Australian Broker Call

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

In an acceleration of Adore Beauty's private label strategy, notes Morgan Stanley, the company will acquire premium Australian beauty and wellness brand iKOU for -$25m, funded from cash reserves.

The broker highlights potential for execution risk, given Adore's success has largely been in online retailing, as opposed to owning brands and store retailing.

Positives include management's expectation for FY24 revenue of $8.1m and EBITDA of $2.0m from iKOU, which implies 24.7% margins - compared to the broker's 2.5% forecast for FY25.

Equal-weight. Target $1.32. Industry view: In-Line.

Target price is $1.32 Current Price is $0.89 Difference: $0.435
If ABY meets the Morgan Stanley target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting upside of 75.6% (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 AGL as Downgrade to Neutral from Buy (3) -

The UBS target for AGL Energy falls to $10.85 from $11.25 after extending the terminal year forecast to FY36, despite raising forecasts for long-term wholesale electricity prices.

The broker reminds investors AGL remains favourably exposed to rising electricity demand from data centres and AI, which may add pressure to evening peak prices.

Because management is embarking upon a highly complex retail transformation to the electricity supply and billing platform Kaluza from SAP, UBS lowers its rating for AGL Energy to Neutral from Buy.

The analyst sees downside risks arising from unplanned generation outages and the risk of higher retail costs/weaker retail performance over FY25-28.

Target price is $10.85 Current Price is $10.83 Difference: $0.02
If AGL meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $10.80, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

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

The Federal Treasurer has approved ANZ Bank's acquisition of the banking arm of Suncorp Group ((SUN)), and completion is now due by the end of July, notes Morgan Stanley.

The broker doesn't believe the announcement will come as a surprise to investors, and notes the deal will only result in a slight change to the bank's business mix and risk profile.

The Equal-weight rating and $27.80 target are unchanged. Industry view: In-Line.

Target price is $27.80 Current Price is $28.24 Difference: minus $0.44 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.59, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Neutral (3) -

Completion of the Suncorp Group ((SUN)) Bank acquisition by ANZ Bank is expected to occur at the end of July, notes UBS, following approval of the transaction by the Federal Treasurer.

The broker notes completion is still subject to the commencement of legislative amendments around the Metway Merger Act by the Queensland parliament.

The primary objective of the legislation is to ensure certain conditions continue to apply to Suncorp Group after the sale of Suncorp Bank.

Neutral rating and $30 target are retained for ANZ Bank.

Target price is $30.00 Current Price is $28.24 Difference: $1.76
If ANZ meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.59, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates BBN as High Risk Neutral (3) -

Post the Baby Bunting strategy day, Citi is more positive on the company, highlighting potential earnings upside from store refurbishments and the rollout of smaller format stores.

The broker points to the refurbishment of 58% of the existing store network which could be an $11m EBITDA boost, assuming 10% incremental sales growth. 

Even though the broker raises the earnings forecasts by 21% in FY24 to 36% in FY26 as a result of the better-than-expected sales, concerns remain around the temporary covenant relief and ongoing turnaround execution risks. 

Target price is lifted to $1.79 from $1.59 with a Neutral/High Risk rating from Neutral.

Target price is $1.79 Current Price is $1.55 Difference: $0.24
If BBN meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 7.7% (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

Bell Potter rates DEG as Speculative Buy (1) -

Bell Potter highlights De Grey Mining has received the credit-approved term sheets for a $1bn senior debt facility, meeting the debt funding requirements for the Hemi Gold Project (HGP) with an estimated capital expenditure of -$1.345m.

This follows a recent $600m equity raising, enhancing the company's financial position to support the construction of the Hemi Gold project, the broker observes. 

Bell Potter views the development as a major step towards de-risking the company's profile. Speculative Buy rating and the target revised to $1.82 from $1.76.

Target price is $1.82 Current Price is $1.14 Difference: $0.68
If DEG meets the Bell Potter target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 56.4% (ex-dividends)

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

Shaw and Partners rates HSN as Buy (1) -

Shaw and Partners is very positive on Hansen Technologies' seven-year renewal of the contract with long-standing UK customer SSE.

It will facilitate the upgrade of some 500k metres for SSE using the company's cloud-enabled CIS platform.

Shaw and Partners is also upbeat on recent leadership changes and sees Powercloud as driving margin improvement and 13% compound average profit growth from FY25 to FY26.

The company's FY25 enterprise valuation to EBITDA of 14.7x makes it one of the cheapest utility billing assets globally, Shaw and Partners highlights.

The Buy rating and target price of $6.90 are retained.

Target price is $6.90 Current Price is $4.54 Difference: $2.36
If HSN meets the Shaw and Partners target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $6.58, suggesting upside of 46.4% (ex-dividends)

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

Citi rates IAG as Buy (1) -

Insurance Australia Group's new reinsurance deal is expected to lower earnings volatility and increase return on equity from FY26 onward, despite higher near-term costs, Citi highlights.

Some $350m in capital is freed up and this lifts the possibility of capital returns, such as a share buyback, the broker notes.

Favourable weather helps lift the broker's earnings estimates by 6% for FY24 and -5% for FY25 from the new reinsurance deal.

The target is raised to $8 from $6.75 and the Buy rating unchanged.

Target price is $8.00 Current Price is $7.14 Difference: $0.86
If IAG meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -0.5% (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

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

Morgan Stanley raises its target for Insurance Australia Group to $6.60 from $5.45 as stronger, multi-year CAT cover, alongside a new reserving cover, reduces the group's cost of capital.

Management has entered five-year aggregate cover, or long-term perils (LTP) protection on CAT overruns, of up to $680m per annum. This protection lowers the cost of capital given improved earnings certainty over the next five years, explain the analysts.

The Equal-weight rating is retained. Industry view: In-line.

Target price is $6.60 Current Price is $7.14 Difference: minus $0.54 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.08, suggesting downside of -0.5% (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

Morgans rates IAG as Hold (3) -

Insurance Australia Group provided a trading update and announced two new strategic reinsurance agreements with global re-insurers, which are expected to reduce the company's earnings volatility and release capital, notes Morgans.

The analyst believes the reinsurance deals are very positive and will help lift the through-the-cycle return on equity target to 14%-15% from 13%-14%.

Insurance Australia Group reported an upgrade in the FY24 insurance margin guidance due to lower-than-expected claims.

The broker's EPS forecasts for FY24/FY25 are adjusted by 6% and -2%, respectively.

Hold rating retained and the target lifts to $6.21 from $6.17.

Target price is $6.21 Current Price is $7.14 Difference: minus $0.93 (current price is over target).
If IAG meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.08, suggesting downside of -0.5% (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 IAG as Buy (1) -

Insurance Australia Group reported new reinsurance cover which significantly reduces earnings risk from weather events and provides potential upside to earnings, Ord Minnett assesses.

The company's five-year perils protection cover, and a liability adverse development cover are believed to strengthen the company's financial position with the potential to release around $350m in capital.

The broker revises the FY24 EPS estimate by 7%, while the FY25 EPS forecast is trimmed by -1%.

These changes reflect improved earnings outlook due to favourable weather conditions and the strategic reinsurance deals, Ord Minnett highlights.

Buy rating and $8.10 target price.

Target price is $8.10 Current Price is $7.14 Difference: $0.96
If IAG meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -0.5% (ex-dividends)

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 IAG as Neutral (3) -

UBS raises its target for Insurance Australia Group to $7.14 from $6.50 following a trading update and announced restructure of reinsurance arrangements. The latter are likely to improve investor perceptions of earnings quality, explains the analyst.

FY24 guidance was raised to the "upper end" of the earnings ranges and reflects the margin momentum the broker is seeing across the industry.

The analyst raises FY24 and FY25 EPS estimates by 5% and 8%, respectively, based on the trading update, reinsurance changes and after a mark-to market exercise.

The Neutral rating is maintained.

Target price is $7.14 Current Price is $7.14 Difference: $0
If IAG meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $7.08, suggesting downside of -0.5% (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

Bell Potter rates IMM as Speculative Buy (1) -

Immutep reported some positive trial results with a 6% absolute improvement in overall response rate (ORR) for Efti+Keytruda compared to Keytruda monotherapy, Bell Potter notes.

In the second cohort the High PD-L1 expressers saw a 67% relative improvement in ORR which the broker believes is a "strong outcome".

There are no changes to the broker's earnings estimates.

Bell Potter retains a Speculative Buy rating and lowers the target to 75c from 80c.

Target price is $0.75 Current Price is $0.30 Difference: $0.455
If IMM meets the Bell Potter target it will return approximately 154% (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

Bell Potter rates ING as Buy (1) -

Bell Potter adjusts earnings estimates for Inghams Group due to a -12% decline in the feed costs for FY25 based on 2024 changes. with the CSIRO and Abare looking for above average yield outcomes in the 2024/25 harvests as potential further tailwinds.

The broker highlights poultry pricing indicators have passed the 1H24 peak and pricing is expected to decline in FY25.

The analyst revises the FY24 earnings forecast by -3% and leaves FY25 unchanged. Bell Potter considers the share price weakness from avian flu as a buying opportunity.

The Buy rating and target price of $4.35 are retained.

