Australian Broker Call

Morgans rates AIM as No Rating (-1) -

After Access Innovation Holdings’ first quarter trading update and reiteration of guidance, Morgans make no changes to forecasts, recommendation or valuation.

The company posted its maiden quarterly result. Services revenue of $11m was booked in the first quarter, up 25% year-on-year (in constant currency terms). The company’s prospectus forecast is for 20% year-on-year revenue growth. The broker believes the quarterly places the company comfortably on-track to achieve this.

The company provides high accuracy, near real-time, voice transcription and translation. The technology turns speech to text in three to four seconds with 99% accuracy. According to the broker, the product is best in breed, and many of the mega-cap technology companies use it for critical situations

The Add rating and target price of $1.35 are unchanged.

Target price is $1.35 Current Price is $1.12 Difference: $0.23
If AIM meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

UBS rates ALQ as Neutral (3) -

ALS's first-quarter revenues were down -10% versus the June quarter due to covid-19 restrictions.

Going ahead, UBS expects revenue to decline by -9% in the first half led by both life sciences and commodities. In the second half, the broker expects a re-opening recovery and a consequent 5% uplift in life sciences sales. The commodities segment is expected to continue its decline in the second half.

Along with a recovery in life sciences, the broker also anticipates a more supportive macro environment for mineral exploration and has increased its earnings growth forecasts for FY21-23 by 7-8%.

UBS reaffirms its Neutral rating with the target price increasing to $9.50 from $8.03.

Target price is $9.50 Current Price is $9.35 Difference: $0.15
If ALQ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $9.11, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in March.

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 AMP as Neutral (3) -

Regarding the recent bid from US-based Ares Management Corp to acquire AMP, Citi wonders if an AMP/Macquarie Group ((MQG)) partnership would be a better alternative. 

The broker believes a tie-up with Macquarie will create more value, accelerate shareholder returns and allow AMP to "control its destiny". Also, Macquarie has excess capital which may enable it to buy AMP Capital and AMP Bank for a cash consideration of circa $5.3bn.

For AMP, Citi expects the benefits would include a potential circa 20% value uplift to its existing ‘sum of the parts’ valuation of about $6bn. Also, a deal with Macquarie could allow AMP to focus on the regeneration of its AWM business.

Citi retains its Neutral rating with the target price rising to $1.55 from $1.45.

Target price is $1.55 Current Price is $1.53 Difference: $0.02
If AMP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.53, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates AMP as Neutral (3) -

According to The Australian, Ares Management Corp's offer to acquire 100% of AMP has been lobbed about 14% above AMP's $4.4bn market capitalisation on October 29.

The offer is broadly in-line with UBS's valuation of the company at $5.05bn. The broker also notes AMP is flush with about $700m surplus capital and interest from potential suitors is likely to be wide-ranging, both on a whole-of-company or potential break-up scenario.

Entanglement between divisions still exists, highlights UBS, rendering any discussion on the "parts" being worth more than the "whole" debatable.

Target is unchanged at $1.45, Neutral retained.

Target price is $1.45 Current Price is $1.53 Difference: minus $0.08 (current price is over target).
If AMP meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.53, suggesting downside of -7.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates ANN as Buy (1) -

As Citi expected, Ansell has upgraded its FY21 earning growth forecast by 6%, in-line with the broker.

The upgrade was led by better than expected volumes and sales across all five of Ansell's divisions in the first four months of FY21 along with better management of cost increases and favourable exchange rates.

Citi believes sales will normalise in FY22 and growth rates will be almost back to normal levels.

Buy rating and $41 target retained.

Target price is $41.00 Current Price is $40.19 Difference: $0.81
If ANN meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $40.59, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Credit Suisse rates ANN as Outperform (1) -

Ansell has upgraded FY21 guidance and now expects earnings per share of US$1.35-1.45. This implies 11-19% growth, Credit Suisse assesses.

Upgraded guidance stems from better-than-expected volume and sales across all five of the business units. The broker raises estimates by 7% for FY21.

Despite a strong balance sheet, the broker does not expect a buyback in FY21 but estimates around US$400m in capacity to pursue M&A or a capital return. Outperform retained. Target is raised to $45 and $43.

