Australian Broker Call

Citi rates A2M as Buy (1) -

Citi observes the CBEC (cross border e-commerce) pricing tracker and expects prices to remain stable across the stage, with Genesis outperforming.

New English label is anticipated to revitalise the brand in 2026, the analyst notes.

a2 Milk Co is rated Buy with a $10.45 target price.

Target price is $10.45 Current Price is $8.81 Difference: $1.64
If A2M meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $9.78, suggesting upside of 9.1% (ex-dividends)

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.5

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

Macquarie rates ASX as Outperform (1) -

ASIC’s initial findings on ASX's governance/risk require the company to build an extra $150m of capital above NTA by June 2027.

Macquarie comments this will improve clearing/settlement board independence and reset its “Accelerate” transformation with clearer accountability.

Commentary notes ASX will fund this via a lower dividend payout of 75-85% plus a discounted DRP. The exchange trimmed its medium-term ROE target to 12.5-14.0% while keeping FY26 cost and capex guidance unchanged.

With the issue now more defined (final report due 31 March 2026) and volumes supportive, the broker retains its Outperform rating and sees valuation as attractive. Target unchanged at $64.

Target price is $64.00 Current Price is $57.54 Difference: $6.46
If ASX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $62.02, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.1

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

Shaw and Partners rates AVL as Buy (1) -

Shaw and Partners has a Buy rating and $1.39 target price on Australian Vanadium. The company recently did a 25-for-1 share consolidation.

The broker notes the company lagged in 2025 as grid storage kept favouring lithium, but it’s now bidding to deploy a vanadium flow battery in Kalgoorlie, WA in 1Q2026.

Target price is $1.39 Current Price is $0.23 Difference: $1.16
If AVL meets the Shaw and Partners target it will return approximately 504% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Macquarie rates CSL as Downgrade to Neutral from Outperform (3) -

Macquarie estimates around 25% of CSL’s CIDP immunoglobulin market share is at risk from competitors, and positive Phase 3 results could worsen “ex-growth” concerns and pressure its valuation multiple.

This assessment is based on the broker's analysis of Sanofi’s complement inhibitor riliprubart that showed strong Phase 2 CIDP efficacy with better dosing and mild side effects. Dianthus has a similar Phase 3 program, which may offer more convenient dosing, with initial results expected in 2Q2026.

The broker reckons FY26 guidance is at risk as China albumin pressures are likely to persist into 2H, despite CSL’s local expansion and demand initiatives. 

EPS forecast for FY26 trimmed by -4% and by -5% for FY27. Target cut to $188.00 from $275.20 as the broker pivots from a DCF to a comp-based PE approach due to greater uncertainty around the company's long-term earnings.

Rating downgraded to Neutral from Outperform.

Target price is $188.00 Current Price is $183.93 Difference: $4.07
If CSL meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $231.93, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.6

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

Morgan Stanley rates DXS as Underweight (5) -

Morgan Stanley observes Dexus, through a newly created managed fund, has acquired 25% of Westfield Chermside from Scentre Group ((SCG)). This follows the purchase of 25% of the same asset from Scentre into another unlisted fund previously.

Both stakes were transacted at $683m and a 5% cap rate. The analyst views the transaction as positive and strategically important to retain medium-term earnings.

For Scentre Group, the transaction will bring the gearing down to 39.9% from 41.1%, the broker states, and should be slightly positive for earnings.

Underweight. Target price $7.95. Industry View: In-Line.

Target price is $7.95 Current Price is $6.96 Difference: $0.99
If DXS meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.07, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

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

Macquarie rates FLT as Outperform (1) -

Flight Centre Travel will buy Iglu, the UK’s leading online cruise agency, for GBP100m upfront plus up to GBP27m earn-outs, equating to 7.25x FY26 estimated EBITDA including synergies.

Macquarie notes Iglu is expected to deliver FY26 pro forma TTV of around GBP450m and adj. EBITDA of around GBP14.8m, and the deal is guided to be EPS accretive in FY26. Flight Centre lifted FY26 underlying profit before tax guidance to $315-350m to reflect Iglu's contribution.

The acquisition nearly doubles the company's cruise TTV to $2bn in FY26, with a stretch target of $3bn by FY28 and adds a scalable online platform, reducing leisure’s Southern Hemisphere skew.

