Australian Broker Call

Citi rates 29M as Buy (1) -

29Metals' June-quarter production report outpaced Citi's forecasts and management has retained 2022 guidance.

But the broker has downgraded its metals deck to account for weaker demand and sharply downgrades earnings forecasts, expecting the next six to nine months will be a hard slog as cash burn emerges in the second half.

Citi now expects no dividend for 2022. 

Buy rating retained. Target price falls to $2.50 from $3.

Target price is $2.50 Current Price is $1.42 Difference: $1.08
If 29M meets the Citi target it will return approximately 76% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 71.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates 29M as Underperform (5) -

Credit Suisse considers the June quarter trading results for 29Metals as better than expected with copper production from Golden Grove ahead of forecasts from mine activity concentrating on near-surface copper rich portions.

The mine change results in lower zinc and precious metal production than the analyst expectations, and reduced cost pressures.

The broker believes the zinc guidance is too high, when adjusting for the mine changes and sees the operating environment as challenging  and potential declining prices.

FY22 earnings forecasts are lowered on weaker June and September quarter revenues. The rating remains at Underperform with an unchanged target price of $1.15.

Target price is $1.15 Current Price is $1.42 Difference: minus $0.27 (current price is over target).
If 29M meets the Credit Suisse target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.35, suggesting upside of 71.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates 29M as Outperform (1) -

29Metals' June quarter production was on balance in line with Macquarie, with copper 5% above forecast and zinc -15% below. Costs were lower than forecast, suggesting the miner can reduce costs on lower commodity prices.

2022 copper and zinc production guidance is unchanged but gold and silver by-product guidance has been lowered.

Target falls to $3.00 from $3.20, Outperform retained.

Target price is $3.00 Current Price is $1.42 Difference: $1.58
If 29M meets the Macquarie target it will return approximately 111% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 71.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates 29M as Equal-weight (3) -

29Metals's 2Q copper production was a 6% beat versus Morgan Stanley's estimate driven by operations at Golden Grove, while silver production was a miss at the Capricorn copper mine. Lower by-product credits led to higher-than-expected costs.

Management made only minor changes to guidance and the broker retains its $2.75 target price.

The Equal-weight rating is unchanged due to higher Capricorn costs and concerns over 2H zinc production from risks around commissioning timelines for the paste fill plant at Golden Grove. Industry View: Attractive.

Target price is $2.75 Current Price is $1.42 Difference: $1.33
If 29M meets the Morgan Stanley target it will return approximately 94% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 71.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates ABP as Buy (1) -

Citi reviews the Australian Real Estate sector and forecasts a -6% to -10% fall in asset values by 2024 in response to rising bond yields but expects a hard landing will be avoided.

Add to that the near-term and medium-term earnings hit from higher rates, Citi favours asset classes with better demand supply dynamics such as industrial, or short-term leases such as Storage.

Income favourably exposed to high inflation such as convenience and certain weighted asset lease expiries are also preferred.

The broker expects Abacus Property could outperform near term thanks to its shorter lease terms for its storage business, which Citi expects will also benefit from strong demand. But it has the highest level of unhedged debt.

Buy rating retained. Target price falls to $3.10 from $4.05.

Target price is $3.10 Current Price is $2.81 Difference: $0.29
If ABP meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates AKE as Neutral (3) -

Allkem realeased FY22 sales revenue and operating profits of $594m, in-line with Credit Suisse estimates.

The broker notes the transition of Mt Cattlin lowers the FY23 spodumene guidance to 1160-170kt which is below expectations and consensus forecasts.

The company offers no guidance for Olaroz; the James Bay project delay with construction now to start in the March quarter of 2023; Sal de Vida expects initial production in 2H23.

Credit Suisse lowers earnings forecasts from increasing costs at Mt Cattlin and project delays.

Target price for Allkem has been reduced to $10.40 from $11.00. Neutral rating.

Target price is $10.40 Current Price is $9.89 Difference: $0.51
If AKE meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 43.5% (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 AKE as Outperform (1) -

Allkem posted a solid June quarter, featuring higher realised prices, in-line production and strong cash generation, Macquarie notes. Maiden FY23 guidance for Mt Cattlin nonetheless suggested higher costs due to lower production.

