Australian Broker Call

Bell Potter rates 360 as Buy (1) -

Bell Potter tweaks EPS estimates for Life360 resulting from the NASDAQ listing.

The broker's forecasts include a 3.7m increase in the number of shares on issue and a net cash increase of some US$83m, considering underwriting commissions and other expenses related to the offering.

Bell Potter expects EBITDA to be updated in August when 1H2023 results are released, as the exact costs are still unknown.

EPS forecasts are adjusted by -1% and -33% for FY24 and FY25, respectively, with slight upgrades in net profit due to additional cash and interest revenue, notes the analyst.

Buy rating and target lowered to $17 from $17.75.

Target price is $17.00 Current Price is $13.80 Difference: $3.2
If 360 meets the Bell Potter target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $16.97, suggesting upside of 23.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Citi rates ALL as Buy (1) -

Citi assesses May bookings data to extrapolate how revenues are progressing for the Aristocrat Leisure digital businesses.

The broker points to circa -8% fall in RAID bookings year-on-year in both May and April due to competition from AFK Journey.

Social Casino bookings were down around -1% for May but up some 1% for the quarter and bookings for Merge Gardens remained flat over the past 6-9 months despite year-on-year growth, notes the analyst.

Citi highlights the downside risk bias to potential sale proceeds from the digital portfolio, but remains optimistic due to the strong performance in the North American land-based business.

No changes to earnings forecasts. Buy rating. $53 target.

Target price is $53.00 Current Price is $47.18 Difference: $5.82
If ALL meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $50.20, suggesting upside of 7.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

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

Morgan Stanley calculates an estimated -$2.5bn in lower provision charges for the big banks between now and the end of FY26.

The analyst estimates the impact will be greatest on National Australia Bank's ((NAB)) earnings and smallest on ANZ Bank, with CommonBank ((CBA)) the second most impacted, and Westpac ((WBC)) the third.

$27.8 target price. Equal-weight rating. Industry view: In-Line.

Target price is $27.80 Current Price is $29.18 Difference: minus $1.38 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.59, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Citi rates APE as Sell (5) -

Eagers Automotive is facing increased competition with the opening of two new BYD dealerships in Sydney and Melbourne, which are owned and operated by China Harmony Auto.

Citi notes the company has exclusivity rights to retail BYD in Australia, although the broker suspects management is allowing China Harmony Auto to operate a network of BYD dealerships to maintain its relationship with BYD.

Calculating the potential impact on earnings, if the ownership of BYD dealerships is 75%, profits before tax are forecast to decline around -3% for FY25/FY26 and with a 50% ownership by around -5%, the broker highlights.

An update on BYD strategy is anticipated at today's investor day. Sell rating and $9.55 target unchanged.

Target price is $9.55 Current Price is $10.14 Difference: minus $0.59 (current price is over target).
If APE meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.62, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Bell Potter rates APM as Downgrade to Hold from Buy (3) -

Maddison Dearborn Partners (MDP) is offering APM Human Services International shareholders $1.45 per share in cash, valuing the company at $1.3bn, with no alternative bids expected, according to Bell Potter.

The analyst highlights trading remains weak with low client flows into Employment Services in Australia and the UK, leading to an expected continuation of these conditions into FY25.

Management guidance for FY24 has been placed at the lower end of the $280-290m EBITDA range, with debt costs likely to rise in FY25 due to refinancing.

Bell Potter adjusts forecasts by -2.3% in FY24 EBITDA, and a - 22.6% reduction in EBITDA for FY25.

Rating downgraded to Hold from Buy. Target price lifted to $1.45 from $1.40.

Target price is $1.45 Current Price is $1.39 Difference: $0.065
If APM meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Shaw and Partners rates AVL as Buy (1) -

Shaw and Partners hosted its inaugural Future Battery Seminar and the analyst confirmed a positive view on Australian Vanadium and the need for further investment in the vanadium supply chain for grid storage.

The recent Federal Government support, including $13.7bn in production tax credits for critical minerals like vanadium as part of the Made In Australia policy, provides further incentives, notes the broker.

The analyst anticipates continued progress in developing the vanadium battery industry, which should support Australian Vanadium.

Buy rating and 8c target price retained. No change in forecasts.

