Australian Broker Call

Macquarie rates ABC as Neutral (3) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023.

Ahead of FY22 results on February 28, Macquarie reviews its investment thesis for Adbri.

After making adjustments to price and margin assumptions, as well as adjusting for increased visibility for the lime business after the recent supply contract extension with Alcoa, the broker's target rises to $1.90 from $1.50.

The analyst feels industry price traction has improved in response to cost pressures and notes weather conditions are normalising. 

The Neutral rating is maintained while the transition to a permanent ceo progresses, explains Macquarie.

Target price is $1.90 Current Price is $1.81 Difference: $0.09
If ABC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.67, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates AD8 as Outperform (1) -

The number of OEMs that have now licensed Dante AV technology to build networked video devices has jumped to 30 from two this time last year. 

Macquarie points out OEM licensing has been a good leading indicator of future ecosystem growth and longer-term success of a standard.

While the broker retains its Outperform rating, it also increases its cost forecasts due to increasing logistics costs, headcount and higher travel expenses. The target falls to $10 from $11.

Target price is $10.00 Current Price is $8.18 Difference: $1.82
If AD8 meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $10.07, suggesting upside of 33.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates AGY as Outperform (1) -

Macquarie makes only minor changes to its earnings forecasts for Argosy Minerals following the release of its 4Q cash flow report.

The ramp-up at the Rincon lithium project in Argentina should take less than six months, with steady-state production slated for the end of June 2023, notes the analyst. 

This June milestone, along with the securing of approval for a 10kptpa expansion at the project are key near-term catalysts, suggests the broker.

The Outperform rating and 85c target are retained.

Target price is $0.85 Current Price is $0.67 Difference: $0.185
If AGY meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates AMC as Neutral (3) -

In a review of packaging companies prior to the February reporting season, Macquarie forecasts a -3% fall in adjusted 1H profit  to US$534m for Amcor.

The broker raises its FY23 and FY24 EPS forecasts on a stronger Euro versus the US dollar, while the target falls to $17.94 from $18.34 on a stronger Australian dollar.

For packaging companies under the broker's coverage, Outperform-rated Orica is most preferred ahead of Amcor and the Neutral-rated Pact Group.

The company reports on February 9.

Target price is $17.94 Current Price is $16.78 Difference: $1.16
If AMC meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $17.60, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.0

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

Ord Minnett rates APM as Hold (3) -

Ord Minnett highlights APM Human Services International has benefited in recent years from lower travel expenses and higher outcome fees, driving significant uplift in underlying earnings margins to 23% in FY22 from 14% in FY19, but the broker expects these benefits will reverse over the medium term. 

According to the broker, margin upside for APM Human Services International from scale benefits will be limited. 

The broker is Hold rated with a target price of $2.80.

Target price is $2.80 Current Price is $2.63 Difference: $0.17
If APM meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.41, suggesting upside of 31.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates BBT as Buy (1) -

BlueBet Holdings' second quarter marked a slight miss to Ord Minnett's expectations, largely driven by marketing and promotional spend made in a bid to combat the entry of a new competitor to the market. 

The broker highlights these trends are expected to normalise over the second half, and the company believes its net win margin will recover to above 10% as a result.

The Buy rating and target price of $0.80 are retained.

Target price is $0.80 Current Price is $0.35 Difference: $0.45
If BBT meets the Ord Minnett target it will return approximately 129% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates BKW as Neutral (3) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023.

The Neutral rating and $22.50 target are maintained for Brickworks.

Target price is $22.50 Current Price is $23.79 Difference: minus $1.29 (current price is over target).
If BKW meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.46, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates BLD as Neutral (3) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023.

Ahead of 1H results due on February 8, the first result for new CEO Vic Bansal, Macquarie reviews its investment thesis for Boral.

The broker points to improving price traction (industry feedback) and improving weather conditions (fading La Nina), though cost pressures remain. Overall, there's considered to be potential for margin improvement.

An increase in earnings forecasts along with an increased multiple combine to lift the broker's target to $3.60 from $3.05.

Increased visibility on potential efficiency gains are considered important to Macquarie's investment thesis. As a result, a detailed plan by Vic Bansal is awaited.

