Australian Broker Call

Citi rates ABC as Neutral (3) -

Adbri's earnings beat was the result of margin expansion despite the highly disrupted trading period due to cost-outs. The broker has increased its underlying earnings forecasts on further cost-outs in FY21.

The macro environment has improved, the broker notes, which should flow through in the first half. Sales should catch up in FY21 after adjusting for contract losses. Adbri remains cautious on the timing of infrastructure projects in the second half.

Increased competition and the strong Aussie also provide headwinds. The broker considers value fair, retaining a Neutral rating. Target rises to $3.60 from $3.50.

Target price is $3.60 Current Price is $3.26 Difference: $0.34
If ABC meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in December.

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 ABC as Underperform (5) -

Adbri's FY20 net profit is 9% above consensus led by margins and better volume trends in the second half, offset by the price mix. 

The company presented some new high-grade manufacturing options to supply Lynas but Credit Suisse finds them less value accretive as compared to reviving the Munster plant.

The broker expects net profit to rise by 19% in FY21 led by better near-term market, carried forward margins, and -$10m net cost out target in line with Credit Suisse's expectation.

Credit Suisse retains its Underperform rating with the target rising to $2.60 from $2.10.

Target price is $2.60 Current Price is $3.26 Difference: minus $0.66 (current price is over target).
If ABC meets the Credit Suisse target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.19, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in December.

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 ABC as Neutral (3) -

A -6% fall in Adbri's underlying profit was 7% better than the broker had forecast, thanks to cost reductions. Beyond that, the outlook is not so rosy.

Management's outlook commentary was cautious, highlighting pricing risks and potential delays in the feed-through of infrastructure volumes.

Adbri also quantified the loss of the Alcoa lime contract and NSW volumes displaced by imports, which are expected to result
in a lower year on year result in the second half.

While some visibility is slowly returning on parts of the market environment, the broker notes, particularly residential, delays in infrastructure activity are a key risk. Neutral retained, target rises to $3.20 from $3.05.

Target price is $3.20 Current Price is $3.26 Difference: minus $0.06 (current price is over target).
If ABC meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.19, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in December.

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 ABC as Underweight (5) -

2020 results were ahead of expectations although Morgan Stanley notes the outlook is more conservative, as management has noted underlying construction weakness on the east coast.

Morgan Stanley increases 2021 underlying earnings forecasts by 4%, lowering corporate cost estimates which are offset somewhat by lower forecast earnings in cement, lime & concrete.

The broker suspects earnings growth will be limited in 2021 and 2022. The broker considers the stock expensive relative to its coverage and retains an Underweight rating. Target is $3.30. Industry view: Cautious.

Target price is $3.30 Current Price is $3.26 Difference: $0.04
If ABC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in December.

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 ABC as Hold (3) -

Adbri's FY20 result was materially better than Morgans feared, driven by stronger than expected second half mining sector demand and increased net cost savings.

First half FY21 commentary was positive as construction materials demand is set to remain robust due to the benefit of HomeBuilder and State Government stimulus, with Jan/Feb trading exceeding internal expectations.

Mining sector demand is also expected to remain strong though the broker cautions on the company’s ability to deliver profit growth in light of a second half FY21 earnings headwind from the lost Alcoa contract and reduced NSW cement sales to a new competitor.

Overall, the analyst now sees upside risks to forecasts from stronger/longer increased detached residential demand, the ramp-up of infrastructure activity and progressing new lime initiatives. The target price is increased to $3.31 from $3.16. Hold rating is maintained.

Target price is $3.31 Current Price is $3.26 Difference: $0.05
If ABC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Ord Minnett rates ABC as Hold (3) -

Adbri reported a 2020 net profit of $115.6m and was 3.5% above Ord Minnett’s forecast. A final dividend of 7.25c was declared versus the broker's estimate of 6.5c.

While no guidance was provided, management expects earnings to be broadly balanced between the first and second half.

A larger than expected operating income impact of -$41m related to the loss of two contracts from mid-year has left the broker surprised, and has led Ord Minnett to reduce its earnings forecasts by -4.7% over 2021–23.

Hold rating with the target price rising slightly to $3.20 from $3.10.

Target price is $3.20 Current Price is $3.26 Difference: minus $0.06 (current price is over target).
If ABC 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 $3.19, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates ABC as Neutral (3) -

2020 net profit was ahead of UBS estimates, namely from lower unallocated costs. Cement volumes fell -4% while prices rose 1.5%. No 2021 earnings guidance was provided. UBS forecasts a 2021 net profit of $114m, flat year-on-year.

Neutral rating retained. While detached housing approvals are strong, infrastructure work, the broker suggests, will be a second-half story. Target is reduced to $3.13 from $3.15.

Target price is $3.13 Current Price is $3.26 Difference: minus $0.13 (current price is over target).
If ABC meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.19, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in December.

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 ABY as Overweight (1) -

Adore Beauty beat first half prospectus numbers but Morgan Stanley suspects the lack of a trading update concerned the market and contributed to the sell-off in the shares.

The broker expects growth to remain elevated amid a robust retail backdrop. The Overweight rating is unchanged. Target is raised to $8.75 from $8.35. Industry view: In-line.  

Target price is $8.75 Current Price is $5.49 Difference: $3.26
If ABY meets the Morgan Stanley target it will return approximately 59% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

UBS upgrades to Buy from Neutral after a strong maiden first half result. Gross margin expanded 130 basis points, driven by improved supplier terms and increasing customer retention.

While aware of the uncertainty regarding online retail once the pandemic subsides, the broker considers Adore Beauty a good business with attractive growth opportunities. Target is $6.20.

Target price is $6.20 Current Price is $5.49 Difference: $0.71
If ABY meets the UBS target it will return approximately 13% (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 ACF as Add (1) -

First half underlying earnings exceeded Morgans forecast by 13% as revenue in the key formwork division jumped 46%. This was largely driven by an additional four-month contribution from the Uni-span acquisition and strong performances from Melbourne civil and Natform.

Industrial Scaffold was also strong with underlying revenue up 25%, while Commercial Scaffold remains a drag with revenue down -13% on the back of ongoing weakness in the high-rise construction market, according to the broker.

Record new hire contracts secured over the past six months and a strong pipeline of opportunities are providing a good lead indicator for the second half FY21, notes the analyst. Add rating and target is increased to $0.50 from $0.40.

Target price is $0.50 Current Price is $0.38 Difference: $0.12
If ACF meets the Morgans 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

Morgans rates AIM as Add (1) -

Given quarterly updates, Access Innovation Holdings's first half result was largely as expected by Morgans.

A key highlight was considered the 37% year-on-year increase in minutes captioned leading to 29% growth in services revenue.

The Add rating and target price of $1.37 are unchanged though Morgans sees upside risk to prospectus and its own FY21 forecasts.

Target price is $1.37 Current Price is $0.96 Difference: $0.41
If AIM meets the Morgans target it will return approximately 43% (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

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

2020 net profit was below Morgan Stanley's estimates. The retail shop performance was encouraging and sustained performance offers potential for a multiple re-rating, in the broker's view.

The main headwind is the oil price, with diesel tracking near $0.11/litre in 2021 compared with $0.18/litre in 2020 and petrol at $0.15/litre versus $0.18/litre.

The Australian dollar headwind on current assumptions is also higher than estimated which continues a trend of "negative surprises", the broker points out. Equal-weight retained. Target is reduced to $30 from $31. Industry view is Attractive.

Target price is $30.00 Current Price is $26.00 Difference: $4
If ALD meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting upside of 15.2% (ex-dividends)

The company's fiscal year ends in December.

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 AMI as Outperform (1) -

Aurelia Metals has announced a 35% resource upgrade for the Federation deposit 10km south of the Hera mine. The broker expects the deposit to extend the life of Hera by at least four years with ongoing exploration and study work potentially adding to this.

Aurelia is also drilling at its recently acquired and under-explored Dargues gold mine where the broker believes there is similar potential for meaningful mine life extensions. Outperform and 65c target retained.

Target price is $0.65 Current Price is $0.42 Difference: $0.23
If AMI meets the Macquarie target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates AOF as Accumulate (2) -

First half results were ahead of forecasts, supported by rental abatement incentives. The fund is now providing guidance per security of 18.3-18.8c. Occupancy increased to 95.3% from 93.7%, driven by leasing success at multiple assets.

Progress with the strategic review is viewed positively and Ord Minnett maintains an Accumulate rating, raising the target to $2.32 from $2.28.

Target price is $2.32 Current Price is $2.19 Difference: $0.13
If AOF meets the Ord Minnett target it will return approximately 6% (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

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

First half results were soft while the company has confirmed guidance for FY21 distributions that are aligned with Morgan Stanley's estimates.

Morgan Stanley believes committed growth projects of $775m over FY21-23 should provide modest contributions to earnings in FY22 and accelerate in FY23.

The strategic refresh is considered positive with an extended program to research and commercialise new energy technologies and a wider scope for the North American investment strategy.

 Equal-weight rating. Industry view is Cautious. Target is reduced to $9.65 from $11.38.

Target price is $9.65 Current Price is $9.06 Difference: $0.59
If APA meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.91, suggesting upside of 16.9% (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

Morgans rates APA as Add (1) -

APA Group's first half earnings result was broadly in-line with Morgans forecast albeit sustaining capex has trended higher. Highlights were considered a weak CPI and higher Australian dollar, soft contract renewals, covid-related volume weakness and higher corporate costs.

The broker anticipates a looming capital management review to consider lowering the cost of capital (eg. likely involve early repayment of expensive fixed rate debt) and resetting the approach to distribution policy.

The analyst currently forecasts the DPS to grow at circa 3% pa compound annual growth rate (CAGR) across FY22-26.

Add rating. The target price is decreased to $10.59 from $11.07 with Morgans noting the recent sharp uptick in bond yields is not positive for sentiment.

Target price is $10.59 Current Price is $9.06 Difference: $1.53
If APA meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $10.91, suggesting upside of 16.9% (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

Ord Minnett rates APA as Upgrade to Buy from Hold (1) -

APA Group's first-half net profit of $162m was below Ord Minnett’s forecast of $166m with operating earnings within -1% of the broker's estimate. An interim dividend of 24c was announced.

Management has reaffirmed the full-year guidance which implies the second half operating income will be between $822-$842m. The broker believes the recent share price weakness was driven by an increase in benchmark interest rates.

While macro drivers could represent a near term headwind, Ord Minnett finds the stock attractive at current price levels and given the group's stable, predictable earnings.

Ord Minnett upgrades to Buy from Hold with the target rising to $11.30 from $11.09.

Target price is $11.30 Current Price is $9.06 Difference: $2.24
If APA meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $10.91, suggesting upside of 16.9% (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

Ord Minnett rates ASB as Upgrade to Hold from Lighten (3) -

Ord Minnett envisages significant risk to earnings expectations as the LCS program winds down in FY23. This risk appears heightened by management changes and ongoing US regulatory investigations. The president of the US operations has resigned.

The earnings outlook for the business from FY24 remains unclear and the broker envisages meaningful downside risk. Still, the share price has fallen to a level where some of this appears priced in.

Austal maintains some strategically located assets and remains a large employer in the US, which should underpin future work. Rating is upgraded to Hold from Lighten and the target is reduced to $2.30 from $3.00.

Target price is $2.30 Current Price is $2.20 Difference: $0.1
If ASB meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.43, suggesting upside of 55.0% (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 ATL as Hold (3) -

In the wake of Apollo Tourism & Leisure's reported first half loss of -$4.9m, Morgans expects losses to accelerate further in the second half due to normal seasonality and continuing lockdowns/travel restrictions globally. 

Domestic guest revenue increased meaningfully in each region though not enough to offset the drop in international guest revenue, explains the broker. Australia was the main detractor -$7m earnings (EBIT) loss.

New RV sales showed strength, while used sales were up materially as the company focused on accelerating fleet sales to preserve liquidity, explains the analyst. It's considered the company has around 16 months of available liquidity at hand.

The Hold rating is maintained and the target price is increased to $0.351 from $0.291, assisted by the inclusion of FY23 into forecasts, which Morgans anticipates will be more normalised.

Target price is $0.35 Current Price is $0.30 Difference: $0.051
If ATL meets the Morgans 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

Ord Minnett rates ATL as Downgrade to Lighten from Hold (4) -

Understandably, Ord Minnett notes the interim result was indicative of a company coming under fire from multiple directions during the pandemic.

The main issue is that the rental business relies on inbound visitors, hence the need to wind back the size of the fleet and reduce net debt. While there are benefits from demand for recreational vehicles in the retail business the earnings benefit has been modest.

The business has managed to survive although Ord Minnett remains cautious, given the need to reinvest in the fleet and grow earnings. Rating is downgraded to Lighten from Hold. Target is raised to $0.28 from $0.25.

Target price is $0.28 Current Price is $0.30 Difference: minus $0.02 (current price is over target).
If ATL meets the Ord Minnett target it will return approximately minus 7% (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 AUB as Outperform (1) -

AUB Group's net profit at $30.7m was up 44% versus last year and 14% ahead of Credit Suisse's forecast. The highlight of the result for the broker was Australian broking with operating income 28% ahead of the forecast at circa $77m.

Guidance for FY21 has been raised, for the third time in six months, with net profit now expected to be $63-$65m from $60-$62m. Even then, the broker thinks the guidance is conservative looking at the strong first half and the group's historical skew towards the second half.

Outperform retained. Target rises to $20 from $18.40.

Target price is $20.00 Current Price is $18.92 Difference: $1.08
If AUB meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $20.38, suggesting upside of 7.5% (ex-dividends)

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 AUB as Outperform (1) -

AUB Group's first half revenues grew 14% but a cost focus and operating leverage led to a 31% increase in margins, and thus 44% growth in underlying profit, 22% ahead of the broker. Quite simply a "cracker", in the broker's words.

Full year guidance was upgraded by 5%. AUB benefited from new insurer remuneration arrangements, products and services
penetration and new clients, the broker notes. The company will now target acquisitions in New Zealand.

Outperform retained, target rises to $20.40 from $18.23.

Target price is $20.40 Current Price is $18.92 Difference: $1.48
If AUB meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $20.38, suggesting upside of 7.5% (ex-dividends)

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 AWC as Buy (1) -

Alumina Ltd's result fell short of the broker on lower than forecast AWAC (JV) earnings. 2021 will feature a catch-up on deferred restructuring costs, the broker notes, but these should halve in 2022.

Management expects the ex-China alumina surplus to moderate in 2021 before demand grows over the next five years beyond current ex-China capacity construction.

Buy retained, target falls to $1.90 from $2.05.

Target price is $1.90 Current Price is $1.66 Difference: $0.24
If AWC meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 12.8% (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: 0.5

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

Credit Suisse rates AWC as Outperform (1) -

Alumina Ltd's 2020 numbers were a miss versus Credit Suisse's forecast with the net profit below consensus. The dividend of 2.9c was in-line with the broker's expectations but was slightly under consensus estimates.

Alumina Ltd's 2021 alumina and aluminium production guidance are in-line with Credit Suisse's assumptions.  Even so, after weighing up all changes, the broker decides to moderate its earnings estimates by -3-10% for 2020-21.

Credit Suisse retains its Outperform rating with the target dropping to $2 from $2.10.

Target price is $2.00 Current Price is $1.66 Difference: $0.34
If AWC meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 12.8% (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: 0.5

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

Macquarie rates AWC as Underperform (5) -

Alumina Ltd's result was weaker than expected, leading to a dividend -9% lower than the broker's forecast and -20% lower year on year.

The stock is now yielding 4.2%, the broker notes, compared to a five-year average 7.5%. The broker expects the yield to remain sub-5%.

Given covid-driven loss of demand for all of bauxite, alumina and aluminium, inventories have built up to a level of surplus that is expected to continue through 2021. While alumina prices has since swung upward, the stronger Aussie is countering, the broker notes.

Underperform and $1.50 target retained.

Target price is $1.50 Current Price is $1.66 Difference: minus $0.16 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.88, suggesting upside of 12.8% (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: 0.5

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

Morgan Stanley rates AWC as Overweight (1) -

The final dividend was in line with Morgan Stanley's estimates. 2021 production guidance is also broadly in line.

The company expects a better market in 2021 with alumina production expected to grow by 2.3% and the surplus to decline to 2.9mt, which is expected to be imported by China.

Morgan Stanley retains an Overweight rating. Industry view: Attractive. Target is $2.

Target price is $2.00 Current Price is $1.66 Difference: $0.34
If AWC meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 12.8% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Ord Minnett rates AWC as Hold (3) -

Alumina Ltd's 2020 net profit was US$147m, -14% below Ord Minnett's forecast with the dividend also a tad lower than expected at 2.9c (versus the broker's 3.2c).

The Alcoa World Alumina and Chemicals joint venture posted operating earnings of US$896m, below the broker's forecast due to lower Portland profitability.

While negotiations with the government on the Portland smelter have progressed well, the company awaits a power price agreement from the supplier. The stock underperformed the sector and looks more interesting to Ord Minnett on valuation.

Hold recommendation with the target dropping to $1.90 from $2.

Target price is $1.90 Current Price is $1.66 Difference: $0.24
If AWC meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 12.8% (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: 0.5

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

UBS rates AWC as Buy (1) -

Underlying earnings were weaker than expected although the distribution was in line with UBS estimates. Alumina Ltd received a realised price of US$270/t in the second half and declared a final dividend of US2.9c, implying an annualised yield of 4.5%.

UBS retains a Buy rating but reduces the target to $2.00 from $2.10, as a higher Australian dollar has lowered the valuation estimate.

Target price is $2.00 Current Price is $1.66 Difference: $0.34
If AWC meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 12.8% (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: 0.5

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

Morgan Stanley rates AX1 as Equal-weight (3) -

First half operating earnings were in line with guidance. Morgan Stanley notes strong momentum has continued and envisages upside to expectations for FY21.

No earnings guidance was provided while like-for-like sales have accelerated to growth of 10.7% in the first eight weeks of the second half.

Morgan Stanley expects demand in the short term will continue but positive growth in earnings per share in FY22 will be challenging to achieve. Equal-weight retained. Target is $2.60. Industry view is In-Line.

Target price is $2.60 Current Price is $2.26 Difference: $0.34
If AX1 meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 7.3% (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 AX1 as Hold (3) -

Accent Group's first half earnings (EBITDA ) result was in-line with recent guidance. Despite continued sales impacts from lockdowns, earnings were up 44% year-on-year, explains Morgans. Store rollout targets have been upgraded to 85 from 80.

Management offered a trading update, which included four ‘snap lockdowns’. The first eight weeks of the second half showed like-for-like sales growth of around 10.7%.

The broker forecasts second half earnings growth of 11% and upgrades FY21 EPS forecasts by 6% and circa 2% thereafter. Add rating and target is increased to $2.40 from $2.34.

Target price is $2.40 Current Price is $2.26 Difference: $0.14
If AX1 meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 7.3% (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 BHP as Overweight (1) -

BHP Group is more positive than expected on the near term commodities outlook driven by a robust rise in China and ex-China growth.

In the medium term, a pullback is expected in copper project delays with more supply coming in but the group sees the long term outlook as positive for the commodity.

Morgan Stanley notes BHP is focused on disciplined growth rather than volumes with productivity a means of growth over new project builds. For new projects, the group's focus is on exploration. 

Overweight rating is retained with a target price of $48.05. Industry view: Attractive.

Target price is $48.05 Current Price is $50.43 Difference: minus $2.38 (current price is over target).
If BHP 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 $47.18, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Citi rates BIN as Buy (1) -

Bingo Industries' first half result was covid-impacted but better than expected. A flat earnings result year on year for post-collections (85% of earnings) was the highlight.

When the new MPC2 facility comes on line in the second half, the skew to post collections will increase further, the broker notes.

There was no new news on the proposed takeover offer. Buy retained, target rises to $3.43 ($3.50 offer on the table) from $2.80.

Target price is $3.43 Current Price is $3.15 Difference: $0.28
If BIN meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 0.2% (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 BOQ as Upgrade to Add from Hold (1) -

Bank Of Queensland will acquire 100% of Members Equity Bank Limited for cash consideration of $1.325bn. The acquisition will be funded by an underwritten capital raising of $1.35bn at a price of $7.35.

Morgans expects the acquisition to be around 10% cash EPS accretive once $80m per annum of pre-tax cost synergies are realised.

In a trading update, the company expects first half cash earnings of $163-166m. The bottom end of this range is 26% better than the broker’s expectation and circa 29% better than consensus.

The return on tangible equity (ROTE) outlook has improved with and without the acquisition, and this leads to an improved dividend outlook, forecasts the analyst. Upgrade to Add from Hold and the target is increased to $10 from $8.

Target price is $10.00 Current Price is $9.21 Difference: $0.79
If BOQ meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $8.98, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in August.

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 CCX as Buy (1) -

Good online sales growth (52%), lower rent and staffing costs (down -13%) contributed positively to City Chic’s reported 1H21 sales growth of 13.5%, and earnings (EBITDA) of $23.3m, up 22%.

The company has a net cash position of $83m, well ahead of Citi’s forecast of $65m, and has signaled positive trading so far in the second-half, but no interim dividend was declared.

At first glance, the broker notes while a 48% jump in marketing costs is not a concern fundamentally, it may impact on near-term margin expansion.

Given the strong start to 2H21 trading in terms of comparable store sales growth, plus the focus on the initial integration of Evans in the UK, and a new partnership with Hudson Bay department store group in Canada, Ord Minnett expects modest consensus EPS revisions on an underlying basis.

The broker is forecasting FY21 earnings (EBITDA) of $35.6m. The broker reiterates a Buy rating with a target price of $4.00.

Target price is $4.00 Current Price is $4.02 Difference: minus $0.02 (current price is over target).
If CCX meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.37, suggesting upside of 7.8% (ex-dividends)

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 EHE as Outperform (1) -

Estia Health's result came in ahead of the broker given higher than expected government funding that offset higher employee costs. Occupancy trends moderated in the half, the broker notes, but have since shown strong improvement.

The broker continues to see Estia as having a favourable balance sheet position and valuation appeal relative to listed peers. Additional government funding as part of a response to the Royal Commission into Aged Care would present further upside to forecasts.

Outperform retained, target rises to $2.25 from $1.95.

Target price is $2.25 Current Price is $2.08 Difference: $0.17
If EHE meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting downside of -10.0% (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

UBS rates EHE as Neutral (3) -

A first half net loss of -$3m revealed the impact of the pandemic and weaker average occupancy. Annualised operating earnings per resident is now $7000 as margins and returns continue to deteriorate.

While the business is a quality operator, UBS remains cautious about the potential outcomes of the Royal Commission. Net profit forecasts now reflect a recovery from FY22. Neutral maintained. Target rises to $2.10 from $1.55.

Target price is $2.10 Current Price is $2.08 Difference: $0.02
If EHE meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting downside of -10.0% (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

Morgans rates GDF as Add (1) -

Garda Property Group reported FFO for the first half of $8.8m and a distribution of 3.6 cents was paid in line with guidance. FY21 DPS guidance was reaffirmed at 7.2c.

The broker highlights the leasing of around one-third of the Botanicca 9 property to Fuji Xerox on a seven-year lease from July 2021. Leasing is considered to remain a key focus for Botanicca 9 as well as new industrial projects rolling out.

The REIT flagged the sale of three non-core assets for $27.1m and Morgans expects proceeds will be used to fund the existing development. Add rating and target is increased to $1.21 from $1.19.

Target price is $1.21 Current Price is $1.17 Difference: $0.04
If GDF meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates GEM as Neutral (3) -

G8 Education's 2020 result is in line with Macquarie's expectations with respect to operating income. Like for like occupancy was weaker versus last year at 69.2%, points out the broker and notes the company expects occupancy in 2021 to be below 2019 levels.

The company continues to chip away at portfolio refinements and divestments, suggests Macquarie, that are poised to benefit the bottom line in time. The broker believes there is potential for the quality of G8's portfolio to get better with time.

Neutral with the price target falling to $1.15 from $1.20.

Target price is $1.15 Current Price is $1.09 Difference: $0.06
If GEM meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 7.0% (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

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

G8 Education's result was pre-guided with few surprises. Management reaffirmed the business is in a phase of reinvestment and aims at better operating and capital expenses to improve network quality, an approach Morgan Stanley considers strategically sound.

Believing cost structures in the post-covid world could look very different, the broker lacks conviction on earnings and expects lower sales versus FY19 with lower margins. As a result, Morgan Stanley reduces its FY21 operating income and earnings estimates by -4% and -3%.

Morgan Stanley reaffirms its Equal-weight rating. Target is $1. Industry view: In-line.

Target price is $1.00 Current Price is $1.09 Difference: minus $0.09 (current price is over target).
If GEM meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.13, suggesting upside of 7.0% (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 GEM as Buy (1) -

2020 results were largely in line with UBS estimates. Occupancy currently is -4% below February 2019 and the broker was hoping that the gap had been closed, given robust enquiries.

The recovery has several moving parts and UBS suspects 2021 will be a "year of heavy lifting" with real benefits flowing through later. Nevertheless, upside potential is still envisaged and the broker retains a Buy rating. Target is reduced to $1.30 from $1.40.

Target price is $1.30 Current Price is $1.09 Difference: $0.21
If GEM meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 7.0% (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

Citi rates HUB as Buy (1) -

The broker expects 2021 to be a solid year for specialist platforms and an upgrade to FY22 funds under management guidance is a sign of confidence, the broker suggests, of Hub24 gaining market share.

2021 should be a pivotal year as Hub24 integrates recent acquisitions and enhances its product offering, the broker predicts.
While integration is a key risk, the acquisitions increase scale which along with strong flows should drive solid earnings growth.

Buy retained, target rises to $26.70 from $26.40.

Target price is $26.40 Current Price is $23.15 Difference: $3.25
If HUB meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $25.27, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates HUB as Outperform (1) -

Hub24's first-half net profit at $7.5m shows a growth of 59% versus last year and is 6% above Credit Suisse's forecast. Operating income also beat the broker's estimate by 11%.

In Credit Suisse's view, the result shows Hub24 can translate strong funds under administration growth into profit growth even in the face of revenue margin pressure.

Also, despite expecting more revenue margin pressure and investment, the broker expects the investment platform to deliver strong operating income growth in its platform division of about 15% in the second half.

Outperform rating with the target price rising to $27 from $26.

Target price is $27.00 Current Price is $23.15 Difference: $3.85
If HUB meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $25.27, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates HUB as Neutral (3) -

At $16.4m, Hub24's first-half operating income was higher than Macquarie expected although the number reduces by circa -$1.2m after including share-based payments, leading to a miss at the net profit level.

The investment platform revised its FY22 custody funds under administration (FuA) guidance to $43-49bn from $28-32bn post incorporating almost $10-11bn of FuA for Xplore Wealth (acquired).

Going into the second half, the broker expects revenue margins to reduce before stabilising. 

Macquarie retains its Neutral rating with the target dropping slightly to $24.25 from $25.

Target price is $24.25 Current Price is $23.15 Difference: $1.1
If HUB meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $25.27, suggesting upside of 9.1% (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

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

HUB24 reported underlying first half profit (NPAT) was broadly in-line with Morgans expectations. A 4.5cps interim dividend was announced, up 29% on pcp.

The company increased its FY22 funds under administration (FUA) target to $43-49bn from $28-32bn, which now includes around $15bn of Xplore Wealth ((XPL)) custody FUA.

Morgans sees a long-term opportunity to grow market share materially, leverage white-label opportunities and deliver scale benefits. The Add rating is unchanged and the target price is decreased to $25.40 from $25.45.

Target price is $25.40 Current Price is $23.15 Difference: $2.25
If HUB meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.27, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

Credit Suisse highlights since Harvey Norman Holdings' November update, store closures in some locations have been extended alongside brief lockdowns in Australia and New Zealand.

Despite this, the broker does not expect any material detraction from the company's first-half profit trajectory. The dividend is expected to be 32c.

Considering the recent share price appreciation, Credit Suisse downgrades to Neutral from Outperform with the target rising to $5.36 from $5.30.

Target price is $5.36 Current Price is $5.35 Difference: $0.01
If HVN meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.70, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates IEL as Buy (1) -

Considering the 33% drop in international student placements revenue, Ord Minnett, upon first read of today's release, regards IDP Education's 1H21 earnings (EBITDA) of $68.3m well ahead of its forecast, as a stunning result.

One of the key sources of strength observed by the broker was in Australian student placements which saw volume declines of -50%, but fee increases of 14% due to the retention of previously negotiated increases. 

From the broker’s perspective, IELTS was the major surprise, with revenue just -26.5% below the previous corresponding period as volumes rebounded swiftly from the height of the pandemic.

Consensus forecasts currently assume a strong bounce-back in FY22 to levels above what was achieved in prior years, and the broker’s Buy rating and target of $21.28 are currently under review.

Target price is $21.28 Current Price is $24.87 Difference: minus $3.59 (current price is over target).
If IEL meets the Ord Minnett target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.06, suggesting downside of -13.5% (ex-dividends)

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 IMD as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on Imdex with an Outperform rating with a target price of $2.10. 

Imdex is a global mining-tech company that develops drilling optimisation products and sensors for real-time rock knowledge and quality data. The products are used by drilling contractors and resource companies to identify and extract what is below the earth’s surface.

S&P Global expects 2021 global exploration budgets to increase double-digit. Such projections underpin the broker's anticipated 9% revenue and 18% operating income compounded annual growth rate over FY20-23.

The company is leveraged to a rebound in global exploration spend, assesses Macquarie, with strong fundamental growth drivers and upcoming new products that will drive outperformance.

Target price is $2.10 Current Price is $1.78 Difference: $0.32
If IMD meets the Macquarie target it will return approximately 18% (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

Citi rates IVC as Neutral (3) -

Upon initial assessment, InvoCare reported a FY20 net loss of -$9.2m and operating earnings (EBITDA) of $109.6m. The broker observes the result was negatively impacted by one-off items totaling -$26.5m pre-tax, pre-announced last week.

Operating Revenue of $476m was 6% above consensus of $449m, but in-line with Citi ($470m).

While no profit guidance was provided, Citi notes management’s caution as the market is still impacted by covid restrictions in the short-term, with January results pointing to continued average recovery in Australia.

Citi notes that with 40-50 projects planned for FY21 to finish the Protect & Grow $200m capex plan, all eyes will be on new management when it unveils its 2021-25 strategic plan at Investor Day in May.

Neutral and target price of $11.50 remain unchanged.

Target price is $11.50 Current Price is $11.24 Difference: $0.26
If IVC meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $11.17, suggesting downside of -1.0% (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

Morgan Stanley rates JIN as Overweight (1) -

Jumbo Interactive's first half was mostly in-line to slightly better than Morgan Stanley's forecast. Both revenues and operating income were better than expected while net profit was -2% below the broker's expectation.

SaaS total transaction value was $40m generating $1.6m in revenues while revenue from managed services grew 26%. The broker expects growth in all divisions, especially SaaS and managed services from new and existing customers.

Morgan Stanley reiterates its Overweight rating with a target price of $14.30. Industry view: In-line.

Target price is $14.30 Current Price is $13.48 Difference: $0.82
If JIN meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.34, suggesting upside of 5.7% (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

Morgans rates JIN as Add (1) -

Jumbo Interactive's first half result was in-line with Morgans expectations with a 25.6% jump in total transaction volume (TTV), driven by the SaaS business accelerating. 

The broker believes the company is well positioned to grow this SaaS TTV over the year ahead and also benefit from a normalisation in jackpot activity.

Lottery retailing TTV growth was flat and inferior to Tabcorp Holdings' ((TAH)) growth. The analyst suspects, however, that a reasonable percentage of growth from the latter came from its existing retail channel as it incentivised newsagents to move clients online.

Add retained. Target is increased to $14.78 from $13.89.

Target price is $14.78 Current Price is $13.48 Difference: $1.3
If JIN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.34, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates JIN as Neutral (3) -

First half net profit was broadly in line with UBS estimates. The main highlight was the software division, which the broker assesses is on a total transaction value run rate of $120m compared with around $20m a year ago.

The value of jackpots was down over -50% and the company held back on marketing during periods of low jackpots, which has benefited the bottom line, the broker observes. Neutral rating retained. Target is reduced to $13.95 from $14.10.

Target price is $13.95 Current Price is $13.48 Difference: $0.47
If JIN meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.34, suggesting upside of 5.7% (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

Ord Minnett rates LAU as Buy (1) -

Lindsay Australia underlying half-year net profit was ahead of Ord Minnett's expectations. Guidance suggests a growth rate of 12% in underlying EBITDA.

The results were supported by the expansion of the rail franchise and improved profit contribution from the rural store network. Ord Minnett considers the -30% discount to the peer group attractive and potential exists for this to narrow. Buy rating and $0.42 target retained.

Target price is $0.42 Current Price is $0.36 Difference: $0.06
If LAU meets the Ord Minnett 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

Credit Suisse rates MND as Neutral (3) -

Monadelphous Group's first-half result shows even the best are not immune to industry pressures, says Credit Suisse, noting the result wasn't necessarily one of the group's best results despite strong commodity prices.

Operating income at $53m was down -4% versus last year while operating income EBITDA margins of 5.6% were down -80bps.

Margins were softer despite a positive revenue mix which, Credit Suisse highlights, serves as a reminder of the ongoing competitive pressures, latent contracting capacity and a tightening labour market.

Neutral retained. Target rises to $12.15 from $10.30.

Target price is $12.15 Current Price is $12.32 Difference: minus $0.17 (current price is over target).
If MND meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.68, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates MND as Outperform (1) -

Monadelphous Group posted a solid first half result, observes Macquarie, with a net profit of $31.6m versus the $26m expected and included a one-off provision reversal of $6.5m.

The broker is pleased with the 6% operating income margin, especially given the impact of the pandemic and high labour costs. With operations normalising post-covid, Macquarie expects margins to improve to 6.2% in the second half and 6.5% in FY22. 

Outperform retained, target falls to $13.85 from $14.

Target price is $13.85 Current Price is $12.32 Difference: $1.53
If MND meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting upside of 7.1% (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 MND as Equal-weight (3) -

Monadelphous Group's first half net profit of $32m beat Morgan Stanley's expected $26m driven by higher revenue and similar operating income margins although operating cash was weaker. The dividend payout was near 72% for the half.

Iron ore presents a pipeline of opportunities, notes the broker, as can be seen in the recent contract wins. Monadelphous also expects new opportunities to emerge in lithium, gold and copper.

The group notes personnel costs are rising and that there is some uncertainty as to how much of this can be sought from the customer, indicating at-risk margins over the next 12 months.

Equal-weight rating with a target price rising to $13 from $11.4. Industry view: In-line.

Target price is $13.00 Current Price is $12.32 Difference: $0.68
If MND meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MND as Hold (3) -

First half results were stronger than Ord Minnett anticipated. Conservative guidance and a reversal of a tax-related provision have led the broker to increase estimates for FY21 by 18%.

Lower margin assumptions mean downgrades of -5% and -4% for FY22 and FY23, respectively. Ord Minnett retains a Hold rating and reduces the target to $12.00 from $12.80.

Target price is $12.00 Current Price is $12.32 Difference: minus $0.32 (current price is over target).
If MND meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.68, suggesting upside of 7.1% (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

UBS rates MND as Neutral (3) -

First half revenue growth was well ahead of guidance and UBS estimates. The beat was driven by construction sales, which increased 34% on the prior half as iron ore mine replacement projects ramped up faster than expected.

UBS notes margin recovery was solid, to 6.0% versus 4.1% in the prior half. No formal margin guidance has been provided and labour cost inflation remains an issue. UBS retains a Neutral rating and raises the target to $12.45 from $12.10.

Target price is $12.45 Current Price is $12.32 Difference: $0.13
If MND meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting upside of 7.1% (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 MNF as Overweight (1) -

MNF Group's gross profit at $50m beat Morgan Stanley's estimate by 1.3% despite flat sales. The group has reinvested hard to sustain growth, points out the broker, with operating income of $19.6m beating the broker's forecast by 6%.

Management stated expectations of a 45/55 skew for wholesale are reasonable. As a result, the broker lifts the operating income forecast to $42.4m implying a 1.4% earnings upgrade and sits towards the upper end of the $40-43m operating guidance.

Overweight rating. The target price is unchanged at $6.30. Industry view: In-Line.

Target price is $6.30 Current Price is $4.80 Difference: $1.5
If MNF meets the Morgan Stanley target it will return approximately 31% (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 MPL as Neutral (3) -

Driven by lower claims, and to a lesser extent investment income being $13m higher than consensus, Medibank Private celebrated the pending retirement of highly regarded CEO Craig Drummond with a 1H21 net profit of $226m, 8% above consensus ($209m).

While Covid provisions were up slightly, management doesn’t expect any material 2H21 revenue impacts.

At first glance, Citi notes that while the solid beat should be positive for the stock price, news of Drummond’s departure in June may offset this to an extent.

Neutral and target price of $2.95 maintained.

Target price is $2.95 Current Price is $2.89 Difference: $0.06
If MPL meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 6.9% (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 MPL as Hold (3) -

In a initial review of Medibank Private's first half results, Ord Minnett notes operating profit was up 16.6% to $255.2m versus the broker's $245.6m forecast. The driver was considered to be upside in both health insurance and Medibank Health.

Showing a -$99m covid-19-related reduction in claims, Health insurance operating profit increased 13.6% to $255m. The analyst points out operating profit of $18.8m versus $13.3m in the pcp showed the benefits of acquisitions/margin expansion.

The first half dividend of 5.8cps represents a payout ratio of 79% and the payout ratio for FY21 is expected to be toward the top end of 75-85% target of underlying NPAT (normalised for investment markets). CEO Craig Drummond will retire by 30 June 2021.

The Hold rating is maintained with a target of $2.85.

Target price is $2.85 Current Price is $2.89 Difference: minus $0.04 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting upside of 6.9% (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 MYD as Add (1) -

MyDeal.com.au's first half result was largely pre-released, with all key line items growing by greater than 200% year-on-year, details Morgans. The company noted that January has seen a strong start to the second half, with gross transaction revenue (GTV) up 190% yoy.

The broker understands the second half will include continued investment in marketing, growth in private label and the roll-out of iOS/Android apps. The latter two are expected to boost GTV/Revenue growth, conversion/repeat order rates and brand awareness.

The Add rating and $1.70 target are unchanged at this stage. 

Target price is $1.70 Current Price is $1.18 Difference: $0.52
If MYD meets the Morgans target it will return approximately 44% (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 NAN as Lighten (4) -

Due largely to a -25% miss in capital revenues, a result of significantly lower orders from GE Healthcare, Nanosonics reported a large 1H21 miss, with group revenue of $43.2m, around -17% lower than Ord Minnett’s expected $52.1m (consensus $52.1m).

Upon initial assessment net profit of $1.5m was significantly below Ord Minnett’s $5.2m forecast (consensus $5m).

While North American revenues were around -19% lower than expectations, due to the reduction in purchases by GE during the half, the broker notes the second quarter showed a sequential improvement on first quarter sales across this market.

No FY21 guidance provided was expected. A key question for management, the broker notes is whether they expect the commercial launch of the company's second product in FY22.

The broker retains Lighten and target price of $5.60.

Target price is $5.60 Current Price is $6.05 Difference: minus $0.45 (current price is over target).
If NAN meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.95, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Ord Minnett rates NEC as Buy (1) -

Due to $55m in cost savings, Nine Entertainment reported 1H21 earnings (EBITDA) of $355.4, up 41.7% versus the prior corresponding period, and in line with Ord Minnett’s estimate of $352.3m.

While free to air (FTA) TV revenues were below the broker’s estimates, significantly better cost savings resulted in a margin beat, with FTA costs down -19% in 1H21.

In a preliminary response to today's results release, Ord Minnett maintains a Buy rating with a target price of $2.75.

Target price is $2.75 Current Price is $2.67 Difference: $0.08
If NEC meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates NSR as Underperform (5) -

National Storage REIT's first half earnings were down -12% versus last year to 3.9c but in line with Macquarie's forecast. The broker deems the result "solid" with metrics hinting at continued recovery in the second half.

Led by continued improvement in the operating environment for self storage, the REIT has upgraded its FY21 earnings guidance to 8.1-8.5c from 7.7-8.3c and versus the broker's 8.2c.

The Underperform rating is maintained. The target price is increased to $1.81 from $1.44.

Target price is $1.81 Current Price is $1.88 Difference: minus $0.07 (current price is over target).
If NSR meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.94, suggesting upside of 2.4% (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 NSR as Equal-weight (3) -

National Storage REIT reported a profit of $39.2m, in line with Morgan Stanley's estimated $38.7m. The REIT has revised its FY21 earnings guidance to 8.1c-8.5c from 7.7c-8.3c. The broker expects 8.2c.

The broker notes Australia occupancy is now at 84.9%, up from 77.8% in June 2020. The REIT also made $258m of acquisitions in the half and completed six development projects during the same period. 

The REIT has flagged a revenue runway of $24-32m, assuming occupancy rises to 87.5%-90%.

Equal-weight rating. Target price is $1.98. Industry view is In-Line.

Target price is $1.98 Current Price is $1.88 Difference: $0.1
If NSR meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 2.4% (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 NSR as Hold (3) -

First half underlying earnings were up 14% on the pcp with the 12% rise in storage revenue reflecting both good growth in occupancy/rate and new acquisitions, assesses Morgans.

99.6% of storage revenue was collected and FY21 EPS guidance range was upgraded to 8.1-8.5c from 7.7-8.3c. The broker now forecasts a FY21 distribution of 8.3c in-line with the payout ratio guidance of 90-100%.

Hold rating and target price increased to $1.90 from $1.89. Morgans expects upside will depend on the timing of acquisitions and/or developments.

Target price is $1.90 Current Price is $1.88 Difference: $0.02
If NSR meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.94, suggesting upside of 2.4% (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 NTD as Hold (3) -

Goodyear and Cooper Tire has entered into a definitive transaction agreement under which Goodyear will acquire Cooper in a transaction valued at around US$2.5bn. National Tyre & Wheel has the exclusive distribution of Cooper/Mickey Thompson tyres in Australia/NZ.

The next option date is in September 2022 with a further 5-year renewal period to 2027. Morgans awaits an announcement from the company in the near term. This is considered to provide some long-term uncertainty as to the company’s distribution license.

This news overshadowed what Morgans assesses was a strong first half result that was in-line with expectations and recent guidance. The rating is lowered to Hold from Add as it's expected the takeover news will weigh on the stock for a period of time.Target of $1.11.

Target price is $1.11 Current Price is $0.85 Difference: $0.26
If NTD meets the Morgans target it will return approximately 31% (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

Citi rates OSH as Neutral (3) -

Oil Search's FY21 result met Citi's forecasts.

The broker assesses the company's prospects against a US$55 a barrel oil price and finds the company may require US$250m-US$400m of equity, assuming management raises debt to cover half of Alaska's capital expenditure.

Given market doubts, Citi describes the story as one of execution, which will substantially affect price targets.

A raising and strong execution would yield a target price of $4.66, up from $4.35. Strong execution and avoidance of a raising would yield a target price of $11 a share, explains the broker.

Poor execution would yield a target price of $4.35 ($4.38 previously). For now the broker is plumping for the conservative option and maintains a Neutral rating.

Target price is $4.35 Current Price is $4.31 Difference: $0.04
If OSH meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.28, suggesting upside of 0.9% (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: -0.1

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

Credit Suisse rates OSH as Underperform (5) -

Oil Search's FY21 first-half result beat consensus by 5% but Credit Suisse is in two minds about the result. The broker questions the source of the dividend, pointing to the recent capital raising.

Credit Suisse welcomes the company's 2021 hedge but is not yet ready to ascribe full value to Papua; points to the risk of value leakage to Santos, a lack of conviction on the Alaska selldown, an unproven management team, and downside oil price scenarios.

On the flipside, an oil price recovery would solve most of Oil Search's problems and the company is considered the strongest oil beta play amongst peers - an option for those seeking pure oil leverage. But factoring all else; the broker prefers Santos ((STO)) for a more confident investment.

Underperform retained. Target price steady at $3.61.

Target price is $3.61 Current Price is $4.31 Difference: minus $0.7 (current price is over target).
If OSH meets the Credit Suisse target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.28, suggesting upside of 0.9% (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: -0.1

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

Macquarie rates OSH as Underperform (5) -

Oil Search's 2020 full-year net profit at $22m was ahead of Macquarie's expectations. The company announced a final dividend which has the broker surprised especially given marginal profitability in 2020. Macquarie takes this to imply rising confidence in the outlook.

Other than the oil price, the key for Oil Search investors in 2021 remains the Alaska oil selldown transaction, adds the broker. 

Both Alaska oil and Papua LNG projects are making progress but Macquarie finds it difficult to be more positive on its US$56/bbl long-term base case oil price assumption.

Underperform. Target price rises to $3.90 from $3.85.

Target price is $3.90 Current Price is $4.31 Difference: minus $0.41 (current price is over target).
If OSH meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.28, suggesting upside of 0.9% (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: -0.1

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

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

2020 results were slightly ahead of expectations. The sell-down of Alaska and Papua LNG remain priorities for 2021. Morgan Stanley notes the hedging program will not limit the company's exposure to future oil price upside.

The broker assesses Oil Search retains most leverage to Brent, with 20% upside at US$55/bbl and 60% upside at US$65/bbl. Equal-weight retained with a target of $4.50. Industry view: Attractive.

Target price is $4.50 Current Price is $4.31 Difference: $0.19
If OSH meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.28, suggesting upside of 0.9% (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: -0.1

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

Morgans rates OSH as Hold (3) -

Morgans assesses Oil Search's second half result as solid and close to estimates. Starting in March, the company will begin a -15% sell down of its Alaskan interests, which it will seek to jointly market with Repsol (also seeking to sell -15%).

The broker cautions the deferral of major maintenance at PNG LNG in 2020 while earnings were falling, will lead to a decline in production.

The Hold rating is unchanged and the target price is increased to $4.20 from $4. In the absence of any significant catalysts, Morgans  feels upside is dependent on a further oil price recovery.

Target price is $4.20 Current Price is $4.31 Difference: minus $0.11 (current price is over target).
If OSH meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.28, suggesting upside of 0.9% (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: -0.1

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

Ord Minnett rates OSH as Buy (1) -

Oil Search's 2020 net profit of $22m fell short of Ord Minnett’s $46m forecast while operating earnings of US$721m were within -1% of the broker's estimate. A final dividend of 0.5c was declared, less than 1c the broker expected.

There were no changes to production and cost guidance for 2021. Ord Minnett notes 2020 marked a low point in earnings for Oil Search led by weak benchmark prices. As a result, management is more cautious and has introduced downside price protection through oil puts.

The broker remains positive on the stock given its leverage to rising oil prices, top-tier assets and potential for corporate appeal.

Buy rating with the target rising to $5 from $4.40.

Target price is $5.00 Current Price is $4.31 Difference: $0.69
If OSH meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.28, suggesting upside of 0.9% (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: -0.1

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

UBS rates OSH as Neutral (3) -

The Oil Search second half operating earnings were ahead of UBS estimates because of lower royalties and higher cost recovery.

Oil Search remains committed to FID on phase 1 of the Pikka oil field development in Alaska in late 2021 and progressing the Papua LNG to FEED in 2022.

While the macro environment for oil is positive, and the business offers the greatest leverage to changes in the oil price across the broker's coverage, a Neutral rating is retained because of the few near-term catalysts. Target is raised to $4.40 from $4.10.

Target price is $4.40 Current Price is $4.31 Difference: $0.09
If OSH meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.28, suggesting upside of 0.9% (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: -0.1

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

Macquarie rates PNV as Neutral (3) -

PolyNovo's FY21 results met pre-announced guidance. Macquarie notes US hospital constraints remain thanks to covid; and the near-term outlook is uncertain.

But there are plenty of catalysts in the pipeline for the calendar year and Polynovo continues to sign up companies in the United States; so Macquarie likes the long-term prognosis and the company's potential to move into alternative markets such as hernia and breast reconstruction.

EPS revisions rise 40% and 10% for FY21 and FY22 (off a low base); and 2% for FY23.

Target price is steady and $2.75. Neutral rating retained.

Target price is $2.75 Current Price is $2.43 Difference: $0.32
If PNV meets the Macquarie target it will return approximately 13% (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

UBS rates PRN as Buy (1) -

Perenti Global results were materially below UBS estimates. Nevertheless, the underground mining segment is the driver of value and grew 13% year-on-year, despite the pandemic.

UBS assesses embedded growth into FY22 from the ramp up of contracts and expansion opportunities. The surface strategic review has led to -$88.1m in restructuring costs. UBS downgrades FY21-23 estimates by -18-20% because of this.

Buy rating retained, as value is still envisaged. Target is reduced to $1.75 from $1.90.

Target price is $1.75 Current Price is $1.25 Difference: $0.5
If PRN meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates PTM as Neutral (3) -

Platinum Asset Management's FY21 first-half result beat the broker by nearly 50% at the headline level, but only 3% underlying.

Citi believes the company is on the path to recovery but says it may take a bit more time with the medium-term outlook still cloudy, and improved net fund outlows will be key.

Target price rises to $4.20 from $3.90. Neutral rating retained.

Target price is $4.20 Current Price is $4.36 Difference: minus $0.16 (current price is over target).
If PTM meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.99, suggesting downside of -14.0% (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 PTM as Underweight (5) -

First half earnings beat Morgan Stanley's estimates substantially amid large investment gains. The broker notes base fee margins fell -2 basis points while investment gains supported the dividend of $0.12.

None of the retail or institutional channels produced inflows during the half year and around 80% of the outflows came from retail.

Underweight rating. Target is $3.20. Industry view is In-Line.

Target price is $3.20 Current Price is $4.36 Difference: minus $1.16 (current price is over target).
If PTM meets the Morgan Stanley target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.99, suggesting downside of -14.0% (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 PTM as Hold (3) -

Net profit in the first half was down -9.1% and broadly in line with Ord Minnett's forecast. The broker notes a shift towards value strategies recently has provided a significant recovery in fund performance.

Numbers now show just 3% of funds under management are underperforming on a one-year basis as of January 2021. Ord Minnett maintains a Hold rating and raises the target to $4.25 from $3.45.

Target price is $4.25 Current Price is $4.36 Difference: minus $0.11 (current price is over target).
If PTM meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.99, suggesting downside of -14.0% (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 RHC as Neutral (3) -

APRA Private Health Insurance Hospital statistics reveal weak overnight volumes in the December quarter but the participation rate continues to track higher.

Credit Suisse expects Ramsay Healthcare should be a beneficiary of a volume tailwind post covid. The broker has a $69 target price and Neutral rating.

Target price is $69.00 Current Price is $63.26 Difference: $5.74
If RHC meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $68.28, suggesting upside of 7.9% (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 RHC as Neutral (3) -

APRA data have revealed benefits paid to private hospitals declined -3.3% in the December quarter.

There was reasonably robust growth in Western Australia but NSW was surprisingly weak, UBS notes, with no evidence of significant reductions in any backlog.

The broker retains a Neutral rating and $69.90 target.

Target price is $69.90 Current Price is $63.26 Difference: $6.64
If RHC meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $68.28, suggesting upside of 7.9% (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 RMS as Outperform (1) -

Ramelius Resources' FY21 first-half result fell -10% short of Macquarie's estimate, although cash was in line. 

The company may reinstate a dividend after the full-year results come in. EPS forecasts rise 2% and 4% in FY22 and FY23.

Given Ramelius's strong track record relative to guidance and the scheduling of several catalyst-worthy studies throughout the year, the broker retains an Outperform rating and $1.90 target.

Target price is $1.90 Current Price is $1.37 Difference: $0.53
If RMS meets the Macquarie 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

Morgans rates RMS as Add (1) -

Ramelius Resources reported record profit (NPAT) and is on track for record annual production in FY21, in excess of annualised guidance of 260-280koz of gold.

Increased production rates and the early approval of Penny West mine development support lower cost production into the future, explains Morgans.

The analyst highlights the key to maintaining or reducing overall production costs for the company is the development of the Penny gold mine and increasing the mine life through exploration. The Add rating is maintained and the target price is decreased to $2.27 from $2.44.

Target price is $2.27 Current Price is $1.37 Difference: $0.9
If RMS meets the Morgans target it will return approximately 66% (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 S32 as Neutral (3) -

At a roundtable organised by the company, management has countered timeline fears, advising a prefeasibility study will be published in the fourth quarter and the SAEF divestment concluded in the second half, reports the broker.

The life extension of the Dendrobium Next Domain project has been rejected by the NSW IPS but the company is examining its options.

Macquarie notes upgrade momentum is good, a spot price scenario generating roughly 40% higher earnings.

Neutral rating and $2.90 share price retained.

Target price is $2.90 Current Price is $2.85 Difference: $0.05
If S32 meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 7.7% (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: 0.7

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

Ord Minnett rates SCG as Hold (3) -

Upon initial read, Scentre Group’s FY20 Funds from Operations was $766m, -42% down (14.8cps) on the previous corresponding period, and below Ord Minnett’s forecast $796m (15.3cps), with lower net operating income and higher debt costs to blame.

Overall, the broker was encouraged by an improved update relative to six months ago, with operating metrics beginning to normalise and rent waivers reducing, with negative leasing spreads again increasing to reflect a rebasing in specialty rents.

In highlighting the covid-impact, Ord Minnett notes that Scentre Group provided rent waivers and rent provisions totaling -$304m or -16% of FY19’s net operating income.

Scentre Group hasn’t provided FY21 Funds from operations guidance but expects to distribute 14c in FY21, double FY20.

Ord Minnett maintains its Hold recommendation and target price of $2.80.

Target price is $2.80 Current Price is $2.87 Difference: minus $0.07 (current price is over target).
If SCG 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 $2.65, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Citi rates SDF as Buy (1) -

First half earnings were strong and FY21 guidance has been upgraded to the top end of the prior 10-15% growth target. This is slightly below Citi's expectations.

The broker notes continued momentum in gross written premium, reflecting strong rate increases and a hardening insurance cycle. Nevertheless, Citi notes not all of the 13% premium growth in the first half flowed through to revenue.

Volumes were stable throughout the first half in the broking business. Citi retains a Buy rating and $4.20 target.

Target price is $4.20 Current Price is $4.07 Difference: $0.13
If SDF meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates SDF as Outperform (1) -

Steadfast Group's 2021 first-half result outpaced the broker, thanks to strong organic growth and strong operating leverage.

Noting that all projects are proceeding apace, Credit Suisse expects the company will continue to over-deliver, despite the maintenance of FY21 guidance (at the top end of the range).

EPS forecasts rise 1% to 3%. Target price rises to $4.40 from $4.20. Outperform rating retained.

Target price is $4.40 Current Price is $4.07 Difference: $0.33
If SDF meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

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 SDF as Outperform (1) -

Steadfast Group's FY21 first-half result outpaced Macquarie by 8.2% thanks to strong organic growth. The broker notes the performance was broad based, and the quality high.

Management guided to the upper end of guidance for the full year.

But with a gearing ratio of 26.4%, an underutilised debt facility of $97m and a strong M&A pipeline in place, which the broker expects to be EPS accretive, Macquarie suspects guidance could be exceeded.

EPS forecasts rise 1.1%, 3.2% and 2.6% in FY22, FY22 and FY23. Outperform rating. Target price rises to $4.40 from $4.30.

Target price is $4.40 Current Price is $4.07 Difference: $0.33
If SDF meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

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 SDF as Buy (1) -

First half operating earnings were ahead of UBS estimates. FY21 guidance has been tightened at the top end, with EBITA of $245-255m. Network gross written premium was 6% ahead of UBS estimates and grew 13.9% in the half.

Equity broking was the surprise, with strong operating leverage likely driven by lower expenses. Buy rating and $4.38 target retained.

Target price is $4.38 Current Price is $4.07 Difference: $0.31
If SDF meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates SEK as Outperform (1) -

Seek's FY21 first-half result romped in streets ahead of Credit Suisse's estimates, unexpected gains in the domestic business offsetting Asian weakness.

Management's FY21 guidance also outpaced.

The broker notes the selling down of equity in Zhaopin to 23.5% came at a substantial discount to the broker's valuation - likely reflecting the sovereign risk associated with operating in China; and that the CEO transition is proceeding smoothly.

Credit Suisse retains its Outperform rating with the target price declining to $30.50 from $31.30.

Target price is $30.50 Current Price is $28.19 Difference: $2.31
If SEK meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.10, suggesting upside of 4.3% (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 SEK as Hold (3) -

Relative to expectations the Seek first half result was seen as very strong by Morgans and led to a significant upgrade of FY21 guidance by management. Greater cost control and a very strong result from Online Education Services (OES) were considered key surprises.

The results were overshadowed by the sale of a stake (down to 23.5% from 61.1%) in Zhaopin for -30% less value than the analyst had calculated. Additionally, the company intends splitting the business, with OES and the investment portfolio separate from the core business. 

Morgans awaits further details on the structural separation and potential use of Zhaopin funds. The Hold rating remains unchanged and the target price is increased to $24.87 from $23.09.

Target price is $24.87 Current Price is $28.19 Difference: minus $3.32 (current price is over target).
If SEK meets the Morgans target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.10, suggesting upside of 4.3% (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 SEK as Hold (3) -

Seek reported first-half revenues of $819.1m, broadly in line with Ord Minnett’s estimated $813.1m. Both operating earnings and margins were a significant beat with the Asia-Pacific and Americas division leading the beat.

Ord Minnett is concerned about the removal of Seek's China business Zhaopin on a lower multiple than previously attributed. The broker also expects the operating income growth profile for the remaining businesses to be lower.

Ord Minnett maintains its Hold recommendation with the target rising to $26 from $23.50.

Target price is $26.00 Current Price is $28.19 Difference: minus $2.19 (current price is over target).
If SEK meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.10, suggesting upside of 4.3% (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 SEK as Upgrade to Buy from Neutral (1) -

UBS upgrades Australasian revenue estimates materially, given the current strength in the business and the dynamic pricing/product levers. A fall in its share of placements and recruiter feedback that threatens to lower volumes are the main risks.

Still, the broker's data suggest Australian volumes are currently up 6% and if this persists there is still upside to FY21 operating earnings guidance of $460m. UBS upgrades to Buy from Neutral and raises the target to $32 from $26.

Target price is $32.00 Current Price is $28.19 Difference: $3.81
If SEK meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $27.10, suggesting upside of 4.3% (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 SKI as Outperform (1) -

Spark Infrastructure's FY21 first-half result narrowly beat the broker.

Management guided to CPI growth; although Macquarie considers this is conservative given greater clarity around transmission grid and  renewables development, and the abatement of regulatory pressure.

Macquarie considers the dividend policy to be disappointing given a recent tax windfall, a favourable CPI outcome for VPN, a slight adustment for SAPN and a better bond outcome.

EPS forecasts rise 4.6%, 6.2%, and 2.8% across FY21, FY22 and FY23. Outperform rating retained. Target price falls to $2.31 from $2.38 with potential upside pending on execution on the growth pipeline.

Target price is $2.31 Current Price is $2.02 Difference: $0.29
If SKI meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.29, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in December.

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 SKI as Equal-weight (3) -

2020 operating earnings (EBITDA) were slightly below Morgan Stanley's estimates. The company provided 2021 guidance of 12.5c per security.

Spark Infrastructure has established options for 1.5GW of new renewable projects and reiterated its intention to fund growth opportunities from operating cash flow, debt and a distribution reinvestment plan.

Equal-weight maintained. Target is $2.18. Industry view is Cautious.

Target price is $2.18 Current Price is $2.02 Difference: $0.16
If SKI meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.29, suggesting upside of 11.9% (ex-dividends)

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 SKI as Hold (3) -

The FY20 performance was in-line with Morgans expectations while FY21-25 DPS guidance was better than expected. The company provided FY21 DPS guidance of 12.5cps, with targeted annual growth at or around CPI through to 2025. 

The broker acknowledges there are attractive 12-month total shareholder returns on offer though is wary of the sharp rise in bond yields. The Hold rating is maintained. The target price is increased to $2.17 from $2.16.

Target price is $2.17 Current Price is $2.02 Difference: $0.15
If SKI meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.29, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates SKI as Neutral (3) -

UBS found the 2020 results positive with guidance signalling higher distributions beyond 2021. Second half operating earnings were ahead of estimates because of a stronger performance in the South Australian Power Network.

Distribution guidance for 2021 is at least 12.5c per security. Neutral rating and $2.20 target retained.

Target price is $2.20 Current Price is $2.02 Difference: $0.18
If SKI meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.29, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in December.

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 SLC as Equal-weight (3) -

First half results were better than Morgan Stanley anticipated although the company is now guiding to the lower end of guidance, for EBITDA of $18-20m. Continuing pandemic-related impacts on hospitality and education are being experienced.

Morgan Stanley retains an Equal-weight rating and $1.10 target, noting the company has signed a multi-year contract with Symbio Networks valued at $25m. Industry view: In-line.

Target price is $1.10 Current Price is $0.95 Difference: $0.15
If SLC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.26, suggesting upside of 37.3% (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 SLC as Add (1) -

Superloop's first half result was in-line with Morgans expectations, as earnings (EBITDA) were up 99% year-on-year (yoy) and are expected to grow again in the second half. Core fibre revenue and gross profit grew circa 30% yoy to $22.2m and $8.1m respectively. 

FY21 management guidance was adjusted to the lower end of $18-20m for earnings, which sees them growing from $8.1m in the first half to $9.5m in the second, calculates the broker.

Overall, the path to growth looks intact to Morgans. The Add rating and target of $1.27 are unchanged.

Target price is $1.27 Current Price is $0.95 Difference: $0.32
If SLC meets the Morgans target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $1.26, suggesting upside of 37.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22: