Australian Broker Call

Ord Minnett rates AMP as Hold (3) -

In a review of AMP, Ord Minnett concludes there is some value in the company though not enough to change its Hold rating. The 
target price falls to $1.10 from $1.20 on a sum-of-the-parts valuation.

The analyst points out the extent of changes (two separate companies by June) and revised segment disclosures makes it
difficult to be certain about forecasts. However, it's felt current management offers the best chance of a turnaround.

Target price is $1.10 Current Price is $0.96 Difference: $0.14
If AMP meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.03, suggesting upside of 7.3% (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 ANZ as Neutral (3) -

On initial assessment, and while making some early assumptions and calculations, it appears today's quarterly market update from ANZ Bank missed Citi's forecast by quite the margin (circa -8%) but market consensus only by a smidgen (circa -1%), on Citi's quick assessment.

There has been a modest write-back of prior provisions for bad and doubtful debts, hence Citi analysts suggest the real miss would be more in the order of -10-13%.

The decline in net interest margin (NIM) was equally larger-than-forecast. The analysts anticipate earnings forecasts to decline post today's release.

Target $30.25. Neutral.

Target price is $30.25 Current Price is $27.09 Difference: $3.16
If ANZ meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $30.39, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates ANZ as Accumulate (2) -

Ord Minnett, upon first glance over today's quarterly update, has concluded ANZ Bank's performance missed the mark on just about every single financial metric of importance.

Credit quality is described as "clean", similar to Westpac recently.

As far as this broker is concerned, today's update is consistent with banking being a highly competitive industry in Australia. The analyst suggests rate hikes are needed to drive at least margin stabilisation.

Accumulate and $31.50 target retained.

Target price is $31.50 Current Price is $27.09 Difference: $4.41
If ANZ meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $30.39, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates ANZ as Buy (1) -

Upon initial glance, UBS found today's quarterly update by ANZ Bank weaker-than-expected on the net interest margin, the operational income and cost control, while credit quality proved a positive surprise.

The broker suggests market expectations cannot be met after these numbers but also that the revenue picture looks softer too.

Price target $30. Buy. UBS's estimates are below market consensus.

Target price is $30.00 Current Price is $27.09 Difference: $2.91
If ANZ meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $30.39, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates AX1 as Neutral (3) -

Citi expects supply chain constraints to continue to impact on Accent Group's sales in the second half, but its Sketchers brand, which the broker estimates to contribute 25% of group sales, is optimistic that constraints will recede in the second half of the calendar year. 

While Sketchers reported some supply chain issue relief in December and January, Citi expects impacts could last into FY23. Despite this, the brand appears to remain strong, with fourth quarter sales up 7% on consensus despite a 130% increase of in-transit inventory. 

The Neutral rating and target price of $2.24 are retained. 

Target price is $2.24 Current Price is $2.10 Difference: $0.14
If AX1 meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.59, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates BHP as No Rating (-1) -

Ord Minnett has raised its 2022 iron ore price forecast to US$114/t from US$92/t due to more positive steel production estimates for China and stronger first-quarter prices. A reversion to US$100/t is expected by the 4Q of 2022 due to China property sector weakness.

The analyst expects 1H22 underlying earnings (excluding petroleum) of US$9.26bn versus the consensus estimate of US$8.96bn. An  interim dividend of $1.48cps is expected versus consensus for $1.24cps.

The broker is currently research restricted on BHP Group. No target price or rating are proffered.

Current Price is $46.81. Target price not assessed.

Current consensus price target is $45.32, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Credit Suisse rates BRG as Neutral (3) -

Continuing strong demand for household goods, and recent positive sales results from competitors, are supportive of a solid first half sales result from Breville Group according to Credit Suisse.

The broker notes supply constraints, and associated elevated costs, continue to present risk and Credit Suisse updates full year earnings to account for expected margin compression. 

Looking ahead, the company plans to mitigate supply chain issues through inventory build in the second half, ahead of its peak sales period in FY23. The company is also set to expand into Italy and Mexico in the coming half. 

The Neutral rating is retained and the target price decreases to $29.86 from $30.98.

Target price is $29.86 Current Price is $28.86 Difference: $1
If BRG meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $33.41, suggesting upside of 15.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates BXB as Outperform (1) -

Brambles is better insulated from US lumber pricing increases, which have seen prices double in the last two months, than its more exposed whitewood competitors. Credit Suisse expects Brambles will pass cost increases on to customers to offset short-term impact. 

Further, Brambles is likely to benefit from increased demand for its product as competitors weather pricing impacts. Credit Suisse noted that an -8% decline in Brambles' share price since December offers an attractive entry point for investors. 

The Outperform rating and target price of $13.25 are retained.