Target price is $3.60 Current Price is $3.46 Difference: $0.14
If BLD meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting downside of -13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

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

There were no surprises on either capital or credit quality for Morgan Stanley from Bank of Queensland's Pillar 3 disclosures, which allow an assessment of a bank's capital adequacy.

The Equal-weight rating is maintained given leadership uncertainty and execution risks for the transformation program, as well as slowing loan growth and emerging cost pressures. The $7.40 target is also unchanged. Industry view: In-Line.

Target price is $7.40 Current Price is $7.01 Difference: $0.39
If BOQ meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.43, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Citi rates BPT as Buy (1) -

Citi has spotted a soft performance from Beach Energy in today's Q4 release, with the news not made any better as the company downgraded Pert Basin 2P reserves by -11%.

It has turned out there's a lot of field complexity involved and Citi awaits more insights from a conference call with management.

More risk comes though contractors and a tight WA labour market, and an expected capex overrun. FY23 D&A guidance looks well beyond what market consensus had penciled in, points out the broker.

Buy. Target $2.20. Citi is clearly not amused.

Target price is $2.20 Current Price is $1.51 Difference: $0.695
If BPT meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates CHL as Add (1) -

Morgans makes only minor changes to its earnings forecasts for Camplify Holdings after the release of a 2Q trading update.

The broker highlights robust future bookings and positive operating cash flows in the period for the owner of RV marketplaces.

Management noted the New Zealand market was a key standout region for the quarter. Only one month’s contribution from the newly acquired German-based RV marketplace PaulCamper was included.

The Add rating and $2.60 target are unchanged.

Target price is $2.60 Current Price is $2.04 Difference: $0.56
If CHL meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates CLW as Upgrade to Buy from Accumulate (1) -

Ord Minnett is not anticipating much in terms of negative surprises from A-REITs in the upcoming February reporting season, though the broker does believe market pressure is mounting for more capital management from the sector.

The reason for the latter, the broker explains, is due to the strong disconnect between listed and unlisted assets currently.

Ord Minnett's top picks for the season are Charter Hall Long WALE, RAM Essential Services Property and Waypoint REIT.

Target price for Charter Hall Long WALE REIT has fallen to $4.87 from $4.93. Upgrade to Buy from Accumulate.

Target price is $4.87 Current Price is $4.60 Difference: $0.27
If CLW meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.64, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Macquarie rates CMM as Underperform (5) -

Macquarie assesses a mixed 2Q production report for Capricorn Metals with production a miss (-6%) and all-in sustaining costs (AISC) a beat (4%) versus the broker's forecasts.

The analyst points out lower costs were supported by lower mining volumes due to unplanned mill shuts, which made the production beat more meritorious.

Management maintained FY23 guidance of 115-125koz at an AISC of $1,160-1,260/oz, with production set to increase in the 2H.

Macquarie retains its Underperform rating and $4.60 target.

Target price is $4.60 Current Price is $4.70 Difference: minus $0.1 (current price is over target).
If CMM meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -1.0

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

Macquarie rates CNB as Outperform (1) -

Following the release of Carnaby Resources' 2Q production report, Macquarie increases its FY23 EPS forecast by 8% and retains its Outperform rating and $1.30 target.

The broker, which only recently initiated research coverage on the company, reiterates there is a potential pathway for the Greater Duchess mine (copper/gold) to become an around 25ktpa copper producer commencing as early as FY25.

Target price is $1.30 Current Price is $1.07 Difference: $0.23
If CNB meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Credit Suisse expects food inflation of 10% for December largely carried across to similar rates of supermarket industry inflation, and retains a preference for supermarkets over non-food retail in the first half. 

Credit Suisse expects Coles Group can deliver 16% year-on-year earnings growth, supported by robust industry growth, margin benefits derived from food inflation, and an absence of covid-related costs. 

The rating is upgraded to Outperform from Neutral and the target price increases to $19.31 from $18.02.

Target price is $19.31 Current Price is $17.35 Difference: $1.96
If COL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $17.21, suggesting downside of -3.1% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates COL as Outperform (1) -

In anticipation of 1H results due February 21, Macquarie forecasts $21.5bn of revenue, $1.0bn of EBIT and $568m of profit.

The broker points out food inflation remained strong in the 2Q and awaits results to see any impact of higher prices on consumption.

