Australian Broker Call

Ord Minnett rates AGL as Hold (3) -

After an initial look at today's FY21 results, Ord Minnett believes the focus is likely to be on guidance, with management expecting earnings (EBITDA) to fall a further -16-28% in FY22.

Both the electricity portfolio (down -12%) and the gas portfolio (falling by -20%) saw material declines in earnings (EBIT) contributions in FY21.

Cash generation was better than expected, with net debt lower than expected, explains the broker. Management noted improvements in wholesale prices of key commodities, with the company “well positioned to benefit from any sustained recovery in wholesale electricity prices."

The company expects to deliver a -$150m reduction in operating costs in FY22, versus FY20, and a sustained -$100m reduction in capex by FY23. Ord Minnett retains its Hold rating and $8.60 target price.

Target price is $8.60 Current Price is $7.60 Difference: $1
If AGL meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Credit Suisse rates ALD as Neutral (3) -

Credit Suisse notes speculation the media regarding Ampol acquiring Z Energy, subsequent to the closure of the NZ refinery and resulting conversion of New Zealand to a 100% fuel import market.

The broker believes an acquisition could have merit because of potential procurement and retail synergies. That said, Z Energy may not be the highest priority opportunity for Ampol and an acquisition would properly require an equity issue.

Neutral rating and $29.87 target maintained.

Target price is $29.87 Current Price is $28.13 Difference: $1.74
If ALD meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $31.79, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates AMP as Neutral (3) -

After today's FY21 result, Citi initially assesses a small beat although the mix is a bit worse. With the company in the early
stages of a ceo transition, it's thought more of the focus will be on the new ceo’s strategic outlook.

Australian Wealth Management (AWM) revenue margins were flat over the first half (the analyst expected a 3bps rise), with AMP now expecting -7bps of margin squeeze in FY21 compared to -8bps previously.

Management reiterated guidance of FY21 controllable costs of -$775m and cost outs of $130m in FY21. The previously announced -$300m cost-out program targeted by FY22, was reaffirmed.

The demerger of the AMP Capital business remains on track for completion by June 2022. Citi maintains its Neutral rating and $1.25 target price.

Target price is $1.25 Current Price is $1.08 Difference: $0.17
If AMP meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.21, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates AQZ as Outperform (1) -

Pre-tax profit in FY21 was ahead of expectations and Credit Suisse was pleased with the company's ability to accelerate fleet delivery and deployment to cater for elevated demand.

The broker considers the decision not to declare a dividend is prudent, given the investment cycle. Net debt is expected to peak in the first half of FY22, stepping down slightly by the end of the year.

The broker assesses in FY23 and beyond there could be at least $50m in operating earnings from 25 newly deployed aircraft. Outperform maintained. Target is reduced to $5.30 from $5.40.

Target price is $5.30 Current Price is $4.40 Difference: $0.9
If AQZ meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.18, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates AQZ as Add (1) -

The FY21 result for Alliance Aviation Services was in-line with Morgans forecast and -2% below consensus. The broker lowers its FY22 forecasts though leaves FY23 unchanged, and lowers its price target to $5.10 from $5.25.

With a strong growth outlook and track record of execution, the analyst maintains the Add rating. FY22 outlook comments were considered to remain positive and a clear timeline to fully deploy 29 E190 aircraft by the end of FY22 was outlined.

The analyst feels investor focus will remain on the execution of its fleet expansion and expects the stock will gradually re-rate as confidence builds in the deployment.

Target price is $5.10 Current Price is $4.40 Difference: $0.7
If AQZ meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.18, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates ARF as Neutral (3) -

FY21 operating earnings were in line with Credit Suisse. Going forward, Arena REIT is guiding to distributions of 15.8c, which at 6.8% growth is in line with the broker's forecasts.

Credit Suisse also notes a high degree of earnings visibility and predictability in the stock along with a disciplined approach to growth.

A Neutral rating is retained on an absolute basis, and the target is revised to $3.72 from $3.23 to reflect a premium for the strong balance sheet, predictable earnings and industry structure.

Target price is $3.72 Current Price is $3.83 Difference: minus $0.11 (current price is over target).
If ARF meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -4.0% (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 ARF as Neutral (3) -

Arena REIT reported FY21 operating earning per share (EPS) of 15.2cps, up 4.5% on the previous period and in line with
Macquarie's forecast.

The group provided FY22 dividend per share guidance of 15.8cps for the first time, up 6.8% year-on-year, although this was -2.5% below Macquarie's prior estimate.

Key drivers of growth into FY22 included underlying rent growth, up 3.0% and the net profits interest (NPI) benefit from FY21 developments, up 3.1%.

The REIT also reported gearing of 19.9% (Jun-21), which compares to an internal target gearing range of 35-40%.

