Australian Broker Call

Shaw and Partners rates A1M as Buy (1) -

AIC Mines has updated on drilling at Eloise with remnant mining of near-surface mineralisation to supplement production between stoping areas. A significant remnant opportunity exists, Shaw and Partners notes.

This should add options to the mine schedule and improve operating reliability at Eloise. The broker believes the stock offers investors one of the few ways to invest in a simple leveraged exxposure to the copper price on ASX.

Buy rating and $0.60 target retained.

Target price is $0.60 Current Price is $0.38 Difference: $0.22
If A1M meets the Shaw and Partners target it will return approximately 58% (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

Morgan Stanley rates AD8 as Overweight (1) -

Audinate Group comes onto the radar as Morgan Stanley reviews key small-to mid-cap conviction ideas (heading into results season) with likely outperformance into FY24.

The broker believes the 2H consensus revenue forecast of US$22.7m is highly achievable and notes elevated backlogs provide visibility. There's is also scope for cash flow breakeven in the 2H, suggests the analyst.

Potential upside may come from further details by management on video adoption trends and detail. FY23 guidance for video of US$3m is considered conservative.

The Overweight rating and $11 target are unchanged. Industry view is In-Line.

Target price is $11.00 Current Price is $9.26 Difference: $1.74
If AD8 meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $10.78, suggesting upside of 15.9% (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 AKE as Outperform (1) -

Allkem has first production from Olaroz stage 2. Macquarie notes the expansion has nameplate capacity of 25,000tpa of technical grade lithium carbonate that will take total production capacity to 42,500tpa once fully ramped up.

The broker upgrades multiples to reflect the extension in the value chain and the risk reduction in the jurisdiction through the proposed merger with Livent. Target is raised to $19.10 from $17.40. Outperform maintained.

Target price is $19.10 Current Price is $16.44 Difference: $2.66
If AKE meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $17.93, suggesting upside of 8.6% (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

Citi rates ANN as Neutral (3) -

Ansell has pre-released FY23 results and FY24 guidance while acknowledging visibility on inventory levels remains low.  FY24 adjusted EPS guidance is US92-112c, well below consensus as destocking in healthcare is expected to continue.

Citi found the new restructuring and IT investment program a negative surprise as this was not foreshadowed by management. The broker expects investors will remain sceptical about the potential payback of the investments as earnings have been largely flat over 10 years.

Neutral rating retained. Target price falls to $25.00 from $27.25.

Target price is $25.00 Current Price is $23.88 Difference: $1.12
If ANN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.00, suggesting upside of 15.7% (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: 0.1

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

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

The latest research from Morgan Stanley was penned prior to Ansell hosting a conference call on its FY23 trading update and first-time FY24 guidance. Further clarity should come with a follow up research note.

The trading update shows the broker destocking challenges persist, especially for the Surgical and Life Sciences divisions, while the situation for Exam/SU (gloves) improved over the 2H.

Management is guiding for FY24 adjusted EPS of US92-112c.

Equal-weight rating and $28.07 target. Industry view In-Line.

Target price is $28.07 Current Price is $23.88 Difference: $4.19
If ANN meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $27.00, suggesting upside of 15.7% (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: 0.1

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

Morgans rates ANN as Hold (3) -

FY24 underlying earnings for Ansell will be negatively impacted by several items including normalisation of prior year accruals for long-term incentive plans, unfavorable currency and interest rate moves, as well as higher tax, explains Morgans.

The FY23 trading update was in line with the broker's expectations.

Management will begin a -US$70-85m ‘Accelerated Productivity Investment Program’, aiming to drive EPS growth and improve return on invested capital (ROIC), while also accelerating its digitisation strategy.

Morgans target falls to $21.93 from $23.32 on materially lower FY24 and FY25 earnings forecasts. Visibility on a full recovery is considered uncertain and difficult to forecast. Hold.

Target price is $21.93 Current Price is $23.88 Difference: minus $1.95 (current price is over target).
If ANN meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.00, suggesting upside of 15.7% (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: 0.1

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

Ord Minnett rates ANN as Accumulate (2) -

Ord Minnett expects weakness in the short term will be offset by Ansell's productivity program, which is set to deliver at least US$45m in annualised cost savings by FY26.

The broker reduces its mid cycle FY27 EBIT forecasts by -4% with the overall valuation impact offset by stronger US dollar and reduced forecasts for investment in working capital.

The trading update for FY23 showed slightly lower sales than the broker expected, stemming from continued customer destocking in surgical and life sciences. This was offset by margins expanding more than expected as the market price for single-use glove stabilised.