The Outperform rating and $17.70 target are unchanged.

Target price is $18.70 Current Price is $17.35 Difference: $1.35
If COL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $17.21, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Credit Suisse rates CPU as Outperform (1) -

Credit Suisse has reviewed its outlook on Computershare, accounting for market and foreign exchange movements. The broker finds valuation support for the company is not as strong as it once was, but does continue to see upside potential. 

Given fixed income market expectations, Credit Suisse expects Computershare will maintain FY23 guidance, but that FY24 margin income guidance will be reduced to US$940-905m from US$1,010m.

The broker expects rates to remain a tailwind throughout FY24, before turning to a headwind in FY25. The Outperform rating is retained and the target price decreases to $27.00 from $29.00.

Target price is $27.00 Current Price is $23.89 Difference: $3.11
If CPU meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $30.83, suggesting upside of 29.8% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Macquarie rates CSR as Neutral (3) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023. 

On balance Macquarie retains its Neutral rating for CSR. On one hand, the detached building pipeline remains extended and industry dynamics are supportive. On the other hand, interest rates are still rising and front-end detached home sales are being impacted.

The analysts suggest upside risks will stem from any rapid recovery in multi-residential demand, improved efficiencies or a rapid recovery in temporary and permanent migration.

The target rises to $5.05 from $4.80 on adjustments to the broker's exchange rate and commodity price assumption. An increase in multiple also boosts the target price.

Target price is $5.05 Current Price is $5.26 Difference: minus $0.21 (current price is over target).
If CSR meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.51, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates CXO as Outperform (1) -

Commentary in Core Lithium's 2Q production report confirmed the first shipment of Direct Ship Ore (DSO) departed for China in early January.

Management also reaffirmed first spodumene production at Finniss is expected in the 2H of FY23, which Macquarie suggests is a key near-term catalyst.

The Outperform rating and $1.30 target are unchanged. 

Target price is $1.30 Current Price is $1.23 Difference: $0.07
If CXO meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates DCN as Neutral (3) -

Second quarter production for Dacian Gold was a 5% beat versus Macquarie's forecast while all-in sustaining costs were a slight beat.

Acceptances for Genesis Minerals' ((GMD)) unconditional takeover for the company now total 78%, notes the analyst.

Dacian will put Mt Morgans on care and maintenance at the end of the 3Q for multiple reasons including high industry input costs and lead times to improve process water security.

The broker retains its Neutral rating and 12c target.

Target price is $0.12 Current Price is $0.12 Difference: $0.005
If DCN meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates ECX as Outperform (1) -

Follwing a 1Q trading update and AGM commentary, Macquarie makes minor changes to EPS forecasts and increases its small-cap industrials market multiple, resulting in a $2.28 target, up from $2.19.

The broker retains its Outperform rating on an attractive core business performance and upside risks for end of lease (EOL) income, should second hand car prices remain elevated into the 2H of FY23.

Target price is $2.28 Current Price is $2.05 Difference: $0.23
If ECX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 22.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates ECX as Overweight (1) -

Eclipx Group's AGM revealed orders were strong in the 1Q (September year end) with the second strongest quarter in Australia on record and a record month in December for New Zealand, highlights Morgan Stanley.

The broker also notes robust demand and tender activity though supply headwinds remain. End of lease income (EOL) remains elevated and above expectation, raising the possibility for further buy backs.

Management guided for net operating income (NOI) pre EOL to be in line with FY22, down from previous guidance for slight growth.  

The broker likes the earnings stability, organic EPS growth and the current buy backs and maintains its Overweight rating. The $2.70 target is retained. Industry View: In-Line.

Target price is $2.70 Current Price is $2.05 Difference: $0.65
If ECX meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.49, suggesting upside of 22.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates FLT as Neutral (3) -

At face value, Citi comments Flight Centre Travel's H1 result looks a significant beat on market forecasts and expectations. While the broker has some reservations on 'composition', revenues beat by 10%.

Modest margins in Corporate and Leisure suggest the strong result was all about 'Other', the broker points out. And while FY23 guidance seems conservative, Citi questions whether momentum hasn't stalled?

The company also announced the acquisition of Scott Dunn for $23m in cash on top of $211m in fresh equity. Citi finds the acquisition "interesting" but questions whether the 26% revenue margin is sustainable.

