Australian Broker Call

Credit Suisse rates ANZ as Outperform (1) -

Credit Suisse has updated its projections across the board for Australian banks, this time incorporating a more aggressive rate hike path as indicated by the RBA.

The bottom line: more benefits for banks' Net Interest Margin (NIMs) to be fully enjoyed by FY24. There is partial offset via higher bad and doubtul debts.

The broker's updated FY24 margins now sit above market consensus.

ANZ Bank is the broker's favourite in the local sector. Outperform. Target price $29.25 (from $29.95 prior).

Target price is $29.25 Current Price is $22.62 Difference: $6.63
If ANZ meets the Credit Suisse target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $26.93, suggesting upside of 18.7% (ex-dividends)

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 AOF as Hold (3) -

As Aliro Group were unable to submit an updated proposal to acquire 100% of the units in Australian Unity Office Fund, management turns its attention to an expression of interest campaign.

Separately, management announced June 2022 revaluations, which caused the net tangible assets (NTA) metric to fall by -10%. Ord Minnett maintains a Hold rating given ongoing bid uncertainty and due to major lease expiries. The $2.05 target is maintained.

Target price is $2.05 Current Price is $1.80 Difference: $0.25
If AOF meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates APE as Upgrade to Outperform from Neutral (1) -

Credit Suisse reviews Eagers Automotive in light of some macro-economic changes to the global automotive markets.

The broker believes pent up demand for vehicles in Australia is running at around 350k to 400k post the covid problems in the last two years.

Eagers Automotive is in a good position to benefit from improvements in the global automotive supply chains and notably the company did not "over earn" during covid, but experienced high margins, points out Credit Suisse.

Accordingly, the analyst explains strong demand and the ability to maintain robust margins will assist in revenue and ongoing earnings growth for the company.

Credit Suisse increases earnings forecasts by 7.9% and 8.2% for FY22 and FY23, respectively.

The rating is upgraded to Outperform from Neutral and the price target is raised to $14.50 from $12.30.

Target price is $14.50 Current Price is $12.39 Difference: $2.11
If APE meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $14.54, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates AX1 as Hold (3) -

After Accent Group preannounced FY22 earnings (EBIT) on July 22, Morgans lowers earnings estimates for FY22 and FY23 by -8% and -7%. It's felt customers may have pushed back in May and June against higher prices after a period of discounts.

While the company has a multi-pronged growth strategy, the analyst keeps a Hold rating due to higher levels of borrowing compared to peers. The $1.40 target price is also unchanged.

Target price is $1.40 Current Price is $1.37 Difference: $0.03
If AX1 meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.41, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates BBN as Overweight (1) -

Coming into reporting season, Morgan Stanley has conviction for Baby Bunting's results and feels gross margin and gross profit can be maintained during inflationary times, even if consumers trade down.

The broker points out the company is a price leader, with capacity to lift prices and operates in a resilient category. The Overweight rating and $6.00 target are maintained. Industry View: In-line.

Target price is $6.00 Current Price is $4.75 Difference: $1.25
If BBN meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $6.01, suggesting upside of 26.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates BEN as Outperform (1) -

Credit Suisse has updated its projections across the board for Australian banks, this time incorporating a more aggressive rate hike path as indicated by the RBA.

The bottom line: more benefits for banks' Net Interest Margin (NIMs) to be fully enjoyed by FY24. There is partial offset via higher bad and doubtul debts.

The broker's updated FY24 margins now sit above market consensus.

Credit Suisse has kept 'Bendalaide' on Outperform with an unchanged price target of $11.10.

Target price is $11.10 Current Price is $10.33 Difference: $0.77
If BEN meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.44, suggesting upside of 1.7% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Credit Suisse rates BOQ as Outperform (1) -

Credit Suisse has updated its projections across the board for Australian banks, this time incorporating a more aggressive rate hike path as indicated by the RBA.

The bottom line: more benefits for banks' Net Interest Margin (NIMs) to be fully enjoyed by FY24. There is partial offset via higher bad and doubtul debts.

The broker's updated FY24 margins now sit above market consensus.

No changes to the rating (Outperform) or the price target ($10) for Bank of Queensland.

Target price is $10.00 Current Price is $7.42 Difference: $2.58
If BOQ meets the Credit Suisse target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $9.03, suggesting upside of 21.5% (ex-dividends)

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 Neutral (3) -

Credit Suisse has updated its projections across the board for Australian banks, this time incorporating a more aggressive rate hike path as indicated by the RBA.