Production from the Stage 2 expansion at Olaroz and the Naraha lithium hydroxide plant are both scheduled for this half, followed by Sal de Vida and James Bay in 2024. Updates on the progress of Olaroz and Sal de Vida present key near-term catalysts, the broker suggests.

Guidance has Macquarie's target falling to $16.20 from $17.00, Outperform retained.

Target price is $16.20 Current Price is $9.89 Difference: $6.31
If AKE meets the Macquarie target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 43.5% (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

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

While June quarter production and pricing for Allkem were pre flagged to the market, costs were a -21% miss compared to Morgan Stanley's forecast due to higher input costs and inflation in Argentina.

The pricing outlook is softer with carbonate price guidance weaker, though achieved spodumene price was a beat versus the analyst's forecast. 

The broker lowers its FY23 EPS estimate by -27% after management guided to increased costs and lower production. The target falls to $12.55 from $12.90. Equal-weight. Industry View: Attractive.

Target price is $12.55 Current Price is $9.89 Difference: $2.66
If AKE meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 43.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates AKE as Add (1) -

Following record operating cash flow for Allkem in the 4Q, Morgans predicts revenues and earnings will lift in FY23 (while prices remain elevated), as Naraha and Stage 2 Olaroz come online.

Olaroz achieved record revenue in the last quarter as contracted lithium prices continue to rise.

The target prices rises to $16.72 from $16.38 as the analyst lifts forecast production at Mt Cattlin (and allows for higher costs), while also factoring-in a lower 1H FY23 price expectation for Olaroz. The Add rating is unchanged.

Target price is $16.72 Current Price is $9.89 Difference: $6.83
If AKE meets the Morgans target it will return approximately 69% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 43.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates AKE as Buy (1) -

Parts of the quarterly update had already been pre-indicated, so it were lower-than-anticipated costs that caught Ord Minnett's attention in Allkem's market update, albeit costs are still on the rise nevertheless.

Realised pricing was also below-expectation, but prices are forecast to be higher next quarter, says the broker.

Ord Minnett says Allkem shares look cheap, hence the Buy rating is retained while the target price decreases to $14.50 from $15.00, on lowered forecasts.

Allkem remains a favourite in the sector at Ord Minnett.

Target price is $14.50 Current Price is $9.89 Difference: $4.61
If AKE meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 43.5% (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

UBS rates AKE as Buy (1) -

Allkem's June-quarter production report more or less evened out in the wash, as costs rose partly due to inflation in Argentina and production volumes eased, while realised prices outpaced consensus and UBS forecasts.

Cash on hand rose to US$663m at June 30 and the broker notes the company is on track to reach major project milestones.

UBS says the company is preparing to transition in FY23 and conflicting forces are in play.

EPS forecasts rise 6% in FY22 and fall -24% for FY23 and -10% for FY24.

Buy rating retained. Target price eases to $15.20 from $15.55.

Target price is $15.20 Current Price is $9.89 Difference: $5.31
If AKE meets the UBS target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 43.5% (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 ALQ as Outperform (1) -

Macquarie has cut its target for ALS to $13.20 from $14.50 on lower peer averages due to lower commodity prices, but notes the stock trades at a -23% PE discount to peers. The broker believes a downturn is now priced in, but extent and duration of the downturn remain unclear.

Commodity price stabilisation and the timing of expected China stimulus is important in this regard, Macquarie suggests, and Life Sciences is now a bigger part of earnings than in the past. The broker sees ALS as a structural winner in a post-covid world.

Outperform retained.

Target price is $13.20 Current Price is $10.65 Difference: $2.55
If ALQ meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $13.56, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgan Stanley rates ALX as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley lifts its target price for Atlas Arteria to $8.08 from $6.88 to incorporate the growth outlook and potential corporate activity. IFM Global Infrastructure Fund obtained a 15% shareholding in the company at $8.10/share in early June.

The broker also lowers its rating to Equal-weight from Overweight on valuation. Industry view: Cautious. 

APPR 2Q traffic and revenue were lower than expected and the analyst now has less hope for a French traffic recovery for the rest of the year, due to weather, petrol prices and economic uncertainty.

Target price is $8.08 Current Price is $8.20 Difference: minus $0.12 (current price is over target).
If ALX 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 $8.28, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgans rates ALX as Hold (3) -

Second quarter traffic and toll revenue data for Atlas Arteria showed Morgans the recovery is broadly in-line with expectations for both APRR and Dulles Greenway. However, the short term share price direction is considered to be at the behest of takeover activity.

