Australian Broker Call

Credit Suisse rates 360 as Outperform (1) -

Given Life360's first half FY21 result was predominantly pre-announced, Credit Suisse leaves forecasts for the base business roughly unchanged.

The broker notes the business weathered covid headwinds with its user base intact with minimal customer acquisition spend and at free cash flow breakeven.

Credit Suisse is increasingly upbeat on the share price prospects. Outperform rating and target of $10.00 are both unchanged.

Target price is $10.00 Current Price is $9.30 Difference: $0.7
If 360 meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Morgan Stanley rates 360 as Overweight (1) -

Life360's pre-announced 2021 first-half result met the broker. The company increased guidance to US$120-US$125m, just shy of the broker's US$125.7m, from US$110-$120m previously.

Life360 reported stronger second-quarter growth in monthly active users, which has continued into the the third-quarter's back-to-school period.

Conversion rates rose and are forecast to continue to do so. Overweight rating and $9.80 target price retained. Industry view: In-line.

Target price is $9.80 Current Price is $9.30 Difference: $0.5
If 360 meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Citi rates A2M as Upgrade to Buy from Neutral (1) -

Cit came away from FY21 results encouraged by the resolution of the excess and dated inventory position, restructured distributor agreements, as well as improved inventory tracking and traceability systems. The rating increases to Buy from Neutral.

Most importantly for the analyst, the China brand health metrics remain positive, a sign that the brand is stronger and more resilient than previously thought.

The target price rises to $7.20 from $6.05 due to higher net cash, lower capex and a roll-forward of valuations to FY23. Citi highlights the company is working on innovations to improve its formulation and reduce reliance on a single product.

Target price is $7.20 Current Price is $6.05 Difference: $1.15
If A2M meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.53, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Credit Suisse rates A2M as Underperform (5) -

Credit Suisse believes the main reason investors will be lowering a2 Milk Company's FY22-FY24 earnings estimates is due to China 2020 and 2021 births have been relatively low.

The company acknowledged losing share in Stage 1 English Label infant formula, which means that as these cohorts age, the company could face a drag on sales of Stage 2 and Stage 3 products – which have larger revenue bases.

The broker anticipates a recovery of sales in FY22 to $1.4bn from $1.2bn as a2 Milk ships to meet underlying demand.

The company has provided no quantitative guidance and there is no return of capital, with a2 Milk preferring at this stage to re-invest capital for growth. 

Underperform retained. Target is $5.50.

Target price is $5.50 Current Price is $6.05 Difference: minus $0.55 (current price is over target).
If A2M meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Macquarie rates A2M as Underperform (5) -

a2 Milk Company's full year results were at the low end of guidance, with revenue down -30% on the previous corresponding period, underlying earnings down -78% and net profit down -79%.

Despite no guidance being provided for FY22, Macquarie notes outlook commentary suggests a weak year. The company is targeting stabilisation in its English label, and expects growth in revenue and market share for its China label.

Macquarie has updated earnings per share forecasts by -37%, -26% and -22% through to FY24 given softer revenue and margin recovery.

The Underperform rating is retained and the target price decreases to $5.40 from $5.60.

Target price is $5.40 Current Price is $6.05 Difference: minus $0.65 (current price is over target).
If A2M meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Morgans rates A2M as Add (1) -

The FY21 result came in at the lower end of guidance. Morgans materially downgrades forecasts after outlook comments by management underwhemed. The target falls to $6.25 from $6.65. While the worst is thought to be over, the Hold rating is unchanged.

FY21 sales fell -30% while underlying earnings (EBITDA) declined -76%. The latter reflected NZ$108.6m of stock provisions, given excess and aging inventory issues as well as one-off costs associated with the new ERP system, notes the broker.

Earnings also suffered from consumer pantry destocking post covid, purposely holding back sales to rebalance channels and weak daigou sales given travel restrictions/structural changes, explains Morgans.

Target price is $6.25 Current Price is $6.05 Difference: $0.2
If A2M meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.53, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

UBS rates A2M as Buy (1) -

FY21 EBITDA was -15% below UBS estimates with larger-than-expected stock write-downs, heightened US losses and lower infant formula sales.

Still, the broker anticipates a meaningful recovery in both daigou and CBEC infant formula sales over the next three years. EBITDA forecasts are lowered by -9-11% for FY22-24.

Buy rating unchanged. Target is reduced to NZ$11 from NZ$12.

Current Price is $6.05. Target price not assessed.

Current consensus price target is $6.53, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Citi rates ACL as Neutral (3) -

For Citi's initial response to FY21 results, see yesterday's Report.

The FY21 pro-forma profit was 6% above the mid-point of the June guidance for $82-85m. Citi's Neutral rating is unchanged.

The broker increases FY22 and FY23 EPS forecasts by 171% and 86%, due to increased forecasts for covid testing. No contribution from covid is assumed in FY24 and beyond, which is thought to present risks to the upside. The price target rises to $4.45 from $3.80.

Target price is $4.45 Current Price is $4.50 Difference: minus $0.05 (current price is over target).
If ACL meets the Citi target it will return approximately minus 1% (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

Macquarie rates AGI as Outperform (1) -

Ainsworth Game Technology's full year results were in-line with recent guidance, with the company reporting a -$17m loss. Looking ahead, it is Macquarie's view that the company has an attractive outlook.

The broker points to North American casino revenues testing record highs and the monetisation of online content through the GameAccount network agreement as positive drivers for FY22's outlook.

According to Macquarie, second half FY21 performance has demonstrated an improved business and sets the scene for FY22 profitability. 

The Outperform rating is retained and the target price decreases to $1.20 from $1.30.

Target price is $1.20 Current Price is $1.02 Difference: $0.18
If AGI meets the Macquarie target it will return approximately 18% (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

UBS rates AGI as Sell (5) -

FY21 was in line with the pre-announced result. The net loss of -$53m was better than UBS estimated.

North America is performing strongly and UBS expects, while a recovery will take some time because of the pandemic, there is less uncertainty in this market. Sell rating and $0.35 target maintained.

Target price is $0.35 Current Price is $1.02 Difference: minus $0.67 (current price is over target).
If AGI meets the UBS target it will return approximately minus 66% (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

Morgans rates AIM as Add (1) -

FY21 results were ahead of prospectus and slightly better than Morgans anticipated. Although no specific cost guidance was provided estimates are upgraded by 1-5%.

The broker notes, following the completion of the EEG acquisition, the business model now offers more holistic solutions.

The broker considers Ai-Media Technologies unique in that it now covers the full spectrum for captioning and translation. Add rating maintained. Target is raised to $1.46 from $1.44.

Target price is $1.46 Current Price is $1.00 Difference: $0.46
If AIM meets the Morgans target it will return approximately 46% (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 AIZ as Underperform (5) -

While Air New Zealand's FY21 result was in line with guidance, FY22 guidance is now suspended. Macquarie notes losses and cash burn are set to accelerate in FY22 given reduced subsidies, repayments of tax deferrals and higher capital expenditure. 

The company reported a profit before tax loss of -$440m for FY21, and had previously guided to losses not exceeding -$530m for FY22, and the broker expects things to get worse before a recovery. 

Air New Zealand has also announced its intention to use the 787 order to replace the 777-3000 fleet, which will result in a -30% long haul capacity reduction. Macquarie expects a new-look network as travel resumes, with an increased focus on domestic, Australia and Pacific, and on premium customers. 

Macquarie updates earnings per share forecasts by -49% and -34% for FY22 and FY23 respectively. The Underperform rating is retained and the target price increases to NZ$1.20 from NZ$1.10.

Current Price is $1.45. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Citi rates ALG as Buy (1) -

After FY21 results, Citi raises its target price to $1.80 from $1.30 after increasing forecast FY22 profit by $15m to account for a
better than expected result and strong momentum in Main Event. For the latter, a faster rollout and higher margins are expected.

