Australian Broker Call

Credit Suisse rates ALL as Outperform (1) -

Credit Suisse estimates there will be a -5% fall in mobile platform fees over time from a combination of organic mix shift and
regulatory pressure. This comes as the broker investigates an alternative model whereby developers have more control over distribution (in anticipation of a shift in Apple policy).

In doing so, fees would drop and the likes of Apple could benefit via more iPhone sales and iOS transactions, explains the analyst. Credit Suisse maintains its Outperform rating and $50.30 target price.

Target price is $50.30 Current Price is $46.95 Difference: $3.35
If ALL meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $44.39, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates BPT as Buy (1) -

Citi upgrades forecasts for fourth quarter 2021 Henry Hub and JKM prices to US$6/mmbtu and US$28.8/mmbtu, respectively. This follows surging demand ahead of the Northern hemisphere winter, with no appreciable supply response expected until 2022.

The broker also reduces third and fourth quarter Brent price expectations by -US$4/bbl to US$73 and US$74/bbl, respectively. Weaker-than-expected third quarter stock draws prompted the downgrade, explains Citi.

Beach Energy is the most sensitive to long-term oil price changes, moving 1.4% per US$1/bbl change, explains the analyst. FY22 earnings estimates are largely unchanged, with higher gas prices offset by lower oil prices. Citi retains its $1.56 target and Buy rating. 

Target price is $1.56 Current Price is $1.50 Difference: $0.06
If BPT meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.52, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates COH as Upgrade to Neutral from Sell (3) -

Citi has upgraded Cochlear to Neutral from Sell post a -15% fall in the share price, marking a -13% underperformance vis-a-vis the ASX200 over the past quarter.

The broker's DCF-derived price target remains unchanged at $220.

Target price is $220.00 Current Price is $220.40 Difference: minus $0.4 (current price is over target).
If COH meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $222.64, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates COL as Hold (3) -

A new analyst has taken charge (at JPMorgan) and his base projection is that the normalisation process post-lockdowns in Australia will take longer than expected, and this means upside surprise potential for lockdown-winners, such as Coles.

The new analysts does prefer Woolworths most in the sector, followed by Metcash, and only then Coles. Price target has been set at $17 on slightly higher forecasts. Rating Hold.

Target price is $17.00 Current Price is $16.99 Difference: $0.01
If COL meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $18.35, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates CSL as Hold (3) -

Industry sentiment has confirmed strong demand remains for immunoglobulins despite slow recovery in plasma collections, according to Ord Minnett. While the broker remains positive on CSL's outlook, it notes forecasts are dependent on collections recovery in the fourth quarter of 2021.

Ord Minnett also highlighted the cost of plasma has risen in recent months, largely on higher rates being paid to donors, and a rates reduction is not expected.

The Hold rating and target price of $285 are retained. 

Target price is $285.00 Current Price is $293.40 Difference: minus $8.4 (current price is over target).
If CSL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $305.32, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.2

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

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

Damstra Holdings has announced the acquisition of workplace safety and compliance management company TIKS Solutions. Morgan Stanley notes the transaction was made for $18m, the price representing 4.4x FY21 revenue. 

The broker likes that the TIKS Solutions founder and CEO are to join the Damstra Holdings executive team, and notes the acquisition increases operational scale and enhances product. 

The Equal-weight rating is retained and the target price decreases to $1.10 from $1.25. Industry view: In-Line.

Target price is $1.10 Current Price is $0.91 Difference: $0.19
If DTC meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Ord Minnett rates EVN as Initiation of coverage with Accumulate (2) -

Ord Minnett points out gold equities have underperformed the broader market year-to-date by around -46% and notes renewed investor interest on rising inflation risks.

While the broker feels the sector is oversold, in an uncertain environment, companies with strong fundamentals (production/costs), organic upside and exploration potential are required.

The broker initiates coverage on Evolution Mining with an Accumulate rating. It's thought the company is one of the better placed to achieve their stated guidance.