The bottom line: more benefits for banks' Net Interest Margin (NIMs) to be fully enjoyed by FY24. There is partial offset via higher bad and doubtul debts.

The broker's updated FY24 margins now sit above market consensus.

The broker's rating for CommBank remains Neutral with a price target of $102.80, equally unchanged.

Target price is $102.80 Current Price is $97.07 Difference: $5.73
If CBA meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $88.05, suggesting downside of -8.9% (ex-dividends)

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 CTD as Re-initiation with Neutral (3) -

Credit Suisse has re-initiated coverage of Corporate Travel Management, expressing a number of concerns which have kept the rating on Neutral.

Forecasts for FY23 and FY24 are -7% and -6% below consensus respectively with the broker predicting business travel is not returning to pre-covid dynamics anytime soon, unlike leisure travel, and there's also concern about growth in transactions in North America.

Price target is $19.60.

Target price is $19.60 Current Price is $18.77 Difference: $0.83
If CTD meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $25.49, suggesting upside of 41.7% (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 DDR as Overweight (1) -

Given Dicker Data's 1H result was in-line with Morgan Stanley's tactically cautious view, the broker poses some rhetorical questions, though the answer seems to be: wait until 30 August results for more detail.

In the meantime, the target falls to $14 from $16 and the analyst stays tactically cautious. IT infrastructure acceleration is considered likely to offset PC normalisation post-covid.

The broker feels that while 7% organic 2Q revenue may suggest a slowdown, supply headwinds have weighed and demand is not the issue. The Overweight rating is maintained. Industry View: In-Line.

Target price is $14.00 Current Price is $11.67 Difference: $2.33
If DDR meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates DMP as Buy (1) -

UBS reviews Domino's Pizza Enterprises in light of the results posted by Domino Pizza (US) which experienced a slow down in US and international store growth, labour problems and inflationary pressures.

The broker is confident Domino's Pizza Enterprises can achieve 9-12% store growth ex acquisitions in FY22 with 8 store opening in the Netherlands in 7 days during June.

The market concerns over inflation, the rebuilding of Japan and store growth targets continue to weigh on the share price, UBS points out.

Nevertheless the analyst retains confidence the company is in a better position than peers to manage inflation with its focus on value.

The Buy rating and target price of $90.00 are retained.

Target price is $90.00 Current Price is $69.32 Difference: $20.68
If DMP meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $90.76, suggesting upside of 32.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

While Damstra Holdings 4Q revenue was slightly below guidance, a key positive for Morgan Stanley was guidance toward positive free cash flow in the 2H of FY23. However, the removal of reporting on the annual recurring revenue (ARR) metric is seen as a concern.

Management's cost-out target was upgraded to $8m from $5m. The Equal-weight rating and target price of $0.22 are unchanged. Industry View: In-Line.

Target price is $0.22 Current Price is $0.24 Difference: minus $0.02 (current price is over target).
If DTC meets the Morgan Stanley target it will return approximately minus 8% (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

UBS rates EML as Downgrade to Neutral from Buy (3) -

The Central Bank of Ireland (CBI) has sought more remediation/controls and assurances from EML Payments which pushes out the risk the process is extended in 2023, assesses UBS.

Shortfalls in some aspects of the remediation process were identified by the CBI and the delay will have a forecast impact on the sales growth for the company as well as a deferral of the company's switch from cash to bonds to benefit from higher interest rates, explains the analyst.

The rating is downgraded to Neutral from Buy and the price target is reduced to $1.05 from $2.10 due to ongoing uncertainty around the growth restrictions.

Target price is $1.05 Current Price is $0.93 Difference: $0.12
If EML meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 164.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates EVN as Add (1) -

After recent forward guidance from Evolution Mining, there were few surprises for Morgans contained within 4Q results. Rising industry costs and production impacts from weather and covid resulted in all-in sustaining costs exceeding the broker's expectation.

The analyst lowers the target price to $2.95 from $3.23 on higher corporate charges and lower valuations applied to exploration assets due to weaker metal prices. The Add rating is unchanged.