Neutral. Target $16.60.

Target price is $16.60 Current Price is $15.83 Difference: $0.77
If FLT meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.00, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Morgans rates GNX as Speculative Buy (1) -

Pricing for electricity and carbon in the 1H for Genex Power was weaker than Morgans forecast resulting in a -15% miss on revenue. Solar production was in line with expectation.

The broker notes prices for large-scale generation certificates (LGCs) have weakened with spot falling to around $51/MWh from $65/MWh. An offset was provided by lower than expected cash spend on construction for Kidston Solar and the Jemalong solar project.

The Speculative Buy rating and 27c target are unchanged.

Target price is $0.27 Current Price is $0.14 Difference: $0.125
If GNX meets the Morgans target it will return approximately 86% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates GWA as Neutral (3) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023. 

The Neutral rating and $2.10 target for GWA Group is unchanged.

Target price is $2.10 Current Price is $2.14 Difference: minus $0.04 (current price is over target).
If GWA meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.20, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Macquarie rates HAS as Outperform (1) -

Early works on Yangibana Rare Earths project are well underway, notes Macquarie, after the release of Hastings Technology Metals' 2Q activities report.

Given recent industry trends, the broker increases its capital cost assumptions by 22%, ahead of a cost and schedule review by the company.

The change in assumptions results in a -14% cut to the target price (to $4.20) by the analyst. Outperform.

Target price is $4.20 Current Price is $3.69 Difference: $0.51
If HAS meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates HSN as Initiation of coverage with Buy (1) -

UBS initiates coverage of Hansen Technologies with a Buy rating and $6.30 price target. The broker is attracted to the company's high level of recurring/defensive revenue, exposed to resilient Utility and Telco markets.

Hansen also boasts a low level of customer churn, strong track record of cash generation and a robust balance sheet that can support earnings/valuation-accretive M&A.

UBS believes the stage should be set for Hansen to resume its bolt-on M&A program within the global billing software industry, which remains highly fragmented.

Target price is $6.30 Current Price is $5.02 Difference: $1.28
If HSN meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.15, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates IAG as Outperform (1) -

After assessing current claims inflation and repricing actions undertaken by general insurers, Macquarie concludes underlying margins should continue to improve into FY24 for Insurance Australia Group.

The valuation looks cheap at current levels, according to the broker. Outperform. The $5.90 target is maintained.

Target price is $5.90 Current Price is $4.89 Difference: $1.01
If IAG meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Morgan Stanley rates IEL as Overweight (1) -

In an unexpected move by China, existing students and new enrolments at foreign universities have been banned from studying online and must now make haste to the relevant foreign country.

This announcement gives Morgan Stanley increased confidence in a 2H recovery for China volumes at IDP Education. There's considered to be only a small risk of deferrals by those students who cannot travel in time to attend this year's first semester.

The Overweight rating and $36.80 target are maintained. Industry View: In-Line.

Target price is $36.80 Current Price is $31.37 Difference: $5.43
If IEL meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $33.22, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgans rates IPD as Speculative Buy (1) -

Following ImpediMed's 2Q cash flow report, Morgans lowers its FY23 revenue forecast to reflect a slower than expected ramp of SOZO placements. As a result the forecast net loss widens to -$17.2m from -$15.1m. FY24/25 forecasts are unchanged.

The broker awaits the release of the National Comprehensive Cancer Network (NCCN) Survivorship Panel decision in two months time. It's hoped a wording change will provide a boost for ImpediMed if its device is mentioned as an objective measurement for lymphoedema.

The Speculative Buy rating is unchanged, while the target falls to 18c from 19.5c.

Target price is $0.18 Current Price is $0.06 Difference: $0.121
If IPD meets the Morgans target it will return approximately 205% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates IVC as Neutral (3) -

UBS' analysis suggests very strong growth in Australian deaths in 2022 (10.1%) - well above trend of 2.1%. While InvoCare has to date been unable to match market growth given labour shortages, the broker still estimates volume growth of 7.2% in FY22.

In UBS' view, this creates challenging comps in FY23 which the broker does not think the market has incorporated into consensus forecasts.

Neutral and $11.60 target retained.

Target price is $11.60 Current Price is $11.48 Difference: $0.12
If IVC meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.76, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates JHX as Outperform (1) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023.