The broker arrives at a 35% higher valuation after comparing how much might be received from Red Bird’s option exercise for an additional 27% stake in Main Event, to the remaining 49% stake in Main Event. The Buy rating is maintained.

Target price is $1.80 Current Price is $1.26 Difference: $0.54
If ALG meets the Citi target it will return approximately 43% (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

Ord Minnett rates ALG as Upgrade to Buy from Sell (1) -

Ardent Leisure reported a net loss of -$95.9m in FY21, an improvement on FY20 and better than Ord Minnett estimated. The broker believes the results have eased a number of its key concerns regarding the stock.

Strong trading has continued into early FY22, signalling demand is less led by stimulus than previously thought. Earnings are now returning to record levels, which reduces the concern that the private equity partner will be able to exercise the option over 51% of Main Event and reap the majority of upside from the recovery.

Moreover, a sale of Main Event would mean Ardent Leisure moves to a significant net cash position after some significant financial hurdles. All up, this is enough for Ord Minnett to multiple upgrade to Buy from Sell. Target is raised to $1.75 from $0.75.

Target price is $1.75 Current Price is $1.26 Difference: $0.49
If ALG meets the Ord Minnett target it will return approximately 39% (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

Credit Suisse rates ALX as Outperform (1) -

Atlas Arteria released a strong interim result, delivering a 'beat' compared to Credit Suisse numbers, driven by a stronger-than-expected contribution from APRR due to higher margin expansion in first half FY21 versus the previous period.

The broker expects APRR traffic to recover in line with SANEF and factor in second half FY21 traffic to reach 95% of the pre-covid levels.

Management highlighted an upbeat traffic outlook as restrictions continue to ease across Europe and the US, and as vaccines are progressively rolled out across these regions.

The target is increased to $7.15 from $7.00. Outperform rating retained.

Target price is $7.15 Current Price is $6.30 Difference: $0.85
If ALX meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates ALX as Neutral (3) -

Atlas Arteria's first half cash earnings have beaten Macquarie's expectations by 9%, to total around $237m. 

Macquarie notes APRR continues to be the company's earnings and dividend driver, with July and August traffic up 5-6% on 2019 levels. Summer traffic strength has driven a lift in 2022 dividends.

Greenaway traffic was down -20-30% on 2019 levels, which the broker notes is to be expected. Earnings per share forecasts are lifted 5.8%, 3.5%m 4.8% and 2.2% through to 2024. 

The Neutral rating is retained and the target price increases to $6.52 from $6.22.

Target price is $6.52 Current Price is $6.30 Difference: $0.22
If ALX meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates ALX as Overweight (1) -

At first glance, Atlas Arteria's 2021 first-half result met Morgan Stanley's estimates.

Toll results were pre-announced but July figures for the French autoroutes outpaced the broker's expectations by about 6% and contributed to a dividend beat on consensus and the broker. 

July-August figures for the Dulles Greenway route have disappointed (-30% below the broker's estimates). Corporate costs rose in the first half and the company guided to higher-than-forecast costs for the full year.

 Overweight rating and $6.55 target price retained. Industry view: Cautious.

Target price is $6.55 Current Price is $6.30 Difference: $0.25
If ALX meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates ALX as Hold (3) -

There were no major surprises for Morgans in the first half result as toll revenues were already known. It's thought there's potential for the total return to be impacted by the decay in the valuation of the APRR toll road, caused by its concession expiry in 2035 drawing closer.

Management guided for a 15.5cps distribution to be paid in 2H21, which was 2.5cps ahead of Morgans expectations. The analyst expects dividends to grow rapidly over coming years. The Hold rating is unchanged and the target price rises to $6.44 from $6.33.

Target price is $6.44 Current Price is $6.30 Difference: $0.14
If ALX meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates ALX as Neutral (3) -

Profit in the first half from APRR was better than UBS expected, only -14% below 2019 levels. This outcome has driven a 15.5c distribution to be paid in the second half, taking distributions back to pre-pandemic levels.

UBS raises distribution forecasts and now assumes APRR returns to pre-pandemic profitability in the second half. As a result the target is raised to $6.85 from $5.75. Neutral maintained.

Target price is $6.85 Current Price is $6.30 Difference: $0.55
If ALX meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.70, suggesting downside of -0.3% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates ANP as Add (1) -

FY21 results reflected significant regulatory advancements, Morgans notes, and were in line with forecasts.

Activity is expected to pick up over the next six months as several catalysts approach, such as complete response to the FDA partial clinical hold, expansion of the indication pipeline and potential licensing/funding arrangements.

Speculative Buy rating retained. Target rises to $0.45 from $0.44.

Target price is $0.45 Current Price is $0.17 Difference: $0.28
If ANP meets the Morgans target it will return approximately 165% (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 APA as Neutral (3) -

It is Macquarie's view that it's been a tough year operationally for APA Group, highlighting reduced capacity in contract renewals and low inflation. The broker reports these factors have driven a -1.3% decrease in underlying earnings on the previous year results. 

Despite this, full year underlying earnings of $1.633bn was above consensus and at the lower end of guidance. Macquarie notes the approximate $1.3bn investment pipeline is a FY23 and FY24 growth driver, and continues to improve. 

The broker has reduced net profit and earnings per share forecasts by -10% and -4% for FY22 and FY23 respectively. 

The Neutral rating is retained and the target price decreases to $9.36 from $10.06.

Target price is $9.36 Current Price is $9.33 Difference: $0.03
If APA meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $10.11, suggesting upside of 8.3% (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 APE as Neutral (3) -

As per the July update, Eagers Automotive's first-half FY21 profit before tax (PBT) was $218.6m, with a PBT margin of 4.7% compared to an average of 3% from FY13 to FY20.

Management suggests that 150bps of this uplift (versus pre-covid) is attributable to the cost-out program and merger synergies.

Credit Suisse's FY21 forecast calls for mid-single-digit second-half revenue growth in car retailing, which the broker notes appears achievable given management commentary pointing to a strong July-August in terms of orders.

The net outcome sees earnings per share revisions (EPS) of 3-5% across FY21-23.

Neutral maintained. Target is raised to $16.80 from $16.10.

Target price is $16.80 Current Price is $16.39 Difference: $0.41
If APE meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $17.89, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates APE as Outperform (1) -

Eagers Automotive's first half results were in line with the company's recent trading update, with underlying net profit of $158.1m a 3% beat on Macquarie's forecast. 

Management expects recent tailwinds to increase in the near-term, despite some impact from lockdowns. Macquarie highlights that demand continues to outstrip supply by as much as 30% and supply is not expected to free up for the next 6 months. 

The broker's earnings per share forecasts are updated by 2.3% and 4.1% for FY21 and FY22 respectively. 

The Outperform rating is retained and the target price increases to 18.50 from $18.25.

Target price is $18.50 Current Price is $16.39 Difference: $2.11
If APE meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $17.89, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates APE as Overweight (1) -

Eagers Automotive's pre-guided 2021 first-half result met the broker.

The broker reports a structural, durable increase in earnings power as margins stretch to 4.7% (historical average 3%) thanks to synergy cost-outs, and favourable industry conditions.

The broker spies plenty of room for organic and inorganic growth.

No guidance was provided but sales rose in July and August and the company reports elevated orders. Given continuing supply constraints, the broker expects demand will outstrip supply by 30%.

Overweight maintained. Target price is $18. Industry view is In-Line.

Target price is $18.00 Current Price is $16.39 Difference: $1.61
If APE meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $17.89, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

UBS rates APE as Buy (1) -

First half results reflected solid margin expansion and favourable trading conditions, UBS notes, led by a strong rise in new vehicle revenue which was in line with estimates.

Demand is tracking around 30% above supply and the company expects this will continue, while the margin uplift should be sustainable. Eagers Automotive has also continued the Next100 strategy through property consolidation, removing an annual rent expense of $13m.