Target price is $2.95 Current Price is $2.43 Difference: $0.52
If EVN meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting upside of 15.6% (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

Credit Suisse rates FLT as Re-initiation with Underperform (5) -

Credit Suisse has re-initiated coverage on ASX-listed travel companies, but not with a lot of enthusiasm (see also Corporate Travel elsewhere).

Specifically for Flight Centre Travel, the new analysts in charge believe ongoing margin pressure in Leisure combined with limited capability to pass on costs will translate into below-consensus performance.

The broker also believes the company will have to step up its investments in the backend e-commerce platform.

Within this troubled framework, Credit Suisse sees the share price as overvalued. Underperform. Target $14.

Target price is $14.00 Current Price is $17.62 Difference: minus $3.62 (current price is over target).
If FLT meets the Credit Suisse target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.23, suggesting upside of 3.6% (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

Morgans rates FLT as Hold (3) -

Flight Centre Travel has upgraded guidance to a FY22 earnings (EBITDA) loss of -$180-190m from -$195-225m, after highlighting a rebound in travel demand and higher ticket prices.

Morgans highlights the Leisure division was profitable in May and June and Corporate has been profitable since March. A Neutral rating is maintained due to unknown impacts of inflationary pressures and recession fears on household and corporate budgets.

As the company has significant exposure to international travel and Morgans is concerned around capacity and reduced international commissions, the broker now doesn't expect earnings to fully recover to FY19 levels until FY25. 

The broker's FY22 forecasts are raised in-line with new guidance though FY23 forecasts are left unchanged and the target remains at $19.60.

Target price is $19.60 Current Price is $17.62 Difference: $1.98
If FLT meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $17.23, suggesting upside of 3.6% (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 FLT as Sell (5) -

A lower guided loss by Flight Centre Travel during a 4Q trading update was highly anticipated and in-line with expectations, according to Ord Minnett. The broker expects a material reduction in business travel as economic conditions worsen, and maintains its Sell rating.

The analyst suggests Leisure Travel will hold up well relative to Corporate, which is correlated to world trade growth. The target price falls to $13.18 from $14.28 due largely to earnings revisions.

Target price is $13.18 Current Price is $17.62 Difference: minus $4.44 (current price is over target).
If FLT meets the Ord Minnett target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.23, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.5

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

Macquarie rates HAS as Outperform (1) -

Hastings Technology Metals' latest drilling results have further extended rare earth mineralisation along the 8km Bald Hill. An updated resource estimate is due to be released before year-end.

Macquarie believes an upgrade to the current resource at Yangibana is likely, with the latest drilling results supporting this thesis. Securing a funding agreement remains a key catalyst.

Outperform and $6.40 target retained.

Target price is $6.40 Current Price is $3.94 Difference: $2.46
If HAS meets the Macquarie target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates IEL as Outperform (1) -

IDP Education's risk/reward profile is attractive, with continued market share gains in student placement a key source of upside to target, Macquarie suggests, before cutting its target to $30 from $35 due to higher costs and a higher risk-free rate.

Deployment of balance sheet capacity and potential organic share gains would be a benefit into the medium term, the broker notes.

Outperform retained.

Target price is $30.00 Current Price is $26.49 Difference: $3.51
If IEL meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $33.93, suggesting upside of 27.4% (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 IFL as Buy (1) -

Insignia Financial offered up mixed 4Q22 results with a strong performance in platforms as a positive, while higher adviser departures and institutional outflows were negative, according to Citi.

A rise in remediation costs to -$22m are forecast to impact on the 2H22 profits with a risk the breech in ANZ financial caps for ex-ANZ aligned licenses could place further cost imposts on Insignia Financial, points out the broker.

The broker adjusts earnings forecasts for the higher than expected adviser losses and cuts EPS forecasts -6% for FY22 and -15% for FY23.

Target price falls to $3.40 from $4.55 and a Buy rating is retained.

Target price is $3.40 Current Price is $2.84 Difference: $0.56
If IFL meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.36, suggesting upside of 49.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates IFL as Buy (1) -

A June quarter update by Insignia Financial results in material upgrades to Ord Minnett's earnings forecasts, given a high cost-to-income ratio for the business. 

Fund flows exceeded the broker's expectations, while there were better-than-expected market movements in both the company's investment management and platform products.

The analyst points to material valuation upside due to the company's low price/earnings multiple. The target rises to $4.12 from $3.61.