The broker is forecasting FY22 EPS of 16.2cps in FY22, representing growth of 6.5% year-on-year,

The neutral rating is unchanged and the target is raised by 2% to $3.82.

Target price is $3.82 Current Price is $3.83 Difference: minus $0.01 (current price is over target).
If ARF meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

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

Arena REIT reported FY21 profit of $51.9m versus the $50.9m expected by Morgan Stanley. First time FY22 DPS guidance of 15.8cps, or 6.8% growth was considered in-line with expectations.

100% of contracted rent was collected in FY21 and the broker applauds the stable cash flows, which is exactly what long weighted average lease expiry (WALE) investors seek. The Equal weight rating is maintained, purely on a valuation basis. The $3.66 target is unchanged. 

Industry view: In-line.

Target price is $3.66 Current Price is $3.83 Difference: minus $0.17 (current price is over target).
If ARF meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.73, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgans rates BHP as Hold (3) -

In a tactical call, not relevant for long-term investors, Morgans believes the value downside outweighs big dividend returns from the major iron ore miners, on a total return basis. We are reminded that in February all three large miners fell by more than 3 times their dividend in the month after going ex-dividend.

BHP Group reports on 17 August, and the broker expects FY21 underlying earnings (EBITDA) of US$37,144m and underlying profit of US$17,674m. The full year dividend is expected to be US$2.81 

The group is Morgans top preference of the three big miners, despite having already materially outperformed so far in 2021. The broker retains its Hold rating and $45.80 target price.

Target price is $45.80 Current Price is $52.52 Difference: minus $6.72 (current price is over target).
If BHP meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.11, suggesting downside of -3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Citi rates CBA as Downgrade to Sell from Neutral (5) -

Citi reports excess liquidity has enabled balance sheet normalisation for Commonwealth Bank of Australia, with a $6bn off-market buy-back, approximate 75% dividend payout ratio and provision write backs. 

Despite this, the broker notes excess liquidity is also having adverse effect on the ability to generate revenue. The broker expects only 1% revenue growth in FY22, and notes underlying core earnings are declining.

Citi has downgraded cash earnings forecasts for FY22 and FY23 by -6-7%, and increased underlying cost growth.

The rating is downgraded to Sell and the target price decreases to $94.50 from $96.75.

Target price is $94.50 Current Price is $108.17 Difference: minus $13.67 (current price is over target).
If CBA meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Credit Suisse rates CBA as Downgrade to Underperform from Neutral (5) -

Following the FY21 result Credit Suisse downgrades earnings estimates by -1.3% because of lower net interest margin and higher expenses.

The bank underperformed expectations in FY21 despite the investment in technology providing some operating leverage, and the broker envisages little upside for a stock trading at 21x PE.

As a result, Credit Suisse downgrades to Underperform from Neutral and maintains a $95 target.

Target price is $95.00 Current Price is $108.17 Difference: minus $13.17 (current price is over target).
If CBA meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Macquarie rates CBA as Underperform (5) -

Commonwealth Bank's FY21 pre-provision result was in line with Macquarie's expectations, with the headline beat underpinned by the impairment charge write-back, which the broker doubts were any great surprise to the market.

While balance sheet trends were supportive in FY21, Macquarie notes revenue momentum remains weak. Excluding the benefit of write-backs, revenues only grew by 0.4%.

While balance sheet momentum bodes for a better start in FY22, as the bank highlighted, the broker notes emerging margin pressures are likely to provide an offset.

The broker made small single-digit downgrades to earnings per share estimates for FY22-24.

Underperform rating and target of $88.50 are both unchanged.

Target price is $88.50 Current Price is $108.17 Difference: minus $19.67 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Morgan Stanley rates CBA as Underweight (5) -

After FY21 results that were broadly in-line with investor expectations, Morgan Stanley retains an Underweight rating believing expectations are high and trading multiples are stretched.

Despite a superior franchise, the broker finds it hard to justify such high multiples when there are only modest book value growth prospects.

The collective provision release of $632m in the second half was larger than the analyst expected, though coverage remains
healthy at circa 1.4% of credit risk-weighted assets. The broker lifts its target price to $90 from $89. Industry view: In-line.

Management referred to the $6bn off-market buybacks as the most efficient way to "commence the return of surplus capital". The broker forecasts another $2.5bn buyback in FY23.

Target price is $90.00 Current Price is $108.17 Difference: minus $18.17 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Morgans rates CBA as Reduce (5) -

Commonwealth Bank's FY21 net profit was -1.6% lower than Morgans expectation. The broker's Reduce rating is unchanged in the belief the bank is of high quality yet overvalued. The price target is raised to $80 from $76, after increases to EPS forecasts.

