Australian Broker Call

Ord Minnett rates ACL as Hold (3) -

Australian Clinical Labs' proposed acquisition of Healius does not impress Ord Minnett on valuation grounds. The company is offering 0.74 shares per Healius share, implying a $2.59 consideration.

The proposal is viewed as even less attractive when considering Australian Clinical Labs is currently trading below fair value estimates. Hence, the broker does not believe the company will succeed with the bid.

Moreover, the Australian Competition and Consumer Commission believes the merger is likely to substantially lessen competition in Australian pathology services.

Hold rating and $3.50 target maintained.

Target price is $3.50 Current Price is $3.19 Difference: $0.31
If ACL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

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

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

Morgan Stanley reviews stocks under its coverage in the Australia Infrastructure sector prior to the upcoming August reporting season.

For Auckland International Airport, the broker expects FY23 profit of NZ$149m, while consensus sits at NZ$143m. The result is due on August 24.

The target is NZ$9.28. Equal-weight. Industry view: Cautious.

Current Price is $7.57. Target price not assessed.

Current consensus price target is $7.05, suggesting downside of -7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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

Macquarie rates ALL as Outperform (1) -

Macquarie is expecting the NeoGames acquisition will complete in May-2024 and provide material growth optionality for Aristocrat Leisure across iGaming.

The broker suggests revenue from North American iGaming could reach US$28bn in 2030, a 250% expansion from 2023.

Outperform maintained. Target is $46.50.

Target price is $46.50 Current Price is $38.37 Difference: $8.13
If ALL meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $44.06, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

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

Morgan Stanley anticipates a modest positive reaction to the June-quarter traffic and revenue update by Atlas Arteria.

The traffic for the APPR and Chicago Skyway were beats of 1% and 2%, respectively, against the broker's forecasts, while Dulles Greenway was a -4% miss.

Equal-weight rating and $6.88 target unchanged. Industry View: Cautious.

Separately, Morgan Stanley reviews stocks under its coverage in the Australia Infrastructure sector prior to the upcoming August reporting season. The order of preference is Atlas Arteria, Transurban Group and  Aurizon Holdings.

Within the more cyclical freight and logistics category, the broker prefers Atlas Arteria over Transurban on an undemanding risk-adjusted valuation, and organic free cash flow growth prospects. Aurizon Holdings is least preferred.

Target price is $6.88 Current Price is $6.21 Difference: $0.67
If ALX meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.46, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates ALX as Hold (3) -

Following Atlas Arteria's Q2 traffic and toll revenue data, Morgans highlights Chicago Skyway traffic was less-than-expected, while  Dulles Greenway in the US remains disappointing. In-line growth from the APRR motorway network in France was considered solid.

The Hold rating and $6.43 target are maintained. The broker notes the key swing factor is whether major shareholder IFM Investors launches a takeover offer.

Target price is $6.43 Current Price is $6.21 Difference: $0.22
If ALX meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.46, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates AZJ as Underweight (5) -

Morgan Stanley reviews stocks under its coverage in the Australia Infrastructure sector prior to the upcoming August reporting season. The order of preference is Atlas Arteria, Transurban Group and  Aurizon Holdings.

Within the more cyclical freight and logistics category, the broker prefers Atlas Arteria over Transurban on an undemanding risk-adjusted valuation, and organic free cash flow growth prospects. Aurizon Holdings is least preferred.

For Aurizon Holdings, the analyst forecasts a FY23 final dividend of 10.5cps (consensus 9.1cps) at a 75% EPS payout.

Morgan Stanley retains its Underweight rating and $3.49 target. Industry view: Cautious.

Target price is $3.49 Current Price is $3.74 Difference: minus $0.25 (current price is over target).
If AZJ meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.97, suggesting upside of 5.9% (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

Citi rates BEN as Buy (1) -

Bendigo & Adelaide Bank is set to report its results on August 14 and Citi notes the share price has been disappointing over the year to date, a surprise given the first half results beat expectations.

The broker believes consensus forecasts are too low for FY23, with analysis revealing that the bank is managing its net interest margins versus balance sheet growth.

The broker envisages the possibility more resilient margins and modest bad debts could unwind the recent period of underperformance and retains a Buy rating with a $9.25 target.

Target price is $9.25 Current Price is $9.15 Difference: $0.1
If BEN meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.59, suggesting upside of 4.5% (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 BTH as Overweight (1) -

As part of its business update, Bigtincan Holdings reiterated FY23 guidance for revenue and adjusted earnings (EBITDA) and is expecting cash breakeven in Q4.

Management announced a US$9.5m acquisition of Modus Engagement, from which around $7.5m of annual recurring revenue (ARR) is included in reiterated ARR guidance, cautions the analyst.