The broker estimates the Australian infrastructure manager IFM will need to pay $8.35/share to succeed in a takeover. Hence, the target rises to this level from $8.10. The Hold rating is unchanged.

Target price is $8.35 Current Price is $8.20 Difference: $0.15
If ALX meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.28, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates ANZ as Outperform (1) -

Credit Suisse adjusts ANZ Bank earnings forecasts for the $3.5bn capital raising (an additional 6.7% of issued capital) which results in an estimate earnings dilution of 4.7%.

The broker decides not to include the earnings  from the Suncorp Group ((SUN)) Bank acquisition due to the uncertainty around regulatory approval and timing. 

ANZ Bank remains the top pick in the banking sector for Credit Suisse as the company should be the first beneficiary of US and NZ rate rises, alongside a better balance sheet and attractive valuation.

An unchanged Outperform rating and the price target is lowered to $29.95 from $30.80.

Target price is $29.95 Current Price is $21.64 Difference: $8.31
If ANZ meets the Credit Suisse target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $27.04, suggesting upside of 23.3% (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 ASX as Sell (5) -

Citi expects ASX's interest income will benefit from rising cash rates as will derivatives volumes.

This should be sufficient to mostly offset a decline in equity raisings, which were particularly buoyant in the June half, three times the previous June half at $165bn, notes the broker.

Otherwise, cash market volumes rose in the June half; futures volumes enjoyed a mild improvement; and the broker wonders whether a leadership change will result in high capital expenditure and costs.

FY22 EPS forecasts rise 1%; and FY23 and FY24 forecasts rise 6%.

Neutral rating retained. Target price rises to $86.70 from $84.70.

Target price is $86.70 Current Price is $86.45 Difference: $0.25
If ASX meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $82.59, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Morgans rates BHP as Add (1) -

Morgans assesses a solid 4Q operational result and unit cost performance by BHP Group, though FY23 guidance was below the consensus expectation. Following recent share price weakness, the broker likes the fundamentals and dividend stream. Add.

There was no change to FY22 unit cost guidance for iron ore and copper. After making one-off adjustments, the analyst raises the target to $48.50 from $48.30.

Target price is $48.50 Current Price is $37.11 Difference: $11.39
If BHP meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $42.36, suggesting upside of 15.6% (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

UBS rates BHP as Neutral (3) -

BHP's June-quarter production report broadly met guidance and UBS's forecasts, save for nickel, which was hit by an outage.

UBS adopts a cautious attitude to FY23 guidance given the pressures in FY22, expecting earnings and free cash flow to deteriorate as costs rise and prices fall.

Neutral rating retained. Target price falls to $35.50 from $38.

Target price is $35.50 Current Price is $37.11 Difference: minus $1.61 (current price is over target).
If BHP 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 $42.36, suggesting upside of 15.6% (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 BPT as Outperform (1) -

Beach Energy announces the June quarter 22 trading report with a -2% miss in production, offset by higher prices, notes Credit Suisse.

On balance, the results beat but the broker highlights production concerns and risks of rising costs at Otway and Waitsia for FY23.

The analyst also notes risks to BassGass backfill with the drilling delayed by 12 months to the summer of 23/24 from rig availability.

The broker envisages higher gas prices and sees potential for long-term east coast prices to rise from around $8-10GJ to $12-16GJ  range and notes Beach Energy offers the best exposure as every $1 adds 8c-15c to the valuation.

Credit Suisse increases its target price for Beach Energy to $2.10 from $1.98 and an Outperform rating is maintained.

Target price is $2.10 Current Price is $1.83 Difference: $0.27
If BPT meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates BPT as Neutral (3) -

Beach Energy's June quarter production was -9% below Macquarie's expectation, primarily on soft gas production impacted by Cooper declines and shutdowns.

Growth plans are nevertheless progressing, with Otway Thylacine and Waitsia on track for 2023. The balance sheet provides options for M&A to add the next growth stages, the broker notes.

However Macquarie feels consensus is too high for FY23 production given a weak Cooper Basin, the Yolla West deferral, and Origin Energy ((ORG)) nomination uncertainty. Target rises to $1.85 from $1.72 on a roll-forward, Neutral retained.