Management announced a $6bn off-market share buyback, in-line with the broker's forecast. The analyst expects a further $6bn off-market share buyback to be conducted in FY23. A final dividend of $2 fully franked was declared.

The broker believes consensus expectations continue to be pessimistic for bad debt and net interest margins (NIM) for the major banks. It's thought this may result in favourable revisions to consensus forecasts for the sector.

Target price is $80.00 Current Price is $108.17 Difference: minus $28.17 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Ord Minnett rates CBA as Hold (3) -

Ord Minnett found CommBank's FY21 performance in-line, but with H2 slightly underperforming expectations as higher-than-expected remediation costs largely offset better impairment expenses.

Costs proved a little higher than forecast. The announced $6bn share buyback compares with the broker's $5bn forecast.

Ord Minnett acknowledges the premium valuation, but also doesn't see a trigger for de-rating the shares. Hold rating retained, with the target moving to $95 from $92.

Target price is $95.00 Current Price is $108.17 Difference: minus $13.17 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Citi rates CGC as Neutral (3) -

Citi is expecting a strong year in citrus production for Costa Group Holdings, forecasting growth of 57% given acquisitions and a cyclically good production year for existing orchards.

The broker notes outlook for the company's citrus pricing remains unclear, but highlights risk appears skewed to the downside for FY21 citrus pricing. Demand from Japan, improved fruit quality and acquisitions driving higher value produce could drive pricing offsets for the company on China export difficulties. 

The Neutral rating is retained and the target price decreases to $3.72 from $3.74.

Target price is $3.72 Current Price is $3.32 Difference: $0.4
If CGC meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 17.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates CNI as Overweight (1) -

Centuria Capital Group reported FY21 operating profit broadly in-line with Morgan Stanley's estimate. Management guided to FY22 EPS/DPS growth of 10%, assuming $2.75bn of acquisitions.

The broker thinks the group is well placed to organically grow its assets under management (AUM) and maximise fee income going forward. The target rises to $3.45 from $3.35 on a stronger bull case valuation, which assumes 30%/yr AUM growth, up from 25%.

The analyst highlights management flagged the potential to initiate new listed vehicles, in addition to Centuria Office REIT ((COF)) and Centuria Industrial REIT ((CIP)). The Overweight rating is maintained. Industry view: In-line.

Target price is $3.45 Current Price is $3.14 Difference: $0.31
If CNI meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 4.3% (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 CNI as Accumulate (2) -

Centuria Capital Group's FY21 performance proved in-line with Ord Minnett's forecasts. Guidance for EPS of 13.2c in FY22 is slightly higher than what the broker had penciled in.

Forecasts have been increased, slightly, to position Ord Minnett slightly higher than guidance for FY22.

The Accumulate rating is retained and the target price increases to $3.40 from $3.30. 

Target price is $3.40 Current Price is $3.14 Difference: $0.26
If CNI meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.29, suggesting upside of 4.3% (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 CNI as Neutral (3) -

FY21 results were below UBS estimates. Centuria Capital has grown assets under management to $17.4bn after the integration of PrimeWest and Bass Capital. Guidance is for 10% growth in operating earnings and distributions.

UBS highlights the company has a track record of upgrading throughout the year and expects this to be repeated in FY22.

Valuation increases as a result of the acquisitions. Neutral maintained. Target rises to $3.01 from $2.49.

Target price is $3.01 Current Price is $3.14 Difference: minus $0.13 (current price is over target).
If CNI meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.29, suggesting upside of 4.3% (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 CPU as Sell (5) -

Computershare has largely delivered on FY21 guidance, and is now guiding to FY22 results largely in line with Citi's expectations. 

The broker does note FY22 guidance appears more reliant than expected on margin income, and that the approximate $18m relating to the UK Deposit Protection Scheme contract was a surprise. 

The company is guiding to just over 1% operational earnings growth, which Citi considers achievable. The broker considers the stock is likely to be divisive between investors who consider it expensive given the low operational earnings growth forecast and those interested in leverage to short dated rate rise. 

Sell rating and $15 target retained.

Target price is $15.00 Current Price is $16.41 Difference: minus $1.41 (current price is over target).
If CPU meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.36, suggesting upside of 12.4% (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: 0.1

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

Credit Suisse rates CPU as Outperform (1) -

Credit Suisse notes a return to growth is expected in FY22 and believes, over the medium term, earnings will double. Furthermore, the FY21 result, which was in line, provided no reason for the broker to change its view.

Credit Suisse highlights upgraded FY22 margin income guidance as Computershare adds term to its portfolio to benefit from higher bond yields. Outperform rating reiterated. Target is $23.20.