The Accumulate rating and $30 target are unchanged.

Target price is $30.00 Current Price is $23.88 Difference: $6.12
If ANN meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $27.00, suggesting upside of 15.7% (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: 0.1

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

Citi rates AZJ as Neutral (3) -

Aurizon Holdings is spending $425m in phase 1 to build its Land Bridge, expecting to create demand for containers to be uploaded in Darwin with boxes railed to east coast capitals, versus ships sailing down the coast.

The company estimates this will provide a more direct link to Asia and save seven days of the journey between Shanghai and Melbourne.

Citi observes this is an attempt to create a new market and the economics are uncertain, with returns on capital several years away.

Meanwhile, the above/below rail segments should have a good FY24 after three years of La Nina. As a result, the broker increases EBITDA estimates for FY24-25-4-5%. Neutral maintained. Target is raised to $3.92 from $3.70.

Target price is $3.92 Current Price is $3.80 Difference: $0.12
If AZJ meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

UBS rates AZJ as Neutral (3) -

Aurizon Holdings has tightened FY23 guidance towards the lower end due to prolonged wet weather, mine production issues and labour shortages impacting the March quarter. FY24 guidance has disappointed UBS.

The broker believes either this guidance is conservative or there are underlying challenges elsewhere in the group, such as costs and the ramp-up in Bulk haulage. Guidance assumes growth in all segments but a "neutral" earnings impact from Aurizon's re-entry into the containerised freight market.

Neutral and $3.80 target retained.

Target price is $3.80 Current Price is $3.80 Difference: $0
If AZJ meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.01, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Shaw and Partners rates BC8 as Buy (1) -

Black Cat Syndicate has a scoping study for the re-start of the Coyote operation, outlining an $80m refurbishment and expansion to produce 200,000 ounces of gold over five-year mine life at an AISC of $1586/oz.

Shaw and Partners notes this is now the third mining study released over the past week, after Paulsens and Kal East, and all three operations could be in production over the next 2-3 years, moving the company to a 150,000ozpa gold producer.

The Buy rating and 83c target are unchanged.

Target price is $0.83 Current Price is $0.43 Difference: $0.4
If BC8 meets the Shaw and Partners target it will return approximately 93% (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 CAR as Hold (3) -

Ord Minnett transfers coverage of Carsales to a new analyst, forecasting revenue to grow at a 10-year compound rate of 13%, driven by the consolidation of Trader Interactive and Webmotors.

EBIT margins are expected to expand to 48% in 2032 as the marketplace online continues to mature.

Despite being the dominant player in Australia's mature automotive online marketplace, the broker still envisages significant growth opportunities as this is mostly a marketing channel and there is potential to expand into broader car retailing.

At current prices the shares screen fairly valued and the broker retains a Hold rating and $23 target.

Target price is $23.00 Current Price is $24.27 Difference: minus $1.27 (current price is over target).
If CAR meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.08, suggesting upside of 5.0% (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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley believes forward looking commentary will be of more import than the upcoming 2H result. It's thought the outlook for margins, volume growth, costs and credit quality will have greater impacts on the share price.

For the record, the broker forecasts 2H pre-provision profit of $7,861m and cash profit of $5,150m. A further $1bn on-market share
buyback is expected and a final dividend of $2.35/share.

The Underweight rating is retained and the target rises to $82.50 from $82. Industry View: In-Line.

Target price is $82.50 Current Price is $102.57 Difference: minus $20.07 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.68, suggesting downside of -12.6% (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

UBS rates CBA as Neutral (3) -

UBS has lowered its net interest margin forecast by -6bps-7bps for FY24-25 driven by an assumption of higher than initially expected
funding costs for the banks, and subsequently trimmed earnings forecasts.

However the broker believes Commonwealth Bank is best placed to benefit from more rational mortgage pricing and also lower deposit competition, given the importance of the Australian retail business within the group's overall mix.

Neutral and $100 target retained.

Target price is $100.00 Current Price is $102.57 Difference: minus $2.57 (current price is over target).
If CBA meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.68, suggesting downside of -12.6% (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

Bell Potter rates COE as Buy (1) -

Cooper Energy reported June quarter production and sales that were below Bell Potter's estimates. FY23 production of 3.56 mmboe and unaudited EBITDAX of around $109m were within guidance provided in June.

The broker considers the near-term outlook uncertain for achieving production targets in the Gippsland Basin and taking FID on Otway phase 3 and expects the company will further draw down debt to fund the abandonment works and Otway phase 3.