Target price is $1.85 Current Price is $1.83 Difference: $0.02
If BPT meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates BPT as Underweight (5) -

A revenue beat versus Morgan Stanley's estimate, revealed in Beach Energy's 4Q production results, was largely driven by higher oil sales (which exceeded production). Realised gas prices were only up by 4%, which highlighted limited exposure to surging spot prices.

The broker applies a lower -10% discount rate, down from -15%, to its discounted cash flow valuation to arrive at price target of $1.80, up from $1.70. The Underweight rating is unchanged. Industry view is Attractive.

Target price is $1.80 Current Price is $1.83 Difference: minus $0.03 (current price is over target).
If BPT meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.96, suggesting upside of 9.3% (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 BPT as Downgrade to Accumulate from Buy (2) -

For Ord Minnett's early response, see yesterday's Report. Today, upon further reflection, the broker has downgraded Beach Energy to Accumulate from Buy - we can blame the share price performance for that.

Ord Minnett believes the company released a "reasonable quarterly activities report" which hereby gets rewarded with minor upgrades to forecasts.

In response, the price target has climbed to $2 from $1.95.

Target price is $2.00 Current Price is $1.83 Difference: $0.17
If BPT meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 9.3% (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

UBS rates BPT as Buy (1) -

Beach Energy's June-quarter production outpaced consensus by 4% but missed UBS's forecasts by -9%.

Strong in-line prices softened the blow as the energy squeeze continues in south-east Australia, and UBS believes the company is well positioned to extract rising contract prices (only about 1% of the company's production is selling at sky-high spot prices).

UBS expects Beach Energy will raise gas production 30% between FY22 and FY24, yielding an 18% free cash flow, which should rise further thereafter. 

UBS hastens its decline-rate estimates for Western Flank, expecting a -36% fall in gas production. Net, the broker cuts EPS forecasts -2% to -5% from FY22 to FY24. 

Buy rating retained, the broker expecting lower net debt and improving net cash position ($165m from the previous forecast of $52m) balance out the scales. Target price is steady at $2.05.

Target price is $2.05 Current Price is $1.83 Difference: $0.22
If BPT meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 9.3% (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

Citi rates BUB as Buy (1) -

Bubs Australia's June-quarter gross sales soared 278% allowing the company to easily meet FY22 guidance, notes Citi. 

The broker's China infant formula survey shows that while the Chinese market is recovering, it is at the expense of foreign brands, but Citi expects Bubs will prosper in this environment, given its smaller size and strong daigou partnership.

Meanwhile, the broker expects there may be more to come from the US opportunity granted by FDA's temporary approval, noting the FDA is developing a permanent access framework for existing suppliers, which may trigger an increase in production, but it's early days yet.

Buy rating retained. Target price rises to 77c from 75c.

Target price is $0.77 Current Price is $0.57 Difference: $0.2
If BUB meets the Citi target it will return approximately 35% (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 CHC as Downgrade to Neutral from Buy (3) -

Citi reviews the Australian Real Estate sector and forecasts a -6% to -10% fall in asset values by 2024 in response to rising bond yields but expects a hard landing will be avoided.

Add to that the near-term and medium-term earnings hit from higher rates, Citi favours asset classes with better demand supply dynamics such as industrial, or short-term leases such as Storage.

Income favourably exposed to high inflation such as convenience and certain weighted asset lease expiries are also preferred.

Citi expects rising interest rates will hit Charter Hall hard, resulting in higher debt costs across all funds, as well as increase acquisition costs, potentially reducing the number of forecast acquisitions.

While valuation is starting to appeal, the broker spies no upside catalysts.

Rating downgraded to Neutral from Buy. Target price slumps to $12.60 from $24.50.

Target price is $12.60 Current Price is $11.79 Difference: $0.81
If CHC meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.67, suggesting upside of 26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates CLW as Downgrade to Neutral from Buy (3) -

Citi reviews the Australian Real Estate sector and forecasts a -6% to -10% fall in asset values by 2024 in response to rising bond yields but expects a hard landing will be avoided.

Add to that the near-term and medium-term earnings hit from higher rates, Citi favours asset classes with better demand supply dynamics such as industrial, or short-term leases such as Storage.

Income favourably exposed to high inflation such as convenience and certain weighted asset lease expiries are also preferred.