Target price is $4.12 Current Price is $2.84 Difference: $1.28
If IFL meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $4.36, suggesting upside of 49.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

While multiples for Australian asset managers have de-rated further on rising outflows and a dearth of growth options, Morgan Stanley still struggles to identify positive catalysts.

A broad recovery to inflows is considered unlikely and the broker cuts FY23 earnings forecasts by -10-30% across its coverage of the sector on lower assets under management (AUM).

From among that coverage, the analysts are Equal-weight on Janus Henderson given flows still look challenged for the next 12 months. The target falls to $34.10 from $48.00. Industry view: Attractive.

Target price is $34.10 Current Price is $35.40 Difference: minus $1.3 (current price is over target).
If JHG 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 $39.00, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Ord Minnett rates JLG as Initiation of coverage with Accumulate (2) -

Ord Minnett initiates coverage on building services group Johns Lyng with an Accumulate rating and $8.40 target price. Construction and restoration services are provided domestically and in the US.

The core business is to act as an intermediary for the insurance industry and manage building and restoration works in the wake of  insured events. The analyst expects currently elevated CAT events will support earnings for the next few years.

Also, Ord Minnett anticipates expansion into the US and strata in Australia. The company is considered to have significant scale versus its nearest competitor, and generates strong cash conversion with minimal working capital and capital expenditure requirements.

Target price is $8.40 Current Price is $7.53 Difference: $0.87
If JLG meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Market Sentiment: 0.5

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

Macquarie rates MCR as Outperform (1) -

Mincor Resources has released a maiden resource for LN04a and a maiden reserve is expected towards the end of 2022. LN04a is located some 90m from current mining infrastructure in the Northern Operations, Macquarie notes.

Mincor trades on an enterprise value to earnings multiple of 4.0x in FY23 and offers a compelling FY23 free cash flow yield of 23%, by the broker's forecasts.

Outperform retained, target rises to $2.40 from $2.30.

Target price is $2.40 Current Price is $1.86 Difference: $0.54
If MCR meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates MFG as Underweight (5) -

While multiples for Australian asset managers have de-rated further on rising outflows and a dearth of growth options, Morgan Stanley still struggles to identify positive catalysts.

A broad recovery to inflows is considered unlikely and the broker cuts FY23 earnings forecasts by -10-30% across its coverage of the sector on lower assets under management (AUM).

From among that coverage, Underweight-rated Magellan Financial is the last in order of preference as lumpy downside risks are still anticipated for flows. The target falls to $9.90 from $11.00. Industry View: Attractive.

Target price is $9.90 Current Price is $14.14 Difference: minus $4.24 (current price is over target).
If MFG meets the Morgan Stanley target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.44, suggesting downside of -18.8% (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

Morgans rates MME as Add (1) -

Following a 4Q trading update by MoneyMe, Morgans highlights revenue for FY22 was a 14% beat versus the broker's forecast. It's felt the underlying business performed strongly in FY22 and the recent acquisition of SocietyOne will add scale.

Autopay was a significant factor for 4Q originations, while SocietyOne contributed $0.4bn to the $1.4bn loan book at the close of FY22, explains the analyst.

After increasing forecast costs and raising FY22-24 revenue estimates by 4-14%, the broker's target price remains unchanged at $2.37. Add.

Target price is $2.37 Current Price is $0.74 Difference: $1.63
If MME meets the Morgans target it will return approximately 220% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates MQG as Overweight (1) -

In anticipation of an update by Macquarie Group at the July 28 AGM, Morgan Stanley expects improved commodity markets in the 1Q of FY23 to be highlighted.

The broker's US gas price dispersion index rose by more than 50% year-on-year in the June quarter and is forecast to rise again in the September quarter. The Overweight rating and $218 target are maintained. Industry View: Attractive.

Target price is $218.00 Current Price is $174.20 Difference: $43.8
If MQG meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $195.00, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates MQG as Buy (1) -

Ord Minnett lowers its target price for Macquarie Group to $200 from $218 to reflect a derating of alternative asset manager peers. The Buy rating is maintained.

In the lead-up to the group's AGM this Thursday, the broker expects weaker advisory and underwriting income, based on overseas peer reporting trends, though commodities income should be stronger.

The analyst reduces its FY23 net profit forecast by -4% on lower fee and investment income, offset partly by higher commodities
income.

Target price is $200.00 Current Price is $174.20 Difference: $25.8
If MQG meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $195.00, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Credit Suisse rates NAB as Neutral (3) -

Credit Suisse has updated its projections across the board for Australian banks, this time incorporating a more aggressive rate hike path as indicated by the RBA.

The bottom line: more benefits for banks' Net Interest Margin (NIMs) to be fully enjoyed by FY24. There is partial offset via higher bad and doubtul debts.

The broker's updated FY24 margins now sit above market consensus.

Credit Suisse's rating (Neutral) and price target ($32.40) for National Australia Bank remain unchanged.

Target price is $32.40 Current Price is $29.87 Difference: $2.53
If NAB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $31.18, suggesting upside of 5.0% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Citi rates NAN as Sell (5) -

Nanosonics announced a FY22 revenue update of $120.3m up 17% over a year ago and 2.5% above consensus, explains Citi.

The broker points out the transition to the direct sales model from GE in the USA was almost finished in Q4 and the installed base rose 12% in the full year to 29,800 with no details provided for EMEA or APAC.

The company will release the full FY22 results on August 23 and Citi retains concerns the company will not be able to generate material profits until FY25.

Sell rating retained. Target price rises to $3.85 from $3.65.

Target price is $3.85 Current Price is $4.26 Difference: minus $0.41 (current price is over target).
If NAN meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.14, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Morgans rates NAN as Add (1) -

Morgans assesses a solid trading update by Nanosonics that should provide confidence in the new sales model, with management noting a significant amount of consumables now being sold via the direct sales channel.

The company expects FY22 revenue of $120.3m, ahead of the broker’s $117.5m forecast and the $116.3m consensus estimate. The Add rating and $4.86 target price are unchanged, as no changes are made to forecasts. FY22 results are due on August 23.

Target price is $4.86 Current Price is $4.26 Difference: $0.6
If NAN meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.14, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Ord Minnett rates NAN as Lighten (4) -

Following 4Q results for Nanosonics, Ord Minnett points out the switch to direct distribution boosted upgraded sales and average prices. A Lighten rating is unchanged given the recent sharp rally in the share price and caution on growth outside of the US.

The broker raises earnings forecasts and the target rises to $3.70 from $3.50. The growth in sales, especially for upgraded sales, is expected to continue into FY23 because of the large installed base and increased focus on sales generally.

The analyst notes direct sales come at a higher price, and the sales team is currently more focused on upgrades.

Target price is $3.70 Current Price is $4.26 Difference: minus $0.56 (current price is over target).
If NAN 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 $4.14, suggesting downside of -9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Macquarie rates NIC as Outperform (1) -

Nickel Industries has released an update on the Angel rotary kiln-electric furnace project, noting early commissioning of the on-site power plant. The Angel project is on track, Macquarie notes, with early commissioning of the power plant presenting upside.

Macquarie suggests the disconnect between nickel metal prices (up 5.5% year to date) and Nickel Industries’ share price (down -28%) presents an opportunity. Outperform and $1.30 target retained.

Target price is $1.30 Current Price is $1.03 Difference: $0.27
If NIC meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 44.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Morgans rates OCL as Initiation of coverage with Add (1) -

Morgans initiates coverage on niche Enterprise software company Objective Corp, which has delivered a five-year average return on equity (ROE) of around 30%. Primary markets include A&NZ, the UK and North America.

The company specialises in content management and regulation, as well as building/planning workflow solutions for the public and regulated private sector. The broker begins with an Add rating and $16.80 target.

The analyst anticipates an elevated growth phase after new product launches and after the recent acquisition of US business Simflofy.  Benefits are also expected as numerous governments modernise legacy IT infrastructure. 

Objective has been able to leverage partnerships with Enterprise solution vendors (eg Microsoft Office365) to create governance management solutions across various platforms, explains Morgans. 

The broker considers TechnologyOne ((TNE)) one of the company’s closest domestic peers on the ASX.

Target price is $16.80 Current Price is $15.29 Difference: $1.51
If OCL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates ORG as Outperform (1) -

Government policy settings are now present for an accelerated rollout of renewables, Macquarie notes, with an emissions target of 43% translating to around 82% of electricity being renewable by 2030.

Opportunity may exist for Origin Energy for a step-change in renewables through acquisition, Macquarie suggests, with 5-6 portfolios for sale, albeit like rival AGL Energy ((AGL)), without a financial partner pricing will be challenging.

Outperform and $6.87 target retained.

Target price is $6.87 Current Price is $5.66 Difference: $1.21
If ORG meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.32, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates OZL as Buy (1) -

OZ Minerals experienced a "tough" June quarter with the company suffering from covid, inflation and supply chain problems, highlights Citi.

The company believes it can achieve FY copper guidance of 120-135kt, with the broker forecasting 126kt with a less optimistic view on gold for the 2H22.

Citi considers Carrapateena as the most important asset for the performance of OZ Minerals' share price and will be looking for the ongoing ramp up of operations.

The broker lowers its target price to $22.50 from $27.80 and retains its Buy rating.

Target price is $22.50 Current Price is $17.00 Difference: $5.5
If OZL meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $19.42, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Credit Suisse rates OZL as Underperform (5) -

Credit Suisse expressed disappointment for the June quarter copper production results for OZ Minerals.

Copper production was -7% below broker expectations and unit costs were 27% higher than expectations. Gold was in line with expectations.

During questioning OZ Minerals management reiterated the commitment to developing projects, West Musgrave and did not see the balance sheet as a constraint, although Credit Suisse envisages risks without a capital raising.

The analyst's 2022 earnings forecasts are lowered by -21% relating to cost and copper adjustments.

An Underperform rating is retained and the target price increases to $14.50 from $13.00 due to changes in the Net Asset Value (NAV) calculation.

Target price is $14.50 Current Price is $17.00 Difference: minus $2.5 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.42, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Macquarie rates OZL as Neutral (3) -

OZ Minerals' June quarter performance was weak, Macquarie suggests, with in-line production offset by higher costs.

First half revenue was -7% below expectation. The miner recently downgraded guidance but the broker continues to see Carrapateena headwinds and risks to production and cost.

The recent copper price decline is driving downside momentum. Macquarie's earnings forecasts would decrease by -10-35% for 2022-24 at current spot prices.

Neutral retained, target falls to $17 from $20.

Target price is $17.00 Current Price is $17.00 Difference: $0
If OZL meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $19.42, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

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

Direct production costs (C1) and all-in sustaining costs (AISC) for OZ Minerals' 2Q rose by 21% and 19%, respectively, though Morgan Stanley expects these to moderate in the 2H.

While costs were an around -20% miss versus the broker's forecast, 2Q copper production was in-line. It's felt the pressure is on to meet 2H targets for copper production and costs and the Equal-weight rating is maintained.

The $18.10 target is maintained. Industry View: Attractive.

Target price is $18.10 Current Price is $17.00 Difference: $1.1
If OZL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $19.42, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

UBS rates OZL as Buy (1) -

UBS notes the June quarter production results for OZ Minerals were weaker than even recently downgraded forecasts for both copper and gold.

The broker has further reduced the FY22 copper production to the lower end of the company's guidance at 121kt and the forecast all in sustaining costs (AISC) at the higher end.

UBS lowers earnings forecasts by -20% and -11% for FY22 and FY23, respectively due to lower production and increased costs.

With ongoing ramp up of Prominent Hill and the investment costs for West Mulgrave rising, UBS assesses the risks are increasing for OZ. Minerals

The Buy rating is retained and the target price for OZ Minerals decreases to $22.60 from $23.25.

Target price is $22.60 Current Price is $17.00 Difference: $5.6
If OZL meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $19.42, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

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

While multiples for Australian asset managers have de-rated further on rising outflows and a dearth of growth options, Morgan Stanley still struggles to identify positive catalysts.

A broad recovery to inflows is considered unlikely and the broker cuts FY23 earnings forecasts by -10-30% across its coverage of the sector on lower assets under management (AUM).

From among that coverage, the analyst keep Pendal Group Equal-weight given a challenging flows outlook and growing costs, offset by strategic interest in the business. The target falls to $4.50 from $5.90. Industry view is Attractive.

Target price is $4.50 Current Price is $4.63 Difference: minus $0.13 (current price is over target).
If PDL meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.33, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Citi rates PPT as Buy (1) -

Citi retains optimism for Perpetual post the 4Q22 trading update noting the impact of share markets, leading to net fund outflows and a fall in assets under management (AUM).

The company also guided for higher expenses at the upper end of the previous range to 18-22% growth, largely due to investments.

Citi views the ongoing growth for Perpetual Asset Management Australia as positive, as well as the pipeline opportunities for Trillium and Barrow Hanley.