For James Hardie Industries, the broker makes near term reductions in gas and freight estimates though eases the pace of pulp price decreases in its forecasts. The target falls to $43.50 from $46.10.

The impact of a looming US recession is countered by an attractive valuation and the broker remains Buy-rated. 

Target price is $43.50 Current Price is $31.30 Difference: $12.2
If JHX meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $40.13, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in February.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Macquarie rates JRV as Outperform (1) -

Macquarie maintains Jervois Global is cheap and maintains its Outperform rating despite a delay with first production and an increase in capex at the ICO primary cobalt mine in the US. 

The original ICO capex budget of US$107.5m is expected to increase by 15-25%. The analyst also describes guidance for Jervois Finland as soft, compared to its prior base case. The target falls to 40c from 48c.

The broker highlights overall 4Q production was soft though remains upbeat as the company moves to three operational assets in 12-18 months from the current one.

Target price is $0.40 Current Price is $0.28 Difference: $0.125
If JRV meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Morgan Stanley points out 100% of Karoon Energy's production is from the Bauna field in Brazil and linked to the Brent oil price, with 67% unhedged in the 2Q of FY23.

Since the purchase of Bauna in November 2020, the analyst points to a strong correlation between the Brent price and the company's valuation.

The Equal-weight rating and $2.32 target are unchanged. Industry view: Attractive.

Target price is $2.32 Current Price is $2.39 Difference: minus $0.07 (current price is over target).
If KAR meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.04, suggesting upside of 32.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Macquarie rates LYC as Neutral (3) -

Second quarter neodymium praseodymium (NdPr) and rare earths oxide (REO) production were beats of 6% and 10%, respectively, against Macquarie's forecasts.

Realised prices for Lynas Rare Earths were also 28% stronger than the analyst expected on better pricing for mixed heavy rare earths (SEG) and new lanthanum-cerium (La-Ce) specialty products.

The broker upgrades its near-term earnings outlook, resulting in an 8% lift in target to $9.90. Neutral.

Target price is $9.90 Current Price is $9.71 Difference: $0.19
If LYC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.38, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates LYC as Buy (1) -

Lynas Rare Earths reported Dec quarter production and sales in line with UBS. Construction at Kalgoorlie has accelerated while water issues at Malaysia look to have been resolved.

The NdPr price has recovered to around US$95/kg after trading as low as $70/kg at one point in 2022. UBS sees further upside on the China reopening trade and as demand for EV's continues to grow.

Buy retained, target rises to $10.30 from $9.95.

Target price is $10.30 Current Price is $9.71 Difference: $0.59
If LYC meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.38, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates MCR as Neutral (3) -

The 2Q production report released by Mincor Resources revealed a -44% production miss and -15% sales miss compared to Macquarie's forecasts. A lower volume of lower-grade stockpile material was sold, explains the analyst.

Management maintains its FY23 nickel production guidance range, which, according to the broker, will require a strong 2H to meet the lower end of that range. Downside risks to FY23 guidance are thought to have increased.

The Neutral rating and $1.75 target are retained.

Target price is $1.75 Current Price is $1.62 Difference: $0.13
If MCR meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates MGX as Neutral (3) -

Following 2Q results, Mount Gibson Iron expects to achieve the lower end of volume guidance and the upper end of cost guidance. Macquarie increases its earnings forecasts after both revenue and costs outdid expectations.

Ore mined in the quarter was in line with the analyst's expectations and sales were 11% higher than forecast.

After allowing for the result, and after adjusting the timing of an inventory unwind, the broker's target jumps to 60c from 50c. Neutral.

Target price is $0.60 Current Price is $0.63 Difference: minus $0.025 (current price is over target).
If MGX meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Ord Minnett rates MIN as Lighten (4) -

Ord Minnett reports a broadly in line second quarter from Mineral Resources, with iron ore shipments down -9% quarter-on-quarter and spodumene shipments up 18%.

The company has pushed back the planned expansion of its Mt Marion lithium mine, due to delays in supply of processing equipment and labour shortages, and tonnages guidance for the project is lowered -15% accordingly. 

The Lighten rating and target price of $75.00 are retained.