Target price is $4.35 Current Price is $3.62 Difference: $0.73
If ING meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.26, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates LYC as Buy (1) -

An upcoming reconfiguration of a solvent extraction circuit will expand Lynas Rare Earths' product offering from a mixed HRE compound to five products, explains UBS.

It's felt this change strengthens the company's position as the incumbent western producer of separated rare earths.

These five products include Dysprosium, Terbium, unseparated Samarium/Europium/Gadolinium, Holmium concentrate and unseparated SEGH.

While it's hard to quantify value accretion, the analyst likes the company's optionality around "3rd party feedstock as they come online".

The Buy rating and target price of $6.90 are retained.

Target price is $6.90 Current Price is $5.93 Difference: $0.97
If LYC meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.64, suggesting upside of 7.8% (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

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

Citi views the sale of the 66% Mirvac Group stake in 55 Pitt Street as a positive development for the group. Assuming a $1.3bn sale price, the value of the office development comes in at around $2bn.

The broker highlights the unchanged end value of the project, suggests the sale price is in line with what was originally expected by Mirvac Group

Management also reported a reduction in the FY24 residential settlement target by -4% to 2400 lots, the broker notes.

The group's earnings guidance for FY24 was retained at between 14-14.3c.

Citi upgrades the stock to Buy from Neutral. Its forecasts are in line with FY24 and FY25 consensus estimates, although there are downside risks to book values for office landlords in the 2H24, Citi acknowledges.

Target price is $2.10 Current Price is $1.87 Difference: $0.23
If MGR meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in June.

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 MGR as Outperform (1) -

Following Mirvac Group's trading update, Macquarie's target falls to $2.26 from $2.31 after updating forecasts for the residential settlement profile and margins.

The company has sold-down a -66% stake in its 55 Pitt St office development to Mitsui Fudosan Australia.

Management reaffirmed FY24 OEPS guidance but guidance for FY24 residential settlements proved lower-than-expected by the broker.

Given the current valuation discount, Macquarie sees potential in Mirvac Group shares for one of the largest re-rates across the sector as rate cut timing becomes more certain. Outperform.

Target price is $2.26 Current Price is $1.87 Difference: $0.39
If MGR meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in June.

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

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

Mirvac Group has confirmed the sell-down of a -66% stake in its 55 Pitt St office development to Mitsui Fudosan Australia, and has reaffirmed FY24 EPS guidance of between 14.0-14.3cps.

The sale shores-up commercial development profits across FY25-27, and removes concerns about a FY24 guidance miss, suggests Morgan Stanley.

Overall guidance was maintained as commercial development profits may come in above the previous $120m indication, helping make up for slightly lower residential settlement guidance, explains the broker.

Equal-weight. The target is $2.35. Industry view: In-Line.

Target price is $2.35 Current Price is $1.87 Difference: $0.48
If MGR meets the Morgan Stanley target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates MGR as Buy (1) -

Ord Minnett views the operating environment for Mirvac Group as challenging and is thus pleased to see management reiterate the FY24 EPS guidance of 14-14.3 cents per share, which probably includes a contribution from the sale of a stake in 55 Pitt Street.

Management highlighted a further softening in the residential business, with FY24 settlements falling to 2,400 lots, below guidance, the broker notes.

There remains potential for further declines in residential settlements due to market conditions and the interest rate outlook, but Ord Minnett sees the strategic moves in the office sector and steady earnings forecasts for the next three years as positive.

Buy rating and $2.10 target unchanged.

Target price is $2.10 Current Price is $1.87 Difference: $0.23
If MGR meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 19.1% (ex-dividends)

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

Citi rates NAB as Sell (5) -

National Australia Bank remains the least preferred bank at Citi due to revenue and cost headwinds.

The broker assesses National Australia Bank's new CEO, Andrew Irvine has come on board at a time which presents a challenging baseline for him, including the share price at a 10-year high.

Costs have been reined in, but Citi highlights investment under-spending compared to peers, as well as competitive threats in business banking, with a market share of 20%-plus.

Sell. Target $26.50.

Target price is $26.50 Current Price is $36.23 Difference: minus $9.73 (current price is over target).
If NAB meets the Citi target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.57, suggesting downside of -15.4% (ex-dividends)

The company's fiscal year ends in September.

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 ORG as Buy (1) -

UBS raises its target for Origin Energy to $12.10 from $10.55 on higher long-term valuation upside. As the value of firm capacity lifts, so too does Origin's upside, notes the broker.

Should evening peak price spreads expand to more than $500/MWh over time from over $300/MWh year-to-date, the broker forecasts circa $2.4bn (or $1.40/share) of valuation upside.

A re-modelled Octopus Energy outlook lifts the analyst's valuation by 45% to $2.26/share for Origin's 22.7% stake.

Target price is $12.10 Current Price is $10.86 Difference: $1.24
If ORG meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $10.72, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

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 PDN as No Rating (-1) -

New FY25 guidance by Paladin Energy indicates a stronger ramp-up of Langer Heinrich production and a faster conversion to sales then Macquarie was expecting.

Guidance for 4.0-4.5mlb U3O8 was 12-26% higher than the broker's prior forecasts, highlighting management's confidence in the performance of the restarted (and improved) plant so far.

FY25 sales guidance was also 62-75% higher than the analyst's prior forecast, driven by a much faster period of inventory build-up.

Macquarie is currently under research restriction for Paladin Energy and provides no rating or target.

Current Price is $12.48. Target price not assessed.

Current consensus price target is $16.29, suggesting upside of 30.0% (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: 1.0

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

Shaw and Partners rates PDN as Buy (1) -

Paladin Energy announced the acquisition of Fission Uranium Corporation in an all-scrip deal, notes Shaw and Partners.

The combination of cash flow from Langer Heinrich and the development potential of Fission’s Patterson Lake South (PLS) uranium project is viewed by the analyst as highly strategic, bringing forth a well advanced development project in a top tier location.

The broker has Paladin Energy as its preferred exposure in the uranium sector and envisages the company could produce 15M/lbs of U308 p.a., generating over US$1bn in revenues.

Shaw and Partners adjusts earnings estimates with a 57% increase in the forecast EPS loss for FY24 followed by 26% improvement in FY25.

Buy rating unchanged. Target price at $16.80.

Target price is $16.80 Current Price is $12.48 Difference: $4.32
If PDN meets the Shaw and Partners target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $16.29, suggesting upside of 30.0% (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: 1.0

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

UBS rates RDX as Buy (1) -

Many commodity and chemical price indices have now stabilised/plateaued after reverting from covid-induced highs, points out UBS, noting these indices are broad-based drivers of industrial and commodity chemicals.

Redox has continued to grow underlying volumes through FY24, giving the broker confidence revenue growth will rebound in FY25, once pricing headwinds dissipate,

The analyst doesn't consider Redox shares are expensive given an around -15% discount to the ASX Small Industrials. Also, the valuation is in line with the average of global chemical distribution peers.

The target rises to $3.45 from $2.90 on the broker's lower assumed weighted average cost of capital (WACC), and a lesser peer discount, as uncertainty associated with achieving the FY24 prospectus forecasts subsides.

Target price is $3.45 Current Price is $3.06 Difference: $0.39
If RDX meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 RWC as Buy (1) -

Citi updates the earnings forecasts for Reliance Worldwide on the back of higher copper prices and slower housing activity.

The analyst expects the FY25 copper price estimate to be a -$3m to -$4m headwind to earnings forecasts, but views margins will remain stable with cost savings and a slight improvement from Sharkbite Max.

A delay in the recovery in the renovations and restorations market is only temporary, with a robust return to higher volumes forecast once interest rates retreat, the broker highlights.

Adjusting for the copper price, earnings estimates from Citi are lowered to -3% for FY24 and -4% for FY25.

The target price is lowered to $5.20 from $5.45. Buy rating unchanged.

Target price is $5.20 Current Price is $4.52 Difference: $0.68
If RWC meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.48, suggesting upside of 23.6% (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

Macquarie rates SHL as Neutral (3) -

Macquarie reviews its forecasts for Sonic Healthcare and makes only minor changes. Management expects FY25 EBITDA will be in the range of $1,700-1,750m in constant currency, while the broker forecasts $1,739m.

The current valuation of Sonic Healthcare is fair, suggests the analyst, trading on 11.6x the broker's FY25 group EBITDA
forecast (pre-AASB16), in line with the average recorded over 2013-19.

The Neutral rating and $26.35 target are unchanged.

Target price is $26.35 Current Price is $26.30 Difference: $0.05
If SHL meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $29.83, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

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 STX as Downgrade to Underperform from Neutral (5) -

Macquarie downgrades its rating for Strike Energy to Underperform from Neutral due to excessive market optimism around the timeline and value of the South Erregulla peaking gas power plant project.

The broker risks the project at 50% and assigns a risked value of 1cps net of capex, yet the Strike Energy share price climbed by around 4.5% last week since the announcement of the power plant.

The Neutral rating and 22c target are retained.

Target price is $0.22 Current Price is $0.28 Difference: minus $0.06 (current price is over target).
If STX meets the Macquarie target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.26, suggesting upside of 14.5% (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