Target price is $0.08 Current Price is $0.02 Difference: $0.064
If AVL meets the Shaw and Partners target it will return approximately 400% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgan Stanley rates BXB as Upgrade to Overweight from Equal-weight (1) -

Brambles shares are trading at a -21% discount to the five-year average and, with the company forecast to enter a period of earnings growth, Morgan Stanley expects US$400m in buybacks in FY25 and FY26, respectively.

The analyst highlights the key risk is price competition, specifically the possibility of price discounting, although no evidence of irrational behaviour has been observed so far.

Rating upgraded to Overweight from Equal-weight and target raised to $16.60 from $15.70. Industry View: In line.

Target price is $16.60 Current Price is $14.65 Difference: $1.95
If BXB meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.43, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 Sell (5) -

In addressing the constant conundrum of how much of a premium valuation is ascribed to CommBank, Citi highlights the company's better execution in retail banking over the last 12 months, with improved trends and better performance compared to its peers.

Despite core profit growth being hard to achieve, the bank's retail business performance may justify the continued outperformance of the shares, notes the analyst.

However, Citi does envisage challenges from normalising deposit spreads, high wage inflation, and increased bad debts.

Sell rating retained. The target is revised to $85.

Target price is $85.00 Current Price is $125.55 Difference: minus $40.55 (current price is over target).
If CBA meets the Citi target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $93.98, suggesting downside of -24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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) -

Morgan Stanley calculates an estimated -$2.5bn in lower provision charges for the big banks between now and the end of FY26.

The analyst estimates the impact will be greatest on National Australia Bank's ((NAB)) earnings and smallest on ANZ Bank ((ANZ)), with CommBank the second most impacted and Westpac ((WBC)) the third.

The Underweight rating and $93 target are maintained for CommBank. Sector view is In-Line. 

Target price is $93.00 Current Price is $125.55 Difference: minus $32.55 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $93.98, suggesting downside of -24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Shaw and Partners rates CCR as Initiation of coverage with Buy (1) -

Credit Clear is a leading contingent debt collector in Australia and it leverages proprietary technology to digitise the collection process, Shaw and Partners states.

The broker expects robust top-line growth, with FY24 revenue guidance of $40-$42m, expected to increase to over $60m by FY27, driven by Tier 1 client acquisitions and operating leverage.

Credit Clear has a strong balance sheet and is net cash positive with a significant market position, notes the broker.

Initiation with a Buy rating and 40c target.

Target price is $0.40 Current Price is $0.24 Difference: $0.165
If CCR meets the Shaw and Partners target it will return approximately 70% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Following a strong appreciation in the share price, Macquarie analysts have downgraded their rating to Neutral from Outperform while raising their price target to $11.15 from $10.65.

The broker highlights the strong performance of the Comms segment, which is on track to deliver 10-15% organic growth in FY24.

Financial forecasts have been adjusted, with the EPS estimate for FY24 revised to 44.4c, and FY25 to 53.8c. The broker remains focused on Codan’s strategic acquisitions and high-quality client base to drive future growth.

Target price is $11.15 Current Price is $10.99 Difference: $0.16
If CDA meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Bell Potter rates CMM as Buy (1) -

Bell Potter revisits the outlook for Capricorn Metals post the pullback in the share price and the 26% increase in ore reserves at the Mt Gibson Gold Project (MGGP).

The broker highlights MGGP is progressing through permitting and is considered one of the largest underdeveloped stand-alone Australian gold projects.

A resource update is expected in the September quarter and the analyst makes some minor EPS changes of -4% for FY24 and -3% for FY25.

The Buy rating and $6.50 are maintained,.

Target price is $6.50 Current Price is $4.79 Difference: $1.71
If CMM meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Shaw and Partners rates GTK as Buy (1) -

Despite the 45% rally in the Gentrack Group share price year-to-date, the analyst at Shaw and Partners considers the company continues to have good growth potential, which is (still) underestimated by investors.

The broker highlights Gentrack Group could exceed margin guidance of 15%-20% and points to the successful roll-out of g2.0 across its customer base.

The analyst doesn't view the addition of around 10m new meters as onerous for management to reach its strategic goals.

Buy rating unchanged. Target raised to $10 from $9.10.

Target price is $10.00 Current Price is $8.90 Difference: $1.1
If GTK meets the Shaw and Partners target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Morgans rates IEL as Hold (3) -

A bit late to the party, but Morgans has finally updated its thoughts and forecasts for IDP Education, which recently issued a profit warning as governments, including in Australia, put a lid on immigration, limiting the country's student in-take.