The broker highlights cruise margin is attractive, with Iglu's FY25 EBITDA margin around 40% higher than Flight Centre's 2.2% for the leisure division.

Outperform. Target rises to $17.85 from $16.85.

Target price is $17.85 Current Price is $14.81 Difference: $3.04
If FLT meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $15.61, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Macquarie rates FMG as Underperform (5) -

Fortescue will buy the remaining 64% of Alta Copper it doesn’t own for CA$1.40/share (a 50% premium to 30-day VWAP), valuing the company at CA$139m. It will now secure 100% of the Canariaco copper project in northern Peru.

Macquarie commends the deal as it advances Fortescue's diversification from iron ore into copper. It is in contrast to the broker's criticism of the previous heavy spending on Fortescue Future Industries (FFI).

The Canariaco project hosts a large 1.1Bt M&I resource within a sizeable prospective land package in an emerging porphyry corridor. A June 2024 PEA outlined the first 10-year average output of 158ktpa copper, 70kozpa gold and 1.5Mozpa silver, and -US$2.2bn capex.

While cautious on Fortescue's iron ore valuation given price risk, the broker views this deal as a major catalyst for expanding into better long-term commodities using management's proven execution capabilities.

Underperform. Target price $19.50.

Target price is $19.50 Current Price is $22.98 Difference: minus $3.48 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.81, suggesting downside of -12.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

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

Macquarie rates GDG as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of Generation Development with an Outperform rating and a $6.70 target price.

The analyst highlights the company has become a market leader in the high-growth segment of self-managed accounts (SMA) via the Evidentia acquisition and a rise to 100% ownership of Lonsec. This is seen as underpinning the next growth phase for Generation Development.

Evidentia is flagged to pick up a larger share of the SMA industry, which is expected to CAGR at 15% for FUM from 2024-2030.

The Generation Life segment, offering investment bonds and annuities, should benefit from regulatory tailwinds from tax and superannuation reform.

Target price is $6.70 Current Price is $5.62 Difference: $1.08
If GDG meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.65, suggesting upside of 35.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Bell Potter rates GNP as Buy (1) -

Since the FY25 result, GenusPlus Group has won year-to-date contracts of $645m, which lifts the total order book to around $2.63bn, Bell Potter highlights. This includes the Western Renewables Link project in Vic for AusNet at $1.6bn.

The analyst raises EPS estimates by 5% for FY27 and 4% for FY28, with no change to FY26.

Target price is lifted to $7.50 from $6 previously, with an unchanged Buy rating. The contractor offers investors exposure to "long-dated" rising levels of investment in the renewable energy sector, the broker states.

Target price is $7.50 Current Price is $6.55 Difference: $0.95
If GNP meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

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 HZR as Buy (1) -

Hazer Group signed a binding MOU with M Resources, the bidder for One Steel Manufacturing, the owner of Whyalla steelworks. The deal is a collaboration to integrate the Hazer Process into Whyalla on an exclusive basis alongside partner KBR.

Shaw and Partners views this as strong validation of Hazer's technology and its partnership with KBR.

The company could earn over $100m in net present value terms over 20 years from a 50ktpa hydrogen plant via FEED/advisory, licensing, and royalties.

Buy, High Risk retained. Target unchanged at 70c.

Target price is $0.70 Current Price is $0.49 Difference: $0.21
If HZR meets the Shaw and Partners target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Morgans rates IMB as Speculative Buy (1) -

Intelligent Monitoring bought two Johnson Controls non-core businesses for $40m (4x EBITDA), adding FY26 pro forma revenue of around $78m and EBITDA of around $10m. The deal is being funded by cash and existing debt, Morgans notes.

The deal expands the company's NZ footprint and is guided to be 25-28% EPS accretive, with cross-selling upside. In the broker's view, the company is benefiting from conglomerates offloading assets after HVAC/fire/security consolidation synergies disappointed.

The analyst is modelling higher tax and slightly higher interest from FY26, lifting EBIT but lowering EPS in FY26-27.

Speculative Buy. Target rises to $1.00 from $0.85, based on DCF and EV/EBITDA multiples.

Target price is $1.00 Current Price is $0.64 Difference: $0.36
If IMB meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Macquarie rates JHX as Outperform (1) -

Observing the latest US contractors' survey, Macquarie notes the optimism index fell -5pts to 48 as confidence softened in November from the non-residential sector. This was somewhat offset by slightly improved residential sentiment on mortgage rate stability.

Mortgage rates moved in a band over November and are currently around 6.22%. The broker's Macro Strategy baseline view is for an improving economic backdrop, and the recent rate cut will be the final one of this cycle.

Macquarie prefers James Hardie Industries as inventory concerns fade and recent governance changes are a positive. Outperform with unchanged target of $41.70.

The analyst also likes Reliance Worldwide ((RWC)) with an Outperform rating and $5.30 target, noting management is performing well against challenging circumstances.

Target price is $41.70 Current Price is $30.43 Difference: $11.27
If JHX meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $36.15, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

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

Market Sentiment: 0.7

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

Bell Potter rates LNQ as Initiation of coverage with Speculative Buy (1) -

Bell Potter has initiated coverage of Linq Minerals with a Speculative Buy rating and target price of 44c.

The company is a Perth-based gold-copper explorer developing the 100%-owned Gilmore gold-copper project in central west NSW.  Gilmore sits in the Macquarie Arc and is a prospect for Northparkes/Cadia/Cowal-style systems, with a global resource across six deposits of 516Mt.

The broker notes all deposits remain open along strike and at depth, offering scope to extend mineralisation and grow resources.

With $9m cash, Linq began a staged 16,000m RC/diamond program in late July and has already hit wide, high-grade gold intervals, the broker highlights.

Target price is $0.44 Current Price is $0.21 Difference: $0.23
If LNQ meets the Bell Potter target it will return approximately 110% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

UBS rates NAB as Neutral (3) -

UBS upgraded National Australia Bank's FY26-28 EPS forecasts by 1.8%, 2.2% and 1.1%, respectively after factoring in two RBA rate hike expectations over FY26 and lifted net interest margin estimates as a result.

The bank's AGM highlighted leadership and capability changes, the broker notes, and increased use of AI in cybersecurity and home-loan origination.

The bank reiterated its commitment to the strategic priorities set out last year, and the broker notes business banking outperformed but the bank now needs to focus on net interest margin.  Proprietary home-loan origination trailed peers, with AI seen as a lever to improve speed and customer experience.

Neutral. Target unchanged at $42.50.

Target price is $42.50 Current Price is $42.13 Difference: $0.37
If NAB meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $37.49, suggesting downside of -11.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.5

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

Ord Minnett rates PNI as Buy (1) -

Ord Minnett notes choppy markets and higher growth-stock volatility may dampen near-term performance fees for Pinnacle Investment Management's affiliates. However, strong recent flow momentum is supporting the broker's positive view on the stock.

The broker explains Pinnacle's multi-affiliate model provides diversification, with private equity/credit affiliates offering lower equity-market correlation. Group FUM is forecast by the analyst to rise to $227.5bn by end-FY26 from $179.4bn end-FY25.

The broker refreshed flow and performance assumptions across Pinnacle's affiliates, resulting in a cut to the target price to $22.60 from $26.40. Buy maintained.

Target price is $22.60 Current Price is $16.89 Difference: $5.71
If PNI meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $23.99, suggesting upside of 43.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.6

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

Bell Potter rates RAD as Speculative Buy (1) -

Bell Potter emphasies RAD101 (Pivalate) is the only novel PET imaging agent targeting fatty acid synthase (FASN) which is offering clearer differentiation between recurrent tumour and necrosis than MRI. This could potentially enable earlier, more precise treatment decisions.

Interim phase 2b data from the first three of a planned 30 patients showed tumour uptake in all, with two demonstrating unequivocal uptake, and 15 patients had been recruited by 17 November 2025.

Radiopharm Theranostics is well funded following a recent $35m placement and has potential additional funding via listed options, providing an expected cash runway into 2027. The analyst believes the technology is a major improvement for patient care.

The broker retains a Buy (Speculative) rating and 5c target price, noting upcoming interim data this month and highlighting Lantheus’ 14.5% shareholding as a strategic positive for future development.

Target price is $0.05 Current Price is $0.02 Difference: $0.031
If RAD meets the Bell Potter target it will return approximately 163% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Macquarie rates RMS as Outperform (1) -

Macquarie factored in Ramelius Resources' $250m share buyback announcement into the forecasts, resulting in a 3% lift to EPS forecasts for each of FY28, FY29 and FY30.

The broker reckons exploration upside remains from potential high-grade underground extensions, notably at the Penny gold deposit in WA.