Citi expects Charter Hall Long WALE REIT's low hedging and high gearing will result in a hit to near-term and medium-term earnings.

While 46% of the REIT's income is linked to the CPI, Citi expects the REIT's long weighted average lease expiries on the other 54% will work against it in a rising rate environment.

Rating downgraded to Neutral from Buy and Citi issues a downside catalyst watch, expecting FY23 guidance will miss consensus.

Target price falls to $4.70 from $5.71.

Target price is $4.70 Current Price is $4.49 Difference: $0.21
If CLW meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.77, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Macquarie rates COE as Neutral (3) -

Cooper Energy posted solid June quarter volumes, in line with guidance. A final investment decision on the Annie project, targeted for March 2023, would help Athena utilisation rates and boost Victorian gas supply from winter 2025, Macquarie notes.

The balance sheet is in better shape following the recapitalisation, and Cooper is now enjoying very high spot gas prices. There is
considerable upside potential, Macquarie suggests, if Otway exploration is successful. However, this won’t be tested until 2024-25.

Neutral and 26c target retained.

Target price is $0.26 Current Price is $0.23 Difference: $0.03
If COE meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $0.28, suggesting upside of 22.6% (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 COE as Upgrade to Equal-weight from Underweight (3) -

As Cooper Energy's share price continues to underperform, Morgan Stanley's rating is lifted to Equal-weight from Underweight. It's felt the Orbost Gas Processing Plant transaction last month puts the company in control of its own destiny.

Morgan Stanley feels Sole is showing signs of improvement after a disappointing couple of years. In a 4Q update, the company reported higher annual production, sales volume and revenue for FY22.

The analyst estimates the removal of the Orbost Gas Processing Plant tariff will save the company around $50m per year, partly offset by a -$25m increase in opex related to the plant.

The target price rises to $0.25 from $0.23. Industry view: Attractive.

Target price is $0.25 Current Price is $0.23 Difference: $0.02
If COE meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $0.28, suggesting upside of 22.6% (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 COE as Add (1) -

Cooper Energy's 4Q production and sales were in-line with prior estimates by Morgans. The Add rating remains and the current share price is thought to underplay the long-term value on offer.

Following the Orbost Gas Processing Plant transaction last month, the broker feels the company is in a better position than APA Group ((APA)) to maximise gas production. The target is adjusted to $0.29 from $0.31.

Target price is $0.29 Current Price is $0.23 Difference: $0.06
If COE meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $0.28, suggesting upside of 22.6% (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 COE as Buy (1) -

Softer production and sales numbers were outweighed by higher pricing, and thus Cooper Energy's quarterly update surprised on the upside.

Ord Minnett feels encouraged by improvements at the Orbost gas plant, while also noting the company is in commercial discussions with potential customers for the OP3D expansion.

Buy rating retained, as well as the 34c target.

Target price is $0.34 Current Price is $0.23 Difference: $0.11
If COE meets the Ord Minnett target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $0.28, suggesting upside of 22.6% (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 CTM as Outperform (1) -

Centaurus Metals has provided a drilling update for Jaguar ahead of the resource update expected toward the end of the September quarter, indicating high-grade intercepts.

Fifteen drill rigs are active on site, Macquarie notes, with the focus switching from infill drilling to resource extension drilling.

Jaguar is a top-20 global nickel sulphide deposit that is expected to grow with additional drilling. Jaguar is described as a young deposit with 70% of the resource located 200m from surface.

Outperform and $1.30 target retained.

Target price is $1.30 Current Price is $1.00 Difference: $0.3
If CTM meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates DCN as Neutral (3) -

Dacian Gold's June quarter production was softer than Macquarie anticipated and fell short of guidance, although costs were a strong beat. Management cited labour issues as the culprit.

Updates on the progress of the Genesis Minerals ((GMD)) takeover offer present the key near-term catalyst for Dacian, the broker suggests.

Neutral and 10c target retained.

Target price is $0.10 Current Price is $0.10 Difference: $0
If DCN meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgan Stanley rates DTL as Initiation of coverage with Overweight (1) -

Morgan Stanley initiates coverage on Data#3 with a $6.30 target price. Due to sustainable earnings momentum and resilient industry tailwinds, the company is assigned an Overweight rating. Industry View: In-Line.

The broker describes the company as a leader in IT hardware and software that provides IT services complementary to reselling.