Target price is $45.00 Current Price is $40.19 Difference: $4.81
If ANN meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $40.59, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Morgan Stanley rates ANN as Overweight (1) -

Morgan Stanley assesses the upgrade to guidance implies organic growth of 10.6-18.8% in FY21. The improvement in the outlook is supported by better sales and volumes across all business units.

Costs have been successfully managed and capacity expansion is on track. Overweight rating. Target is unchanged at $43.50. Industry view is In-Line.

Target price is $43.50 Current Price is $40.19 Difference: $3.31
If ANN meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $40.59, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Ord Minnett rates ANN as Accumulate (2) -

Ord Minnett increases revenue forecasts to reflect stronger sales of examination gloves in the latest update. This produces organic revenue growth forecasts of 11.6%.

Offsetting the revenue growth, supplier costs have increased, which the company is passing on to customers, leading Ord Minnett to lower margin estimates. Accumulate retained. Target is raised to $45 from $44.

Target price is $45.00 Current Price is $40.19 Difference: $4.81
If ANN meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $40.59, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

UBS rates ANN as Neutral (3) -

Ansell's latest update assesses the company's performance in the first 4 months of FY21 has been strong, despite uncertainties due to covid-19.

Management expects better production volumes and sales across all business units. For the rest of FY21, Ansell expects double-digit organic growth, with earnings per share guided between US135-US145c, up from US126-US138c.

UBS believes with covid-19 infection rates increasing again in many countries, demand for healthcare products will continue to act as a buffer to any further slowdown in core industrial glove sales.

A recovery in industrial sales growth is implicit in forecasts and the broker retains a Neutral rating with the target rising to $41.75 from $39.

Target price is $41.75 Current Price is $40.19 Difference: $1.56
If ANN meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $40.59, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.4

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

Citi rates BUB as Sell (5) -

Bubs Australia's first-quarter witnessed a -34% slowdown in gross sales versus the June quarter driven by challenges in the daigou channel. While the issue is supply related, Citi is concerned the lack of daigou supply may lead consumers to shift to readily-available domestic brands. 

Citi expects the second-quarter gross sales to grow 34% versus last year led by expectations of better daigou momentum, growth in CBEC sales and scope for export orders from China, Vietnam and Malaysia.

The Sell rating is maintained and the target price is decreased to $0.61 from $0.70.

Target price is $0.61 Current Price is $0.69 Difference: minus $0.08 (current price is over target).
If BUB meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

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 CAR as Neutral (3) -

The company's update is consistent with commentary provided at the FY20 results, Credit Suisse observes, with dealer leads growing strongly. Private listings in the first quarter, outside of Melbourne, have largely recovered to pre-pandemic levels.

While Credit Suisse's FY21 forecasts are unchanged, pent-up demand is expected to produce a strong recovery in Melbourne on re-opening.

Estimates are adjusted to take into account the commentary around local currency growth and factor in the most recent FX. Neutral retained. Target is $18.80.

Target price is $18.80 Current Price is $20.77 Difference: minus $1.97 (current price is over target).
If CAR meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.34, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

UBS rates CAR as Neutral (3) -

Carsales.com's latest update was mostly on expected lines with dealer lead volumes up strongly versus the last quarter (except for Melbourne).

The company had provided 100% rebate for all metro Melbourne dealers from August 6 to October 27, worth circa -$12m. Tyresales volumes were materially lower given covid-19.

Both South Korea and Brazil saw good growth in operating income versus the last quarter. This supports the broker's expectation for Encar to be Carsales's key growth engine in the first half of FY21.

Carsales did not provide any explicit FY21 guidance.

Neutral retained. Target is unchanged at $19.50.

Target price is $19.50 Current Price is $20.77 Difference: minus $1.27 (current price is over target).
If CAR meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $19.34, suggesting downside of -5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Citi rates CGC as Buy (1) -

In an initial assessment, Citi reports Costa Group's wholesale pricing trends for October 2020 were favourable for the company's Australian produce business.

The slight weakness seen in berries and Victorian prices are a short-term phenomenon, according to Citi. Mushroom prices were up 20% while avocado prices doubled in October.