Current Price is $3.49. Target price not assessed.

Current consensus price target is $4.11, suggesting upside of 14.8% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Credit Suisse rates FMG as Neutral (3) -

Fortescue Metals Group has announced the temporary (the analyst estmates one week) suspension of operations at Solomon Hub due to a tragic accident.

A one-week disruption may hit FY22 earnings (EBITDA) by around -1%, presenting little impact to valuation, explains the broker. The Neutral rating and $21 target price are unchanged.

Target price is $21.00 Current Price is $14.96 Difference: $6.04
If FMG meets the Credit Suisse target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $18.88, suggesting upside of 29.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

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

Ord Minnett points out gold equities have underperformed the broader market year-to-date by around -46% and notes renewed investor interest on rising inflation risks.

While the broker feels the sector is oversold, in an uncertain environment, companies with strong fundamentals (production/costs), organic upside and exploration potential are required.

The analyst initiates coverage of Gold Road Resources with a Buy rating. The company is considered to have upside from raw greenfield exploration potential though this is a little difficult to quantify.

Current Price is $1.20. Target price not assessed.

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates HVN as Neutral (3) -

The annual report revealed additional details on freehold property ownership and valuation metrics. Credit Suisse notes this highlights latent value that would be potentially available to a patient investor.

The analyst feels the implied retail valuations are very low. Based on 30 June valuations, investment property (freehold is considered investment) was equivalent to 45% of the current enterprise value. The Neutral rating and $5.65 target price are unchanged.

Target price is $5.65 Current Price is $5.03 Difference: $0.62
If HVN meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.29, suggesting upside of 28.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates IDX as Buy (1) -

Citi considers the acquisition of The X-Ray Group is around 3%-5% EPS accretive and increases its target to $5.55 from $5.35 and maintains its Buy rating. The acquisition multiple is considered to be lower than for other recent imaging transactions.

The company will pay upfront consideration of -$37.5m ($25.95m cash and $11.55m in shares) and potential earn-out/deferred consideration of up to -$7.5m. The analyst expects a trading update at the November 5 AGM.

Target price is $5.55 Current Price is $4.92 Difference: $0.63
If IDX meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates IDX as Outperform (1) -

Integral Diagnostics has announced the acquisition of The X-Ray Group for -$37.5m. Macquarie estimates the move to be around 4.5% annually accretive to earnings per share, and notes it should expand Integral Diagnostics' regional Victoria presence.

The broker highlights the transaction will comprise $25.95m in cash and $11.55m in shares, and with underlying earnings of $5.0-5.5m for FY22 suggests a 6.8-7.5x earnings multiple. Earnings per share forecasts upgraded 3%,4% and 5% to FY24.

The Outperform rating is retained and the target price increases to $5.55 from $5.30.

Target price is $5.55 Current Price is $4.92 Difference: $0.63
If IDX meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates IDX as Accumulate (2) -

Integral Diagnostics has acquired The X-Ray Group, a company comprising five radiology practices, for a total consideration of -$45m.

Ord Minnett notes the acquisition is expected to deliver a full-year underlying earnings contribution of $5-5.5m, which translates to a 5% increase to FY23 forecasts. It is the broker's view that smaller acquisition opportunities may be a recurring feature in the medium-term. 

The Accumulate rating is retained and the target price increases to $5.25 from $5.05.

Target price is $5.25 Current Price is $4.92 Difference: $0.33
If IDX meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.21, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates IPL as Buy (1) -

Citi increases FY22/23 earnings (EBIT) estimates by 16% and 11% on the back of better ammonia spreads and DAP pricing, and lifts its target to $3.35 from $3. High gas prices have driven coal prices up and a volume recovery is expected after improving explosives demand.

FY21 earnings estimates are largely unchanged as better fertiliser pricing momentum is offset by the impact from Hurricane Ida on the Waggaman ammonia plant in Louisiana. The Buy rating is unchanged. 