Target price is $13.25 Current Price is $9.55 Difference: $3.7
If BXB meets the Credit Suisse target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $12.15, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Credit Suisse rates CBA as Underperform (5) -

Ahead of Commonwealth Bank's first half result release this week,Credit Suisse highlights it finds the market consensus suggestions of a one basis point net interest margins increase in the second quarter to be highly optimistic but looks to the result release for detail.

The broker expects higher costs given increased investment spend and staffing costs, noting its earnings estimate remains -6% below consensus. Also of interest to outlook confidence will be commentary around earnings sensitivity to potential interest rate changes.

The Underperform rating and target price of $92.50 are retained. 

Target price is $92.50 Current Price is $94.10 Difference: minus $1.6 (current price is over target).
If CBA meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.21, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.7

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

Macquarie rates CPU as Outperform (1) -

A 2Q22 US Mortgage Servicing market report has revealed Computershare's unpaid principal balance (UPB) experienced growth of 3.2% versus 2.1% in the prior period. Macquarie finds the return of growth (after five quarters of decline) is encouraging.

The broker makes no changes to its forecasts and leaves its Outperform rating and $22 target price unchanged.

Target price is $22.00 Current Price is $20.53 Difference: $1.47
If CPU meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $20.44, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Macquarie rates CSL as Outperform (1) -

Macquarie tempers near-term plasma collection forecasts after noting foot traffic has moderated for more than 100 of CSL's US plasma collection centres.

Nonetheless, the broker retains its Outperform rating. There's considered to be potential for yield improvement (as part of the Terumo Blood and Cell Technologies collaboration), which presents upside risk for the CSL Behring gross profit/margin.

The target price falls to $325 from $338.

Target price is $325.00 Current Price is $258.79 Difference: $66.21
If CSL meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $318.94, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

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

UBS has again downgraded earnings for Domino Pizza Enterprises, cutting the target price -20% to $120 from $150.

But it upgrades to Buy from Neutral to reflect the strident retreat in the share price from nearly $165 in September.

The share price slumped after AGM commentary guided to weaker-than-expected Japanese earnings (courtesy covid), and rising inflation.

UBS maintains Domino's growth prospects remain attractive despite headwinds, citing developed markets; same-store-sales growth; margin expansion; and new store growth. It also believes Domino's experience in home delivery positions it well for structural ESG trends and believes the company is better positioned than many to manage rising inflation challenges.

FY22 EPS forecasts fall -8% and FY23 forecasts fall -11%.

Target price is $120.00 Current Price is $104.06 Difference: $15.94
If DMP meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $121.88, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates FMG as Outperform (1) -

In anticipation of Fortescue Metals Group's 1H result on 16 February, Macquarie forecasts an interim dividend of $0.91, revenue of US$8.3bn and underlying earnings (EBITDA) of US$4.7bn.

The broker feels the results are largely factored in as the recent 2Q update included both volumes and price realisation. The Outperform rating and $21 target price are maintained.

Target price is $21.00 Current Price is $21.34 Difference: minus $0.34 (current price is over target).
If FMG 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 $17.64, suggesting downside of -18.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

Ord Minnett rates FMG as Hold (3) -

Ord Minnett has raised its 2022 iron ore price forecast to US$114/t from US$92/t due to more positive steel production estimates for China and stronger first-quarter prices. A reversion to US$100/t is expected by the 4Q of 2022 due to China property sector weakness.

The analyst raises the target price to $21 from $20 for Fortescue Metals Group and maintains the Hold rating.

For results due on 16 February, the broker forecasts 1H profit of US$2.77bn versus the consensus estimate of US$2.70bn.

Target price is $21.00 Current Price is $21.34 Difference: minus $0.34 (current price is over target).
If FMG 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 $17.64, suggesting downside of -18.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: -0.4

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

Credit Suisse rates JHG as Neutral (3) -

Although Janus Henderson Group delivered a 2% year-on-year earnings per share beat in the fourth quarter, Credit Suisse warns shareholders shouldn't expect a repeat given the company was cycling off a low comparable ratio that should normalise moving forward. 

Looking ahead, Credit Suisse is expecting a soft year for the company. Janus Henderson has guided to above-consensus expense growth in the low teens and a significant deterioration of Fulcrum fees, as well as an already US$2.2bn outflow from the Balanced Fund. 

The Neutral is retained and the target price decreases to $56.00 from $62.00.

Target price is $56.00 Current Price is $51.98 Difference: $4.02
If JHG meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $56.33, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

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

Macquarie downgrades its rating for Janus Henderson to Neutral from Outperform after a recent outperformance relative to peers and with the prospect of a weaker equity performance accelerating outflows.

This comes as the December quarter operating result beat the broker's forecast though non comp expense guidance was a material miss versus the flat growth forecast. The target price falls to $52 from $64.