Target price is $75.00 Current Price is $92.55 Difference: minus $17.55 (current price is over target).
If MIN 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 $96.69, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates MIN as Buy (1) -

Mineral Resources' Dec quarter was mixed, UBS notes, with strong iron ore and Mt Marion pricing offset by the MARBL JV restructure and Mt Marion delays. The broker cuts forecasts after pushing back Mt Marion and MARBL finalisation, along with softer Wodgina pricing.

Otherwise the broker notes there is optionality in Wodgina and Lockyer Deeps.

Buy retained, target falls to $112 from $118.

Target price is $112.00 Current Price is $92.55 Difference: $19.45
If MIN meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $96.69, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates MP1 as Buy (1) -

Accounting for a weaker macro environment, Citi has lowered its growth expectations for Megaport, but continues to expect the company can deliver strong growth over the medium-term supported by multi-cloud adoption. 

The company's balance sheet does remain a concern for Citi, but he broker expects second quarter cash burn will reduce as a result of slowing cost growth and lower capital expenditure. The broker reduces its revenue forecasts between -6% and -10% through to FY25. 

The Buy rating is retained and the target price decreases to $10.95 from $14.00.

Target price is $10.95 Current Price is $7.68 Difference: $3.27
If MP1 meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $9.79, suggesting upside of 69.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates MTS as Buy (1) -

30-year Metcash veteran, Food CEO Scott Marshall, has resigned. The success of the independent value chain is dependent upon relationships, with the price & store investment by retailers pre-covid evidence of relationship strength, notes UBS.

Marshall’s departure reduces the strength of these relationships. Nevertheless, the new CEO has worked to build his own relationships with independent retailers.

Metcash's covid-era market share gains have proven more resilient than expected, and UBS does not expect any difference under the new CEO. Buy and $5.00 target retained.

Target price is $5.00 Current Price is $4.12 Difference: $0.88
If MTS meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgans rates MX1 as Speculative Buy (1) -

Morgans makes no changes to its forecasts or 33c target for Micro-X following its 2Q cash flow report, despite modest cash receipts for the ultra-lightweight X-ray unit, named Mobile DR.

The analyst suggests inventory on hand will support sales in upcoming quarters via established distribution agreements in the US.

The commercial launch of the Argus X-Ray Camera in FY24 is expected to be a positive catalyst, according to the broker.

The Speculative Buy rating is unchanged.

Target price is $0.33 Current Price is $0.14 Difference: $0.195
If MX1 meets the Morgans target it will return approximately 144% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates NCM as Upgrade to Add from Hold (1) -

In the wake of Newcrest Mining’s 2Q production report last week, Morgans reduces long-term sustaining capex assumptions at Cadia.

When these changed capex forecasts are combined with upgraded gold price assumptions, the broker’s target is increased to $25.70 from $20.60 and the rating upgraded to Add from Hold.

The analyst sees an emerging value proposition for Newcrest thanks to the company’s diversification, solid margins, and long-life reserves.

Highlights for the 2Q included a solid performance from Cadia, a 25% rise in gold production year-on-year and all-in sustaining costs (AISC) of US$32/oz (after by-product credits).

Target price is $25.70 Current Price is $22.57 Difference: $3.13
If NCM meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $24.73, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.6

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

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

A 4Q trading update showed Nitro Software met FY23 guidance ranges for earnings (EBITDA), annual recurring revenue (ARR) and revenue.

Morgan Stanley believes shares will trade more in line with current takeover premiums rather than underlying business fundamentals.

The Equal-weight rating and $2.00 target are maintained. Industry View: In-Line.

Target price is $2.00 Current Price is $2.16 Difference: minus $0.16 (current price is over target).
If NTO meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates ORA as Outperform (1) -

In a review of packaging companies prior to the February reporting season, Macquarie forecasts Orora will record flat 1H profit of $103m compared to the previous corresponding period. US earnings (EBIT) growth of 6% is expected for FY23

The $3.48 target and Outperform rating are unchanged. Results are due on February 16.

For packaging companies under the broker's coverage, Orica is most preferred ahead of the Neutral-rated Amcor and Pact Group.

Target price is $3.48 Current Price is $3.03 Difference: $0.45
If ORA meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.63, suggesting upside of 21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates OZL as No Rating (-1) -

While under research restriction for OZ Minerals, Macquarie cannot issue a target or rating.