Buy retained. Target rises to $18.35 from $17.70.

Target price is $18.35 Current Price is $16.39 Difference: $1.96
If APE meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.89, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates APX as Neutral (3) -

Appen's first half FY21 earnings of $28m declined -14% on the previous period and marked a -25% miss to Credit Suisse driven by misses at both sales and margin.

Credit Suisse notes management provided a more credible bridge to the large second-half skew required to achieve full-year guidance than last year, namely the strength of the order book, a high-quality sales pipeline, and closer discussions with customers during the year.

The broker also notes the second half FY21 bridge to profit guidance suggests a half-on-half doubling of profit and estimates $61m of incremental second half FY21 revenue is required to achieve guidance.

Neutral rating is unchanged and the target is lowered to $11 from $15.

Target price is $11.00 Current Price is $10.86 Difference: $0.14
If APX meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $14.92, suggesting upside of 45.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates APX as Neutral (3) -

A revenue miss has driven weak first half results for Appen, according to Macquarie, with the company reporting a miss on the broker's forecasts.

Despite this, Appen has largely maintained guidance, with some softening towards the lower end of range. The company is expecting a second half skew based on a stronger order book and pipeline strength. 

It is Macquarie's view that management guidance on revenue growth and underlying earnings margin rebound in the second half is optimistic. The broker has lowered earnings per share forecasts by -17-30% between FY21 and FY23. 

The Neutral rating is retained and the target price decreases to $11.80 from $14.70. 

Target price is $11.80 Current Price is $10.86 Difference: $0.94
If APX meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $14.92, suggesting upside of 45.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates APX as Buy (1) -

Ord Minnett was disappointed with the first half results amid a -29% miss to forecasts at the EBITDA line. Guidance for 2021 has been maintained which the broker points out implies a second-half skew for EBITDA of at least 66%.

A contributing factor, management asserts, will be the investment in the new markets business along with materially improved margins.

Ord Minnett remains wary and reduces the target to $13.50 from $24.75 to reflect a more mature business that is cycling a slowdown in some of its largest contracts. Buy maintained.

Target price is $13.50 Current Price is $10.86 Difference: $2.64
If APX meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $14.92, suggesting upside of 45.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates AUB as Outperform (1) -

AUB Group has closed out FY21 in line with Macquarie's expectations, reporting underlying net profit of $65.3m. 

Looking forward, Macquarie highlights that the company's FY22 guidance includes $8-10m in organic growth which implies between 13.2-16.5% organic growth increase on FY21, as well as initial underlying net profit guidance of between $70-73m. 

The broker upgrades earnings per share forecasts by 1.3%, 3.1% and 5.6% through to FY24.

The Outperform rating is retained and the target price increases to $25.52 from $23.13. 

Target price is $25.52 Current Price is $23.66 Difference: $1.86
If AUB meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $22.50, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Blackmores missed consensus FY21 earnings expectations, with A&NZ earnings down -31% on the previous period due to lower volumes from retail shuts and fewer international students and daigou shoppers.

China achieved significant underlying growth aided by the company building a new e-commerce capability, and international earnings grew 89% in the second half FY21 versus second half FY20, with covid introducing many new consumers to the vitamin/supplement category through immunity aids.

Credit Suisse notes with Blackmores staking out bold 2024 revenue targets in its FY21 result presentation, the broker recognises the company has advanced to the master class of projecting company value.

Credit Suisse notes Blackmores has laid out a stretch, but achievable, 2024 revenue target that was $100m (15%) above the broker's previous modelling.

Credit Suisse upgrades Blackmores to Outperform from Neutral rating and the target price increases to $100 from $77.

Target price is $100.00 Current Price is $92.09 Difference: $7.91
If BKL meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $79.58, suggesting downside of -18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates BKL as Hold (3) -

FY21 net profit was below Ord Minnett's forecasts. There were strong top-line growth in China and the international divisions offset by a drop in sales in the Australasian business.

The final dividend of $0.42 was well ahead of the broker's forecast and brings the pay-out ratio to 50% of underlying net profit.

No earnings guidance was provided for FY22 although the company indicated a revenue and margin target for FY24. Over the next three years a sales uplift of $250-300m is targeted. Ord Minnett believes this target is ambitious and retains a Hold rating. Target price is raised to $87.50 from $76.00.

Target price is $87.50 Current Price is $92.09 Difference: minus $4.59 (current price is over target).
If BKL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $79.58, suggesting downside of -18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgan Stanley rates BTH as Overweight (1) -

Bigtincan Holdings' FY21 result met guidance and the broker.

The company guides to a sharp rise in annual recurring revenue from $43.9m in FY21 to $119m in FY22 ($109m of which is sourced from the Brainshark acquisition struck on August 23).

Morgan Stanley has crunched the numbers on Brainshark and likes what it sees. Overweight rating retained as well as the $2.10 target price. Industry view: In-line.

Target price is $2.10 Current Price is $1.48 Difference: $0.62
If BTH meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates BTH as Buy (1) -

FY21 adjusted EBITDA was ahead of Ord Minnett's forecast. Strong revenue growth was achieved both organically and through acquisitions. Investment is ramping up in FY22 with the company aiming to deliver a 20% increase in annual recurring revenue.

Ord Minnett believes the company has successfully shifted its focus from sales during the pandemic to existing customers.

This was underpinned by an increase in people working remotely and requiring a platform such as Bigtincan to communicate. Buy rating retained. Target rises to $1.75 from $1.48.

Target price is $1.75 Current Price is $1.48 Difference: $0.27
If BTH meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Ord Minnett rates BVS as Hold (3) -

FY21 results were soft although net profit was ahead of Ord Minnett's estimates. The final dividend of 6c resulted in a full year dividend of 8.6c, below the broker's expectations.

Lockdowns in the UK over FY21 led to implementation delays and deferrals in wealth management income. The broker suspects guidance for FY22 has disappointed the market as it suggests a recovery in the UK will take longer than previously anticipated.

Bravura Solutions is also transitioning clients to more SaaS-like revenue and this should improve the quality of the business model, in the broker's view. Hold rating and $2.80 target maintained.

Target price is $2.80 Current Price is $3.10 Difference: minus $0.3 (current price is over target).
If BVS meets the Ord Minnett target it will return approximately minus 10% (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

Ord Minnett rates CAJ as Accumulate (2) -

FY21 results revealed continued execution of the three-year strategic plan. Ord Minnett found the results commendable in the context of the five lockdowns that affected Victoria, which is the dominant geography for the company's portfolio.

The broker notes work to be done in FY22 includes three greenfield/brownfield opportunities. The balance sheet is strong and there is $110m in available debt facilities.

Negligible gearing signals to the broker M&A will be hard to ignore. Ord Minnett transfers coverage to another analyst. Accumulate rating maintained. Target rises to $0.43 from $0.36.

Target price is $0.43 Current Price is $0.40 Difference: $0.03
If CAJ meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates CBL as Add (1) -

The FY21 results for Control Bionics exceeded forecasts. Morgans believes the business can drive higher sales in FY22, having two recent distribution arrangements.

One is with DNR Wheels for entry to Singapore and the other Numotion in several US states. The company will continue to invest in future product development and build a sales and marketing team in the US. Speculative Buy retained. Target is $1.42.

Target price is $1.42 Current Price is $0.70 Difference: $0.72
If CBL meets the Morgans target it will return approximately 103% (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 CCX as Overweight (1) -

City Chic Collective's pre-guided FY21 result met the broker.

The broker reports continued momentum in early FY22 and expects an acceleration in offshore growth and an opportunity for highly accretive mergers and acquisitions as the company continues to out-compete.

The company plans to offset higher shipping costs with improved supplier terms. Overweight rating and $6.25 target price retained. Industry view: In-line.