Target price is $52.00 Current Price is $51.98 Difference: $0.02
If JHG meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $56.33, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Ord Minnett rates JHX as Accumulate (2) -

Ord Minnett, in an initial response to today's Q3 release, sees James Hardie's performance as in-line with expectations, though Europe delivered a disappointment on higher energy costs.

But then company management has once again upgraded guidance for FY22 and it seems Ord Minnett's forecast for the year, currently positioned near the lower end of guidance, might have to be lifted.

The broker is anticipating market consensus to be upgraded by some 10% for FY22.

Target price is $54.00 Current Price is $47.64 Difference: $6.36
If JHX meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $56.95, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates LLC as Upgrade to Accumulate from Hold (2) -

While Ord Minnett acknowledges a poor short-term outlook for Lendlease Group (and lowers its target price to $12.50 from $13, there's considered to be potential for significant medium-term upside. Thus, the rating rises to Accumulate from Hold.

The potential upside derives from a $114bn development pipeline and $40bn of funds under management (FUM), explains the analyst. The stock is expected to rerate as a more predictable earnings stream (in two or three years) is being delivered.

The broker feels the upcoming 1H result will be the low point for the company.

Target price is $12.50 Current Price is $10.16 Difference: $2.34
If LLC meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $12.75, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates MIN as Sell (5) -

Ord Minnett has raised its 2022 iron ore price forecast to US$114/t from US$92/t due to more positive steel production estimates for China and stronger first-quarter prices. A reversion to US$100/t is expected by the 4Q of 2022 due to China property sector weakness.

The analyst raises the target price for Mineral Resources to $46 from $45 and maintains the Sell rating.

For results due on 9 February, the broker forecasts 1H22 operating earnings (EBITDA) of $268m and a net profit of $53m, with an 8cps dividend.

Target price is $46.00 Current Price is $58.10 Difference: minus $12.1 (current price is over target).
If MIN meets the Ord Minnett target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $57.54, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Citi rates NCK as Buy (1) -

Having delivered a 22% first half profit beat to Citi's forecasts, Nick Scali's strong order book leaves it well placed for further solid performance in the second half. The broker updates earning per share 44% for FY22. 

Headwinds early in the second half, including a -6% sales decline in January given a covid-driven store traffic decrease and the impact of shipping costs on margins, present some risk. The effectiveness of a 5% price increase to offset costs will be considered shortly. 

The Buy rating is retained and the target price decreases to $17.60 from $17.70.

Target price is $17.60 Current Price is $14.86 Difference: $2.74
If NCK meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates NEA as Buy (1) -

Nearmap is expected to launch a revamped version of its MapBrowser product in coming weeks, but Citi does not expect the update to provide any material impact on revenue growth.

A recent product demo demonstrated that MapBrowser tools at the centre of the company's legal dispute with competitor EagleView are largely used only by smaller clients, which could support smaller impact from the outcome of the case and allow for continued growth. 

The High Risk Buy rating and target price of $2.10 are retained.

Target price is $2.10 Current Price is $1.31 Difference: $0.79
If NEA meets the Citi target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $2.50, suggesting upside of 79.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates NWS as Outperform (1) -

A strong second quarter result from News Corporation was buffered by News Media's 68% year-on-year earnings growth. Credit Suisse notes News Media's growth reflects benefit in the Facebook and Google licensing deals. 

Confidence in the licensing deals see Credit Suisse issue a 29% upgrade to its full year earning forecast. Digital Real Estate expectations in the second quarter also decline to 13% year-on-year growth from 18%, given a slowing US housing market and tough comps. 

The Outperform rating and target price of $42.00 are retained. 

Target price is $42.00 Current Price is $33.38 Difference: $8.62
If NWS meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $39.88, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgan Stanley rates NWS as Overweight (1) -

At first glance, News Corp's December-half earnings outpaced consensus by 5% , thanks to a 7% jump in Dow Jones and a 54% increase in News Media, with Google and Facebook licence fees proving the icing on the cake, notes Morgan Stanley.

Real Estate met the broker and Foxtel fell -5% shy of forecasts.

As usual, no guidance was provided but management expects growth to continue in the second half.

Overweight rating and $33 target price retained.

Target price is $33.00 Current Price is $33.38 Difference: minus $0.38 (current price is over target).
If NWS meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $39.88, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Citi rates REA as Buy (1) -

While Citi expects REA Group to benefit from continued elevated listing volumes in the second half, the broker looks to other avenues to support growth from FY23 as an environment of rising rates and declining house prices may impact. 

Despite concerns, Citi still expects residential business to deliver 8% revenue growth in FY23 and notes that REA Group has managed to increase depth penetration during house price declines in FY12 and FY19. 

The Buy rating is retained and the target price decreases to $166.00 from $172.65.