The broker cannot get too excited about FY25, suspecting there might be more downside risk, still, but medium-term confidence and optimism dominate its assessment.

Morgans remains of the view this company continues to face challenges short term, despite management announcing a cost-out program.

The target falls to $17.40 from $20.20 and the Hold rating is unchanged.

Target price is $17.40 Current Price is $15.33 Difference: $2.07
If IEL meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $19.68, suggesting upside of 31.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Macquarie analysts have downgraded Imdex to Neutral from Outperform while raising their price target to $2.42 from $2.30.

The broker notes subdued drilling activity with 3Q mining activity down -28% YoY, although strong industry fundamentals should drive medium-term growth.

Imdex is seen as well positioned to capitalise on future upticks in activity. No changes have been made to financial forecasts, with FY24 revenue expected to be $449.4m and EBITDA at $131.5m.

The broker remains optimistic about Imdex’s prospects, citing increased junior capital raising activity as a potential catalyst.

Target price is $2.42 Current Price is $2.40 Difference: $0.02
If IMD meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Macquarie rates IPH as Outperform (1) -

Macquarie has returned from research restriction with an Outperform rating and setting a price target of $7.35.

The broker highlights IPH’s stabilisation of market share in Australia at 32% and expects a return to growth in Asia, driven by increased filing activity from a significant US client.

Financial forecasts remain unchanged, with EPS growth expected at circa 9% for FY25 and circa 5% for FY26. The upcoming 2H24 results release in August is anticipated as a key catalyst.

The broker highlights IPH shares continue to trade at a material discount to historical multiples.

Target price is $7.35 Current Price is $6.54 Difference: $0.81
If IPH meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.35, suggesting upside of 30.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates MIN as Buy (1) -

Mineral Resources recently agreed to sell a -49% interest in the Onslow Iron Haul Road tolling fee stream for $1.3bn which is expected to contribute to the company's earnings from FY25, according to Bell Potter.

Going forward, the broker is looking for further updates on the Wodgina Processing Train 4, Bald Hill Lithium Mine, and Onslow Iron Project expansion.

Management's guidance on production is considered conservative by the analyst and Bell Potter remains positive on Mineral Resources given its strategic growth in lithium and iron ore.

The broker adjusts EPS forecast for FY25 by -46% on increased depreciation allowances. Buy rating unchanged. Target declines to $84 from $85.

Target price is $84.00 Current Price is $68.63 Difference: $15.37
If MIN meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $74.14, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates MIN as Buy (1) -

Following a binding agreement to sell down -49% of the Onslow Haul Road by Mineral Resources, Citi makes no changes to its Buy rating and $79 price target but views the sale, subject to FIRB approval, as a positive to de-gear the balance sheet.

The broker now expects the company to achieve a 35Mtpa rate by 30 June 2026, which is conservative compared to management's guidance for around June 2025.

Citi upgrades EBITDA forecasts by 8% and 9% in FY25 and FY26.

Target price is $79.00 Current Price is $68.63 Difference: $10.37
If MIN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $74.14, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

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

Morgan Stanley calculates an estimated -$2.5bn in lower provision charges for the big banks between now and the end of FY26.

The analyst estimates the impact will be greatest on National Australia Bank's earnings and smallest on ANZ Bank ((ANZ)), with CommonBank((CBA)) the second most impacted and Westpac ((WBC)) the third.

Target price $32.50. Equal-weight. Industry View: In-Line.

Target price is $32.50 Current Price is $35.23 Difference: minus $2.73 (current price is over target).
If NAB 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 $30.57, suggesting downside of -12.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Shaw and Partners rates PNC as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage of Pioneer Credit with a Buy rating and 80c target.

The company is number two in the Australian debt purchasing and collection industry and the broker expects the industry to return to growth after five years of contraction caused by increased regulation, higher interest rates, and covid.

Management has an "ambitious" net profit target of $18m in FY26, notes Shaw and Partners, with debt purchases projected to grow to $120m, driving cash collections to over $200m by FY26.

The company is refinancing its senior facility and it is expected to save $8-$11m p.a. in interest expenses.

Target price is $0.80 Current Price is $0.46 Difference: $0.34
If PNC meets the Shaw and Partners target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates RPL as Buy (1) -

Bell Potter assesses the acquisition of Merricks Capital, which is expected to add $2.9bn of FUM, and increase the overall scale and diversity of Regal Partners.

