Australian Broker Call

Citi rates A2M as Buy (1) -

Citi dissects the latest May port data for a2 Milk Co and highlights significant momentum in the New Zealand data, with volumes to China up 28% year-on-year.

The broker also points to strong volume growth to HK, up 126% on the previous corresponding period and the second strongest month in two years.

a2 Milk Co remains a top pick for Citi with a Buy rating and $7.85 with the analyst more positive on the birth rate outlook and domestic brands not eating into the company's market potential.

Target price is $7.85 Current Price is $6.52 Difference: $1.33
If A2M meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.54, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.4

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

Bell Potter rates ALK as Buy (1) -

Alkane Resources continues to be undervalued relative to the expanded Tomingley Gold Project, according to Bell Potter, and the market is ascribing no value to the Boda gold/copper porphyry.

Management has just updated guidance for the Tomingley Expansion project expecting FY25 and FY26 gold production of between 70-80koz and 85-95koz, respectively compared to the broker's forecasts of 81koz and 102koz.

The company expects production will increase to 100-110koz over FY27-FY29 which compares to the analysts' 102koz forecast.

FY25 cost (AISC) guidance of $2,400-$2,600/oz is significantly elevated relative to Bell Potter's forecast, due to accelerated Roswell Underground mine access development.

The Buy rating is unchanged, and the target falls to $1.10 from $1.25.

Target price is $1.10 Current Price is $0.53 Difference: $0.57
If ALK meets the Bell Potter target it will return approximately 108% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates ALK as Hold (3) -

Alkane Resources has communicated its re-based outlook projections and the numbers proved below what Ord Minnett analysts had expected.

In direct response, earnings estimates have been culled by between -8%-20%. Reduced forecasts have pulled back the price target; to 55c from 65c.

Ignoring the pull back in share price, Ord Minnett points out there remains balance sheet risk, as well as development risk. Hence, the rating remains Hold.

Target price is $0.55 Current Price is $0.53 Difference: $0.02
If ALK meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates ALL as Buy (1) -

Citi analysts have returned from Aristocrat Leisure's investor briefings (today) with an even more positive view on the company's growth ambitions.

As per the broker, the company has communicated an ambition to target US$1bn in revenue by FY29, which is well, well, well above current market projections.

To put that target into perspective: Citi's own forecast sits -70% lower. Citi analysts do emphasise Aristocrat should see "substantial" growth in the years ahead.

Target $53. Buy.

Target price is $53.00 Current Price is $49.98 Difference: $3.02
If ALL meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $51.83, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates AWC as Neutral (3) -

Alumina Ltd shareholders are due to vote on the Alcoa share offer on 18 July 2024, with an offer price of $1.75, above the Citi analyst's valuation of $1.47.

The broker highlights Alumina Ltd shareholders will forego a forecast fully franked dividend yield of 5.5% in 2025 for an Alcoa forecast yield of 1.0%. 

Neutral rating and $1.65 target price unchanged.

Target price is $1.65 Current Price is $1.75 Difference: minus $0.1 (current price is over target).
If AWC meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.50, suggesting downside of -10.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

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

Citi welcomes the divestment of the US business for City Chic Collective but stresses while there are early signs of a potential turnaround, the path to profitability is expected to take more time and the broker would like more "concrete" signs.

On a positive note, the analyst points to a rapid recovery in gross profit margins, significant cost savings, and normalised inventory purchasing cycles.

Citi transfers coverage of the stock to a new analyst and the EPS forecasts are adjusted by -0.1% for FY24 and -191.4% for FY25.

Target price is slashed to 16c from 63c, and the rating downgraded to Neutral from High Risk Buy.

Target price is $0.16 Current Price is $0.13 Difference: $0.03
If CCX meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $0.31, suggesting upside of 141.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates CKF as Sell (5) -

Citi observes the FY24 earnings report from Collins Foods was probably not as bad as the market had anticipated, however the conference call highlighted the challenging market conditions in the quick serve restaurant sector.