While expectations are low for Bigtincan Holdings, Morgan Stanley notes the soft 2H organic ARR likely still came in below expectations.

The Overweight rating is retained on the broker's low valuation and potential uptick for trading when tough macroeconomic conditions eventually ease. Target 95c. Industry view: In line.

Target price is $0.95 Current Price is $0.47 Difference: $0.485
If BTH meets the Morgan Stanley target it will return approximately 104% (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 CHN as Outperform (1) -

Chalice Mining has paid $150,000 cash to Northam Resources to start due diligence after executing an earn-in agreement to expand Chalice's exploration in the West Yilgarn region.

Under the agreement, Chalice could earn up to 70% of the JV interest in two phases. Northam's exploration licence is situated 35km from Chalice's Gonneville deposit.

The $9.20 target and Outperform rating are unchanged.

Target price is $9.20 Current Price is $5.76 Difference: $3.44
If CHN meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $9.07, suggesting upside of 61.9% (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

Bell Potter rates CRN as Buy (1) -

Coronado Global Resources posted a marked improvement in June quarter production on the prior weather-impacted and logistics-constrained quarter, Bell Potter notes. Revenue was nonetheless lower on lower realised prices.

2023 guidance is retained, implying a lift in both production and capex. The board has approved the Curragh North Underground expansion which is expected to add 1.5-2.0Mtpa and support the company’s production target of 20.5 Mtpa by 2025.

Buy retained, target falls to $2.00 from $2.15.

Target price is $2.00 Current Price is $1.65 Difference: $0.35
If CRN meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.06, suggesting upside of 21.9% (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: 0.8

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

Macquarie rates CRN as Outperform (1) -

Run-of-mine (ROM) coal production of 7.2mt for Q2 at Curragh was a 37% beat against Macquarie's forecast with saleable coal production and coal sales exceeding estimates by 25% and 15%, respectively.

The broker attributes the Curragh outperformance to record prime waste movement, which has unlocked operational efficiencies.

Coronado Global Resources maintained guidance of 16.8-17.2mt of saleable coal and US$84-87/t in costs.

Costs of US$97.2/t for the 1H were a 5% beat against the analyst's forecast yet remain above reaffirmed FY23 guidance for US$84-87/t, hence guidance is considered to be at risk.

Management has approved the Curragh underground expansion.

After upgrading earnings, the broker raises its target to $2.30 from $2.20. Outperform.

Target price is $2.30 Current Price is $1.65 Difference: $0.65
If CRN meets the Macquarie target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $2.06, suggesting upside of 21.9% (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: 0.8

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

Ord Minnett rates CRN as Hold (3) -

Coronado Global Resources provided an improved June quarter production outcome, underpinned by better results at Curragh. Ord Minnett incorporates the Curragh North project into its numbers are now expects group saleable production will grow by 20%, to 20mt by 2026.

Revenue exceeded expectations because of higher realised prices while cash at the end of the quarter was broadly in line with expectations. Hold maintained. Target rises to $1.60 from $1.45.

Target price is $1.60 Current Price is $1.65 Difference: minus $0.05 (current price is over target).
If CRN meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.06, suggesting upside of 21.9% (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: 0.8

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

UBS rates CRN as Buy (1) -

Coronado Global Resources delivered a strong June quarter amid unchanged 2023 guidance. Given Blackwater rainfall is tracking in line with 2019, being the lowest in the previous eight years, UBS forecasts 10% half-on-half run-of-mine production at Curragh.

The board has also approved the Curragh North underground project for first coal late in 2024.

At the first half result on August 8 the broker looks for a dividend of US4.48c a share and does not expect a large special dividend, given M&A opportunities and lower coal prices. Buy rating retained. Target rises to $1.90 from $1.80.

Target price is $1.90 Current Price is $1.65 Difference: $0.25
If CRN meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.06, suggesting upside of 21.9% (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: 0.8

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

Bell Potter rates CSS as Buy (1) -

Bell Potter has drawn on results from competitor The Kingfish Company ahead of Clean Seas Seafood's earnings release. Prices were increased again in the quarter but cost input inflation remains stubborn.

Clean Seas expects prices to moderate in the second half but the Kingfish numbers point to a reasonable pricing outcome, the broker suggests.

Buy (Speculative risk) retained. Clean Seas returned to profitability over the past twelve months, with stronger selling prices and improved asset turns mitigating feed cost inflation. Target slips to 71c from 75c.

Target price is $0.71 Current Price is $0.49 Difference: $0.225
If CSS meets the Bell Potter 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

UBS rates DXS as Neutral (3) -

UBS assesses the recent office transactions from Dexus show a lack of conviction, finding the requirement for vendor financing on both 1 Margaret Street and 60 Margaret Street underwhelming.

Soft transactions increasingly reflect the uncertainty about the higher cost of capital and the longer term structural and cyclical shifts in demand.

The broker updates forecasts to account for actual asset sales, occupancy and higher debt costs and envisages the business pivot towards funds management more about evolution than revolution.

Further details around the strategy should emerge later in the year. Neutral maintained. Target is reduced to $8.44 from $8.69.

Target price is $8.44 Current Price is $8.09 Difference: $0.35
If DXS meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.99, suggesting upside of 11.0% (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

Ord Minnett rates HLS as Accumulate (2) -

Australian Clinical Labs' proposed acquisition of Healius does not impress Ord Minnett on valuation grounds. The company is offering 0.74 shares per Healius share, implying a $2.59 consideration.

The proposal is viewed as even less attractive when considering Australian Clinical Labs is currently trading below fair value estimates.

Hence, the broker does not believe the company will succeed in the bid, also noting Healius directors continue to unanimously recommend shareholders reject the offer.

Moreover, the Australian Competition and Consumer Commission believes the merger is likely to substantially lessen competition in Australian pathology services.

Accumulate rating and $3.55 target retained for Healius.

Target price is $3.55 Current Price is $2.84 Difference: $0.71
If HLS meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.27, suggesting upside of 11.0% (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

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

Morgan Stanley believes tailwinds will continue in the near term for Insurance Australia Group and Suncorp Group following record price increases and margin expansion.

FY24 earnings are expected to outperform due to favourable weather i.e. El Nino, which historically leads to -40% lower Australian CAT losses versus La Nina years.

For IAG, the broker raises its target to $5.25 from $4.74. Equal-weight.Industry View: In-Line.

At FY23 results, the analyst expects the margin may fall short of the FY24 consensus expectation for 14.75% on customer affordability constraints.

Target price is $5.25 Current Price is $5.85 Difference: minus $0.6 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.54, suggesting downside of -6.1% (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

Bell Potter rates MIN as Buy (1) -

Mineral Resources and Albemarle have agreed to a number of revisions to the MARBL joint venture. The fourth quarter timing for decisions on future downstream lithium conversion facilities coincides with Bell Potter's expectation for announcements relating to Wodgina spodumene concentrate expansions.

Buy retained. Mineral Resources' lithium and iron ore businesses are undergoing considerable development and expansion, the broker notes, and resulting production growth is forecast to increase earnings over the forecast period and provide excellent leverage to growing lithium demand.

Target unchanged at $90.

Target price is $90.00 Current Price is $70.11 Difference: $19.89
If MIN meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $81.00, suggesting upside of 18.8% (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 MIN as Equal-weight (3) -

Mineral Resources will no longer invest in Chinese conversion assets alongside Albemarle and will sell its 15% ownership for Kemerton to Albemarle, ending its downstream partnership with the company.

While it is less favourable to be without the downstream integration and exposure, the announcement alleviates Morgan Stanley's concerns around leverage. The company will now have a US$380-400m inflow from the sale, compared to a -US$660m outflow.

The Equal-weight rating is unchanged, while the target falls to $70 from $70.50. Industry view: Attractive.

Target price is $70.00 Current Price is $70.11 Difference: minus $0.11 (current price is over target).
If MIN 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 $81.00, suggesting upside of 18.8% (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

UBS rates MIN as Sell (5) -

UBS observes the latest changes to the MARBL joint venture will reduce the pressure on the balance sheet but also earnings. The critical next catalyst is clarity on the downstream strategy.

Mineral Resources will receive the additional 10% of Wodgina and almost US$1-1.1bn in a swing to capital receipts from capital payments. Yet Wodgina spodumene tolling and the sale of Kemerton reduces earnings and value.

The Western Australian government has approved the Onslow haul road which is a key de-risking step, although the broker envisages higher capital expenditure compared with the published $3bn guidance. Sell rating retained. Target is reduced to $63 from $66.

Target price is $63.00 Current Price is $70.11 Difference: minus $7.11 (current price is over target).
If MIN meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $81.00, suggesting upside of 18.8% (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

Ord Minnett rates NST as Downgrade to Hold from Accumulate (3) -

Northern Star Resources has guided to FY23 cash earnings that were better than Ord Minnett expected while production and costs in the June quarter were broadly in line expectations.

That said, the broker notes the market is struggling with the weaker FY24 outlook for production/costs as well  as higher capital expenditure.

