical review.

Target price is $0.15 Current Price is $0.11 Difference: $0.04
If KLL meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates LYC as Outperform (1) -

China has released its first rare earth quotas for 2022, with volumes for mining and refining up 20% on last year. Macquarie had assumed a 5% increase, but notes the neodymium/praseodymium market remains in deficit despite the increase.

The broker expects Lynas Rare Earths to increase NdPr production in the second half and into FY23 as freight and covid restrictions ease. The NdPr spot price has surged to well above the broker's forecast, suggesting earnings upside.

Outperform and $12.40 target retained.

Target price is $12.40 Current Price is $8.91 Difference: $3.49
If LYC meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates MIN as Outperform (1) -

The Western Australian government has approved the expansion of capacity allocations at Port Hedland from 495mtpa to 660mtpa. The increase includes an allocation for the planned Stanley Point Berth 3, to be shared by Hancock Prospecting and Mineral Resources.

Macquarie sees this as an important de-risking step for Mineral Resources and its Marillana project, which the broker does not yet include in valuation. Solid iron ore and lithium prices otherwise underpin upgrade momentum for the miner.

Outperform and $75.00 target retained.

Target price is $75.00 Current Price is $57.40 Difference: $17.6
If MIN meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $56.17, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

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

Mineral Resources has announced the West Australian government has granted a port capacity allocation to the company and Hancock Prospecting. The allocation is for a new iron ore export facilty at Port Headland.

If approved, Morgan Stanley estimates Mineral Resources is aiming to ship at least 20Mtpa from the location though it remains unclear how much of the port capex will need to contributed.

Morgan Stanley retains its Equal-weight rating and $45.70 target. Industry view: Attractive.

Target price is $45.70 Current Price is $57.40 Difference: minus $11.7 (current price is over target).
If MIN meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.17, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgans rates MME as Add (1) -

Underlying business momentum and MoneyMe's diversified product suite led to a broadly positive 2Q trading update, suggests Morgans.

Autopay is contributing strongly to growth and asset quality appears to be in check, according to the analyst.

The Add rating is unchanged and the target price rises to $2.60 from $2.57, after the broker adjusted top-line estimates.

Target price is $2.60 Current Price is $1.98 Difference: $0.62
If MME meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates NVX as Hold (3) -

Novonix's 2Q report revealed its first commercial scale binding offtake agreement with KORE Power. The company also purchased 5% of KORE in a 50/50 cash/scrip deal for -US$25m.

Less positively, Morgans believes there will be delays to the ramp-up of production, which will in turn delay the delivery of material to Samsung and Sanyo.

The target price falls to $6.97 from $7.32 and the Hold rating is maintained.

Target price is $6.97 Current Price is $7.69 Difference: minus $0.72 (current price is over target).
If NVX meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates NXT as Outperform (1) -

NextDC has reported contracted utilisation at its data centres as at the end of January below market estimates. This suggests downside risk to the company's first half earnings, but does not change Macquarie's longer term view.

Outperform retained, target falls to $16.00 from $16.10.

Target price is $16.00 Current Price is $10.49 Difference: $5.51
If NXT meets the Macquarie target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $14.72, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

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

Morgan Stanley resumes coverage of Origin Energy with an Equal-weight rating and $5.81 target price after incorporating a US$72/bbl FY23 oil price forecast and the sale of -10% of APLNG announced on 22 October 2021.

In summary, the broker sees LNG prices and deleveraging as cash flow positives, while decarbonisation, Energy Markets re-pricing and competition are ongoing uncertainties. Industry View: Cautious.

Target price is $5.81 Current Price is $5.84 Difference: minus $0.03 (current price is over target).
If ORG 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 $6.12, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates ORG as Add (1) -

First half market update for Origin Energy revealed a sizeable jump in 2Q LNG revenue from its share of the Australian Pacific LNG project.

Morgans lifts its target price by 4% to $6.20 after raising its Brent oil price forecast and allowing for higher LNG spot sales. The Add rating is unchanged.