Target price is $23.20 Current Price is $16.41 Difference: $6.79
If CPU meets the Credit Suisse target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $18.36, suggesting upside of 12.4% (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: 0.1

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

Macquarie rates CPU as Outperform (1) -

Computershare released its FY21 result which was in line with guidance, with management expecting this to mark the bottom of the earnings cycle.

FY22 margin income guidance is $145m with FY22 earnings ex margin income growth guidance of 3.7%.

With the cost-out program over-delivering by around 1.8% in FY21, the target increased $26m to $276m and has now been extended to FY24.

Macquarie has reduced its earnings per share (EPS) estimates for FY22 -2.5%, and FY23 -2.5% from increased amortisation and
6% thereafter from higher-margin income balance expectations.

Macquarie notes despite near-term headwinds for the US Mortgage Servicing business, long-term growth prospects remain. The broker believes the company is well positioned to benefit from rising yields, ongoing cost out, and further supported by the Wells
acquisition.

Outperform maintained. Target is raised to $22.25 from $21.25.

Target price is $22.25 Current Price is $16.41 Difference: $5.84
If CPU meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $18.36, suggesting upside of 12.4% (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: 0.1

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

Morgan Stanley rates CPU as Overweight (1) -

Morgan Stanley raises the target price for Computershare to $17.90 from $17.60, after FY21 results were considered to 'deliver', despite the mix shift tilting to lower-quality items.

The broker's expectation for FY22 is for EPS to rise by circa 2.5%, ahead of management guidance for 2%. Longer-term, the analyst is targeting around 14% EPS accretion by FY26 and rate hikes could add more.

Morgan Stanley notes margin income was 2% above estimates, but growth in balances of around US$1.5bn didn't flow through fully to
higher income.The Overweight rating is unchanged. Industry view is In-Line.

Target price is $17.90 Current Price is $16.41 Difference: $1.49
If CPU meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $18.36, suggesting upside of 12.4% (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: 0.1

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

Morgans rates CPU as Hold (3) -

Computershare's FY21 result was broadly in-line with consensus. Morgans notes strong performances in the Issuer Services and Employee Share Plans businesses, offset by weaker results in Mortgage Services and Business Services.

FY22 EPS guidance was slightly lower than the broker expected. The analyst downgrades EPS forecasts on slightly more conservative growth assumptions in future years though slightly raises the target price to $17.52 from $17.42.

Following a strong share price rally over the last year, Morgans sees fair value and retains its Hold rating.

Target price is $17.52 Current Price is $16.41 Difference: $1.11
If CPU meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $18.36, suggesting upside of 12.4% (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: 0.1

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

UBS rates CPU as Neutral (3) -

FY21 metrics were in line with UBS estimates. Growth guidance for FY22 of 1.8% is ahead of the broker's forecast.

The core business outlook is, unsurprisingly, weak yet UBS notes this is countered by expectations for higher margin income revenue and a lower tax rate.

These are lower quality drivers and the broker asserts the core trends are underwhelming. Neutral retained. Target rises to $17.65 from $16.25.

Target price is $17.65 Current Price is $16.41 Difference: $1.24
If CPU meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.36, suggesting upside of 12.4% (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: 0.1

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

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

In-line with Morgan Stanley's expectation for CSL, overseas peer Haemonetics reported first quarter organic plasma growth of 6% and held guidance for FY22 at 15-25%. This is estimated to imply acceleration in the next three quarters as stimulus wanes.

The broker cautions on a point of difference. The ongoing Mexican border issue is considered of greater magnitude for CSL, which only affected roughly one of the three months in the quarter.

Morgan Stanley retains its Equal-weight rating and $271 price target. In-Line industry view.

Target price is $271.00 Current Price is $293.25 Difference: minus $22.25 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $301.44, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Ord Minnett rates DOW as Lighten (4) -

After today's FY21 result, Ord Minnett's initial impression is for likely positive upgrades to consensus, which presently forecasts revenue declines in FY22. Underlying cash conversion was considered strong at 100.8%.

The broker highlights the better-than-expected result came from the core businesses. Transport was thought to be a standout in growing earnings (EBITA) by 51% half-on-half, on higher than expected revenue and margin expansion.

More negatively, the broker highlights work in hand fell to $35.4bn at FY21 from $36.2bn in 1H21. Ord Minnett maintains its Lighten rating and $5.30 price target.

Target price is $5.30 Current Price is $5.54 Difference: minus $0.24 (current price is over target).
If DOW meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.09, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates FMG as Reduce (5) -

In a tactical call, not relevant for long-term investors, Morgans believes the value downside outweighs big dividend returns from the major iron ore miners, on a total return basis. We are reminded that in February all three large miners fell by more than 3 times their dividend in the month after going ex-dividend.