The broker observed the company is keen on pursuing M&A to scale its European operations but faces competition and consumer challenges in Western Europe.

Management also retracted margin improvement guidance for FY25 due to weak customer demand and labour headwinds and the CEO search is in its early stages, considering both internal and external candidates, Citi notes.

The Sell rating and $10.60 target price remain unchanged.

Target price is $10.60 Current Price is $10.00 Difference: $0.6
If CKF meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.27, suggesting upside of 23.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Macquarie rates CKF as Neutral (3) -

FY24 was a challenging year for Collins Foods, explains Macquarie as consumers remain price sensitive.

The broker observes a strengthening in the company's balance sheet at the earnings report and highlights management detailed an interest in M&A opportunities, in new geographies with potential to increase growth.

Next week's tax cuts may underpin some fiscal support for the value conscious consumer, the analyst suggests, and Collins Foods is looking to improved menu offerings to boost demand.

Notably, Taco Bells is turning the corner and Macquarie adjusts earnings estimates with FY25 down -7.3% and FY26 down by -5.3%.

The target price is lowered -14% to $10.80 and the Neutral rating unchanged.

Target price is $10.80 Current Price is $10.00 Difference: $0.8
If CKF meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.27, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Morgan Stanley rates CKF as Overweight (1) -

Following "resilient" FY24 results for Collins Foods, Morgan Stanley lowers its target to $13.00 from $14.20 in anticipation of a softer consumer environment but maintains an Overweight rating. Industry View: In-Line.

FY24 earnings were in line with the consensus, while profit of $60m missed the $62m expected. Cash conversion was strong with net debt decreasing by -$7m in H2, notes the broker. An improving balance sheet provides M&A optionality, in Morgan Stanley's view.

Margin pressure is likely to persist in Australia in FY25, notes the analyst, and consensus forecasts for FY25 will likely moderate.

Target price is $13.00 Current Price is $10.00 Difference: $3
If CKF meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $11.27, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Morgans rates CKF as Add (1) -

Cashflow conversion and KFC Australia’s earnings margin were highlights for Morgans from FY24 results for Collins Foods, but trading slowed in the 2H, in line with the weaker consumer environment. Decent growth is expected to resume from the 2H of FY25.

The first seven weeks of FY25 have seen same store sales fall by -0.8% for KFC Australia compared to a rise of 8.8% in the previous corresponding period. The same measure for KFC Netherlands and KFC Germany fell by -2.3% and -2.8%, respectively.

The 1H of FY25 will likely be weak given the consumer remains under pressure, alongside persistently high inflation and tough comparatives, explains the broker.

The Add rating is maintained and the target is reduced to $11.20 from $11.50.

Target price is $11.20 Current Price is $10.00 Difference: $1.2
If CKF meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $11.27, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Ord Minnett rates CKF as Accumulate (2) -

Ord Minnett has drawn two key conclusions from Collins Foods' "solid" FY24 performance; the margin recovery has been delayed and management is actively on the look-out for acquisitions.

For now, the broker has reduced forecasts. While the shares do not look 'expensive', the broker does caution risk remains to margins.

The first seven weeks of FY25 have started on a weak note, the broker highlights. Then again, KFC Australia should see improvement on the back of tax cuts and Qld government electricity rebates.

Accumulate. Target $10.50.

Target price is $10.50 Current Price is $10.00 Difference: $0.5
If CKF meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.27, suggesting upside of 23.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

UBS rates CKF as Upgrade to Buy from Neutral (1) -

UBS upgrades its rating for Collins Foods to Buy from Neutral and raises the target to $11.50 from $10.95 after FY24 results came in materially better-than-expected by the market.

While the first seven weeks of FY25 trading was down -0.8% on a like-for-like basis, the broker points out KFC Australia is cycling peak comparatives, suggesting potential for a positive like-for-like in the 2H of FY25. 

Given the resilience of KFC, and Collins Food's growth profile relative to listed peers, UBS also reduces its weighted average cost of capital (WACC) assumption and valuation discount to the Small Industrials index.

Target price is $11.50 Current Price is $10.00 Difference: $1.5
If CKF meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $11.27, suggesting upside of 23.0% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Macquarie rates CPU as Outperform (1) -

Macquarie details the transormation of Computershare with the company's Global Corporate Trust business now accounting for over 40% of group EBITDA, with significant growth potential.

The Wells Fargo Corporate Trust Services business has been integrated well, and despite cyclical lows in the issuance business, higher mortgage refinancing and securitisation issuances are expected as rates decline, the broker states.

Computershare is aiming to Invest in technology which should improve the company's offering and offset competitive pressures from BNY Mellon and US Bancorp, the analyst observes.

Outperform rating and $29 target maintained. The company is expected to announce FY24 results on August 14.

Target price is $29.00 Current Price is $26.35 Difference: $2.65
If CPU meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $29.14, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Bell Potter rates CTT as Buy (1) -

Bell Potter lowers its target for Cettire to $2.60 from $4.00 on lower earnings forecasts and a lower assumed multiple following a weak FY24 trading update. Adjusted earnings (EBITDA) of $32-35m proved a material miss to the $44m expected by consensus.

The broker points out trading was negatively impacted by the intense promotions’ environment during the Northern Hemisphere Spring/Summer 2024 sales period from mid-May. 

The analysts expect ongoing pressure on 1H FY25 product margins until industry stock levels and promotional intensity normalise over the coming months.

The Buy rating is retained. Bell Potter suggests Cettire's ability to outperform far outweighs luxury e-commerce peers.

Target price is $2.60 Current Price is $1.12 Difference: $1.485
If CTT meets the Bell Potter target it will return approximately 133% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates EVN as Accumulate (2) -

After site visits to operations at Northparkes and Cowal, the analyst at Ord Minnett adjusts FY26-29 estimates to account for higher capex at Cowal (assuming Stage I) and non-material adjustments at Northparkes.

The Accumulate rating is unchanged and the target is decreased to $3.75 from $4.00. Fourth quarter FY24 forecasts are lowered to account for the recent weather impacts at Cowal and Mt Rawdon.

Target price is $3.75 Current Price is $3.50 Difference: $0.25
If EVN meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.04, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates HLS as Neutral (3) -

Healius continues to ring the bell on guidance downgrades Macquarie highlights, with weaker trends in pathology despite a good performance from Lumus Imaging and Agilex.

The potential sale of Lumus Imaging, with an estimated valuation of $590-$710m, is seen by the broker as a short-term positive to improve the balance sheet, while also providing flexibility for growth initiatives.

Macquarie revises earnings estimates down by -40% for FY25 and -25% for FY26.

Due to changes in the valuation, the target price is moved to $1.45 from $1.35 and the Neutral rating is maintained.

Target price is $1.45 Current Price is $1.50 Difference: minus $0.05 (current price is over target).
If HLS 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 $1.57, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Ord Minnett rates HVN as Lighten (4) -

Ord Minnett highlights concerns around higher-for-longer interest rates in Australia and a slower than expected recovery in NZ as reasons for a possible downgrade in earnings forecasts for Harvey Norman.

The broker lowers earnings estimates by -6% to -10% for FY24 to FY26 and explains these estimates are around -2% to -5% below consensus forecasts.

$4 target price and Lighten rating.

Target price is $4.00 Current Price is $4.58 Difference: minus $0.58 (current price is over target).
If HVN meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.76, suggesting upside of 13.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgan Stanley rates JHX as Overweight (1) -

At the James Hardie Industries' investor day(s), management set the target of tripling EBITDA in North America by 2035, which Morgan Stanley notes represents an 11% compound annual growth rate (CAGR) over the next 10 years.

A doubling of underlying volumes is implied, according to the broker, by the aspirational target for the company's products to be on 25m homes by 2035.

The Overweight rating and $58 target are retained. Industry View: In-Line.

Target price is $58.00 Current Price is $49.61 Difference: $8.39
If JHX meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $55.28, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Ord Minnett rates JHX as Hold (3) -

James Hardie Industries outlined ambitious plans to have its siding products on 25m homes in North America by 2035, Ord Minnett notes.

While acknowledging how ambitious the strategy is, the broker calculates it could potentially add 4% to consensus FY30 earnings estimates and a notable circa 45% upside to valuations.

Management added the incremental production capacity is expected to cost -$250m per 300 million square feet line, yielding a 36% return on invested capital.

Hold rating and $50 target price.

Target price is $50.00 Current Price is $49.61 Difference: $0.39
If JHX meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $55.28, suggesting upside of 14.9% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

UBS rates JHX as Buy (1) -

Following a series of investor days hosted by James Hardie Industries in the US, UBS believes management's strategy remains on point and the competitive advantage is still clear.

The company outlined a shift to a broader full wrap strategy from purely high value, which the analyst considers sensible.

As end markets are close to a cyclical bottom, according to the broker, and the current valuation multiple is well below normal, UBS retains its positive view.

Buy rating and $60 target maintained.

Target price is $60.00 Current Price is $49.61 Difference: $10.39
If JHX meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $55.28, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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 JIN as Overweight (1) -

Morgan Stanley highlights FY25 tailwinds for Jumbo Interactive from a larger customer base (20% larger than the previous corresponding period), product extension, and further online migration.

The broker remains Overweight because of the structural growth from online migration of lotteries and the duopoly market structure. There's also potential for management to monetise its large consumer base in ways not factored into consensus, suggest the analysts.

The $20.80 target is maintained. Industry view: In line.

Target price is $20.80 Current Price is $17.65 Difference: $3.15
If JIN meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $17.64, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Morgan Stanley slashes its target for KMD Brands to 35c from 55c after the 2H trading update missed expectations. The Equal-weight rating is retained. Industry view is In-Line.

FY24 earnings (EBITDA) guidance for NZ$50m marked a -28% miss compared to the consensus estimate. The broker decreases its earnings (EBITDA) forecasts by between -17-38%, noting negative operating leverage.

While there is upside should management execute on medium-term targets, Morgan Stanley has little confidence these can be attained, particularly for the Kathmandu brand, which has experienced multiple execution issues against a more competitive backdrop.

Target price is $0.35 Current Price is $0.33 Difference: $0.02
If KMD meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $0.43, suggesting upside of 34.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

Morgans rates MND as Initiation of coverage with Hold (3) -

Morgans initiates coverage on Monadelphous Group, which provides engineering, construction & maintenance services to the mining, energy and industrial sectors.

The market often cites scale and liquidity as reasons for the company's premium valuation versus peers, but the broker suggests the Maintenance division is responsible. Here, revenue has grown almost uninterruptedly at a 12% CAGR over the last 18 years.

The broker begins with a Hold rating as industry feedback suggests potential delays at a key $160m E&C project (CGP3), which creates some degree of uncertainty.

A $14.40 target price is set.

Target price is $14.40 Current Price is $13.20 Difference: $1.2
If MND meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.05, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates MTS as Buy (1) -

While Metcash's FY24 results were better-than-expected, UBS points out Hardware (which is the most cyclical division) is faced with a challenging construction environment.

Underlying earnings (EBIT) in FY24 beat forecasts by consensus and the broker by 1.6% and 1.4%, respectively, with earnings for Food, Hardware, Liquor and Corporate all exceeding expectations.

The Buy rating is maintained given the resilient Food and Liquor divisions, explains UBS, and the growth potential in Hardware when the cycle improves. The target is lowered to $4.00 from $4.25.

Target price is $4.00 Current Price is $3.72 Difference: $0.28
If MTS meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.07, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Bell Potter rates PPT as Buy (1) -

Bell Potter expects the May 8 disposal of the Corporate Trust and Wealth management businesses to result in a cash payment to Perpetual shareholders of between $804-1,104m, or between $6.95 and $9.55/share.

The broker estimates the residual asset management business is being valued at between 3.5x-5.5x EBITDA, which is too low for an international asset manager.

Buy. Target $27.60 and no change to forecasts.

Target price is $27.60 Current Price is $21.27 Difference: $6.33
If PPT meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $25.25, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates RMD as Buy (1) -

The recent sell off in the ResMed share price on the back of the potential impact of GLP-1 weight-loss products on its CPAP business has been considered by Ord Minnett.

The broker concludes the impact is a terminal year EPS impact of -22% in a significant scenario and -18% in a mild scenario.

The broker does make a point of stating while the potential impact of GLP-1 products on ResMed’s business is a concern (see the share price), it is considered unlikely to have a significant effect on earnings in the next few years.

The company is due to report 4Q24 results on August 24.

Buy rating with a $33.50 target price.

Target price is $33.50 Current Price is $28.08 Difference: $5.42
If RMD meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $33.23, suggesting upside of 20.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Citi rates SGP as Buy (1) -

Citi notes the ACCC is due to report on the decision relating to the Stockland/Supalai acquisition of Lendlease's ((LLC)) community business on July 4th.

The broker discounts a negative ruling from the regulator but points to the possible removal of two sites for approval to succeed and forecasts around 4% contribution to EPS growth in FY25 for the acquisition,

Citi retains a Buy rating and highlights a positive outcome could boost the share price in the short term.

The $5.10 target price is retained with no changes to earnings forecasts.

Target price is $5.10 Current Price is $4.53 Difference: $0.57
If SGP meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Bell Potter rates STX as Speculative Buy (1) -

Strike Energy has announced a material downgrade to South Erregulla reserves and contingent resources. To monetise the smaller reserve, management is now pursuing an 85MW peaking gas power plant, supported by the SE-1 well, explains Bell Potter.

There is potential for a final investment decision (FID) in November 2024, and first operations by October 2026, notes the broker. FID is dependent on AEMO awarding capacity credits for the 85MW facility, according to the analysts.

The credits effectively fix around 40% of the project’s revenue, explains Bell Potter.

The Speculative Buy rating is retained and the target price rises to 31c from 29c.

Target price is $0.31 Current Price is $0.23 Difference: $0.08
If STX meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.26, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates SUL as Upgrade to Buy from Neutral (1) -

UBS upgrades its rating for Super Retail to Buy from Neutral and raises the target to $15 from $13 due to higher earnings forecasts, and in the expectation of a FY25 multiple re-rating.

Following the broker's consumer survey, the analyst expects an improvement in consumer discretionary categories such as clothing & footwear, domestic travel, but the outlook for recreation remains subdued.

UBS expects Super Retail's gross margins will remain above pre-covid levels due to range shifts and sourcing tailwinds. The EBIT margin is expected to reduce in FY24, then expand.

Target price is $15.00 Current Price is $13.74 Difference: $1.26
If SUL meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $15.00, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

UBS rates TLS as Buy (1) -

UBS anticipates Telstra Group will continue to lead on mobile price recovery, and the broker's Australian Telecom Consumer Survey points to low churn risk from further mobile price rises.

The telco continues to have best perception on network quality, according to the UBS survey, with improvements in value for money.

The Buy rating and $4.40 target for Telstra are unchanged.

Target price is $4.40 Current Price is $3.63 Difference: $0.77
If TLS meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.00, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates TWE as Neutral (3) -

Citi came away with a positive view post the Treasury Wine Estates recent Americas investor day.

The broker observes management provided reassurance on the Daou outlook while Penfolds guidance for the next three years reduces risk around the China recovery with potential upside from price rises.

Although the analyst is awaiting more upbeat signs of stabilisation in the premium segment of the Americas division, overall, no bad news was received as good news.

Citi's earnings estimates remain unchanged, alongside a Neutral Rating. Target price $12.95.

Target price is $12.95 Current Price is $12.57 Difference: $0.38
If TWE meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.78, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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