However, following the company's mixed 4Q production result, the broker dramatically lowers EPS forecasts due to misses on production and costs. In-line revenue was considered a partial offset.

Management's FY23 guidance was for volumes largely lower than the analyst expected and costs higher than previously forecast.

The company issued an unaudited 2022 revenue figure of $1,921m, in line with Macquarie's expectations. Net Debt of
-$254m implied implying to the analyst a working capital build and higher costs than expected.

Current Price is $27.90. Target price not assessed.

Current consensus price target is $27.61, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

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

OZ Minerals' 4Q copper production and costs were in line with Morgan Stanley's forecasts, driven by strong gold production.

2023 production guidance was around -10% below forecasts by the broker and consensus, while costs were a -10% miss compared to the broker's estimate.

Morgan Stanley remains Equal-weight and raises its target to $25.30 from $25.10 after allowing for higher 4Q copper/gold sales, model updates and lower FY23 guidance.

Target price is $25.30 Current Price is $27.90 Difference: minus $2.6 (current price is over target).
If OZL meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.61, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Ord Minnett rates PAC as Buy (1) -

Ord Minnett found Pacific Current Group's second half results reasonable, and indicative of the company's funds under management resilience despite difficult investment markets.

While new commitments of $0.8bn in the second quarter are in line with Pacific Current Group's full year guidance of $3-5m, Ord Minnett remains cautious due to ongoing investment market volatility. The broker maintains that Pacific Current Group offers an appealing investment proposition for those willing to look through near-term volatility. 

The Buy rating and target price of $11.00 are retained.

Target price is $11.00 Current Price is $7.55 Difference: $3.45
If PAC meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates PGH as Neutral (3) -

In a review of packaging companies prior to the February reporting season, Macquarie forecasts Pact Group will record 1H earnings (EBIT) of $70m, down -16% on the previous corresponding period.

The broker's FY23 forecast for earnings of $139m sits -12% below the consensus forecast.

The $1.39 target and Neutral rating are unchanged. Results are due on February 15.

For packaging companies under the broker's coverage, Pact Group ranks last behind Outperform-rated Orica and Amcor (Neutral).

Target price is $1.39 Current Price is $1.06 Difference: $0.335
If PGH meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting upside of 102.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates REH as Neutral (3) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023 and is accordingly cautious on Neutral-rated Reece. While the company's US repositioning has gained momentum, the stock is considered fully valued.

The target is lowered to $15.10 from $15.40.

Target price is $15.40 Current Price is $16.08 Difference: minus $0.68 (current price is over target).
If REH meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.77, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Ord Minnett rates REP as Buy (1) -

Ord Minnett is not anticipating much in terms of negative surprises from A-REITs in the upcoming February reporting season, though the broker does believe market pressure is mounting for more capital management from the sector.

The reason for the latter, the broker explains, is due to the strong disconnect between listed and unlisted assets currently.

Ord Minnett's top picks for the season are Charter Hall Long WALE, RAM Essential Services Property and Waypoint REIT.

Target price for RAM Essential Services Property Fund  is unchanged at $0.99 with an (unchanged) Buy rating.

Target price is $0.99 Current Price is $0.77 Difference: $0.22
If REP meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates RMD as Accumulate (2) -

Ord Minnett remains positive on a long growth trajectory for ResMed, noting the company should continue to benefit from a significantly underpenetrated, and expanding, sleep apnea market.

The broker expects ResMed can continue to take market share, with the company's only other cloud-connected device competitor Philips remaining hampered by a product recall. 

The company is increasingly focused on sales of its cloud-connected devices, having launched its AirSense 11 product in FY22 roughly seven years after the release of AirSense 10.

The Accumulate rating is retained and the target price decreases to $35.00 from $38.00. 

Target price is $35.00 Current Price is $31.36 Difference: $3.64
If RMD meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $36.23, suggesting upside of 12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Macquarie rates RWC as Outperform (1) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023.

Ahead of 1H results due on February 20, Macquarie reviews its investment thesis for Reliance Worldwide, which results in a target price fall to $4.15 from $4.60 due to a lower Australian dollar and a higher risk-free rate assumption.

The broker expects an update by management at the results outlining efficiency improvement plans for the Americas.