Target price is $166.00 Current Price is $143.45 Difference: $22.55
If REA meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $162.84, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates REA as Neutral (3) -

REA Group's first half results were largely in line with Credit Suisse's expectations. Higher domestic costs did drive an earnings miss, and the company increased full year operating expenditure for higher revenue related costs, but the broker expects wage inflation may also impact. 

Given positive management commentary, the broker expects strong third quarter listing volume but expects fourth quarter volumes will be impacted by the election and touch comps. 

The Neutral rating is retained and the target price decreases to $157.10 from $166.50.

Target price is $157.10 Current Price is $143.45 Difference: $13.65
If REA meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $162.84, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates REA as Neutral (3) -

The 1H result for REA Group was better than Macquarie expected and the analyst is now slightly more positive on listings growth.

While Macquarie sees valuation support emerging after a share price pullback, the Neutral rating is maintained on downside risk to the consensus forecast in the medium term. The broker also points to a moderating residential market.

The target price eases to $158 from $162.

Target price is $158.00 Current Price is $143.45 Difference: $14.55
If REA meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $162.84, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates REA as Overweight (1) -

At first glance, REA Group's December-half earnings (EBITDA) outpaced Morgan Stanley's estimates by 12%.

The broker believes the company continues to deliver good growth on a respectable risk-return basis, posting a three-year EBITDA compound annual growth rate of 17%.

Management expected the federal election could weigh on second-half listing growth but Morgan Stanley notes that growth does not need to be high to meet full-year consensus forecasts.

Overweight rating retained. Target price is $182.50.

Target price is $182.50 Current Price is $143.45 Difference: $39.05
If REA meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $162.84, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates REA as Hold (3) -

REA Group's result was slightly ahead of Morgans' forecast across most metrics. But after a strong first half, volatility looms in the second half, the broker warns.

Listing remains buoyant but REA will cycle strong listings a year ago. Then we have a federal election, which typically subdues real estate activity, and the risk of regulatory intervention the curb rising house prices.

Target falls to $156.25 from $165.70, Hold retained.

Target price is $156.25 Current Price is $143.45 Difference: $12.8
If REA meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $162.84, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates REA as Buy (1) -

REA Group reported a strong 1H result, according to Ord Minnett, with beats delivered against the broker's forecasts for underlying net profit and revenue. The interim dividend of 75cps was lower than the 81.5cps expected.

The analyst feels expectations for the group remain lower than for Domain Holdings ((DHG)). With the slight possibility of listings growth in FY22, REA Group is estimated to be in a better position to surprise.

The Buy rating and $165 target price are unchanged.

Target price is $165.00 Current Price is $143.45 Difference: $21.55
If REA meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $162.84, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates REA as Neutral (3) -

REA Group's December-half result met UBS's estimates and outpaced consensus, thanks to an exceptional 37% rise in revenue - up 25% prior to acquisitions.

Management increased cost guidance to reflect an increase in revenue-related costs to low double digits from high single digits and was cautious as to the sustainability of growth into the second half given the looming federal election.

UBS cuts FY22, FY23 EPS estimates -1% and -3% to reflect the rise in costs.

Neutral rating and $155 target price retained.

Target price is $155.00 Current Price is $143.45 Difference: $11.55
If REA meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $162.84, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates RIO as Hold (3) -

Ord Minnett has raised its 2022 iron ore price forecast to US$114/t from US$92/t due to more positive steel production estimates for China and stronger first-quarter prices. A reversion to US$100/t is expected by the 4Q of 2022 due to China property sector weakness.

The analyst raises the target price for Rio Tinto to $105 from $102 and maintains the Hold rating.

For results due on 23 February, the broker forecasts 2021 underlying earnings of US$21.82bn (consensus US$21.60bn), with a $4.48cps 2H dividend.

Target price is $105.00 Current Price is $114.61 Difference: minus $9.61 (current price is over target).
If RIO 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 $108.71, suggesting downside of -5.2% (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: 0.4

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

Macquarie rates S32 as Outperform (1) -

Macquarie expects a strong 1H result for South32 due to tailwinds from commodity prices and anticipates further capital management programs, given the strong balance sheet. The result is due on February 23.

The analyst is forecasting revenue of US$4,499m and underlying earnings (EBITDA) of US$1,740m.

The Outperform rating and $4.80 target price are maintained.

Target price is $4.80 Current Price is $4.11 Difference: $0.69
If S32 meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.90, suggesting upside of 17.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates WBC as Neutral (3) -

Westpac Bank's 1Q update was marginally ahead of expectations, according to Macquarie. However, it's thought expectations in FY23 and beyond remain elevated and the bank is not as cheap as implied by consensus expectations.

The broker lowers its FY23 and FY24 EPS forecasts and reduces its target price to $22.50 from $23. The Neutral rating is retained as the current valuation is considered undemanding.

Target price is $22.50 Current Price is $21.52 Difference: $0.98
If WBC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $24.64, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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