Australian Broker Call

Ord Minnett rates A2M as Downgrade to Accumulate from Buy (2) -

Ord Minnett downgrades its rating for a2 Milk Co to Accumulate from Buy on valuation following a recent share price rally.

The broker's forecasts are unchanged, as is the $7.20 target price.

Target price is $7.20 Current Price is $4.57 Difference: $2.63
If A2M meets the Ord Minnett target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $5.33, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.6

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

Citi rates ACL as Buy (1) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

Regarding the areas of Pathology and Imaging, Citi believes the specialist channel continues to grow more rapidly than the GP channel. As a result, Australian Clinical Labs should print lower business-as-usual (BAU) growth than Sonic Healthcare.

The broker's Buy rating and $3.60 target are retained for Australian Clinical Labs.

Target price is $3.60 Current Price is $3.05 Difference: $0.55
If ACL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.37, suggesting upside of 10.7% (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

Citi rates ANN as Neutral (3) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

For Ansell, Citi forecasts 1H adjusted basic EPS of US43cps compared to the consensus estimate of US41cps.

The $26 target and Neutral rating are unchanged.

Target price is $26.00 Current Price is $24.11 Difference: $1.89
If ANN meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 3.4% (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: 0.1

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

Morgans rates BBN as Add (1) -

Baby Bunting's pre-released headline numbers for the 1H (ahead of 1H results on February 20) fell short of consensus expectations, notes Morgans. Pro forma profit and sales missed the broker's forecasts by -38% and -3%, respectively.

The analysts explain the profit miss resulted from a higher ratio of operating costs to sales, reflective of negative operating leverage, supply chain volatility and investment in digital marketing.

The broker believes management is adopting the right strategy in upping expenditure for digital marketing, performance marketing and social media, however, progress is expected to take time.

The target falls to $2.00 from $2.50. Add.

Target price is $2.00 Current Price is $1.75 Difference: $0.25
If BBN meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 17.1% (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 BBN as Accumulate (2) -

For Ord Minnett, Baby Bunting's first half trading update demonstrates ongoing challenging trading conditions in the sector.

The company reported a -2.5% sales decline over the half, while increases in wages, rent and energy pressured margins and saw net profits decrease -$1.6m year-on-year to $3.5m.

During the half, marketing cost reductions were reinvested in digital and social marketing, while the company also commenced an inventory reduction program. Baby Bunting closed out the half with net debt of $6m, compared to $20m the year prior.

The Accumulate rating is retained and the target price decreases to $2.00 from $2.35.

Target price is $2.00 Current Price is $1.75 Difference: $0.25
If BBN meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 17.1% (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 COE as Buy (1) -

December proved a stronger quarter for Cooper Energy, which reported production of 5.5 petajoules for the period with the improvement largely driven by performance at Orbost.

The company reported sales of 5.5 petajoules and revenue of $55m for the quarter, additionally benefiting from higher gas pricing. Bell Potter expects stronger performance at Orbost, alongside pricing indexation, should continue to lift revenue and earnings over the second half.

The Buy rating is retained and the target price decreases to 16 cents from 17 cents.

Target price is $0.16 Current Price is $0.13 Difference: $0.035
If COE meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $0.19, suggesting upside of 61.1% (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 COH as Downgrade to Sell from Neutral (5) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

Following an an exceptionally strong 2023 share price performance, the analysts downgrade Cochlear to Sell from Neutral and keep the $255 target.

Citi forecasts 1H underlying profit of $186m, around 5% above the consensus estimate of $176m.

Target price is $255.00 Current Price is $301.99 Difference: minus $46.99 (current price is over target).
If COH meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $241.07, suggesting downside of -18.9% (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 CRN as Buy (1) -

With Coronado Global Resources reporting December quarter sales of 4.1m tonnes and revenue of US$60m, Bell Potter has assumed quarterly earnings of US$22m. The result was materially weaker than the broker had anticipated, partly on a lower hard coking coal mix.

Bell Potter warns issues are likely to continue to drag on the company into the new year, noting weather and shipping delays are expected to impact operations across the Bowen Basin and constrain supply. 

The company is expected to provide full year guidance alongside its 2023 result in February. The Buy rating is retained and the target price decreases to $1.95 from $2.15.