Core trading partners continue to report robust trading in North America, notes the analyst, and receding commodity prices through to the 1H of FY23 should support better margins in 1H of FY23. Outperform.

Target price is $4.15 Current Price is $3.47 Difference: $0.68
If RWC meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.77, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.4

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

UBS rates SHV as Buy (1) -

Further quality impacts and reduced market prices have led to the fair value price of Select Harvests' 2022 almond crop to be
downgraded to $6.15-6.30/kg from $6.80/kg, driving an earnings impact as well as a likely goodwill impairment, UBS notes.

The company previously flagged impacts to quality from wet weather, but recent mould issues have led to a higher portion of lower grade stock.

Market pricing  has recently been impacted by rain and snowfall in California which has encouraged growers in the region, while the industry remains in oversupply, highlights the broker.

If spot prices do not improve over FY23, in the absence of asset sales UBS sees balance sheet risk. Buy retained on valuation, target falls to $5.10 from $6.40.

Target price is $5.10 Current Price is $4.00 Difference: $1.1
If SHV meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates SOM as Add (1) -

SomnoMed's 2Q cash flow report revealed weak trading in December due to logistics issues in North America and lower-priced competition, explains Morgans.

While FY23 earnings (EBITDA) guidance was maintained, sales growth of 15-20% is now expected, down from the previously expected greater than 20%. 

The broker moderates its FY23 forecast to meet the lower end of guidance and the target falls to $1.76 from $1.88. Add.

Target price is $1.76 Current Price is $1.26 Difference: $0.5
If SOM meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates SUN as Outperform (1) -

After assessing current claims inflation and repricing actions undertaken by general insurers, Macquarie concludes underlying margins should continue to improve into FY24 for Suncorp Group.

The valuation looks cheap at current levels, according to the broker. Outperform. The $15.80 target is maintained.

Target price is $15.80 Current Price is $12.56 Difference: $3.24
If SUN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $13.62, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates URW as Accumulate (2) -

According to Ord Minnett, recent asset disposals by Unibail-Rodamco-Westfield indicate the company's debt reduction plan remains realistic.

With the company confirming the sale of Westfield Trumbull and South Shore Shopping Centre in January, the broker estimates the company is exiting much of its US portfolio with 6.25% average exit yield. 

The broker anticipates further deleveraging will be revealed alongside the company's 2022 results, due in early February.  The Accumulate rating and target price of $6.80 are retained. 

Target price is $6.80 Current Price is $4.53 Difference: $2.27
If URW meets the Ord Minnett target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 0.5

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

Macquarie rates WGN as Neutral (3) -

Macquarie prefers exposures to US builders compared to Australian ones, as the adjustment has been much faster in the US and the recovery should arrive sooner. James Hardie is most preferred, followed by Reliance Worldwide.

The broker believes Australian detached home pipelines face a slowing in the 2H of 2023. 

The Neutral rating and 82c target for GWA Group is unchanged.

Target price is $0.82 Current Price is $0.75 Difference: $0.07
If WGN meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.11, suggesting upside of 51.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Credit Suisse expects food inflation of 10% for December largely carried across to similar rates of supermarket industry inflation, and retains a preference for supermarkets over non-food retail in the first half. 

Credit Suisse expects Coles Group can deliver 22% year-on-year earnings growth, supported by robust industry growth, margin benefits derived from food inflation, and an absence of covid-related costs. 

The rating is upgraded to Outperform from Neutral and the target price increases to $36.51 from $33.01.

Target price is $36.51 Current Price is $34.77 Difference: $1.74
If WOW meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $34.24, suggesting downside of -5.1% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Ord Minnett rates WPR as Accumulate (2) -

Ord Minnett is not anticipating much in terms of negative surprises from A-REITs in the upcoming February reporting season, though the broker does believe market pressure is mounting for more capital management from the sector.

The reason for the latter, the broker explains, is due to the strong disconnect between listed and unlisted assets currently.

Ord Minnett's top picks for the season are Charter Hall Long WALE, RAM Essential Services Property and Waypoint REIT.

Target price for Waypoint REIT has risen to $2.93 from $2.81. Accumulate.

Target price is $2.93 Current Price is $2.80 Difference: $0.13
If WPR meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.69, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in December.

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