Fortescue Metals Group reports on August 30, and the broker expects FY21 underlying earnings (EBITDA) of US$16,507m and underlying profit of US$10,419m. The final dividend is expected to be $2.14.

The company is battling difficult execution/cost pressures around its Iron Bridge magnetite project, slipping C1 cost performance and growing market concern around its push into global renewables, explains the analyst. Morgans maintains its Reduce rating and $19.30 target price.

Target price is $19.30 Current Price is $22.52 Difference: minus $3.22 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.12, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Ord Minnett rates GMG as Buy (1) -

In an initial assessment of Goodman Group's FY21 results, Ord Minnett notes operating profit of $1,219m was in-line with the broker's forecast. It was considered underpinned by a 25% increase in development earnings.

FY22 operating EPS guidance is for 10% growth, while DPS guidance is for 30 cents.

Development work-in-progress has lifted from $4.1bn two years ago to $10.6bn and margins have expanded over this time, points out the analyst.

Ord Minnett highlights strong development margins, and the large spread between yield on cost and cap rate will ensure margins remain elevated. The Buy rating and $21 target price are maintained.

Target price is $21.00 Current Price is $23.16 Difference: minus $2.16 (current price is over target).
If GMG meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.32, suggesting downside of -1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates HDN as Initiation of coverage with Neutral (3) -

UBS initiates coverage of Homeco Daily Needs to expand its retail A-REIT coverage. The company is differentiated from other small/mid cap retail A-REITs as it has 85% exposure to metro assets, higher annual lease escalations and long WALE.

The metro assets also have no exposure to department stores and limited exposure to discount department stores, discretionary retail and food & beverage.

Nevertheless, the differentiated strategy is already priced into the stock so the broker initiates with a Neutral rating and $1.55 target.

Target price is $1.55 Current Price is $1.45 Difference: $0.1
If HDN meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates HLS as Outperform (1) -

While covid testing presents near-term upside for Healius, Macquarie also sees scope for lower base business volumes due to
current restrictions on movement.

Within revised forecasts, Macquarie assumes lower base business revenue for both pathology and imaging in first half of FY22 before
recovering from second-half FY22. The broker's FY23 earnings forecasts for Pathology/Imaging remain largely unchanged.

Healius is on track to complete its 2021 $200m buyback program, and Macquarie's revised forecasts now also capture an additional $100m program over 2022.

The broker's earnings per share (EPS) revisions of 1%, 20%, and 2% in FY21, FY22, and FY23 reflect revised operational
assumptions and incorporation of an additional buyback in 2022. Revisions of 4-5% in outer years also capture slight revisions to longer-term assumptions.

Outperform retained. Target rises to $5.30 from $4.85.

Target price is $5.30 Current Price is $5.02 Difference: $0.28
If HLS meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.73, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates HMC as Initiation of coverage with Sell (5) -

UBS observes Home Consortium has outperformed the A-REIT index by 90% since its IPO in 2019. The business has articulated a clear growth strategy, and UBS is impressed by the track record in transitioning to be an asset-light fund manager.

Nevertheless, the broker initiates coverage with a Sell rating and $5.20 target, given the excessively high expectations for asset growth implied by current market pricing. Moreover, this growth is reliant on support from listed equity capital.

Target price is $5.20 Current Price is $5.80 Difference: minus $0.6 (current price is over target).
If HMC meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.78, suggesting downside of -17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates IAG as Buy (1) -

Citi notes potential for reasonable margin expansion in FY22 for Insurance Group Australia, despite FY21 growth being weaker than competitor Suncorp Group. 

Growth has been impacted by volume losses in direct home, business packages and rural, which should ease in time.

Citi also highlights the company has scope to drive improvements in intermediated margins. The company has a 10% underlying insurance margin target, compared to its 3.9% result for FY21.

The broker lifts earnings per share forecasts for FY23 by 1.2%. The Buy rating is retained and the target price increases to $5.75 from $5.60. 

Target price is $5.75 Current Price is $5.14 Difference: $0.61
If IAG meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 0.5% (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

Credit Suisse rates IAG as Outperform (1) -

FY21 cash net profit was in line with the July update. The final dividend was slightly ahead of Credit Suisse forecasts. The broker is now more confident given the extra detail on underlying claims improvement and industry tailwinds.

The company is now expected to achieve its target of 15-17% margins in the next few years. The broker remains positive on the earnings trajectory and reiterates an Outperform rating, raising the target to $5.90 from $5.60.

Target price is $5.90 Current Price is $5.14 Difference: $0.76
If IAG meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 0.5% (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

Macquarie rates IAG as Neutral (3) -

With Insurance Australia Group's FY21 results consistent with the company's pre-release, Macquarie believes all eyes are now focussed on business interruption (BI) industry test case and the potential for excess capital returns.

Macquarie notes the group has raised a $437m reinsurance recovery for BCC/Greensill, with reinsurers already paying claims, underscoring management’s confidence.

Given the group achieved gross written premium (GWP) growth of 3.8% in second half FY21, the broker believes GWP growth targets of ‘low single-digit’ in FY22 are too low. Countering this, Macquarie believes the group will continue to incur strengthening of its long tail reserves and could fall below the midpoint of the FY22 reported insurance margin range of 13.5% - 15.5%.

Neutral rating is retained, and the target price increases to $5.10 from $4.80.

Target price is $5.10 Current Price is $5.14 Difference: minus $0.04 (current price is over target).
If IAG meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.46, suggesting upside of 0.5% (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

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

Morgan Stanley assesses the FY21 headline result was in-line with what was pre-reported, while FY22 guidance was unchanged.

The broker points out margin momentum is subdued, capital optionality is reducing from new lockdowns, top-line growth lagged Suncorp Group ((SUN)) and cost savings may be needed to support volume growth.

The analyst's FY22-FY23 forecasts are for top-line growth, while margins and earnings are broadly unchanged, as the FY21 result was pre-reported. The Equal-weight rating and $4.80 price target are unchanged. Industry view: In-line.

Target price is $4.80 Current Price is $5.14 Difference: minus $0.34 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.46, suggesting upside of 0.5% (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 IAG as Add (1) -

Morgans discerns from the FY21 result that top-line consumer premium and rate trends arguably lagged its key peer Suncorp Group ((SUN)). The broker makes EPS downgrades reflecting convertible note dilution and increases its price target to $5.65 from $5.37.

Trading close to seven-year lows, the analyst sees relative value and maintains an Add rating. It's believed insurance price increases combined with management’s strategy to improve underwriting and lower costs should drive improved profitability.

The second half dividend of 13 cents was slightly ahead of the 12 cent consensus.

Target price is $5.65 Current Price is $5.14 Difference: $0.51
If IAG meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 0.5% (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 IAG as Accumulate (2) -

Ord Minnett notes key FY21 financials had been pre-announced and the actual release proved in-line. The unfranked dividend of 13c beat the broker's 11.1c estimate for the second half.

The analyst labels the result as "low on quality" but potential for Business Insurance provision releases, on top of lockdown benefits and some other positives are likely to see the stock supported, on the broker's assessment.

Accumulate rating retained, alongside an increased price target of $5.35 (up from $5.05).

Target price is $5.35 Current Price is $5.14 Difference: $0.21
If IAG meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 0.5% (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 IAG as Buy (1) -

UBS notes the FY21 result, with cash net profit of $747m, was pre-announced while guidance is unchanged for low single-digit growth in gross written premium. The final dividend was slightly stronger.

The 15-17% aspirational insurance margin target will be supported by a further $250m improvement in insurance profit. UBS notes strengthening of reserves appears to be stemming from the 2020 accident year. Business interruption provisions are unchanged.

Buy rating and $5.65 target maintained.

Target price is $5.65 Current Price is $5.14 Difference: $0.51
If IAG meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 0.5% (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

Credit Suisse rates IRE as Neutral (3) -

Iress has received a revised offer from EQT Partners, implying a valuation of $15.97 a share and comprising $15.75 a share cash consideration plus a first half dividend of up to $0.16 as well as 6c a share in franking credit benefits for eligible shareholders.

Credit Suisse considers a higher competing offer is unlikely and highlights the appeal of the company's very stable cash flows as well as an improved organic growth outlook. Neutral maintained. Target rises to $15.97 from $13.50.

Target price is $15.97 Current Price is $15.19 Difference: $0.78
If IRE meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.64, suggesting downside of -2.6% (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

Morgans rates KPG as Downgrade to Hold from Add (3) -

Despite reporting an underlying FY21 profit (NPATA) rise of 27.5% on the previous corresponding period, Morgans downgrades the rating to Hold from Add, as the stock is trading in-line with its upgraded valuation. The target price rises to $3.44 from $2.35.

FY21 revenue growth of 7.5% was primarily driven by acquisitions of 4.8%, with accounting organic growth contributing 1.5% and complementary businesses 1.2%.

Total dividends (including specials) for the year were 5.84 cents, up 8.3%. Management commented that the group was “inundated” with further acquisition opportunities and further partnerships remain core to the strategy.

Target price is $3.44 Current Price is $3.50 Difference: minus $0.06 (current price is over target).
If KPG meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for 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

Ord Minnett rates MGR as Hold (3) -

In an initial assessment of FY21 results, Ord Minnett points out funds from operations (FFO) of 14 cents was 1.9% above guidance and the broker's forecast of 13.7 cents. This was considered due to a strong residential result with volume growth and margin expansion.

FY22 EPS guidance of at least 15 cents is softer than the analyst's forecast of 15.9 cents, while DPS guidance of 10.2 cents is lower than the forecast 11.7 cents. The analyst had assumed higher EPS and payout ratios.

While guidance appears conservative to the broker, some retail assumptions first need to be clarified. Meanwhile, the Hold rating and $2.60 target price are unchanged.

Target price is $2.60 Current Price is $3.00 Difference: minus $0.4 (current price is over target).
If MGR meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.98, suggesting upside of 0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates MIN as Neutral (3) -

Mineral Resources' underlying earnings for FY21 of $1.9bn were a miss on Citi forecasts, but management has reiterated growth targets and a positive mining services outlook going forward. 

The broker notes iron ore was a major earnings driver, contributing $1.54bn to total results. Strong pricing was offset by increased royalties, higher haulage and shipping costs, and a tighter labour market. 

The broker has updated earnings forecasts largely on lower iron ore volumes. Forecasts decrease -10-13% over FY22-24. 

Citi considers risk-rewards to be well balanced. The neutral rating and target price of $65.00 are retained.

Target price is $65.00 Current Price is $60.31 Difference: $4.69
If MIN meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $59.24, suggesting downside of -0.6% (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 MIN as Outperform (1) -

Mineral Resources' FY21 earnings result was weaker than Macquarie expected with higher costs driving -7% and -11% misses in earnings and underlying profit.

Macquarie notes iron-ore prices continue to provide upside risk to earnings for the company with the formal approval of Ashburton a key near-term catalyst.

Incorporating the lower iron-ore shipment guidance for FY22 and reducing Mining Services margins drives a -16% cut to Macquarie's FY22 earnings estimates. Slowing the margin recovery in mining services and reducing lump production drives -8% and -5% cuts to the broker's FY23 and FY24 estimates.

Outperform rating is unchanged and the target price is lowered -3% to $73.

Target price is $73.00 Current Price is $60.31 Difference: $12.69
If MIN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $59.24, suggesting downside of -0.6% (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 MIN as Underweight (5) -

Morgan Stanley lowers the price target to $45.70 from $49.70, after FY22 iron ore guidance points to both lower volumes and revenue
realisation, coupled with higher costs and capex. In addition, costs at Mt Marion are higher than forecast.

FY21 results were a -10% profit and operating cash miss on the broker and consensus, while cash costs were higher at Yilgarn and Utah Point.

The broker believes the market is pricing in all the growth potential while ignoring execution risk, while the company is facing a declining iron ore price and expanding low grade discounts.

The analyst highlights guidance for lump production was significantly below expectations, and is a further negative for revenue
realisation. The Underweight rating is unchanged. Industry view: Attractive.

Target price is $45.70 Current Price is $60.31 Difference: minus $14.61 (current price is over target).
If MIN meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $59.24, suggesting downside of -0.6% (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 MIN as Buy (1) -

For Ord Minnett's initial response: see yesterday's Report. Mineral Resources' FY21 financials missed expectations.

The broker also laments the absence of further detail on the Ashburton and Wodgina projects.

Price target reduces to $68 from $70. Buy rating retained.

Target price is $68.00 Current Price is $60.31 Difference: $7.69
If MIN meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $59.24, suggesting downside of -0.6% (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 NAB as Hold (3) -

In an initial take on today's release, Ord Minnett assesses National Australia Bank's third quarter trading update was strong. Cash profit of $1.7bn is tracking ahead of the analyst's $3.14bn second half forecast, due to net provision write-backs.

The broker estimates consensus cash earnings upgrades are likely on lower impairment expenses and solid asset quality indicators. Near-term revenue forecasts are thought likely to be downgraded on lower Markets income.

However, the analyst notes underlying ex-Markets net interest margin (NIM) trends are likely ahead of consensus expectations. Ord Minnett maintains its Hold rating and $27.80 target price.

Target price is $27.80 Current Price is $27.22 Difference: $0.58
If NAB meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $27.38, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates NUF as Buy (1) -

Citi notes while US FDA approval of Nutriterra in dietary supplements is a positive step for the commercialisation of Nuseed's omega-3 canola, it is unlikely that Nutriterra will contribute material earnings in the short term. 

The broker continues to see Aquaterra as a larger, more credible, medium-term opportunity. 

Further, Citi considers Nutriterra's previously identified addressable global fish oil deficit in nutraceutical and supplement applications of around 100,000 tonnes per annum to be optimistic. 

The Buy rating and target price of $6.00 are retained.