Target price is $6.25 Current Price is $6.04 Difference: $0.21
If CCX meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.94, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates CCX as Accumulate (2) -

FY21 results were slightly ahead of Ord Minnett's forecast. The broker believes the company has laid the foundations for significant expansion, with the acquisition of Avenue in the US and Evans in the UK likely to be transformational.

The broker believes the business is well-positioned for growth given the additional store openings, and retains an Accumulate rating. Target is raised to $6.70 from $6.25.

Target price is $6.70 Current Price is $6.04 Difference: $0.66
If CCX meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.94, suggesting downside of -0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates CGC as Neutral (3) -

For Citi's initial response to first half results, see yesterday's Report.

The analyst notes earnings (EBITDA-S) and profit (NPAT-S) were in-line with expectations and company guidance. The Neutral rating is unchanged and the target price is lowered to $3.64 from $3.72.

The International segment was the standout, with both China and Morocco benefiting from increased production volumes and improved pricing due to disruptions to competing exports, explains the broker.

Target price is $3.64 Current Price is $3.24 Difference: $0.4
If CGC meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 24.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates CGC as Outperform (1) -

Overall, Costa Group's first-half 2021 earnings were in line, while the produce division was weaker-than-expected and International proved stronger.

Credit Suisse notes International generally presents seasonal losses in the second half which means the produce division must achieve a much stronger result in the second half to achieve company guidance.

The broker thinks this is achievable but is now a more risky situation. If Costa Group delivers, the broker feels the share price will gap up as the stock is trading right at the bottom of its P/E valuation band.

Outperform rating and $4.15 target are unchanged.

Target price is $4.15 Current Price is $3.24 Difference: $0.91
If CGC meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 24.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates CGC as Outperform (1) -

Costa Group Holdings' reported first half net profit of $44m, a modest beat on Macquarie's expected $42m. The broker notes a mixed outlook for 2021 but expects marginal full-year growth.

Macquarie expects the 2Ph Farms acquisition to contribute $32m to underlying earnings in 2022. and also notes 2022 results are expected to be supported by a non-recurrance of fruit fly impacts which contributed around $15m to costs in 2021.

Earnings per share forecasts are updated by -9%, -4% and -2% through to FY23. Macquarie is Outperform rated with a target price of $3.51.

Target price is $3.51 Current Price is $3.24 Difference: $0.27
If CGC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 24.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates CIA as Outperform (1) -

Champion Iron has announced the repayment of the outstanding $185m for preferred shares held by Caisse de Depot. Macquarie notes the company has redeemed the preferred shares at the earliest opportunity, and that payment  removes the obligation to pay future preferred shares dividends. 

The company has also highlighted Phase 2 development is progressing as expected and completion is expected in mid-2022. This should see production double to around 15m tonnes per annum. 

The Outperform rating and target price of $9.90 are retained. 

Target price is $9.90 Current Price is $5.70 Difference: $4.2
If CIA meets the Macquarie target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Morgan Stanley rates COE as Downgrade to Underweight from Equal-weight (5) -

Cooper Energy's FY21 result and FY22 guidance missed consensus forecasts.

Morgan Stanley downgrades the company to Underweight from Equal-weight to reflect rising risks and uncertainty around Project Sole and the costs associated with the Basker Manta Gummy abandonment.

Low production and Cooper's requirement to purchase gas on market to meet contract obligation, thanks to the underperforming Project Sole, is expected to continue to dog the company.

The broker expects some improvement in the share price, although less than peers. Morgan Stanley prefers Senex Energy ((SXY))

Target price is 23c. Industry view: Attractive.

Target price is $0.23 Current Price is $0.23 Difference: $0
If COE meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $0.27, suggesting upside of 18.3% (ex-dividends)

The company's fiscal year ends in June.

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

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

Damstra Holdings' pre-guided FY21 result met the broker. As expected, it was records all around, including cash receipts, and the Vault acquisition is now fully integrated.

A contractual dispute with SurePlan held the company back from break even. FY22 revenue guidance disappointed the broker and margin forecasts were in line.

The broker appreciates the potential contract pipeline across the UK and US post-covid and expects a rebound once restrictions are lifted.

But for now, it's an Equal-weight rating and a target of $1.25. Industry view: In-line.

Target price is $1.25 Current Price is $1.08 Difference: $0.17
If DTC meets the Morgan Stanley target it will return approximately 16% (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 EDV as Underperform (5) -

Endeavour Group's maiden result missed forecasts at a segment level with both Retail liquor and Hotels below forecast.

Cash realisation was strong while return on funds employed was modest.

Credit Suisse downgrades near-term forecasts for Hotels due to ongoing covid lockdowns in Melbourne and Sydney.

Without sale of freehold, the broker expects free cash flow to be negative in FY22.

Underperform rating is unchanged and the target increases to $6.19 from $5.86.

Target price is $6.19 Current Price is $7.05 Difference: minus $0.86 (current price is over target).
If EDV meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.68, suggesting downside of -4.0% (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 EDV as Neutral (3) -

Endeavour Group has released its first results as an independent entity, reporting Retail Liquor comparative sales up 8.6% in FY21, and Macquarie notes continued strong sales in the first eight weeks of FY22. 

The broker also noted that Hotels performance remained resilient despite closures, with the company achieving 7.3% sales growth. The trading environment for the sector remains volatile, and Macquarie expects a challenging first half for Hotels performance but with meaningful recovery in the second half.

The broker updates earnings per share forecasts by 3.3%, 1.5% and 1.6% through to FY24.

The Neutral rating is retained and the target price increases to $7.20 from $6.40.

Target price is $7.20 Current Price is $7.05 Difference: $0.15
If EDV meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.68, suggesting downside of -4.0% (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 EDV as Hold (3) -

Overall, FY21 results were above Morgans expectations though underlying profit was below consensus forecasts. The broker decreases FY22 group earnings (EBIT) by -7% on the back of a -27% downgrade to Hotels earnings, partially offset by a 3% upgrade to Retail. 

The broker's $6.65 target price is unchanged. For the first eight weeks of FY22, group sales were -2.3% lower with Retail sales down -1.7% and Hotels sales down -7.3% and management noted considerable uncertainty remains around covid.

While the analyst retains a longer-term positive view the valuation is seen as full and the Hold rating is unchanged.

Target price is $6.65 Current Price is $7.05 Difference: minus $0.4 (current price is over target).
If EDV meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.68, suggesting downside of -4.0% (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 EPY as Add (1) -

FY21 net profit was in line with guidance. Morgans found solid momentum re-emerged in the second half after a pandemic-impacted first half. The company expects 40% growth in net profit in FY22 which the broker calculates will be around $12.2m.

Morgans finds the valuation attractive relative to the growth profile, and the potential for an earnings step up exists if management can execute on more technology-led acquisitions. Add maintained. Target is raised to $0.56 from $0.53.

Target price is $0.56 Current Price is $0.50 Difference: $0.06
If EPY meets the Morgans target it will return approximately 12% (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

Ord Minnett rates EXP as Buy (1) -

Experience Co's FY21 result proved a big miss, the company reporting a loss of -$4.3m, compared with Ord Minnett's -$1.3m forecast as covid lockdowns deprived the company of both international and domestic travellers.

On the upside, the company has been free to focus on strategy and investment for growth. It has invested $5m in a new Great Barrier Reef pontoon and has struck a partnership with Sea World designed to channel 10,000 skydivers their way, and its acquisition pipeline is maturing, creating a growth pathway for a post-covid recovery.

Broker downgrades FY22 EPS forecasts to reflect lockdowns but FY23 and FY24 are steady. Buy rating and 33c target price retained.

Target price is $0.33 Current Price is $0.28 Difference: $0.05
If EXP meets the Ord Minnett target it will return approximately 18% (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 FCL as Outperform (1) -

Fineos Corporation's FY21 revenue was a 5% beat on Macquarie's forecast, and initial FY22 revenue guidance is now pointing to around 17.7% growth, supported by a 30% subscription revenue growth target. 