Customers largely comprise government and large corporate customers in Australia, note the analysts. As the company has around 74% share of federal government Microsoft contracts since 2015, it's thought there's room for other share gains (Cisco share is 15%).

A competitive edge is derived from a technology alignment with major vendors (Microsoft, Cisco, HP, Dell), where 80% of customers spend 80% of their budgets, explains Morgan Stanley.

Target price is $6.30 Current Price is $5.60 Difference: $0.7
If DTL meets the Morgan Stanley target it will return approximately 13% (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 GMG as Buy (1) -

Citi reviews the Australian Real Estate sector and forecasts a -6% to -10% fall in asset values by 2024 in response to rising bond yields but expects a hard landing will be avoided.

Add to that the near-term and medium-term earnings hit from higher rates, Citi favours asset classes with better demand supply dynamics such as industrial, or short-term leases such as Storage.

Income favourably exposed to high inflation such as convenience and certain weighted asset lease expiries is also preferred.

Citi notes that Goodman Group enjoys the lowest gearing in the sector which, combined with a 70% hedged book, should cushion it from the worst of interest-rate rises.

The broker also expects industrial income growth will surprise and that Goodman's dependence on development for funds-under-management growth, combined with low vacancies, should ensure development continues.

Buy rating retained. Target price falls to $22 from $29.50.

Target price is $22.00 Current Price is $19.17 Difference: $2.83
If GMG meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $22.11, suggesting upside of 15.4% (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

Citi rates ILU as Buy (1) -

Iluka Resources' June-quarter production met Citi's estimates.

Citi raises near-term zircon and TiO2 feedstock prices to account for unexpected market tightening after a rise in demand dovetailed with covid-induced production problems in China.

US demand also remains strong due to supply chain constraints on paints, coating and plastics, notes the broker. 2022 earnings (EBITDA) forecasts jump 38%.

Buy rating retained. Target price rises to $11.25 from $10.50.

Target price is $11.25 Current Price is $9.24 Difference: $2.01
If ILU meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $11.67, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates ILU as Outperform (1) -

Iluka Resources had a "solid" June quarter according to analysts at Credit Suisse, with production from both zircon and synthetic rutile coming in above consensus forecasts.

Inflationary pressures led to higher cash costs offset, while the sell off in inventories for zircon, rutile and synthetic rutile boost sales to 20% above consensus, notes the broker.

FY22 earnings forecast upgrades of 22% from Credit Suisse reflect higher June quarter sales and an increase in zircon prices for the Sept quarter.

The broker sees the -28% fall in the shares from the April high as discounting the macro concerns, with the shares seen offering value at current levels.

The price target is lowered to $10.70 from $13.20 and an Outperform rating is retained.

Target price is $10.70 Current Price is $9.24 Difference: $1.46
If ILU meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $11.67, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates ILU as Outperform (1) -

Iluka Resources' June quarter sales and revenue were materially above Macquarie's expectations, with an increase in zircon prices more than offsetting a cost guidance increase.

Iluka has numerous catalysts on offer including Eneabba phase 3, the Sierra Rutile demerger and study updates on Balranald and Wimmera, the broker notes, and is set to benefit from rising zircon, rutile, and rare earth prices in the short and medium term.

Target rises to $14.50 from $14.00, Outperform retained.

Target price is $14.50 Current Price is $9.24 Difference: $5.26
If ILU meets the Macquarie target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $11.67, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in December.

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

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

June quarter results for Iluka Resources revealed production in-line with Morgan Stanley's forecast, while sales and revenue realisation were beats. Higher cost guidance was in-line with the broker's expectation.

Management expects a 2H price rise for rutile, and zircon sand prices will increase to $US140/t from July 1 versus the analyst's US$100/t estimate.

The Equal-weight rating and $11.40 target price are unchanged. Industry View: Attractive.

Target price is $11.40 Current Price is $9.24 Difference: $2.16
If ILU meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $11.67, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in December.

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 ILU as Hold (3) -

It appears Iluka Resources delivered a "beat" with its June-quarter production report, as a higher realised zircon price compensated for a lower price for rutile.

Ord Minnett, however, retains its focus on macro-economic headwinds plus the lack of stock-specific catalysts. Hence, no change to the Hold rating.

Target price is $10.50, equally unchanged. Costs are rising.