Buy rating and $0.20 target unchanged.

Target price is $0.20 Current Price is $0.14 Difference: $0.06
If COE meets the Bell Potter target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $0.20, suggesting upside of 40.5% (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

Macquarie rates COE as Neutral (3) -

June quarter production was in line with Macquarie's estimates while revenue was ahead of expectations amid stronger gas price realisations.

Free cash flow was negative as Cooper Energy has commenced preparations for the BMG decommissioning, with abandonment planned through FY24.

Hence gearing rises to 30% from 11%. The broker assesses this situation exposes investors to risk over the next 6-12 months. The key swing factor is improvements at the Orbost plant. Neutral rating maintained. Target rises to $0.16 from $0.14.

Target price is $0.16 Current Price is $0.14 Difference: $0.02
If COE meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $0.20, suggesting upside of 40.5% (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 COE as Add (1) -

Morgans  assesses a steady end to FY23 for Cooper Energy with Q4 gas production in line with estimates by Morgans and consensus, while liquids production was a 3% beat.

The broker explains production was hampered by planned maintenance at Orbost (Sole), and some interruptions at Athena (Otway).

Sales revenue of $48.9m was increased by 4% quarter-on-quarter, on higher realised prices.

Morgans expects a turnaround in FY24 and increased levels of confidence in the stock, which is currently trading at "deep value levels". The Add rating and 23c target are unchanged.

Target price is $0.23 Current Price is $0.14 Difference: $0.09
If COE meets the Morgans target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $0.20, suggesting upside of 40.5% (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

Bell Potter rates COS as Buy (1) -

Bell Potter transfers coverage of Cosol to another analyst and remains positive about the business and outllook.

The company is assessed to have a relatively unique mix of software and services that provide a strong competitive advantage and a "reasonable" level of recurring revenue.

The annual target of 10-15% growth is expected to be achieved over the foreseeable future, supplemented by small accretive acquisitions. FY23 estimates are modestly upgraded while FY24 and FY25 are downgraded by -14% and 11%, respectively.

The latter downgrades are driven by lower margin assumptions and a higher D&A forecast in FY24. Buy rating maintained. Target edges up to $1.05 from $1.00.

Target price is $1.05 Current Price is $0.85 Difference: $0.205
If COS meets the Bell Potter target it will return approximately 24% (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

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

Morgan Stanley sees upside risk to margin income (MI) for Computershare and now forecasts $920m in FY24 before falling to $880m in FY25. The forecasts are ahead of consensus by 6.5% and 11.5%, respectively.

However, the broker suggests consensus expectations for FY24 EPS are too high. First-time guidance is expected at the August result. Morgan Stanley forecasts earnings (EBIT) ex-MI will recover in FY24 with 9% growth, but this will be skewed to H2, with softness in H1.

The target rises to $23.80 from $22.60. Equal-weight. Industry view: In-line.

Target price is $23.80 Current Price is $23.85 Difference: minus $0.05 (current price is over target).
If CPU meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.63, suggesting upside of 5.3% (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

Bell Potter rates CYC as Buy (1) -

Bell Potter highlights revenues of $15.3m for the first half from Cyclopharm. The company is a beneficiary of the current boom in nuclear medicine via its 3PL business, being a distributor of "hot cell" capital equipment - shielded containment chambers that protect medical professionals during preparation of drugs containing radioactive isotopes.

The broker acknowledges capital equipment sales are lumpy and lower margin yet the consumables portion of the 3PL revenue is higher margin ongoing business that can be expected to grow over time. Buy rating maintained. Target is raised to $3.00 from $2.80.

Target price is $3.00 Current Price is $2.27 Difference: $0.73
If CYC meets the Bell Potter target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 DTC as Underweight (5) -

Morgan Stanley considers the announcement (around a week ago) Damstra Holdings had become free cash flow (FCF) positive was a major positive catalyst and raises its target to 10c from 6c.

The analyst envisages a sustained re-rating for the share price given the FCF announcement helps mitigate solvency risk.

Morgan Stanley still prefers other names under its small cap tech coverage to Damstra Holdings and retains an Underweight rating. Industry view: In-Line.

Target price is $0.10 Current Price is $0.12 Difference: minus $0.015 (current price is over target).
If DTC meets the Morgan Stanley target it will return approximately minus 13% (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

Macquarie rates HUB as Outperform (1) -

Macquarie was disappointed with the June quarter net flows of $2.1bn as this is typically seasonally strong period. Hub24 indicated economic uncertainty and increased allocation to off-platform term deposits contributed.

A highlight was the 7% increase in adviser numbers quarter on quarter and, while not a guarantee of future flows, the broker believes this is a potential lead indicator as an important metric for the company to keep growing.

The structural growth story is intact and Macquarie believes the near-term risks are reflected in the current valuation. Outperform maintained. Target is reduced to $31.40 from $33.10.

Target price is $31.40 Current Price is $25.67 Difference: $5.73
If HUB meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $31.92, suggesting upside of 20.9% (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

Morgans rates HUB as Add (1) -

Morgans highlights the 4Q for Hub24 showed the largest quarterly increase in net additions for advisers since June 2021 and overall flows were solid against a relatively soft industry backdrop.

The company reported 4Q Platform funds under administration (FUA) of $62.7bn, a rise of 5.5% quarter-on-quarter with an around $1.2bn positive market move and net inflows of $2.1bn.

The analyst believes the run-rate (more than 12% FUA growth per year from net inflow) still supports strong earnings growth. While the FY24 FUA target ($80-89bn) is at risk, the broker's forecast of closing FUA of $77.3bn still delivers solid growth.

The target slips to $29.50 from $30.60. Add.

Target price is $29.50 Current Price is $25.67 Difference: $3.83
If HUB meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $31.92, suggesting upside of 20.9% (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 HUB as Buy (1) -

Ord Minnett found the net flows in the fourth quarter "decent" albeit below expectations. Hub24 remains the broker's key pick in the sector as its pipeline of flows remains intact and the EQT agreement should provide visibility on flows over the next 18 months.

Platform advisers also increase 7% over the quarter. The broker upgrades estimates by 2-3%.

This should, in turn, drive strong revenue and earnings growth. Buy rating retained. Target rises to $32.50 from $32.00.

Target price is $32.50 Current Price is $25.67 Difference: $6.83
If HUB meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $31.92, suggesting upside of 20.9% (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

UBS rates HUB as Buy (1) -

While Hub24's net funds flow in the June quarter was below expectation, funds under administration are broadly in line with UBS' forecasts.

There was no reference to existing FY24 FUA guidance range of $80-89bn, which is increasingly looking stretched to the broker. But UBS remains optimistic for future funds flows considering the large number of advisers on-boarded during the quarter.

Buy retained, target falls to $30 from $31.
 

Target price is $30.00 Current Price is $25.67 Difference: $4.33
If HUB meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $31.92, suggesting upside of 20.9% (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

UBS rates IGO as Buy (1) -

Having acquired Western Areas for $1.3bn last June, IGO estimates an -$880-980m impairment. The impairment comes after reassessing value at Cosmos and Forrestania to include higher capex and opex along with production delays at Cosmos, UBS notes.

The downgrade comes as the broker is increasingly cautious on nickel prices given strong Indonesian supply, but the updated book value now undersells optionality across the nickel portfolio, UBS suggests, with lithium now some 90% of IGO's portfolio.

Target falls to $17.30 from $19.00, Buy retained.

Target price is $17.30 Current Price is $14.82 Difference: $2.48
If IGO meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $16.24, suggesting upside of 10.0% (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 JBH as Underweight (5) -

Morgan Stanley maintains its Underweight recommendation for JB Hi-Fi and believes risk is skewed to the downside as the company enters a likely earnings downgrade cycle.

The combination of weakening demand and challenging comparatives makes any significant advancement in FY24 difficult, according to the analyst.

The broker advises consensus is currently implying comparable sales growth of -5.7% for JBH Australia and -8.6% for The Good Guys (TGG) for the 4Q.

The $38.90 target is maintained. Industry View: In-Line.

Target price is $38.90 Current Price is $45.53 Difference: minus $6.63 (current price is over target).
If JBH meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $43.50, suggesting downside of -4.7% (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

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

Morgan Stanley downgrades its rating for Latitude Group to Underweight from Equal-weight due to the 'higher-for-longer' interest rate environment. Lower margins from a delay in re-pricing products, slowing volume growth and elevated bad debts are expected.

Moreover, volume growth has been halted as a result of the March-2023 cyber attack, which the analyst believes has reduced confidence in the company's products both from merchants and customers, e.g. Harvey Norman's ((HVN)) decision to offer Afterpay as an alternative.

The target falls to $1.00 from $1.10. Industry View: In-line.

Target price is $1.00 Current Price is $1.19 Difference: minus $0.19 (current price is over target).
If LFS meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.95, suggesting downside of -20.8% (ex-dividends)

The company's fiscal year ends in December.

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 LLC as Equal-weight (3) -

While Morgan Stanley notes greater detail will follow, Lendlease Group has confirmed recent media reports of further staff restructuring of around 740 employees.

The broker points out that while a prior restructure of 400 employees saved around $160m, the bulk was from overheads such as tenancies.

Equal-weight rating and $9.41 target price are maintained. Industry View: In-Line.

Target price is $9.41 Current Price is $8.13 Difference: $1.28
If LLC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $10.40, suggesting upside of 31.6% (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

Macquarie rates MPL as Neutral (3) -

Ahead of the FY23 results, Macquarie believes the focus for the private health insurance sector will be on policyholder growth and control of underwriting expenses.

Still, the sector provides relative safety in a volatile market and the broker expects Medibank Private will achieve its targets in FY23, although expectations have dropped following the cyber incident. Closing policyholder growth in FY24 is expected to be 0.4%.

Target is raised to $3.50 from $3.40, reflecting changes to earnings estimates, and the Neutral rating is unchanged.

Target price is $3.50 Current Price is $3.53 Difference: minus $0.03 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.63, suggesting upside of 5.5% (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 MQG as Overweight (1) -

Morgan Stanley believes several large asset sales by Macquarie Group will not overcome soft commodity and capital markets plus slower mortgage growth, and expects a subdued 1Q update at the AGM.

Nonetheless, the broker expects upgrades over FY24 by management on an improving outlook for key drivers of earnings.

Industry view: In-Line. Target $215. Overweight.

Target price is $215.00 Current Price is $181.64 Difference: $33.36
If MQG meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $193.36, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Macquarie rates NHF as Neutral (3) -

Ahead of the FY23 results, Macquarie believes the focus for the private health insurance sector will be on policyholder growth and control  of underwriting expenses.

Still, the sector provides relative safety in a volatile market and the broker believes nib Holdings will achieve its 4-5% policyholder growth target in FY23. As cost inflation continues to be a factor the sector will not be immune, the broker adds.

Target is raised to $8.25 from $7.65, reflecting changes to earnings estimates, and the Neutral rating is unchanged.

Target price is $8.25 Current Price is $8.22 Difference: $0.03
If NHF meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $8.26, suggesting downside of -0.1% (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 NIC as Outperform (1) -

June quarter production from Nickel Industries was 32,558t of nickel metal, 5% ahead of Macquarie's estimates. EBITDA from operations of US$53-56m slightly missed forecasts because of narrower margins.

The main catalyst is the opening up of the haul road connecting Hengjaya to IMIP in the September quarter that could mean sales of ore increase to 10mtpa from 3.5mtpa.  Outperform rating and $1.10 target retained.

Target price is $1.10 Current Price is $0.84 Difference: $0.26
If NIC meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Ord Minnett rates PPS as Buy (1) -

Praemium produced a softer result in the June quarter amid a difficult operating environment. Ord Minnett lowers net flow forecasts over FY24-25 as the macro economic environment is expected to mean volatility persists.

Still, the market opportunity is considered significant and the stock retains its corporate appeal. Buy rating retained. Target edges down to $1.00 from $1.10.

Target price is $1.00 Current Price is $0.60 Difference: $0.405
If PPS meets the Ord Minnett target it will return approximately 68% (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

Citi rates RIO as Buy (1) -

At first glance, Citi notes the June quarter production report from Rio Tinto was mixed. Pilbara iron ore was in line with expectations while IOC and copper were weaker.

The KUC smelter rebuild is behind schedule so refined copper production guidance for 2023 has been reduced.

The broker believes the market should not be surprised by the higher costs and working capital that were flagged. Significantly, unit cash cost guidance for the Pilbara is unchanged at US$21-22.50/t.

Raw material costs for aluminium have eased yet the company noted, given the lag, the benefits will not be seen until the second half of 2023.

The Buy rating and $123 target are maintained.

Target price is $123.00 Current Price is $116.88 Difference: $6.12
If RIO meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $113.17, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.2

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

Bell Potter rates RPL as Buy (1) -

June funds under management for Regal Partners rose to $5.8bn, well ahead of Bell Potter's expectations. Investment performance was 3.6% of opening funds and also ahead of expectations.

The broker continues to favour the stock over its peers, expecting future fund performance and inflows to be strong.

EPS forecasts increase 0.2% for FY23 and 6.0% for FY24. First half results are due on August 24. Target is raised to $3.68 from $3.45 and a Buy rating is maintained.