Subscription revenue growth was up 48.6% in FY21, and the company highlighted growth expectations for the next year are supported by a pipeline of cross-sell and up-sell opportunities with existing clients. 

Macquarie updates revenue forecasts by 9.7%, 9.6% and 9.5% through to FY24. The Outperform rating is retained and the target price increases to $4.78 from $4.36.

Target price is $4.78 Current Price is $4.25 Difference: $0.53
If FCL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Ord Minnett rates FCL as Upgrade to Accumulate from Hold (2) -

Fineos Corportion's FY21 result outpaced Ord Minnett's forecasts by 4% triggering upgrades, thanks to strong organic growth, topped up by acquisitions.

Covid hampered new customer additions but the company compensated with work from existing customers, highlighting the potential of the upgrade business.

The company guides to a stronger FY22, which should include a contribution from the newly acquired Spraoi as well as new customers. The broker notes the strong cross-sell and up-sell pipeline and spies looming growth expenses.

Ord Minnett upgrades to Accumulate from Hold. Target price rises to $4.54 from $4.01.

Target price is $4.54 Current Price is $4.25 Difference: $0.29
If FCL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Citi rates FLT as Neutral (3) -

Citi believes management's optimistic outlook around breaking even in FY22 on a monthly basis should help the market look-through FY21 sales and underlying profit (PBT) figures, which were a -6% and -4% miss, respectively.

The broker remains cautious in particular on the A&NZ region and maintains its Neutral rating and $16.55 target. It's thought less economic trips (visiting friends and relatives) will resume first and more complex leisure and corporate trips will be slower to return.

Target price is $16.55 Current Price is $17.01 Difference: minus $0.46 (current price is over target).
If FLT meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.66, suggesting downside of -1.4% (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

Credit Suisse rates FLT as Neutral (3) -

Considering the volatility in the trading environment, Flight Centre's FY21 result was relatively close to expectations, with FY21 loss of -$507m, roughly in line with the previous period, and -5% worse than expected.

No FY22 guidance was provided given market uncertainty.

Credit Suisse reduces the FY22 loss by -47% to -$68m due to leisure breakeven expected at 40% of pre-covid which suggests a quicker path to profitability than the broker expected while leaving FY22 sales assumptions unchanged.

Neutral rating is unchanged and the target increases to $18 from $17.

Target price is $18.00 Current Price is $17.01 Difference: $0.99
If FLT meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $16.66, suggesting downside of -1.4% (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 FLT as Neutral (3) -

Travel restrictions have driven a underlying profit before tax loss of -$507m for Flight Centre Travel Group, but Macquarie notes this is largely in line with guidance. 

Looking ahead, the company's recovery is heavily dependent on vaccination rates to enable the reopening of borders. However, on a positive note Macquarie highlights that precedent suggests a strong and immediate rebound once travel restrictions are lifted. 

Flight Centre Travel Group's cash reserves of around $650m should be sufficient for an 18-20 month runway until Corporate and Leisure travel return to profitability in FY22. Macquarie expects the company to break even in FY23. 

The Neutral rating is retained and the target price increases to $16.50 from $15.50.

Target price is $16.50 Current Price is $17.01 Difference: minus $0.51 (current price is over target).
If FLT meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.66, suggesting downside of -1.4% (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 FLT as Hold (3) -

Following FY21 results, Morgans estimates the group has 20 months of liquidity to survive a low revenue environment. It's noted monthly cash burn has not materially changed given the recovery underway in the Americas and Europe, Middle East & Africa (EMEA).

The broker materially lowers forecasts in-light of Australia’s border and travel restrictions, delayed expectations for international travel to resume and the decision by Qantas Airways ((QAN)) to reduce international commission to 1% from 5%.

The Hold rating is unchanged and the target price falls to $18.60 from $19, as the broker now assumes a FY22 loss (NBPT) of -$220.5m from a prior estimate of -$22.0m.

Target price is $18.60 Current Price is $17.01 Difference: $1.59
If FLT meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $16.66, suggesting downside of -1.4% (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 FLT as Downgrade to Lighten from Hold (4) -

Further to the initial response to the FY21 results, Ord Minnett assesses Flight Centre faces its greatest challenge over coming years not just recovery from the pandemic but structural change in the travel agency revenue model in Australasia.

The broker's analysis suggests a combined impact of downward pressure on commissions, overriders and GDS income will have a material impact on margins. The main task is reducing costs at a sufficient rate in order to protect earnings.

Ord Minnett downgrades to Lighten from Hold on valuation grounds and reduces the target to $13.72 from $15.06.

Target price is $13.72 Current Price is $17.01 Difference: minus $3.29 (current price is over target).
If FLT meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.66, suggesting downside of -1.4% (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

UBS rates FLT as Neutral (3) -

The uptake of vaccinations is driving a recovery in the Americas and Europe yet UBS believes momentum needs to be sustained to achieve Flight Centre's expectations of profitability at some point in FY22.

The broker, nevertheless, believes the company is well-positioned and there is potential upside to forecasts if a faster pace of volume recovery can be achieved and the cost reductions are sustained.

The broker incorporates Australian lockdowns in forecasts until the second half of FY22. Neutral retained. Target rises to $17.25 from $16.10.

Target price is $17.25 Current Price is $17.01 Difference: $0.24
If FLT meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $16.66, suggesting downside of -1.4% (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 HMC as Add (1) -

The FY21 result was in-line with guidance and FY22 guidance is for pre-tax funds from operations (FFO) of at least 18.5c and DPS guidance of 12c. The IPO for HealthCo ((HCW)) is due on September 6, which is estimated to provide an additional $950m in liquidity.

Management expects to reach $5bn in assets under management (AUM) by the end of 2022 and $10bn by the end of 2024 and is considering simplifying its structure via a de-stapling (subject to a vote). Morgans lifts its target to $6.71 from $5.01. Add rating retained.

Target price is $6.71 Current Price is $6.46 Difference: $0.25
If HMC meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.60, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates HUO as Neutral (3) -

There were few surprises in Huon Aquaculture's FY21 result, which fell within previous guidance.

In its outlook, Huon pointed to expectations of maintaining 35kt harvest volumes for FY22-23, and improved pricing entering FY22 costs of $9.50/kg, excluding freight.

These factors remain consistent with Credit Suisse's view FY22-23 should see a strong earnings recovery and the broker expects fundamentals to remain secondary to the outcome of the JBS takeover.

The broker's higher forecast FY22 earnings estimate is driven by higher prices and moderately lower operating cost assumptions, offset by higher D&A and net interest resulting in a modest earning per share (EPS) impact (1.2%).

The broker retains a Neutral rating and raises the target to $3.85 from $3.84.

Target price is $3.85 Current Price is $3.84 Difference: $0.01
If HUO meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates IFL as Buy (1) -

For Citi's initial response to FY21 results, see yesterday's Report.

The broker estimates most of the many moving parts of the result are largely in-line with prior expectations. Citi marginally adjusts EPS forecasts and lifts its target price to $5.30 from $4.95.

In the analyst's view, the valuation continues to look compelling and the Buy call is retained.

Target price is $5.30 Current Price is $4.55 Difference: $0.75
If IFL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates IFL as Outperform (1) -

IOOF Holdings FY21 earnings were ahead of expectation with underlying net profit of $148m, up 19% year-on-year which was 7% ahead of consensus and 2% ahead of Credit Suisse.

The broker sees scope for synergies and initiatives in advice to deliver 15% earnings growth in FY23 and 10% growth in FY24/25.

Credit Suisse notes the company is undergoing a significant transformation as it integrates the ANZ and MLC acquisitions, migrates its existing IOOF platforms onto its new Evolve platform, and rationalises its legacy products.

The broker believes this will simplify its business and provide it with scale.