Target price is $6.00 Current Price is $4.50 Difference: $1.5
If NUF meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $5.68, suggesting upside of 22.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates QBE as Buy (1) -

In an initial take on first half results, Citi notes US$445m of core earnings are above its estimate for US$314m, with the insurance margin of 10.3% also ahead of the broker's 8.3% forecast.

The reported combined operating ratio of 90.2% is better than the analyst's 92.1% estimate, though this is partly explained by reserve releases of 1.1% of net earned premium (NEP). Citi retains its Buy rating and $12.35 target price.

The broker assesses a strong result albeit partly driven by one-offs such as reserve releases and lower-than-expected covid charges. With ongoing top-line momentum and scope for further underlying COR improvement, it's thought the stock will respond favourably.

Target price is $12.35 Current Price is $11.57 Difference: $0.78
If QBE meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $12.20, suggesting downside of -2.3% (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: 0.8

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

Ord Minnett rates QBE as Accumulate (2) -

In an initial read, Ord Minnett estimates first half results are strong at a reported and underlying margin level and show good momentum on price and favourable claims development. In addition gross written premium (GWP) was considered very strong.

Reported profit was a beat and underlying profit was strong, in-line with the analyst's forecasts. Expense ratios were also improved. The broker feels this lends confidence that the cycle will provide favourable trends and support the share price.

The broker maintains its Accumulate rating and $13.50 target price.

Target price is $13.50 Current Price is $11.57 Difference: $1.93
If QBE meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $12.20, suggesting downside of -2.3% (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: 0.8

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

Morgans rates RIO as Hold (3) -

In a tactical call, not relevant for long-term investors, Morgans believes the value downside outweighs big dividend returns from the major iron ore miners, on a total return basis.

The anlyst reminds us that in February all three large miners fell by more than 3 times their dividend in the month after going ex-dividend.

With Rio Tinto due to go ex-dividend today, this is a pressing concern and material to the broker’s short-term investment strategy. With more signs of the iron ore cycle slowing, there’s considered a similar risk this dividend season.

Morgans retains its Hold rating and $123 target price.

Target price is $123.00 Current Price is $129.14 Difference: minus $6.14 (current price is over target).
If RIO meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $134.71, suggesting upside of 12.0% (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

Credit Suisse rates SEK as Outperform (1) -

Seek has confirmed that Online Education Services and 14 of the early-stage ventures will be transferred to a separate entity called Seek Growth Fund. This will be independently managed. The company will make a cash investment of $200m in the fund in September.

Credit Suisse's view is that the market should take the value of this investment away from the headline when calculating trading multiples.

Applying this approach means the FY23 EBITDA multiple falls below 20x and appears a lot less demanding. The broker retains an Outperform rating and $35 target.

Target price is $35.00 Current Price is $29.54 Difference: $5.46
If SEK meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $31.52, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates SEK as Hold (3) -

Seek has announced the creation of an independent unit trust, the Seek Growth Fund, to hold its early-stage ventures (ESVs) as well as its stake in the Online Education Services (OES) investments.

An investment management company will be formed to oversee the new vehicle, and CEO Andrew Basset will also be CEO of this new creation.

The move follows a strategic review. Ord Minnett is in favour and notes the fund will be treated as an associate in the Seek accounts. Hold rating retained, as well as the $32 price target.

Target price is $31.00 Current Price is $29.54 Difference: $1.46
If SEK meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $31.52, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates SEK as Buy (1) -

A transfer of investments to a separate fund will allow Seek to focus on online employment, UBS assesses, and should provide a positive uplift to valuation, although more details are required.

The company has announced it will transfer its holding in Online Education Services and 14 early-stage ventures into a newly-created independent unit trust.

The trust will be managed by a management company which will receive management and performance fees. UBS retains a Buy rating and $35 target.

Target price is $35.00 Current Price is $29.54 Difference: $5.46
If SEK meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $31.52, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates TLS as Buy (1) -

After an initial glace at today's FY21 result, Ord Minnett assesses it was broadly in-line with its forecast. Earnings (EBITDA) were $6.7bn. The return to growth in Mobile average revenue per user (ARPU) and strong earnings margins of 41% are considered highlights.

The broker feels the outlook is strong, with underlying earnings guidance of $7.0-$7.3bn. This implies growth of 4-9% and is above the analyst's estimate of $7bn. Management also reiterated an earnings target of $7.5-$8.5bn for FY23.

Shareholders will receive $1.35bn in the form of an on-market buyback from the sale of TowerCo. The continuation of NBN headwinds was a negative, with both Fixed Enterprise and Fixed Wholesale experiencing higher than expected declines, notes the broker.

Ord Minnett maintains its Buy rating and $4.25 target price and expects consensus numbers will increase on the back of increased underlying guidance.

Target price is $4.25 Current Price is $3.83 Difference: $0.42
If TLS meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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