The analyst views the acquisition will have a materially positive impact on earnings and increases EPS forecasts by 4.1% in FY24 and 16.1% in FY25

Buy rating unchanged and the target lifted to $4.75 from $4.02.

Target price is $4.75 Current Price is $3.56 Difference: $1.19
If RPL meets the Bell Potter target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates SKT as Outperform (1) -

Macquarie analysts have maintained an Outperform rating for Sky Network Television with the broker's price target lifting to NZ$3.32 from NZ$3.15.

The broker notes the 1H24 results were consistent with management's three year strategic plan. Despite a challenging 2H, the analysts expect Sky Network Television to deliver within the current FY24 guidance.

The shares are highlighted as one of the most undervalued stocks on the NZ market, especially if the company delivers on its published three-year plan, with revenue CAGR of 3-4% and a sustainable EBITDA margin of 21-23%.

Financial forecasts have been adjusted, with FY24 EPS forecast lowered by -4% and FY25/26 EPS forecasts adjusted by -2%/+3%. The forecast yield is expected to lift from circa 7% in FY24 to circa 12% in FY26.

Current Price is $2.23. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Macquarie - Cessation of coverage

Market Sentiment: 1.0

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

Bell Potter rates SMI as Speculative Buy (1) -

Bell Potter adjusts earnings forecasts following the April capital raising and the updated mineral resource estimate of the Bendigo-Ophir Project for Santana Minerals.

The broker highlights the April scoping study confirms the project's high margin, low capital intensity, and short payback period.

The pre-feasibility results are expected late in the September 2024 quarter with key environmental approvals in the December quarter, notes the analyst, with further discovery potential along the 30km prospective trend.

Speculative Buy and $2.15 target unchanged,

Target price is $2.15 Current Price is $1.08 Difference: $1.07
If SMI meets the Bell Potter target it will return approximately 99% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Macquarie highlights recent contract awards valued at circa $600m, including agreements with Yarra Valley Water and Victoria's Department of Transport.

Post a 28% rally since the 1H24 result, the rating is downgraded to Neutral from Outperform. FY25/26 EPS estimates have been revised up by 3-4% due to minor segment adjustments and lower corporate costs.

The broker remains optimistic about Service Stream’s business optimisation and revenue profile improvements. The price target increases to $1.30 from $1.25.

Target price is $1.30 Current Price is $1.23 Difference: $0.075
If SSM meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.29, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

UBS rates TWE as Buy (1) -

Extrapolating observations from luxury wine company The Duckhorn Portfolio in the USA, UBS analysts draw the conclusion that luxury wines are in decline, but outperforming the wine market overall.

And while de-stocking has been a problem for the industry at large, also affecting Treasury Wine Estates, UBS notes management at The Duckhorn Portfolio believes there's stabilisation happening, which would be good news.

Buy rating retained with a $15 target price. No changes to earnings forecast.

Target price is $15.00 Current Price is $12.07 Difference: $2.93
If TWE meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $13.54, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgan Stanley rates WBC as Underweight (5) -

Morgan Stanley calculates an estimated -$2.5bn in lower provision charges for the big banks between now and the end of FY26.

The analyst estimates the impact will be greatest on National Australia Bank's ((NAB)) earnings and smallest on ANZ Bank ((ANZ)), with Commonwealth Bank ((CBA)) the second most impacted, and Westpac the third.

Target price of $24.50. Underweight. Industry View: In-Line.

Target price is $24.50 Current Price is $26.97 Difference: minus $2.47 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.40, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.7

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

Macquarie rates WEB as Neutral (3) -

Macquarie analysts remain cautious on Webjet, maintaining a Neutral rating while raising their price target to $9.43 from $8.88.

The broker highlights the company's strong FY24 performance, with WebBeds expected to achieve circa 25% TTV growth in FY25, supported by a 35% YoY increase in FY25 YTD TTV.

The proposed de-merger of B2B and B2C businesses aims to drive a valuation re-rate, though Macquarie finds a lack of comparables for the B2B segment might limit the extent of the future re-rate.

As per Macquarie, B2B already accounts for 75% of total ebitda.

EPS forecasts for FY25/26/27 have been revised up by 0.4%/3.0%/3.5%. The broker highlights the need for consistent performance and ongoing market challenges.

The previous dividend forecast for FY25 has been removed, with the forecast for FY26 now a payout of 20.3c.

Target price is $9.43 Current Price is $8.84 Difference: $0.59
If WEB meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.35, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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