Target price is $3.35 Current Price is $2.94 Difference: $0.41
If IPL meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.20, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates MTS as Accumulate (2) -

A new analyst has taken charge (at JPMorgan) and his base projection is that the normalisation process post-lockdowns in Australia will take longer than expected, and this means upside surprise potential for lockdown-winners, such as Metcash.

The new analysts does prefer Woolworths most in the sector, followed by Metcash. Rating Accumulate. Price target has been set at $4.50 (the old one stood at $3.75).

Target price is $4.50 Current Price is $3.93 Difference: $0.57
If MTS meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.30, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates NST as Initiation of Coverage with a Buy (1) -

Ord Minnett points out gold equities have underperformed the broader market year-to-date by around -46% and notes renewed investor interest on rising inflation risks.

While the broker feels the sector is oversold, in an uncertain environment, companies with strong fundamentals (production/costs), organic upside and exploration potential are required.

In a time when covid and higher sustained commodity prices are impacting labour costs and availability, the analyst believes Northern Star Resources is well placed to achieve guidance. Ord Minnett initiates coverage with a Buy rating.

Current Price is $8.50. Target price not assessed.

Current consensus price target is $12.05, suggesting upside of 37.9% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates NWS as Outperform (1) -

Following the Foxtel strategy day, Credit Suisse increases its target price to $41 from $40 to take into account the lower medium-term capex at Foxtel and favourable foreign exchange movements. The Outperform rating is retained.

The focus of the day was upon streaming to drive medium-term growth with a lift in target to 5m subscribers from 4m over the next three years. The three-year revenue target is for around $3bn versus the $2.73bn forecast by the analyst.

Target price is $41.00 Current Price is $33.00 Difference: $8
If NWS meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $39.38, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Macquarie rates NWS as Outperform (1) -

While Foxtel has suggested that revenue from Kayo and Binge has offset a continuing broadcast decline, Macquarie is cautious of a potential covid benefit in these results. 

Looking ahead, Foxtel has outlined better-than-expected three-year targets that include more than 5m subscribers and more than 3bn in revenue, with Kayo and Binge key drivers of growth. Earnings per share updated -20%, -13% and -5% through to FY24. 

The Outperform rating is retained and the target price decreases to $45 from $49.

Target price is $45.00 Current Price is $33.00 Difference: $12
If NWS meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $39.38, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

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

Ord Minnett points out gold equities have underperformed the broader market year-to-date by around -46% and notes renewed investor interest on rising inflation risks.

While the broker feels the sector is oversold, in an uncertain environment, companies with strong fundamentals (production/costs), organic upside and exploration potential are required.

The broker initiates coverage on Red 5 with a Buy rating as it favours companies that can improve business fundamentals over the next 12-24 months.

Current Price is $0.21. Target price not assessed.

Market Sentiment: 1.0

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

Macquarie rates RHC as Outperform (1) -

Ramsey Health Care has provided updates on elective surgery restrictions. Macquarie notes it had assumed an easing of elective surgery restrictions from September, but now models a more material impact, resulting in an -$18m decrease to first half earnings in Australia. 

The broker updates earnings per share forecasts by -2% and -1% for FY22 and FY23 respectively, but maintains that the medium-term outlook seems favourable. 

The Outperform rating and target price of $75.50 are retained.

Target price is $75.50 Current Price is $69.62 Difference: $5.88
If RHC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $69.54, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Morgan Stanley rates RHC as Underweight (5) -

Morgan Stanley estimates elective surgery restrictions on Ramsey Health Care's Sydney hospitals could have an impact of as much as -$35m on FY22 earnings, while an elective surgery reduction mandate in Victoria could cost another -$12-15m. 

The broker notes these impacts will make growth increasingly challenging in FY22.

The Underweight rating and target price of $60.00 are retained. Industry view: In-Line.