Target price is $1.95 Current Price is $1.68 Difference: $0.27
If CRN meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.05, suggesting upside of 24.2% (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 Downgrade to Hold from Accumulate (3) -

With Ord Minnett having adjusted its expectations for weather, Coronado Global Resources' fourth quarter result was broadly in-line, although a miss to the company's recently revised guidance.

The company reported saleable production of 3.9m tonnes, amid excessive rainfall and operational issues at both Curragh and Buchanan, with Coronado Global Resources losing nine and ten operational days at these sites respectively. 

Full year saleable production of 15.8m tonnes was down -1% year-on-year, and a -7% miss to initial company guidance. Ord Minnett has lowered its production expectations -2% each year for FY24 and FY25.

The rating is downgraded to Hold from Accumulate and the target price decreases to $1.80 from $1.90.

Target price is $1.80 Current Price is $1.68 Difference: $0.12
If CRN meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.05, suggesting upside of 24.2% (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 reported run-of-mine production and coal sales at the top end of guidance, which had been revised lower. 

Coronado's investment in catching up pre-stripping and streamlining open cut mine plans is starting to pay off, UBS notes, and costs are expected to reduce into FY24. Realised pricing was a little soft in Dec Q as per contract lags, but will likely catch up from Mar Q.

All eyes are on the weather. Given higher costs and slightly weaker realised prices, UBS cuts earnings forecasts and its target to $2.00 from $2.10, Buy retained.

Target price is $2.00 Current Price is $1.68 Difference: $0.32
If CRN meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.05, suggesting upside of 24.2% (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

Citi rates CSL as Buy (1) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

For CSL, the analysts forecast 1H profit (NPATA) of US$2,047m, which is around 4% above the consensus estimate for US$1,977m.

The Buy rating and $3.25 target are maintained.

Target price is $325.00 Current Price is $293.34 Difference: $31.66
If CSL meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $329.70, suggesting upside of 13.3% (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: 0.9

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

Morgan Stanley rates CSL as Overweight (1) -

Morgan Stanley's proprietary Plasma Collection Centre Data for December show US and EU centres rollouts for the industry increased by 5.4% year-on-year, with CSL's rollout increasing by 5%.

Also, September data from the Plasma Protein Therapeutics Association (PPTA) show plasma volumes continue to grow.

The broker's Overweight rating and $334 target for CSL are unchanged. Industry View: In-Line.

Target price is $334.00 Current Price is $293.34 Difference: $40.66
If CSL meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $329.70, suggesting upside of 13.3% (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: 0.9

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

Morgan Stanley rates DDR as Overweight (1) -

Prior to Dicker Data's FY23 results in February, Morgan Stanley raises its target to $13 from $11 given upside risk to earnings, particulary as peer Data#3 ((DTL)) recently upgraded its 1H guidance, partly due to rising activity levels.

The broker also notes improving supply chains were a key upside catalyst at Dicker Data's 1H result, and there's potential for ongoing improvement on this front.

The Overweight rating is maintained. Industry view: In-Line.

Target price is $13.00 Current Price is $11.99 Difference: $1.01
If DDR meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 DEG as Buy (1) -

UBS continues to like the outlook for gold through 2024 and believes De Grey Mining presents a good option to play it through the large inventory it continues to build at Hemi.

With $342m cash, the broker expects De Grey to move through funding and permitting by mid-2024 before commencing construction on the $1.35bn project in the second half, and commissioning in 2026.

Buy and $1.50 target retained.

Target price is $1.50 Current Price is $1.19 Difference: $0.31
If DEG meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.73, suggesting upside of 45.7% (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

Ord Minnett rates DSE as Buy (1) -

Dropsuite's fourth quarter result was broadly in-line with Ord Minnett's expectations, as the company continues to rapidly grow. As per the broker, growth shows no signs of slowing, with annual recurring revenue reaccelerating in the fourth quarter from the third.

Ord Minnett anticipates quarter-on-quarter growth continuing, with the company retaining a focus on growth over profitability while annual recurring revenue remains below $50m.

The company pursued, and missed, another merger and acquisition opportunity in the quarter, but Ord Minnett continues to see merger and acquisition opportunity as a medium-term catalyst.

The Buy rating is retained and the target price increases to 34 cents from 33 cents.

Target price is $0.34 Current Price is $0.31 Difference: $0.03
If DSE meets the Ord Minnett target it will return approximately 10% (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

Citi rates EBO as Sell (5) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

For Ebos Group, Citi forecasts 1H EPS of 74 cps, around -4% below the consensus estimate of 77cps.

The $32 target and Sell rating are unchanged.

Target price is $32.00 Current Price is $33.56 Difference: minus $1.56 (current price is over target).
If EBO meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $35.49, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Bell Potter rates ELD as Buy (1) -

Improved rainfall patterns in key cropping areas and stronger livestock pricing have contributed to a more favourable environment for Elders, says Bell Potter. 

Recent rainfall has driven a rapid acceleration in livestock pricing, with the Eastern States young cattle indicator up more than 50%, heavy steer pricing up more than 40%, mutton up more than 150% and trade lamb up more than 50%.

Meanwhile, rainfall has been supportive of an improved outlook for summer crops. Bell Potter has adjusted its forecasts, lifting its FY24 net profit estimates 9%.

The Buy rating is retained and the target price increases to $9.50 from $8.35.

Target price is $9.50 Current Price is $8.38 Difference: $1.12
If ELD meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.92, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgans rates GDF as Add (1) -

Following recent asset sales, the only Office asset remaining for Garda Property is the Cairns Corporate Tower, resulting in an overall 80% exposure to Industrial, explains Morgans.

The Add rating is unchanged and the target falls to $1.65 from $1.73. The group's focus remains on capital recycling initiatives and executing on the current pipeline, notes the analyst.

First half results are due on February 8.

Target price is $1.65 Current Price is $1.17 Difference: $0.48
If GDF meets the Morgans target it will return approximately 41% (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

Morgans rates GDG as Add (1) -

Morgans assesses a "strong" Investment Bond (IB) performance by Generation Development in the 2Q, with sales inflows increasing by 37% on the previous corresponding period. This outcome helped drive funds under management (FUM) around 9% higher.

IB investment growth of $140m was well above past peak quarterly levels of $70-$80m, which the broker attributes to IB investors skewing more to growth assets in recent periods.

The target rises to $2.01 from $1.91. Add.

Target price is $2.01 Current Price is $1.81 Difference: $0.205
If GDG meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates GQG as Buy (1) -

Following a strong fourth quarter update from GQG Partners, Ord Minnett is anticipating the company to report 16% net operating income growth for the full year to US$384.6m and 19% earnings per share growth to US9.6 cents per share. 

The broker expects this result to be underpinned by 37% growth in funds under management over the year. Further, it sees this as providing strong momentum as GQG Partners moves into the new year, and leaving it well positioned for further earnings per share growth.

Ord Minnett has lifted its earnings per share expectations by 4-8% over its forecast period. The Buy rating is retained and the target price increases to $2.40 from $2.20.

Target price is $2.40 Current Price is $1.78 Difference: $0.625
If GQG meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 22.9% (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: 1.0

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

Citi rates HLS as Neutral (3) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

Regarding the areas of Pathology and Imaging, Citi believes the specialist channel continues to grow more rapidly than the GP channel. As a result, Healius should generate lower business-as-usual (BAU) growth than Sonic Healthcare.

The broker's Buy rating and $1.25 target are retained for Healius.

Target price is $1.25 Current Price is $1.40 Difference: minus $0.145 (current price is over target).
If HLS meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.83, suggesting upside of 28.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates IDX as Neutral (3) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

For Integral Diagnostics, Citi forecasts FY24 EPS of 7.8 cps, around -5% below consensus of 8.1cps.

Target price is $1.95 Current Price is $1.97 Difference: minus $0.02 (current price is over target).
If IDX meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.24, suggesting upside of 11.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates IEL as Buy (1) -

As per UBS, Canada study visa reductions present another challenge for IDP Education following the SDS student visa changes in May last year. This also follows visa tightening policies in Australia in December.

In UBS' view, the Canada changes are more material than the Australian changes, but could result in some offsetting market share benefits or potential consolidation.

UBS remains positive on the structural thematics and market share gain opportunities from Fastlane. Even after accounting for the policy changes, the broker still forecasts a three-year earnings compound growth rate of 19%.

Target falls to $27.60 from $30.45, Buy retained.