While electricity volumes grew by 2%, sales have trended towards lower margin business customers from retail customers.

Target price is $6.20 Current Price is $5.84 Difference: $0.36
If ORG meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.12, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates SQ2 as Initiation of coverage with Outperform (1) -

Credit Suisse initiates coverage on Block Inc after the acquisition of Afterpay with an Outperform rating and US$230 target price (conservative versus consensus).

The broker says Afterpay gives Block Inc a faster growing, more diverse business. 

Current Price is $171.20. Target price not assessed.

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Credit Suisse rates SYR as Neutral (3) -

Credit Suisse estimates Syrah Resource's option to export break bulks from its Pemba port could add 40c a share given higher spot prices and turnovers.

Meanwhile, management has guided to further price strength at both the spot and contract level, meaning Pemba would enjoy even greater leverage to rising spot prices.

Target price upgraded to $1.75 from $1.15. Neutral rating retained.

Target price is $1.75 Current Price is $1.69 Difference: $0.06
If SYR meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.5

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

Morgans rates TRP as Speculative Buy (1) -

Following Tissue Repair's first quarterly cash flow report, Morgans notes no debt, and a cash balance of $26.6m versus the company's market capitalisation of $27.8m. The report was thought to show strong operational progress and advances toward key milestones.

The broker estimates the cash balance is sufficient to complete upcoming clinical programs in chronic wounds as well as the initial commercialisation of the aesthetic product. 

The Speculative Buy rating and $1.43 target price are retained.

Target price is $1.43 Current Price is $0.46 Difference: $0.97
If TRP meets the Morgans target it will return approximately 211% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates VUK as Neutral (3) -

Macquarie sees upside risk to Virgin Money UK's FY22 guidance, and valuation appeal if the UK economy continues to improve and interest rates increase.

But for the stock  to re-rate, the broker believes management needs to start delivering on its promised expense targets and stem market share losses without sacrificing margins, which at this stage appears unlikely.

Target rises to $4.35 from $4.00, Neutral retained.

Target price is $4.35 Current Price is $3.58 Difference: $0.77
If VUK meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

This company reports in GBP. 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

Citi rates WBC as Buy (1) -

Westpac is expected to issue weak guidance with the release of (most likely) yet another weak quarterly update on February 3.

However, Citi analysts seek the positive in that expectations from both the buy- and sell-side have now reached rock-bottom with the shares underperforming the other major banks by -7% over the past three months.

Citi is not anticipating a meaningful improvement in fundamentals for Westpac, not anytime soon anyway, but an improvement in expectations management could be on the cards.

If the broker's thesis proves accurate, the shares screen "cheap" priced at only 1x book in an inflationary environment, today's report notes. Buy. Target $27.

Target price is $27.00 Current Price is $20.40 Difference: $6.6
If WBC meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $25.70, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates WGN as Outperform (1) -

Credit Suisse reviews the Australian Building Materials Industry and upgrades Wagners Holding Company's FY22 and FY23 EPS estimates 7% and 9% to reflect the incorporation of a new Macarthur River Mine contract and higher cement volumes.

The broker raises industry revenue forecasts 5% to 10% to reflect a forecast rise in volumes as covid restrictions ease, and in response to positive market data. Credit Suisses suspects this will not be reflected in the industry's second-half results, with rising costs and lockdowns weighing.

Credit Suisse points to rising cement import volumes at the Port of Brisbane (up 19% to November 2021), pointing to strong demand in Wagners' core market of south-east Queensland, which the broker expects will post a strong recovery as covid restrictions ease.

Earth Friendly Concrete and US infrastrucutre markets also appear buoyant and the broker is keeping a keen eye peeled for contract awards and/or strategic partnerships. Outperform rating and $2.50 target price retained.

Target price is $2.50 Current Price is $1.55 Difference: $0.95
If WGN meets the Credit Suisse target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 43.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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