The broker reiterates an Outperform rating and target of $5.20.

Target price is $5.20 Current Price is $4.55 Difference: $0.65
If IFL meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 17.0% (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 IFL as Overweight (1) -

IOOF Holding's FY21 result beat consensus forecasts by 7% and Morgan Stanley by 9%. The dividend proved a 24% beat on consensus and 53% beat on the broker.

Advice returned a 30% miss on the broker's forecast as lockdowns bit, and the ex-ANZ division delivered a 25% beat. The company guided to improved FY22 synergies - another beat. 

The company reports a strong balance sheet with improved cash and senior debt leverage, causing the broker to upgrade FY22 and FY23 dividends by 7%.

The broker expects EPS growth of 39% in FY22 and 23% in FY23 as synergies, platform simplification and manageable revenue margins come to bear.

Target price eases to $5.50 from $5.60. Overweight rating retained. Industry view: In-line.

Target price is $5.50 Current Price is $4.55 Difference: $0.95
If IFL meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 17.0% (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) -

Further to yesterday's response to the FY21 results, Ord Minnett maintains a Buy rating and raises the target to $5.10 from $4.60, reflecting less uncertainty around the achievement of synergies.

Target price is $5.10 Current Price is $4.55 Difference: $0.55
If IFL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 17.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates ILU as Upgrade to Neutral from Underperform (3) -

Principally driven by $17m non-cash inventory, Iluka Resoures first half FY21 underlying net profit ($135m) was -15% lower than consensus ($159m), and a 12cps interim dividend was also softer than consensus expectation (13.8cps).

Iluka announced a restart of the second synthetic rutile kiln.

While Credit Suisse believes the company is rich in catalysts, the broker believes the key catalyst is the feasibility study for a rare earths refinery due early 2022, for which the broker believes the Street has high hopes.

Credit Suisse upgrades Iluka Resources to Neutral from Underperform and the target increases to $8.80 from $7.

Target price is $8.80 Current Price is $9.27 Difference: minus $0.47 (current price is over target).
If ILU meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.47, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates JIN as Overweight (1) -

Jumbo Interactive's FY21 result proved a top-line miss, although Morgan Stanley found the numbers were broadly in-line.

The broker sheets this back to a resegmentation of WA total transaction value (TTV) and effective take rates. Higher non-cash amortisation of the upfront consideration to Tabcorp ((TAH)) and an accounting change and restatement didn't help.

Cost growth from new hires and market and insurance,  and slower onboarding of SaaS TTV also dragged.

On the upside, the Jumbo Interactive's TTV outpaced the market and rose per customer. Gatherwell reported a double-digit internal rate of return and the well-priced Stride acquisition offers good roll-out prospects.

The broker expects FY22 will be a tougher year as the world reopens but growth prospects may compensate.  Price target rises to $18.50 from $17.40. Overweight rating retained. Industry view: In-line.

Target price is $18.50 Current Price is $16.42 Difference: $2.08
If JIN meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.59, suggesting upside of 11.2% (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

UBS rates JIN as Neutral (3) -

Jumbo interactive's underlying EBITDA was in line with forecasts. Strong top-line growth was achieved within the lottery retailing business. Going into FY22 UBS expects a partial benefit from the $60m jackpot in July and an $80m jackpot in August.

Jumbo Interactive has also announced the acquisition of Stride, entering the Canadian charity lottery market. The acquisition will be funded through existing cash balances for consideration of $11.7m.

UBS is yet to incorporate the acquisition into estimates as the transaction is subject to regulatory approval. The board will maintain the pay-out ratio at 85% of net profit. Neutral rating retained. Target is raised to $16.50 from $14.20.

Target price is $16.50 Current Price is $16.42 Difference: $0.08
If JIN meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $16.59, suggesting upside of 11.2% (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

Citi rates LGL as Buy (1) -

Lynch Group Holdings' FY21 performance beat Citi's forecasts, while meeting company management's guidance at the top of the guided range.

Rather unusual for an Australian-based exporter, higher exports to China were responsible for the 'beat'. The analysts observe the company has kept FY22 guidance unchanged despite the solid second half momentum.

In Australia, FY21 financials were supported by strong pot plant sales and continued penetration in the supermarket channel, points out Citi. The unchanged guidance is seen as an impediment to consensus forecasts moving higher.

Buy. Target $4.30.

Target price is $4.30 Current Price is $3.74 Difference: $0.56
If LGL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

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

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

For Citi's initial response to FY21 results, see yesterday's Report.

The analyst notes earnings (EBITDA) were a miss, driven by lower revenues, particularly in corporate markets, while guidance for operating earnings (EBIT) to be “broadly in line with FY21“ is thought soft compared to the analyst's forecast for 16% growth.

Citi lowers lower EPS forecasts considerably, despite factoring in the announced $150m buyback. Although the stock looks relatively inexpensive if Pexa Group ((PXA)) is valued at market, it's seen as a likely value trap for now.

The broker lowers its rating to Neutral from Buy and its target price to $4.75 from $5.70.

Target price is $4.75 Current Price is $4.50 Difference: $0.25
If LNK meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 20.3% (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

Credit Suisse rates LNK as Outperform (1) -

Link Administration reported FY21 operating net profit of $113m -18% down year-on-year which was -4% below Credit Suisse's estimate; the company also announced a buyback of $150m, equivalent to 6% of market cap.

Having previously guided to a return of growth in FY22, the company announced FY22 guidance for flat earnings, with cost inflation from salary increases, investment in data security, and risk & compliance offsetting the benefit of revenue growth and the benefits of
cost outs.

Credit Suisse lowers earnings per share (EPS) estimates by -13% in FY22/23 which factors in lower earnings and the full buyback. Outperform rating is unchanged and the target is lowered to $5.30 from $5.55.

Target price is $5.30 Current Price is $4.50 Difference: $0.8
If LNK meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 20.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates LNK as Resume Coverage with Outperform (1) -

FY21 results were a slight miss to expectations. Macquarie was also disappointed with FY22 guidance for flat operating EBIT. Still, with a $150m buyback the broker resumes coverage with an Outperform rating and $5.80 target.

The company has reaffirmed cost reduction targets and the broker notes all major RSS client renewals have been secured.

Target price is $5.80 Current Price is $4.50 Difference: $1.3
If LNK meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 20.3% (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 LNK as Add (1) -

While the FY21 profit (NPATA) result was a slight miss on Morgans expectations and consensus forecasts, it's thought softer FY22 earnings growth guidance than expected caused the negative share price reaction on results day.

The weaker guidance was due to required reinvestment into operations and normalisation of costs, explains the analyst. Profit forecasts are lowered by Morgans, reflecting more conservative divisional earnings (EBIT) margin forecasts. The target falls to $5.19 from $5.53.

Management announced a $150m on-market share buyback. A strong performance by the 42.8%-owned PEXA Group ((PXA)) was a  highlight, in the broker' view.

Target price is $5.19 Current Price is $4.50 Difference: $0.69
If LNK meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 20.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates LNK as Upgrade to Accumulate from Hold (2) -

Further to yesterday's response to the FY21 results, Ord Minnett observes FY22 guidance for a flat EBIT outcome seems difficult to achieve.

There is valuation appeal in the stock, nevertheless, and recent corporate interest and the $150m share buyback could help it recover some ground.

Hence, the broker upgrades to Accumulate from Hold, while reducing the target to $5.00 from $5.75.

Target price is $5.00 Current Price is $4.50 Difference: $0.5
If LNK meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 20.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates LNK as No Rating (-1) -

FY21 net profit was below expectations. The commentary regarding flat operating EBIT in FY22 is also less than what UBS anticipated. The earnings recovery has now been pushed out into FY23.

Capital management is brought forward with the $150m buyback, which the broker points out is material at 5% of market capitalisation. Nevertheless, UBS flags the track record for Link Group completing buybacks is poor.