Target price is $27.60 Current Price is $20.77 Difference: $6.83
If IEL meets the UBS target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $27.37, suggesting upside of 35.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Citi rates ILU as Neutral (3) -

Fourth quarter sales of zircon, rutile and synthetic rutile for Iluka Resources fell short of Citi's forecast, while zircon pricing was also a -5% miss. Average price realisation for zircon, rutile and synthetic rutile was down -13.6% on the prior quarter.

While zircon markets may not have reached lows, note the analysts, management suggested a potential turnaround for TiO2 markets was imminent, with rutile and synthetic rutile prices displaying resilience in the quarter.

The broker's $7.50 target and Neutral rating are unchanged.

Target price is $7.50 Current Price is $6.63 Difference: $0.87
If ILU meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.94, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in December.

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 ILU as Equal-weight (3) -

Higher processed tailing production in the 4Q by Iluka Resources drove a 9% beat in 2H production of zircon, rutile and synthetic rutile (SR), compared to Morgan Stanley's forecasts. Overall, the broker feels it was a balanced result.

Pricing guidance was weak for zircon, while rutile was in line with the broker's estimate, and SR guidance was a marginally miss.

While markets remain weak for zircon, the analysts point out low rutile inventories are a positive.

Target $7.40. Equal-weight. Industry view is Attractive.

Target price is $7.40 Current Price is $6.63 Difference: $0.77
If ILU meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.94, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in December.

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 ILU as Sell (5) -

Iluka Resources reported zircon/rutile production down -37% in the Dec Q from the Sep Q but sales up 65%. With 2023 sales volumes down -22% year on year, UBS is wary of what this could mean for 2024.

As anticipated, Iluka announced SR1 will remain offline in 2024, which the broker had already modelled in response to depressed market conditions.

Target falls to $6.40 from $6.95, Sell retained.

Target price is $6.40 Current Price is $6.63 Difference: minus $0.23 (current price is over target).
If ILU 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 $7.94, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in December.

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 JDO as Sell (5) -

Citi still envisages a difficult outlook for Judo Capital due to rising funding costs and slowing loan growth, despite pre-released 1H profit (PBT) of $67m, ahead of the $56m consensus estimate.

Management has also guided to profit between $107-112m in FY24, compared to the $93m consensus forecast.

The broker maintains its outlook for weaker net interest margins (NIMs) and asset growth, which has only been slowed by management thanks to slower lending growth and with the assistance of lower bad debts.

The Sell rating and 87c target are unchanged.

Target price is $0.87 Current Price is $1.09 Difference: minus $0.22 (current price is over target).
If JDO meets the Citi target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.14, suggesting upside of 2.5% (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

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

Judo Capital's pre-announced 1H results revealed profit before tax (PBT) beat forecasts by consensus and Morgan Stanley by 20% and 57%, respectively. Expenses and impairment charges were lower than originally estimated.

Inaugural guidance is for profit of between $40-45m in the 2H and $107-112m in FY24.

Management is targeting profit growth of “15% or higher” in FY25, with loan growth expected to "accelerate", which suggests to the analysts profit of at least $126m and loans of at least $12.7bn.

Equal-weight rating. Target $1.07. Industry View: In-Line.

Target price is $1.07 Current Price is $1.09 Difference: minus $0.02 (current price is over target).
If JDO 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 $1.14, suggesting upside of 2.5% (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

Morgans rates JDO as Add (1) -

Judo Capital's unaudited 1H results and near-term outlook were ahead of consensus expectations, and Morgans makes material upgrades to forecasts, resulting in a $1.50 target, up from $1.39. The Add rating is maintained.

Pre-provision operating profit (PPOP) grew by 8% on the prior half, largely due to a beat on costs, explains the analyst, while gross loans grew by 9%.

Management provided 1H profit before tax (PBT) guidance of between $40-45m, which implies an around 35% upgrade to the broker's FY24 profit forecast.

First half results are due on February 20.

Target price is $1.50 Current Price is $1.09 Difference: $0.41
If JDO meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.14, suggesting upside of 2.5% (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

Ord Minnett rates JDO as Hold (3) -

Ord Minnett concludes from Judo Capital's much better-than-expected 1H trading update that management is favouring preservation of margins and profits in the short-term, at the expense of loan growth.

The net interest margin fell by less than the broker had forecast, while operating expense growth was contained and bad debt expenses remained low.

FY24 pre-tax profit guidance also beat the analyst's forecast by 40%.

Ord Minnett's target rises to $1.20 from $1.10. Hold.

Target price is $1.20 Current Price is $1.09 Difference: $0.11
If JDO meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.14, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates KAR as Buy (1) -

Citi suggests the net present value impact of Karoon Energy's downgrade to production guidance, resulting from having a well in Brazil offline longer-than-anticipated, is negligible. 

As the outcome is merely a deferral of production, the broker believes the negative share price reaction is overdone.

The Buy rating and target price of $3.25 are retained.

Target price is $3.25 Current Price is $1.79 Difference: $1.465
If KAR meets the Citi target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 44.6% (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: 0.9

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

Morgan Stanley rates KAR as Overweight (1) -

Karoon Energy has reduced 2024 production guidance by around -7% to 11.2-13.5mmboe due to an unplanned outage in Brazil requiring intervention, explains Morgan Stanley.

Management also increased FY24 production cost guidance to US$10.5-15.0/boe, a rise of 11% at the midpoint of previous guidance, owing to the lower production outlook.

After also lowering forecasts for energy prices, the broker reduces its target to $2.51 from $2.68. Overweight. Industry View: Attractive.

Target price is $2.51 Current Price is $1.79 Difference: $0.725
If KAR meets the Morgan Stanley target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 44.6% (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: 0.9

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

Morgans rates KAR as Add (1) -

Management at Karoon Energy has lowered group production guidance to 11.2-13.5mmboe from 8.0-10.0mmboe, due to ongoing mechanical failure related to the gas lift valve at the SPS88 well in Brazil, explains Morgans.

The company anticipates operations will be back online during the 4Q of 2024, at a comparable production rate achieved prior to the current woes. 

Lower production volumes means higher costs, and 2024 unit cost guidance is now US$10.5-$15.0/boe, up from US$9.0-$14/boe.

Morgans lowers its target to $2.80 from $2.95. Add. It's thought an around -30% share price retreat in recent months is overdone, considering the equipment failure only reduces the broker's 2024 earnings estimate by -6%.

Target price is $2.80 Current Price is $1.79 Difference: $1.015
If KAR meets the Morgans target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 44.6% (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: 0.9

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

Ord Minnett rates MIN as Upgrade to Accumulate from Hold (2) -

Ord Minnett upgrades its rating for Mineral Resources to Accumulate from Hold on valuation following a recent share price slump.

The broker's forecasts are unchanged, as is the $67 target price.

Target price is $67.00 Current Price is $54.09 Difference: $12.91
If MIN meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $72.64, suggesting upside of 30.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates NAN as Sell (5) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

Yesterday, Nanosonics pre-announced a worse 1H result than Citi was expecting, with sales declining by -2% year-on-year compared to the 17% uplift expected by consensus.

Management cited cited “softer than anticipated upgrade sales and hospitals delaying capital unit purchases due to hospital capital budgetary pressures.”

Nanosonics will provide updated FY24 guidance at 1H24 results on February 26.

Citi retains its $3.90 target and Sell rating.

Target price is $3.90 Current Price is $4.37 Difference: minus $0.47 (current price is over target).
If NAN meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.52, suggesting upside of 55.2% (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

Bell Potter rates ORR as Hold (3) -

Perseus Mining ((PRU)) has announced its intention to make a competing takeover bid for OreCorp, offering 55 cents per share for the remaining shares it does not own. Bell Potter points out the offer is an incremental premium to the implied Silvercorp Metals offer of 54.3 cents.

With Perseus Mining aiming to provide a bidder's statement before the end of January, it has advised shareholders interested in accepting its offer not to accept the Silvercorp Metals offer.

As per Bell Potter, Perseus Mining will also need to incentivise Silvercorp Metals to sell its 15% stake in OreCorp, which was acquired at 40 cents per share.

The Hold rating is retained and the target price decreases to 55 cents from 58 cents.

Target price is $0.55 Current Price is $0.57 Difference: minus $0.02 (current price is over target).
If ORR meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for 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

Morgans rates PIQ as Speculative Buy (1) -

Quarterly results for Proteomics International Laboratories revealed delays to Sonic Healthcare ((SHL)) USA's (SHUSA) launch of Proteomics' PromarkerD test for diabetic kidney disease (DKD).

Originally slated for January, management is now guiding the launch will be delayed by 3-6 months. The analysts now adjust forecasts for US commercialisation and associated risks to market penetration.

After allowing for the delay, a $6.5m institutional placement and a $2m founder sell-down at 76c, the broker reduces its target to $1.38 from $2.42. The Speculative Buy rating is unchanged.

Target price is $1.38 Current Price is $0.80 Difference: $0.58
If PIQ meets the Morgans target it will return approximately 72% (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

Citi rates PLS as Neutral (3) -

Pilbara Minerals released its December quarter production report and Citi analysts, upon initial glance, believe realised pricing came out well below the broker's forecast, and missed market consensus too by some -30%.

Quarter-on-quarter the decline measures up to -50%, Citi points out. Both costs and production volumes proved better-than-expected.

Management at the firm has cut capex guidance and has pre-warned shareholders there likely won't be a dividend, the broker points out.

Neutral. Price target $3.60.

Target price is $3.60 Current Price is $3.27 Difference: $0.33
If PLS meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.75, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates PME as Downgrade to Sell from Neutral (5) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

Following a more than 70% share price increase in 2023, the analysts downgrade Pro Medicus to Sell from Neutral and keep the $72 target.

Citi forecasts 1H EPS of 35.3cps, around 2% above the consensus estimate.

Target price is $72.00 Current Price is $101.11 Difference: minus $29.11 (current price is over target).
If PME meets the Citi target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $63.88, suggesting downside of -36.7% (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 PNV as Downgrade to Hold from Add (3) -

As PolyNovo's 1H trading update revealed profitability ahead of Morgans forecast, the broker's earnings forecasts for the period are increased to $3.8m from $2.8m, which is slightly in advance of the $3.6m forecast by consensus.

The broker's target rises to $1.95 from $1.88 and the rating is downgraded to Hold from Add following a 30% share price rally in the last month.

First half results are due on February 27.

Target price is $1.95 Current Price is $1.85 Difference: $0.1
If PNV meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.91, suggesting upside of 3.4% (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 PRU as Neutral High Risk (3) -

On par with Silvercorp Metals' cash/scrip offer, according to Citi, Perseus Mining has made an all-cash 55cps offer to acquire off-market the outstanding 80% of OreCorp ((ORR)) it doesn't already own.

The broker suggests a few substantial shareholders on the OreCorp register may be key to the outcome.

The Neutral, High Risk rating and target price of $1.90 are retained.

Target price is $1.90 Current Price is $1.78 Difference: $0.125
If PRU meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.17, suggesting upside of 16.5% (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

Ord Minnett rates QOR as Buy (1) -

Qoria delivered in line 2Q operating cash flow, the best indicator of the company's performance, according to Ord Minnett.

Annual recurring revenue weakness was offset by the cost-out program, favourable currency movements, as well as stronger-than-expected margins and cash conversion, explains the broker.

Management announced a $7.5m increase to a borrowing facility, which the broker believes will see the company fully funded through to positive free cash flows.

The target rises to 34c from 32c. Buy.

Target price is $0.34 Current Price is $0.25 Difference: $0.09
If QOR meets the Ord Minnett target it will return approximately 36% (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

Citi rates RHC as Neutral (3) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

For Ramsay Health Care, the analysts forecast 1H EPS of 54cps from continuing operations, in line with the consensus estimate.

The target rises to $51 from $50 and the Neutral rating is unchanged.

Target price is $51.00 Current Price is $51.45 Difference: minus $0.45 (current price is over target).
If RHC meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.48, suggesting upside of 9.5% (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 RMD as Buy (1) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

Due to higher gross margin and lower opex assumptions for ResMed, the broker's 2Q EPS forecast of US192cps is around 7% higher than the consensus expectation.

The Buy rating and target price of $29.00 are retained.

Target price is $29.00 Current Price is $26.81 Difference: $2.19
If RMD meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $32.23, suggesting upside of 20.3% (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

Morgan Stanley rates RMD as Overweight (1) -

With ResMed reporting 1H results tomorrow (8:30 AM), Morgan Stanley expects a positive outcome supported by cost management and a gross margin recovery.

The Overweight rating and $26 target are unchanged. Industry View: In-Line.

Target price is $26.00 Current Price is $26.81 Difference: minus $0.81 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.23, suggesting upside of 20.3% (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

Citi rates SHL as Buy (1) -

In a review of Australian Healthcare prior to the February reporting season, Citi updates forecasts for stocks under coverage in the sector.

While the broker believes 2023 peaks for wage growth and inflation will provide margin relief for medical services providers, it will take several years for margins to approach pre-pandemic levels.

Regarding the areas of Pathology and Imaging, Citi believes the specialist channel continues to grow more rapidly than the GP channel. As a result, Healius and Australian Clinical Labs should generate lower business-as-usual (BAU) growth than Sonic Healthcare.

The Buy rating and $33 target for Sonic Healthcare are maintained.

Target price is $33.00 Current Price is $31.75 Difference: $1.25
If SHL meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $34.46, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Ord Minnett rates SMR as Buy, High Risk (1) -

A "strong" 4Q, which exceeded management guidance, confirms Ord Minnett's positive outlook for Stanmore Resources' upcoming dividend in February.

The company noted 1Q FY24 operational performance has been affected by severe storms, which the broker considers manageable, and provides a cheaper share price entry point for investors.

The analysts expect prior 2024 guidance will be met, given management's track record in setting realistic targets.

The $4.30 target and Buy rating are maintained.

Target price is $4.30 Current Price is $3.80 Difference: $0.5
If SMR meets the Ord Minnett target it will return approximately 13% (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: 1.0

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

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

Following Viva Energy's 4Q update, Morgan Stanley anticipates a neutral market reaction.

The group's Geelong Refining Margin (GRM) of US$8.80/bbl was a 4% quarter-on-quarter increase and a -32% miss versus the consensus forecast, due to weaker-than-expected regional margins, explains the broker.

On the other hand, the international aviation recovery and Australian Defence Force contracts resulted in the group's fuel sales volumes rising by 7% quarter-on-quarter, a 3% beat against the consensus estimate..

Equal-weight. The target rises to $3.39 from $3.21, after also incorporating Morgan Stanley's lower estimates for energy prices. Industry view: Attractive.

FY23 results are due on February 21.

Target price is $3.39 Current Price is $3.33 Difference: $0.06
If VEA meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates VEA as Accumulate (2) -

A fall in Viva Energy's unaudited 2023 group earnings (EBITDA) by -34% was in line with Ord Minnett's forecast. It's felt the earnings performance was admirable given the economic backdrop and strength in oil prices.

Unaudited earnings for the non-refining businesses improved by around 16%, including a 9% increase in group sales volumes.

Overall, Ord Minnett feels sales volume show the recovery from the pandemic is largely complete with group sales revenue greater than 5% above pre-pandemic levels.

The broker's 2023 EPS and DPS forecasts are unchanged. It's noted the little-changed 2024 dividend forecast represents an attractive  yield.

The Accumulate rating and $3.35 target are unchanged.

Target price is $3.35 Current Price is $3.33 Difference: $0.02
If VEA meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates VEA as Buy (1) -

Viva Energy's Dec Q result was broadly in line with UBS' expectations, with 2023 earnings in line. Despite a soft update on refining margins and production, insurance recoveries from the refinery outage helped see refining earnings in line with consensus.

Commercial volumes again beat expectations however retail fuel volume growth disappointed. Convenience gross margin of 35.7% surprised to the upside, with growth of some 300bps realised since the OTR acquisition announcement.

A strong convenience performance bodes well for the combined operation of the Coles Express and OTR network, the broker suggests. Buy and $3.50 retained.

Target price is $3.50 Current Price is $3.33 Difference: $0.17
If VEA meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates WES as Downgrade to Sell from Lighten (5) -

Ord Minnett downgrades its rating for Wesfarmers to Sell from Lighten on valuation following a recent share price rally.

The broker's forecasts are unchanged, as is the $42 target price.

Target price is $42.00 Current Price is $57.95 Difference: minus $15.95 (current price is over target).
If WES meets the Ord Minnett target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $50.11, suggesting downside of -12.8% (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