Target price is $10.50 Current Price is $9.24 Difference: $1.26
If ILU meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.67, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates MP1 as Hold (3) -

Morgans points out tight cost control in the 4Q by Megaport resulted in positive operating cash flow and earnings (EBITDA). The quarter was a record for annual recurring revenue growth (up 13% quarter on quarter) and the company is thought well funded with $82m cash. 

To reflect a changing risk appetite by the market, the broker increases the weighted average cost of capital assumption and the target falls to $8.72 from $10.65, despite largely unchanged forecasts.

More quarters of progressively positive sales momentum are required to build a base before the analyst changes the Hold rating.

Target price is $8.72 Current Price is $7.96 Difference: $0.76
If MP1 meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $12.11, suggesting upside of 47.0% (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 MP1 as Hold (3) -

Ord Minnett found Megaport's June-quarter market update "robust" with a positive surprise stemming from monthly recurring revenues. The company's core business is performing well, suggests the broker.

Ord Minnett also thinks it could be a while yet before Megaport can report strong inroads in the indirect channel. Management at the company has pared back expectations in this regard.

Ord Minnett remains of the opinion that market consensus expectations are too high as far as revenue growth in FY24 and FY25 are concerned.

Hold rating retained while the target price shifts to $7.55 from $5.50. On current forecasts, FY24 will be the first year of profitability.

Target price is $7.55 Current Price is $7.96 Difference: minus $0.41 (current price is over target).
If MP1 meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.11, suggesting upside of 47.0% (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

UBS rates MP1 as Buy (1) -

Megaport's June-quarter trading update broadly met UBS's forecasts but software defined networking growth slowed and operational leverage has been pushed out.

UBS is positive about the company's medium to long-term prospects but is adopting a conservative stance in the near term given the slowing in top line growth, rising costs and need for reinvestment.

EPS forecasts fall -109% to -11% between FY22 and FY26.

Buy rating retained. Target prices falls to $16 from $19.70.

Target price is $16.00 Current Price is $7.96 Difference: $8.04
If MP1 meets the UBS target it will return approximately 101% (excluding dividends, fees and charges).

Current consensus price target is $12.11, suggesting upside of 47.0% (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

Morgans rates MSV as Speculative Buy (1) -

In a move described as "game changing" by Morgans, Mitchell Services will pay out 75% of profit in dividends from 1H of FY23 and commence an on-market buyback of up to 10% of issued capital. It's felt a lack of capital management was restraining the share price.

The broker estimates an 8-9% dividend yield is sustainable, and further dividend upside may arise from further deleveraging by the end of FY23. The target eases to $0.60 from $0.71.

Management noted very strong operating conditions due to solid Australian dollar commodity prices, and a highly constrained drilling
market.

Target price is $0.60 Current Price is $0.39 Difference: $0.21
If MSV meets the Morgans target it will return approximately 54% (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 NHF as Neutral (3) -

nib Holdings has extended premium deferrals in the June half, in line with Medibank, and Citi expects this could deliver an earnings surprise.

But the broker expects downturns in investment markets will result in large mark-to-market losses in FY22, before a higher yield comes to bear in FY23 and FY24.

While appreciating the company's defensive appeal, Citi considers the company to be expensive.

EPS forecasts fall -27% in FY22; and rise 16% in FY23 and 13% in FY24.

Sell rating retained. Target price eases to $6.95 from $7.

Target price is $6.95 Current Price is $7.28 Difference: minus $0.33 (current price is over target).
If NHF meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.95, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Citi rates NST as Buy (1) -

Northern Star Resources's June-quarter production report pleased Citi, the broker noting familiar strength in gold. Cost were higher.

Management's guidance fell shy of Citi's forecasts, after announcing the Jubilee mill will be placed on care and maintenance.

The broker adjusts estimates to account for weakness in the AUD and higher USD gold forecasts. Citi's new gold deck suggest nearly $150m will be added to revenue by FY25.

Buy rating retained. Target price falls to $10.80 from $11.60.

Target price is $10.80 Current Price is $6.90 Difference: $3.9
If NST meets the Citi target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $10.27, suggesting upside of 47.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates NST as Outperform (1) -

Credit Suisse's take on Northern Star Resources' June quarter production results show a 3% beat on the broker forecasts with Jundee and Pogo doing well.

The analyst highlights the FY23 guidance of 1.56-1.68Moz is -10% below the consensus (1.7Moz) and the 1.71Moz broker forecast but the FY26 target of 2Moz remains in place.

Northern Star Resources' capex came in higher than expected at -$650m versus -$425 a year ago from higher fuel costs and waste stripping at KCGM.

The broker lowers earnings forecasts by -10% for FY23 due to lower production and higher costs, but Northern Star Resources remains one of Credit Suisse's preferred gold stocks.

The price target falls to $9.50 from $10.00 and the Outperform rating is maintained.

Target price is $9.50 Current Price is $6.90 Difference: $2.6
If NST meets the Credit Suisse target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $10.27, suggesting upside of 47.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates NST as Outperform (1) -

Northern Star Resources recorded a solid end to FY22, comments Macquare, with June quarter sales in-line with Macquarie's estimate while costs were 6% better.

FY23 guidance nonetheless disappointed, with both production and costs weaker than anticipated and the company withdrawing FY24 cost guidance.

The broker "notionally" softens its longer term outlook for the Australian operation, with the South Kal mill to focus on more profitable ounces.

Target falls to $10 from $11, Outperform retained.

Target price is $10.00 Current Price is $6.90 Difference: $3.1
If NST meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $10.27, suggesting upside of 47.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates NST as Overweight (1) -

Northern Star Resources's 4Q production was in-line with Morgan Stanley's forecast, while FY23 guidance for production and all-in sustaining costs (AISC) were misses of -7% and -11%, respectively.

The broker highlights an 18% gold production beat at the Pogo operations in Alaska, driven by rising throughput.

The Overweight rating and $8.50 target price are maintained. Industry View: Attractive.

Target price is $8.50 Current Price is $6.90 Difference: $1.6
If NST meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $10.27, suggesting upside of 47.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates NST as Buy (1) -

Ord Minnett thinks Northern Star Resources' quarterly report was, this time around, a "solid" one. Pogo and Jundee compensated for weaker output across the other assets, the broker observes.

As the company seems to have a handle on keeping costs reined-in, Ord Minnett believes this compensates for the lower production forecast.

Moreover, now there's a FY23 guidance in the market, Ord Minnett believes here is an opportunity to purchase shares at a large discount to intrinsic valuation.

Target price $11.10. Buy.

Target price is $11.10 Current Price is $6.90 Difference: $4.2
If NST meets the Ord Minnett target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $10.27, suggesting upside of 47.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates PAN as Outperform (1) -

Panoramic Resources has released FY23 production and cost guidance of 6.85kt of nickel at a cash cost of $7.80/lb, versus Macquarie's estimates of 7.7kt at A$7.50/lb.

Management has guided to a gradual operational ramp-up of Savannah throughout FY23, with nameplate production expected in FY24.

The slower ramp-up takes the target down to 25c from 30, Outperform retained.

Target price is $0.25 Current Price is $0.19 Difference: $0.06
If PAN meets the Macquarie target it will return approximately 32% (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

UBS rates QAN as Buy (1) -

UBS spies more tailwind than headwind for Qantas Airways, believing the company's share price is trading on a cyclically low EPS scenario, or low post-covid scenario.

The broker notes that being a pro-cyclical, high beta stock, Qantas should underperform during a domestic recession.

The broker puts the downside risk at -17% but estimates the upside risk at 45% off its base-case scenario; or 85% off a stronger EPS scenario.

UBS also notes that in a rejigged business model with lower fixed costs, and in a decarbonising world, Qantas is less likely to return to old strategy of discounting flights for volume during downturns, maximising recession profitability.

Buy rating and $6.55 target price retained.

Target price is $6.55 Current Price is $4.61 Difference: $1.94
If QAN meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $6.08, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates RDY as Outperform (1) -

ReadyTech Holdings continues to deliver against its organic revenue growth targets, Macquarie notes, and its valuation remains attractive given the strong growth outlook and balance sheet. The broker has updated forecasts to include the IT Vision acquisition.

However, a softer macro outlook creates risk of higher churn in FY23-24, mainly in the Workforce Solutions business, which is reflected in the broker's revised forecasts.

Target falls to $4.05 from $4.10, Outperform retained.

Target price is $4.05 Current Price is $3.09 Difference: $0.96
If RDY meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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