UBS is currently restricted on providing a rating and target.

Current Price is $4.50. Target price not assessed.

Current consensus price target is $5.21, suggesting upside of 20.3% (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 MGH as Add (1) -

The FY21 result was in-line with Morgans forecasts and at the upper-end of guidance. Considering a strong growth outlook, M&A optionality, a dominant position in attractive regional markets and leverage to favourable industry tailwinds, the Add rating is maintained. 

A stronger underlying performance and the recent residential property acquisition sees the broker increase earnings forecasts, while profit expectations initially fall in FY22 on higher net interest and then rise in FY23 and FY24. The target price falls to $5.65 from $5.85.

Target price is $5.65 Current Price is $4.50 Difference: $1.15
If MGH meets the Morgans target it will return approximately 26% (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

Ord Minnett rates MNF as Buy (1) -

MNF Group's FY21 result came in at the top end of guidance but missed several of Ord Minnett's forecasts, thanks to declining revenue in international roaming and audio-conferencing.

But the broker is pleased with the result, a 12% improvement in higher-margin recurring revenue keeping earnings in line. The broker forecasts continued revenue growth in FY22, largely offset by growth-related expense.

The company boasts a hefty $100m war chest and has flagged expansion in South Korea, Japan, Malaysia, Vietnam and Taiwan and is targeting a compound annual growth rate of 37%.

End of restrictions reveals a Buy rating. Target price rises to $7.33 from $6.08. Risk: Higher.

Target price is $7.33 Current Price is $6.16 Difference: $1.17
If MNF meets the Ord Minnett target it will return approximately 19% (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

Ord Minnett rates MWY as Buy (1) -

Midway's FY21 result fell shy of Ord Minnett's forecast but generally pleased the broker.

Ord Minnett is calling a turning point in the company's fortunes, with wood-fibre export prices on the rise and volumes recovering in FY21.

The broker expects strength through FY22 and FY23 thanks to favourable trading conditions and the completion of projects.

Asset sales have freed up capital management options. 

Target price rises to $1.23 from $1.18. Buy rating retained.

Target price is $1.23 Current Price is $1.03 Difference: $0.2
If MWY meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates NIC as Outperform (1) -

Nickel Mines' June half net profit of US$65m was slightly ahead of consensus and the dividend of US2cps doubled from a year ago and is running in line with Credit Suisse expectations of US4cps for 2021.

Credit Suisse expects free cash flow yield (pre-growth capex) to be 10% this and next with few calls on its cash after this year’s Angel nickel acquisition.

The broker notes Nickel Mines should be the tenth largest nickel producer on an equity share when the Angel build is completed next year, so any further acquisitions would see the company vault ahead of BHP and settle in close to the current Western majors Glencore and Vale.

Outperform retained. Target is $1.40.

Target price is $1.40 Current Price is $1.02 Difference: $0.38
If NIC meets the Credit Suisse target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting upside of 26.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Macquarie rates NIC as Neutral (3) -

First half results were broadly in line with Macquarie's estimates. Spot nickel pig iron has outperformed LME prices and the broker upgrades price assumptions for the second half of 2021.

Macquarie notes Nickel Mines is set to move to a blend of nickel pig iron and nickel matte production at the Hengjaya/Ranger facilities and this presents the upside risk to forecasts. Neutral maintained. Target is steady at $1.10.

Target price is $1.10 Current Price is $1.02 Difference: $0.08
If NIC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting upside of 26.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Citi rates NXT as Buy (1) -

Upon first glance, it appears NextDC's FY21 report has beaten Citi and consensus forecasts to the tune of 2% and the data centre operator provided a "conservative" (Citi's term) outlook for FY22, a smidgen below market consensus.

But Citi analysts suggest one of the key positives is an apparent pick-up in bookings. Capex is slated for a pick-up in FY22, which again comes as no surprise given capex was below expectations in FY21.

Buy rating with a target of $14.45.

Target price is $14.45 Current Price is $13.48 Difference: $0.97
If NXT meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.12, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates NXT as Outperform (1) -

Following an initial assessment, Macquarie finds FY21 is a beat at the earnings (EBITDA) level, but a slight miss in terms of revenues. As far as FY22 guidance goes, again, in-line on earnings but a mild miss in terms of projected data centre revenues.

Macquarie highlights development activity at the company continues to accelerate, with S3 on track for practical completion 2H22, M3 planned capacity increased to 150MW, on top of the recent acquisition of land for S4 with long term expansion capacity of 300MW.

All in all, Macquarie continues to see strong industry tailwinds from which NextDC, starting from a strong position in the Australian market, should continue to benefit.

Outperform rating. Target $13.95.

Target price is $13.95 Current Price is $13.48 Difference: $0.47
If NXT meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.12, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates NXT as Buy (1) -

Upon initial assessment, NextDC's FY21, released today, fell a little short of Ord Minnett's forecasts, but the broker labels it "mostly in-line".

A comment is made about the FY22 outlook provided; it seems a bit "soft", but then, as Ord Minnett points out, management has a track record of providing rather conservative guidance at the start of each new financial year.

Within this context, NextDC's FY22 EBITDA guidance of $160-165m compares with the broker's $169m estimate.

Buy rating and $14.50 target price.

Target price is $14.50 Current Price is $13.48 Difference: $1.02
If NXT meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $14.12, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Citi rates ORE as Buy (1) -

The FY21 Underlying loss of -US$21m was a beat, compared with Citi and consensus forecasts for -US$23m. The broker retains its Buy rating and lifts its target price to $10.50 from $9.

After combining the Orocobre and Galaxy Resources ((GXY)) accounts, the analyst generates a lift in forecast earnings for Orocobre in FY22 and FY23 of 139% and 55%, respectively.

With the merger complete, management is now focusing on a detailed strategic plan for growth projects and expects to announce a pathway within six months.

Target price is $10.50 Current Price is $8.77 Difference: $1.73
If ORE meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.04, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates PLS as Outperform (1) -

FY21 results were weaker than Macquarie expected. This was largely stemming from one-off items relating to acquisition accounting. Spodumene prices present the main catalyst for the short term and the company will hold its second spot price auction shortly.

Staged development of Pilgan and Ngungaju underpin a seven-year production growth rate of around 20%, the broker adds. Outperform retained. Target rises to $2.70 from $2.00.

Target price is $2.70 Current Price is $2.22 Difference: $0.48
If PLS meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.95, suggesting downside of -6.0% (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 PLS as Downgrade to Hold from Buy (3) -

FY21 underlying operating earnings (EBITDA) were in line with Ord Minnett's forecasts. FY22 guidance has surprised to the upside, with spodumene shipments expected to be 440-490,000t.

Capital expenditure guidance is also lower than anticipated but has led to the broker pushing out of the next expansion at Pilgangoora.

Despite the strong outlook for lithium markets and the company's positioning, the stock has run hard and Ord Minnett downgrades to Hold from Buy. Moreover, the broker sees no significant stock-specific catalysts on the horizon. Target is reduced to $2.40 from $2.50.

Target price is $2.40 Current Price is $2.22 Difference: $0.18
If PLS meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.95, suggesting downside of -6.0% (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 PNV as Outperform (1) -

FY21 revenue was lower than expected. BTM sales rose 34% and Macquarie notes stronger growth in the US and parts of Europe relative to Australia.

Exit rates into FY22 appear positive and the company is also re-engaging with hospitals that were affected by the pandemic.

Macquarie expects the company will be able to increase share within existing indications and notes the longer term potential for additional uses of NovoSorb technology. Outperform retained. Target is reduced to $2.70 from $2.95.

Target price is $2.70 Current Price is $2.04 Difference: $0.66
If PNV meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates PPE as Add (1) -

People Infrastructure provided a robust FY21 result at the upper end of guidance, highlighting its leverage to a strong Australian labour market, Morgans notes.