Target price is $3.68 Current Price is $2.61 Difference: $1.07
If RPL meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 SYR as Outperform (1) -

Syrah Resources' operations were paused from May because of weak market conditions while the Vidalia expansion was also delayed a quarter. Macquarie notes production and sales from Balama were down -63% and -43% quarter on quarter, respectively.

Meanwhile, the Vidalia capital cost estimates have increased 5%. Over the longer term, the broker believes the vertically integrated operations are well-positioned to benefit from EV and anode demand growth. Outpeerform retained. Target is reduced to $1.30 from $2.00.

Target price is $1.30 Current Price is $0.75 Difference: $0.555
If SYR meets the Macquarie target it will return approximately 74% (excluding dividends, fees and charges).

Current consensus price target is $1.15, suggesting upside of 47.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

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

The June quarter activities and cash flow report for Syrah Resources showed Balama production paused in May and June, with April the only operational month, at 50% capacity, and missed Morgan Stanley's forecast by -70%.

Lower production also caused a -4% miss on costs versus the broker's estimate though medium-term guidance was unchanged. Pricing was considered a highlight, with the average weighted price a 12% beat.

Volatile Chinese anode market conditions and good availability of finished product inventory were the reasons for the pause, which allowed downstream inventory consumption to occur and natural graphite demand conditions to improve, explains the analyst.

Equal-weight. The target falls to 85c from $1.00. Industry view: Attractive. The sales strategy is to sell from inventory until customer demand and price levels warrant sustainable Balama production, explains Morgan Stanley.

Target price is $0.85 Current Price is $0.75 Difference: $0.105
If SYR meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.15, suggesting upside of 47.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Shaw and Partners rates SYR as Buy (1) -

Balama production of 15,000t in the June quarter was ahead of Shaw and Partners estimates albeit down from 41,000t in the March quarter because of the production pause that began at the beginning of May.

Syrah Resources has reported anode material inventory growth in China has slowed recently. A decision to restart full production remains dependent on increasing sales from inventory and new sales orders that are above operating costs.

The broker notes the company is evaluating other funding options for the expansion at Vidalia, including commercial bank funding and equity partnerships. The capital cost of the expansion project has now been raised to US$190m.

Buy rating retained. Target is $1.30. 

Target price is $1.30 Current Price is $0.75 Difference: $0.555
If SYR meets the Shaw and Partners target it will return approximately 74% (excluding dividends, fees and charges).

Current consensus price target is $1.15, suggesting upside of 47.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Citi rates WDS as Neutral (3) -

At first glance, Woodside Energy's production volumes were ahead of expectations as Citi had a more conservative assumption regarding the downtime for Pluto LNG.

Total operating revenue of US$3.08bn was slightly ahead of expectations because of higher marketing revenue. Guidance is unchanged for 2023.

The broker fears that if secondary approvals for Scarborough are not granted in coming months the project could potentially face a slippage of schedule and creep up in capital expenditure.

Citi retains a Neutral rating and $33 target.

Target price is $33.00 Current Price is $35.55 Difference: minus $2.55 (current price is over target).
If WDS meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.33, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Macquarie rates WDS as Neutral (3) -

Woodside Energy has identified remedial work required on the Leopold Sedar Senghor FPSO, to be completed in Singapore prior to the sailing to Senegal. As a result, first oil is now expected in mid 2024 as opposed to late 2023.

Sangomar is an important start up for the company so Macquarie finds the delay disappointing. The main issue will be production rates and reservoir performance post the start up, and the viability of the S400 sands that are currently not booked as reserves.

Dividend estimates fall to US$1.31 in 2023 and US$1.27 in 2024, based on an 80% payout ratio. Neutral rating with the target dipping to $33 from $35.

Target price is $33.00 Current Price is $35.55 Difference: minus $2.55 (current price is over target).
If WDS meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.33, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Citi rates WES as Sell (5) -

Citi updates its modelling for Wesfarmers, reflecting the latest commodity pricing and cost assumptions.

The broker also believes consensus valuations of around $4bn for the Wesfarmers stake in the Covalent project do not reflect the fact a number of recent lithium projects have been over budget and slow to ramp up production.

Citi's base case valuation for the stake in Covalent is $3.1bn. Sell rating maintained, given downside risks around Bunnings and Officeworks. Target is $40.

Target price is $40.00 Current Price is $49.02 Difference: minus $9.02 (current price is over target).
If WES meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $48.75, suggesting downside of -1.1% (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