Target rises to $4.60 from $4.50. Outperform maintained. 

Upcoming catalysts include an exploration update and a possible Edna May divestment in 2026.

Target price is $4.60 Current Price is $3.98 Difference: $0.62
If RMS meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.38, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Citi rates SCG as Buy (1) -

Scentre Group has announced a new Dexus ((DXS)) fund will acquire a 25% interest in Westfield Chermside shopping centre for $683m, which aligns with book value and a 5% cap rate, Citi details.

A prior purchase by the Dexus Wholesale Shopping Centre fund in July of a 25% stake brings the total position to 50%, with Scentre remaining the property, leasing and development manager.

The analyst notes circa $1.3bn of capital from the two tranche sales will be applied to debt reduction and opportunities in higher returning residential and retail developments.

Buy. Target price $4.60.

Target price is $4.60 Current Price is $4.20 Difference: $0.4
If SCG meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 1.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Ord Minnett rates SEA as Initiation of coverage with Buy (1) -

Ord Minnett has initiated coverage of Sea Forest with a Buy rating and target price of $3.05.

The company aims to cut livestock methane while boosting farm productivity, using its Asparagopsis-based SeaFeed developed over seven years. The product can reduce methane by up to -80% and is positioned to be a win-win for both farmer economics plus shareholder profit.

The company listed in November with around 118,000 cattle contracted, which the broker estimates is above cashflow breakeven.

Revenue is expected to rise significantly in FY26 and EBITDA is estimated to move to a profit of $5.5m, in FY27 from an estimated -$5.5m loss in FY26, and further to $16.1m in FY28.

Target price is $3.05 Current Price is $2.51 Difference: $0.54
If SEA meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Citi rates SEK as Buy (1) -

Citi notes Seek's new job listings slipped -1.9% y/y in Australia and rose 8.8% in NZ for November, which is better than October at a -2.4% fall for Australia and 7.8% growth for NZ.

A&NZ job ad volumes for 1H26 have fallen by -2% y/y versus 2H25, which fell -7% and is ahead of the broker's expectation of -4% down y/y.

Citi now expects 50bps of rate hikes from the RBA in 2026, possibly starting as early as February, followed by May.

Citi is Buy rated with a target of $31.65 unchanged.

Target price is $31.65 Current Price is $22.88 Difference: $8.77
If SEK meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $31.56, suggesting upside of 38.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Ord Minnett rates SHA as Initiation of coverage with Buy (1) -

Ord Minnett has initiated coverage of Shape Australia with a Buy rating and target price of $7.10, citing its national scale, full-service fitout/refurbishment offering, and quality-led execution.

The broker views the company as defensively positioned across cycles, with a capital-light model that supports strong returns. Since listing in 2021, revenue has grown to $952m in FY25 from $572m in FY21, delivering a normalised EPS compounded annual growth rate of 64%.

The broker notes the company entered FY26 with a record $492m orderbook, with 19.5% y/y revenue growth expected. 

Target price is $7.10 Current Price is $6.07 Difference: $1.03
If SHA meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 1.0

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

Citi rates TCL as Buy (1) -

The NSW government announced the permanent extension of the $60 toll gap for NSW motorists, which was introduced in Jan 2024 as part of the ongoing toll reform and funded by the government, Citi explains.

Toll road operators are mandated to pass on any additional revenue, such as a rise in traffic and increased revenue, from July 2026 onwards. The removal of some administrative fees was also announced on toll notices from mid-2026.

Two-way tolling for the Sydney Harbour bridge and tunnel will be introduced in late 2028 when the Western Harbour tunnel is expected to be finished.

Transurban Group also announced the Westgate Tunnel is expected to finish before year end, which the analyst sees as the removal of a large overhang on the stock.

Buy. Target unchanged at $16.10.

Target price is $16.10 Current Price is $14.65 Difference: $1.45
If TCL meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.3

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

Citi rates TWE as Sell (5) -

Looking at the latest CBEC (cross border e-commerce) prices, Citi notes Bin 389 and Bin 407 prices are higher, which aligns with the previous channel check.

The analyst does highlight the CBEC price gap versus offline is a "key" concern.

Sell retained for Treasury Wine Estates. Target unchanged at $5.11.

Target price is $5.11 Current Price is $5.49 Difference: minus $0.38 (current price is over target).
If TWE meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.14, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: -0.2

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