While restrictions could slow the extent of growth in the first half of FY22 the broker expects activity to rebound strongly in the second half when restrictions ease in NSW and Victoria.

Morgans considers the valuation attractive amid a solid growth outlook and upside from further accretive M&A. Add maintained. Target is reduced to $5.00 from $5.15.

Target price is $5.00 Current Price is $4.25 Difference: $0.75
If PPE meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates PRU as Neutral (3) -

Citi lifts its target price to $1.80 from $1.75 on a positive life of mine (LOM) plan for Yaoure. FY21 results showed the ramping-up of production at Yaoure lifted FY21 group profit by 48% year-on-year, explains the analyst. The Neutral rating is unchanged.

Underlying profit of $139m was ahead of both Citi and consensus forecasts. A maiden dividend of 1.5cps was declared.

Revenue for Perseus Mining lifted 15% year-on-year to $680m, driven by higher gold volumes as the Yaoure mine achieved commercial production in the March quarter and began ramping-up to nameplate capacity.

Target price is $1.80 Current Price is $1.47 Difference: $0.33
If PRU meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.70, suggesting upside of 15.6% (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

Credit Suisse rates PRU as Outperform (1) -

Perseus Mining's FY21 operating earnings narrowly missed Credit Suisse but proved a beat on consensus partially on $44m deferred stripping which is capitalised despite appearing as a cost in quarterly reporting.

The company rounded out a strong FY21 with a maiden shareholder return via $1.5cps capital reduction and also announced a maiden dividend policy that targets a 1% yield with semi-annual payments.

Credit Suisse notes while most of the broker's gold coverage is facing Australian labour shortages/cost inflation, Perseus is flying under the radar with all-in costs guided to decrease compared to the June quarter.

The Outperform rating is unchanged and the target is lowered to $1.60 from $1.80.

Target price is $1.60 Current Price is $1.47 Difference: $0.13
If PRU meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.70, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates PRU as Outperform (1) -

FY21 net profit was ahead of Macquarie's estimates and the maiden 1.5c dividend was six months earlier than expected. Macquarie believes this is a sign of the cash flow the business can generate now that Yaoure is performing.

The ramp up of Yaoure will continue to provide positive momentum. The Bagoe feasibility study will be released shortly along with an updated life-of-mine plan for Sissingue. Outperform rating and $1.70 target retained.

Target price is $1.70 Current Price is $1.47 Difference: $0.23
If PRU meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.70, suggesting upside of 15.6% (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

Credit Suisse rates PTM as Underperform (5) -

Driven by lower than expected other income, higher expenses, and a higher tax rate, Platinum Asset Management reported FY21 net profit of $163m which was -1% below consensus and -5% below Credit Suisse.

While other income will be volatile, Credit Suisse notes that the higher than expected expenses are likely to be ongoing in nature with rising staff costs required to retain key staff following departures in recent years.

Driven by a combination of higher expenses and lower management fee margins, the broker downgrade earnings estimates by high single-digits in FY22 and FY23.

Underperform maintained. Target is reduced to $3.85 from $4.50.

Target price is $3.85 Current Price is $3.94 Difference: minus $0.09 (current price is over target).
If PTM meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.92, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Ord Minnett rates PTM as Hold (3) -

FY21 net profit was below Ord Minnett's forecast. The result missed estimates largely because of higher-than-expected employee costs. The final dividend of $0.12 was flat on the prior year and in line with forecasts.

Ord Minnett observes the majority of the funds are meaningfully underperforming respective benchmarks and, as a result, remains cautious about flows in the short term. Hold rating retained. Target is reduced to $4.15 from $4.50.

Target price is $4.15 Current Price is $3.94 Difference: $0.21
If PTM meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting downside of -0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Credit Suisse rates QAN as Underperform (5) -

Qantas Airway's FY21 loss of -$1.83bn was in-line with Credit Suisse's forecast but ahead of consensus. Net debt reduced in the half to $5.9bn, in-line with the broker's forecast.

Total liquidity is $3.8bn, and Qantas said its recovery program is ahead of schedule with $650m worth of benefits actioned. Qantas also expects a -$1.4bn earnings hit in first half  FY22 from the current state border closures and shutdown of the Trans-Tasman bubble.

The broker thinks there is likely to be further disappointment on timing of airline travel reopening that could provide a more attractive entry point in the shares.

Credit Suisse maintains the Underperform rating and increases the target price to $4.10 from $3.90.

Target price is $4.10 Current Price is $5.04 Difference: minus $0.94 (current price is over target).
If QAN meets the Credit Suisse target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.80, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates QAN as Outperform (1) -

FY21 results were in line with recent guidance. Macquarie assesses the market has now more certainty around liquidity while capital raising risks have been alleviated.

The first half of FY22 is still challenged by lockdowns and border closures yet the broker points out the domestic business can snap back quickly.

Macquarie still envisages FY23 earnings will exceed pre-pandemic levels and Qantas will be a structurally improved business. Valuation is also appealing and the broker retains an Outperform rating with a $6.10 target.

Target price is $6.10 Current Price is $5.04 Difference: $1.06
If QAN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.80, suggesting upside of 12.9% (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 QAN as Overweight (1) -

Qantas' FY21 results met guidance and sharply outpaced Morgan Stanley's forecasts, the broker attributing this to good management of lockdown impacts through May and June.

Qantas guides to a first-half FY22 earnings hit, courtesy covid, and has pushed out recovery expectations; but the restructuring program is ahead of schedule. Balance sheet repair remains the focus.

Morgan Stanley says the vaccine roll-outs de-risk the recovery and expects the balance sheet will hold.

Overweight rating and $7 target price retained. Industry view: In-line.

Target price is $7.00 Current Price is $5.04 Difference: $1.96
If QAN meets the Morgan Stanley target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $5.80, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates QAN as Buy (1) -

Further to yesterday's reaction to the FY21 result, Ord Minnett retains a Buy rating and raises the target to $5.80 from $5.70.

Target price is $5.80 Current Price is $5.04 Difference: $0.76
If QAN meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.80, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates QUB as Buy (1) -

Citi maintains its Buy rating on the back of an operationally strong FY21 result. It's expected the supply chain environment will remain strong and contract wins and acquisitions should drive 12% revenue growth.

The broker estimates a 13% EPS three year compound annual growth rate (CAGR) from FY21 to FY24, which includes around $400m in buybacks and still leaves circa $400-$600m for further acquisitions. The target price falls to $3.45 from $3.61.

Target price is $3.45 Current Price is $3.04 Difference: $0.41
If QUB meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 3.4% (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 QUB as Upgrade to Outperform from Neutral (1) -

On the back of a strong FY21 result, upbeat outlook, and expected buyback from Moorebank proceeds, Credit Suisse has upgraded Qube Holdings to Outperform from Neutral, and the target price increases to $3.30 from $3.

Qube is due to complete the sale of Moorebank warehousing to the Logos consortium in December with $1.36bn of proceeds on
completion and $312m deferred.

The broker makes minimal changes to FY22 net profit forecast of $197m (23% growth) but trims FY23 -4% and FY24 -9% on lower margin assumptions.

Credit Suisse forecasts $600m of share buyback to be announced at first half FY22 results.

Target price is $3.30 Current Price is $3.04 Difference: $0.26
If QUB meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates QUB as Upgrade to Hold from Reduce (3) -

Morgans upgrades its rating to Hold from Reduce and raises its target price to $2.90 from $2.80. This comes after the FY21 result delivered growth in cashflows that were stronger than expected though earnings were weaker than forecast.

Management is confident of solid earnings growth in FY22, while the Moorebank Property sale will allow for growth and capital management opportunities. The broker feels the earnings growth and balance sheet stories may support the stock.

Target price is $2.90 Current Price is $3.04 Difference: minus $0.14 (current price is over target).
If QUB meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.21, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23: