Australian Broker Call

Ord Minnett - Cessation of coverage

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

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

ASX shares have participated in the robust Santa rally leading into 2024, but Macquarie analysts point out trading volumes are still thin with recent data suggesting a decline in excess of -10% from the year prior.

In addition, suggest the analysts, there are no organic catalysts on the horizon, while there's plenty to worry about regarding future OPEX and CAPEX.

Macquarie has made miniscule amendments to forecasts. Target lifts to $63 from $60. Downgrade to Neutral from Outperform.

Target price is $63.00 Current Price is $62.44 Difference: $0.56
If ASX meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $61.12, suggesting downside of -2.3% (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

Citi rates BKW as Buy (1) -

A 90bps expansion in cap rates has put downward pressure on the value of Brickworks' portfolio of industrial assets. Asset devaluations are poised to push the upcoming H1 into an accountancy loss, Citi highlights.

The broker considers this a one-time setback only. While forecasts have been lowered, the Buy rating remains in place. Target price has actually moved higher, to $35 from $28.75 prior.

Target price is $35.00 Current Price is $26.79 Difference: $8.21
If BKW meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $28.14, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in July.

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

Bell Potter rates BUB as Speculative Hold (3) -

Following the recent $17.4m capital raising, Bell Potter has updated its modeling for Bubs Australia, which reduces the price target to 14c from 21c.

Speculative Hold retained, with the broker finding the company's progress made in the USA to date "encouraging".

The key challenge, the broker argues, is to lift underlying gross margin towards 40% (from 30% in FY23). If achieved, this should open up a visible road to profitability in the years to follow.

Target price is $0.14 Current Price is $0.13 Difference: $0.01
If BUB meets the Bell Potter target it will return approximately 8% (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

Macquarie rates CPU as Outperform (1) -

Marking-to-markets has led to a small positive adjustment for Macquarie's EPS estimate for FY24, but with negative follow-ups in FY25 and thereafter (though it's a bit of a mixed picture based on bond yields and projections).

Price target unchanged at $28. Outperform.

Target price is $28.00 Current Price is $24.57 Difference: $3.43
If CPU meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $28.24, suggesting upside of 14.4% (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: 0.8

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

Bell Potter rates CU6 as Buy (1) -

Recent acquisition intentions by large pharma multinationals suggest high quality, later stage clinical assets in radiopharmaceutical are rare and valuable, opines Bell Potter.

On this basis, Clarity Pharmaceuticals is considered as "well-positioned". Bell Potter sees a promising future ahead, even without Bristol Myers Squibb and Co knocking at the company's headquarter's gate.

Valuation has lifted to $3 (from $1.70). Buy.

Target price is $3.00 Current Price is $2.10 Difference: $0.9
If CU6 meets the Bell Potter target it will return approximately 43% (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

Citi rates CXO as Sell (5) -

Core Lithium has suspended operations at its open pit mine and put discretionary spending under review. Citi notes how stockpiles will continue to be processed until mid-year.

The broker is also expecting an impairment of -$50m will be announced. With the price of lithium expected to move sideways, and considering the operational problems, the broker finds it hard to express anything with conviction.

Citi explains Core Lithium is the highest cost producer in its coverage of the lithium sector on the ASX. Sell. Target price drops to 13c.

Target price is $0.13 Current Price is $0.19 Difference: minus $0.06 (current price is over target).
If CXO 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 $0.29, suggesting upside of 43.3% (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

Bell Potter rates GOR as Buy (1) -

Labour availability issues have held back operations at Gruyere, causing Gold Road Resources' quarterly volumes to disappoint, Bell Potter points out.

A capital raising by De Grey Mining ((DEG)) in combination with paying out dividends to shareholders pulled down cash and equivalents to $149.8m from $200m the prior quarter.

Total gold production still met the lower end of management's guidance for 2023, the broker highlights. Minor changes to forecasts have reduced the price target by -5c to $2.05. Buy.

Target price is $2.05 Current Price is $1.70 Difference: $0.355
If GOR meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

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

Ord Minnett has suspended coverage of ioneer.

Current Price is $0.14. Target price not assessed.

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

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

Citi rates PTM as Sell (5) -

$1 price target and Sell rating retained as Platinum Asset Management's December update yet again revealed continued funds outflows.

The numbers yet again provided a negative surprise, Citi analysts surmise. Given markets have been rallying into year-end, a sense of disappointment characterises today's research update.

EPS estimates have reduced.

Target price is $1.00 Current Price is $1.28 Difference: minus $0.28 (current price is over target).
If PTM meets the Citi target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.28, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates SDR as Buy (1) -

On the expectation that cash burn is reducing, Citi has stuck by its $5.70 price target and Buy rating for SiteMinder. The company is considered on its way to becoming free cash flow positive in Q4 of FY24.

Citi believes consensus forecasts are too conservative. Irrespective of a robust share price performance, this stock remains the broker's key pick in the Australian tech sector.

Target price is $5.70 Current Price is $5.27 Difference: $0.43
If SDR meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 2.2% (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

Macquarie rates SLR as Outperform (1) -

Silver Lake Resources' Q2 update revealed stronger-than-anticipated sales of gold and Macquarie has kept its Outperform rating and $1.50 price target intact.

The FY24 EPS forecast has been lifted by 7%. Macquarie lauds the strong balance sheet and the fact the company remains on track to achieve guidance for the year.

Target price is $1.50 Current Price is $1.16 Difference: $0.345
If SLR meets the Macquarie target it will return approximately 30% (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 STO as Outperform (1) -

Outperform rating retained as Macquarie finds fundamentals are improving for Santos with the company expected to report a "solid" quarterly report on January 25.

As merger talks continue with Woodside Energy ((WDS)), the broker believes any offer from the latter would likely see the light of day over the next 6-7 weeks.

As the broker has identified several other potential catalysts for the shares, Santos remains its most preferred exposure in the Australian energy sector.

Target $9.60.

Target price is $9.60 Current Price is $7.59 Difference: $2.01
If STO meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $9.14, suggesting upside of 20.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.6

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

Citi rates TWE as Neutral (3) -

Citi believes recent the market update by Constellation Brands contained negative read-through for Treasury Wine Estates.

The broker reminds its clientele recent in-house research unearthed reasons to be cautious about Treasury Wine Estates' Americas division.

Possibly offsetting the above concern is the potential for positive news flow around China.

Target $11.80. Neutral.

Target price is $11.80 Current Price is $10.10 Difference: $1.7
If TWE meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.11, suggesting upside of 28.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Citi rates WHC as Buy (1) -

Citi analysts continue to see "value" in Whitehaven Coal shares, maintaining their Buy rating with a price target of $9.40.

As the outlook for metallurgical coal demand and pricing is underpinned by strong demand from India, Citi suggests a positive view seems but appropriate for Whitehaven Coal shares.

Target price is $9.40 Current Price is $8.02 Difference: $1.38
If WHC meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.71, suggesting downside of -5.4% (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