Target price is $60.00 Current Price is $69.62 Difference: minus $9.62 (current price is over target).
If RHC meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $69.54, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Ord Minnett rates RMS as Initiation of coverage with Accumulate (2) -

Ord Minnett points out gold equities have underperformed the broader market year-to-date by around -46% and notes renewed investor interest on rising inflation risks.

While the broker feels the sector is oversold, in an uncertain environment, companies with strong fundamentals (production/costs), organic upside and exploration potential are required.

The broker initiates coverage on Ramelius Resources with an Accumulate rating. It's thought the company gives investors ‘safer’ liquid gold exposure.

Current Price is $1.34. Target price not assessed.

Current consensus price target is $2.11, suggesting upside of 55.1% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Credit Suisse rates S32 as Outperform (1) -

South32 announced it has agreed to acquire an additional 25% of the Mozal aluminium smelter in Mozambique for -$250m, raising its stake to 72% from 47%.

In combination with the recently announced restart of the Alumar smelter in Brazil, Credit Suisse estimates a 33% increase in aluminium output to 1.3Mtpa. This also fits with the analyst's positive view for aluminium and the target price rises to $4.40 from $3.80.

The Outperform rating is unchanged.

Target price is $4.40 Current Price is $3.53 Difference: $0.87
If S32 meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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 S32 as Overweight (1) -

South32 has announced an increase in its stake in Mozal, acquiring as much as an additional 25% of the company for US$250m. South32 already holds a 47.1% stake in the company, meaning the transaction would take its interest to 72.1%.

Morgan Stanley notes the acquisition cost suggests 3.6x FY21 underlying earnings. Further, the broker highlights the move increases South32's aluminum exposure, and improves ESG credentials.

The Overweight rating and target price of $4.20 are retained. Industry view: In-Line.

Target price is $4.20 Current Price is $3.53 Difference: $0.67
If S32 meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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 S32 as Downgrade to Hold from Add (3) -

Following a 27% share price rally since mid-August on rising coal and aluminium prices, Morgans lowers its rating to Hold from Add on valuation grounds. The target price rises to $3.65 from $3.30.

The company announced it has used its pre-emptive right to acquire an 25% interest in the Mozal operations, (aluminium smelter in Mozambique), for -US$250m. This will raise its stake to 72.1% from 47%.

The analyst feels aluminium, coking coal, and thermal coal prices are trading ahead of long-term sustainable prices.

Target price is $3.65 Current Price is $3.53 Difference: $0.12
If S32 meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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 SBM as Initiation of coverage with Hold (3) -

Ord Minnett points out gold equities have underperformed the broader market year-to-date by around -46% and notes renewed investor interest on rising inflation risks.

While the broker feels the sector is oversold, in an uncertain environment, companies with strong fundamentals (production/costs), organic upside and exploration potential are required.

The broker initiates coverage on St Barbara with a Hold rating. For valuation purposes the analyst likes relying upon the company's mine plan, backed by reserves.

Current Price is $1.34. Target price not assessed.

Current consensus price target is $1.90, suggesting upside of 39.7% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates SDF as Accumulate (2) -

Ord Minnett has provided an update on Steadfast Group, taking into consideration the recent capital raising and acquisition of Coverforce, as well as results from FY21. 

The broker maintains a positive view on the company, noting consistent growth in both earnings per share and dividends, and the review has lead to a target price increase.

The Accumulate rating is retained and the target price increases to $5.32 from $4.76.

Target price is $5.32 Current Price is $4.88 Difference: $0.44
If SDF meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

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

Citi upgrades to Buy from Neutral following a recent share price pullback. The analyst awaits better visibility on the announced -US$1.87bn acquisition of Spanish copper company MATSA, for a further potential re-rate opportunity. 

The broker also raises its long term copper price to US$9,000/t from US$7,500/t. The target price rises to $7.30 from $6.82

Target price is $7.30 Current Price is $5.48 Difference: $1.82
If SFR meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $6.63, suggesting upside of 26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates SLR as Initiate Coverage with a Buy (1) -

Ord Minnett points out gold equities have underperformed the broader market year-to-date by around -46% and notes renewed investor interest on rising inflation risks.