Incorporating the outlook reduces the target to $12.30 from $14.00 and the rating to Hold from Accumulate. Ord Minnett finds better valuation appeal further down the curve in the mid-cap coverage.

Target price is $12.30 Current Price is $11.67 Difference: $0.63
If NST meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $12.30, suggesting upside of 6.5% (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

Citi rates QRI as Initiation of coverage with Buy (1) -

Citi observes Qualitas Real Estate Income Fund is unique among the A-REITs in that it offers a positive correlation to higher interest rates through higher interest income without using gearing.

The stock provides the highest dividend yield in the sector of 9% yet trades at a -8% discount to book value. Citi notes a potential catalyst also exists if the stock is included in the ASX300 index, potentially in September.

The broker initiates coverage with a Buy rating and $1.60 target.

Target price is $1.60 Current Price is $1.51 Difference: $0.09
If QRI meets the Citi 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

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

Morgan Stanley reviews stocks under its coverage in the Australia Infrastructure sector prior to the upcoming August reporting season.

For Qube Holdings, the broker forecasts FY23 earnings (EBITDA) of $480m, a rise of 24% on the previous corresponding period. The result is due on August 24.

The Equal-weight rating and $3.16 target are maintained. Industry view: Cautious.

Target price is $3.16 Current Price is $2.86 Difference: $0.3
If QUB meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.41, suggesting upside of 18.0% (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

Citi rates S32 as Neutral (3) -

At first glance, June quarter production from South32 was in line with Citi's estimates. Copper equivalent production increased 9% in the quarter amid a return to stable operations following adverse weather.

Worsley alumina production guidance for FY24 is unchanged at 4mt and Brazil alumina is also unchanged at 1.4mt. Sierra Gorda was broadly in line with expectations, with stronger copper production in the quarter offset by lower molybdenum output.

Neutral rating and $4.05 target.

Target price is $4.05 Current Price is $3.82 Difference: $0.23
If S32 meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 23.2% (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

Ord Minnett rates SSM as Buy (1) -

Service Stream has won two projects totalling $340m in revenue. The first is to provide design and construct services to the NBN Co fibre program, which represents an increment to the contract extension announced in April.

The other is with AGL Energy ((AGL)) and worth $170m over five years. This entails operations and maintenance services at Loy Yang.

Ord Minnett assesses the news also highlights a shift in business mix to longer-term contracts. Buy rating retained. Target is raised to $0.98 from $0.91.

Target price is $0.98 Current Price is $0.88 Difference: $0.1
If SSM meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $0.82, suggesting downside of -8.5% (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 STO as Add (1) -

Despite a drop in revenue for Santos in the 2Q, Morgans highlights production remained steady. While production guidance was narrowed, Morgans and consensus had already forecast production in the revised range of 89- 93mmboe (down from 89-96 mmboe).

Management maintained sales and cost guidance, while depreciation and amortisation guidance has been issued at around -US$1.9bn.

Should approvals be granted soon, the company expects Barossa drilling to get underway before the year’s end, enabling first production to be on schedule for the 1H of 2025.

The target falls to $8.45 from $8.75. Add.

Target price is $8.45 Current Price is $7.73 Difference: $0.72
If STO meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.39, suggesting upside of 18.8% (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: 0.9

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

Morgan Stanley rates SUN as Overweight (1) -

Morgan Stanley believes tailwinds will continue in the near term for Insurance Australia Group and Suncorp Group following record price increases and margin expansion.

FY24 earnings are expected to outperform due to favourable weather. FY24 is heading into an El Nino, which historically leads to -40% lower Australian CAT losses versus La Nina years.

Overweight-rated Suncorp Group is Morgan Stanley's preferred domestic insurer and is better placed than IAG to meet consensus expectations on FY24 margins.

The target rises to $15.70 from $14.50. Industry View: In-Line.

Target price is $15.70 Current Price is $13.79 Difference: $1.91
If SUN meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $14.82, suggesting upside of 6.8% (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

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

Morgan Stanley reviews stocks under its coverage in the Australia Infrastructure sector prior to the upcoming August reporting season. The order of preference is Atlas Arteria, Transurban Group and  Aurizon holdings.

Within the more cyclical freight and logistics category, the broker prefers Atlas Arteria over Transurban on an undemanding risk-adjusted valuation, and organic free cash flow growth prospects. Aurizon Holdings is least preferred.

For Transurban Group, the analyst forecasts FY23 proportional earnings (EBITDA) of $2,534m, a rise of 33% on the previous corresponding period.

Morgan Stanley retains its Equal-weight rating and $14.88 target.

Target price is $14.88 Current Price is $13.93 Difference: $0.95
If TCL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.58, suggesting upside of 3.8% (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