The broker downgrades earnings forecasts by -2.8% for FY22 and -13.3% for FY23. Buy rating retained while the target price falls to $34.50 from $40.80.

Target price is $34.50 Current Price is $29.31 Difference: $5.19
If PPT meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $33.40, suggesting upside of 15.3% (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 PPT as Overweight (1) -

While multiples for Australian asset managers have de-rated further on rising outflows and a dearth of growth options, Morgan Stanley still struggles to identify positive catalysts.

A broad recovery to inflows is considered unlikely and the broker cuts FY23 earnings forecasts by -10-30% across its coverage of the sector on lower assets under management (AUM).

From among that coverage, the analysts like the Overweight-rated Perpetual for its growth alternatives. The target falls to $36.00 from $41.50. Industry view is In-Line. 

Target price is $36.00 Current Price is $29.31 Difference: $6.69
If PPT meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $33.40, suggesting upside of 15.3% (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 PPT as Upgrade to Buy from Accumulate (1) -

Following Perpetual's 4Q update, Ord Minnett raises its rating to Buy from Accumulate on valuation, though lowers its target to $33.00 from $36.50 to reflect weaker flows and market conditions.

For the quarter, flows were weaker than the analyst expected for Perpetual Asset Management Australia and Perpetual Asset Management International.

The broker sees ongoing momentum and funds under administration (FUA) growth in the Corporate Trust business, and earnings diversification via further revenue opportunities from Perpetual Digital. 

Target price is $33.00 Current Price is $29.31 Difference: $3.69
If PPT meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $33.40, suggesting upside of 15.3% (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

UBS rates PPT as Neutral (3) -

The June quarter -7.7% decline in funds under management (FUM) to $90.4bn for Perpetual was in-line with UBS' expectations, but net outflows of -$4bn were worse than anticipated.

Key metric, explained the broker, was the redemption of a $1.7bn from fixed income and a $0.9bn inflow of committed investments.

Acquisition target, Pendal Group ((PDL)) was not discussed in the quarterly announcement, while UBS estimates the takeover would be 6% earnings positive with around $50m in synergies.

Broker earnings forecasts are raised by 2% for FY22 and reduced -4% for FY23 with operating expenditure coming in at the upper end of guidance.

The Neutral rating is retained and the target price decreases to $29.50 from $30.00.

Target price is $29.50 Current Price is $29.31 Difference: $0.19
If PPT meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $33.40, suggesting upside of 15.3% (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 PTM as Equal-weight (3) -

While multiples for Australian asset managers have de-rated further on rising outflows and a dearth of growth options, Morgan Stanley still struggles to identify positive catalysts.

A broad recovery to inflows is considered unlikely and the broker cuts FY23 earnings forecasts by -10-30% across its coverage of the sector on lower assets under management (AUM).

From among that coverage, the analysts are Equal-weight on Platinum Asset Management given limited growth options. While flows are considered to be challenged, they are relatively stable. The target falls to $1.85 from $1.89. Industry view is In-Line. 

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

Current consensus price target is $1.91, suggesting upside of 5.2% (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 RMD as Equal-weight (3) -

Phillips has released 2Q results and commentary around its Respironics recall. The latter was broadly in-line with Morgan Stanley's market share expectations and the Equal-weight rating and $29.10 target for ResMed are maintained. Industry view In-Line.

Target price is $29.10 Current Price is $33.45 Difference: minus $4.35 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.76, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Citi rates S32 as Buy (1) -

Citi assesses the June quarter production results for South32 and views them as broadly in line with forecasts.

Of note the production was mixed across the divisions with met coal weaker from wet weather and alumina, aluminum and nickel better than expected; maganese was above the FY guidance, explains the broker.

After incorporating South32's guidance and updated in-house forecast commodity pricing, the analyst revises down earnings per share by -28% for FY23.

Citi retains a Buy rating and the price target is reduced to $4.90 from $5.50 with more details on FY23 guidance to be announced at the full year results.

Target price is $4.90 Current Price is $3.56 Difference: $1.34
If S32 meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $5.34, suggesting upside of 44.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates S32 as Outperform (1) -

South32's June quarter results were considered as "solid" but also as "mixed" by Credit Suisse in what the broker viewed as a challenging environment.