While the broker feels the sector is oversold, in an uncertain environment, companies with strong fundamentals (production/costs), organic upside and exploration potential are required.

In a time when covid and higher sustained commodity prices are impacting labour costs and availability, the analyst believes Silver Lake Resources is well placed to achieve guidance. Ord Minnett initiates coverage with a Buy rating.

Current Price is $1.34. Target price not assessed.

Current consensus price target is $1.93, suggesting upside of 37.5% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates SXY as Buy (1) -

Citi upgrades forecasts for fourth quarter 2021 Henry Hub and JKM prices to US$6/mmbtu and US$28.8/mmbtu, respectively. This follows surging demand ahead of the Northern hemisphere winter, with no appreciable supply response expected until 2022.

The broker also reduces third and fourth quarter Brent price expectations by -US$4/bbl to US$73 and US$74/bbl, respectively. Weaker-than-expected third quarter stock draws prompted the downgrade, explains Citi.

The broker increases FY21/22 earnings estimates on increased gas price expectations and a slight upwards revision to FY22 production estimates. The target price increases to $4.24 from $4.11 and the Buy rating is unchanged.

Target price is $4.24 Current Price is $3.69 Difference: $0.55
If SXY meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.87, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates TWE as Sell (5) -

Citi revisits Treasury Wine Estates and reiterates its Neutral rating and $12.86 target price. More positivity will ensue when the analyst understands the sustainability of the volume reallocation from China to other Asian countries.

Additionally, the analyst wants to see how the company navigates continued covid-19 disruptions on its higher-end sales channels.

Target price is $12.86 Current Price is $12.41 Difference: $0.45
If TWE meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.98, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates VUK as Neutral (3) -

Virgin Money UK has disclosed an additional -GBP45m in restructuring charges to accelerate the company's digital strategy. Macquarie notes these charges are largely related to branch closures and operating model changes, and will come at a cost to shareholders.

While the broker noted these charges are operational and likely to lead to cost savings in coming years, it was also highlighted that Virgin Money UK has reported around -GBP1.7bn in below-the-line charges in the last four years.

The Neutral rating and target price of $4.30 are retained.

Target price is $4.30 Current Price is $4.04 Difference: $0.26
If VUK meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.02, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Ord Minnett rates WOW as Accumulate (2) -

A new analyst has taken charge (at JPMorgan) and his base projection is that the normalisation process post-lockdowns in Australia will take longer than expected, and this means upside surprise potential for lockdown-winners, such as Woolworths.

Woolworths is also the analyst's most preferred exposure to the grocery sector in Australia. The stock returns with an Accumulate rating while the new price target of $45 compares with $42.60 under the prior analyst.

Earnings estimates take a dive, but that's because Endeavour Group ((EDV)) has by now become an independent entity.

Target price is $45.00 Current Price is $39.35 Difference: $5.65
If WOW meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $39.00, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Citi rates WPL as Neutral (3) -

Citi upgrades forecasts for fourth quarter 2021 Henry Hub and JKM prices to US$6/mmbtu and US$28.8/mmbtu, respectively. This follows surging demand ahead of the Northern hemisphere winter, with no appreciable supply response expected until 2022.

The broker also reduces third and fourth quarter Brent price expectations by -US$4/bbl to US$73 and US$74/bbl, respectively. Weaker-than-expected third quarter stock draws prompted the downgrade, explains Citi.

The broker upgrades Woodside Petroleum's 2021/22 earnings estimates by 15% and 9% on higher gas pricing, partially offset by oil price downgrades. Also, after increasing risk weightings for Scarborough and the North West Shelf, the target rises to $22.74 from $20.80.

Target price is $22.74 Current Price is $23.88 Difference: minus $1.14 (current price is over target).
If WPL 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 $26.40, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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