Wet weather impacted Illawarra coal, missing guidance but sales were boosted by inventory sell downs. Alumina production was 3% better than expectations, but aluminium disappointed by -3% on forecasts from a slower ramp up in Alumar.

Manganese operations were strong, up 22%, while Sierra Gorda missed forecasts by -11% and Cerro Matoso by -6%.

Pricing varied with coal better, alumina and alumium in-line and maganese pricing lower than Credit Suisse's expectations.

The price target is lowered to $5.30 from $5.60 and an Outperform rating maintained.

Target price is $5.30 Current Price is $3.56 Difference: $1.74
If S32 meets the Credit Suisse target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $5.34, suggesting upside of 44.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates S32 as Outperform (1) -

South32's June quarter result was mixed, Macquarie suggests, with lower production offset by higher sales volumes. FY cost guidance remains largely unchanged, with higher costs flagged for aluminium and copper.

Lower copper and coking coal prices have reversed earnings upgrade momentum, presenting a headwind in the near term.

Outperform retained, target falls to $5.90 from $6.00.

Target price is $5.90 Current Price is $3.56 Difference: $2.34
If S32 meets the Macquarie target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $5.34, suggesting upside of 44.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgan Stanley rates S32 as Overweight (1) -

South32's 4Q production was largely in-line with Morgan Stanley's expectation as was the FY22 production and cost performance. In a time of covid disruption and cost inflation it was considered a pleasing overall result.

While the remainder of guidance is due during the reporting season, FY23 guidance for Sierra Gorda was broadly in-line with the broker's forecast, as was guidance for manganese (in South Africa).

The Overweight rating and $5.10 target price are unchanged. Industry view: Attractive.

Target price is $5.10 Current Price is $3.56 Difference: $1.54
If S32 meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $5.34, suggesting upside of 44.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgans rates S32 as Add (1) -

Morgans assesses a mixed 4Q result across South32's diversified portfolio though was pleasantly surprised unit cost guidance was maintained across key segments. The performance of Cannington and Worsley was considered strong, while Illawarra and Cerro Matoso underperformed.

The Add rating is unchanged, and after a -27% fall in share price in three months, the broker considers it an opportune time to buy shares on an attractive forecast FY22 dividend yield. The target edges lower to $6.00 from $6.10.

Target price is $6.00 Current Price is $3.56 Difference: $2.44
If S32 meets the Morgans target it will return approximately 69% (excluding dividends, fees and charges).

Current consensus price target is $5.34, suggesting upside of 44.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Ord Minnett rates S32 as Buy (1) -

The June quarter production report for South32 revealed a positive to Ord Minnett in the current inflationary backdrop, in that FY22 costs were broadly in-line with guidance. Production was considered mixed and FY23 guidance was a miss versus expectations.

However, net profit guidance rose by 6% as strong prices offset mixed volumes, explains the analyst. FY22 results are due on 25 August. The target falls to $4.60 from $4.80 on lower volumes at Sierra Gorda and higher alumina costs. Buy.

Target price is $4.60 Current Price is $3.56 Difference: $1.04
If S32 meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $5.34, suggesting upside of 44.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates VSL as Neutral (3) -

Vulcan Steel announced the acquisition of Ulrich Aluminum (an Australian/New Zealand aluminum distributor) for $131m, which Credit Suisse views as a positive for the company.

The broker expects the acquisition to be earnings positive, around 6% before any synergies (estimated at NZ$10m) are generated from site rationalisation.

Longer term the analyst assesses the purchase to provide growth and value creation. A Neutral rating is retained due to short term market weakness in pricing, volumes.

The price target is reduced to $8.80 from $10.20.

Target price is $8.80 Current Price is $8.84 Difference: minus $0.04 (current price is over target).
If VSL meets the Credit Suisse target it will return approximately minus 0% (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: 0.5

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

Credit Suisse rates WBC as Neutral (3) -

Credit Suisse has updated its projections across the board for Australian banks, this time incorporating a more aggressive rate hike path as indicated by the RBA.

The bottom line: more benefits for banks' Net Interest Margin (NIMs) to be fully enjoyed by FY24. There is partial offset via higher bad and doubtul debts.

The broker's updated FY24 margins now sit above market consensus.

The rating for Westpac has remained Neutral with a price target of $24.40, equally unchanged.

Target price is $24.40 Current Price is $21.05 Difference: $3.35
If WBC meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $24.50, suggesting upside of 15.9% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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