Buy rating retained. Target price is $3.75.

Target price is $3.75 Current Price is $3.56 Difference: $0.19
If CGC meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.63, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates COE as Neutral (3) -

First quarter production was a slight miss on Credit Suisse estimates. The broker is still not confident regarding the capacity at Orbost, or about costs and timeline. Valuation of Sole is risked at 95%.

On the back of lower east coast gas price assumptions, the target is reduced to $0.30 from $0.33. Near-term valuation appears dependent on the performance of the Orbost plant, or M&A activity. Hence, Credit Suisse retains a Neutral rating.

Target price is $0.30 Current Price is $0.32 Difference: minus $0.02 (current price is over target).
If COE meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.42, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates COE as Buy (1) -

Attributable production in the September quarter was slightly below Ord Minnett's forecasts. Revenue was in line. The main announcement was the news that Sole gas production would soon transition to term contracts, comments the broker.

The amount to be sold sold relates to what the company assesses can be consistently produced from both the field and the Orbost gas plant.

Ord Minnett remains positive on the stock because of the valuation and the leverage to domestic gas prices. Buy retained. Target is $0.57.

Target price is $0.57 Current Price is $0.32 Difference: $0.25
If COE meets the Ord Minnett target it will return approximately 78% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting upside of 32.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates GPT as Outperform (1) -

GPT Group reported retail sales flat in the September quarter, ex-Victoria. Occupancy in office declined but rose in industrial.

Net rent collection improved but it's all a bit messy on a measurement basis, the broker notes, hence an earnings decline is still expected in the first half due to the virus impact.

The reopening of Victoria should nonetheless be a catalyst and at 6.5% the yield is attractive in a low rate world, the broker suggests. Outperform and $4.48 target retained.

Target price is $4.48 Current Price is $4.03 Difference: $0.45
If GPT meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Credit Suisse rates GWA as Downgrade to Neutral from Outperform (3) -

Credit Suisse observes, since the last update in August, housing turnover and price indicators for GWA Group's core alterations & additions market have improved. Hence, the latest commentary on FY21 is disappointing.

Year-to-date sales are down -5% and it appears, while consumer discretionary peers have posted strong growth, GWA Group has not participated in the recovery so far.

Underperformance is attributed to stretched-out cycles in the commercial end market as the company's products are the last to be installed. Rating is downgraded to Neutral from Outperform and the target is steady at $2.85.

Target price is $2.85 Current Price is $2.64 Difference: $0.21
If GWA meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.62, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates HUB as Downgrade to Hold from Buy (3) -

The company has purchased Ord Minnett's portfolio administration and reporting services along with Xplore Wealth ((XPL)) and simultaneously divested Paragem to Easton Investments for scrip.

Beyond the accretive set of transactions, the broker assesses the deals provide HUB24 with advanced functionality and capability.

Nevertheless, despite the strategic and financial merit, the stock has rallied 260% from the March lows and this provides limited valuation support. Hence, Ord Minnett downgrades to Hold from Buy. Target is raised to $23.29 from $19.49.

Target price is $23.29 Current Price is $22.97 Difference: $0.32
If HUB meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $21.65, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates ICQ as Downgrade to Hold from Add (3) -

iCar Asia has received an indicative 50 cent bid from US listed, Chinese based Autohome Inc. 

Morgans assesses the offer looks attractive to shareholders, given the headline metrics, premium to current trading and the broker’s valuation.

The bid comes amidst a raft of deals in the classifieds space as larger players look to either rationalise or beef up their portfolios, informs the analyst.

Separately, the quarterly result shows traction out of second quarter lows, and was in-line with the broker’s expectations.

Morgans sets the target price at an equal weighting between the indicative bid price ($0.50) and the broker’s valuation of $0.39. With the share price closing very close to the target price, the analyst sees the risk/reward trade-off, should a binding offer not eventuate, as evenly balanced.

The rating is downgraded to Hold from Add and the target price is increased to $0.445 from $0.39.

Target price is $0.45 Current Price is $0.44 Difference: $0.005
If ICQ meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates JBH as Hold (3) -

A trading update at JB Hi-Fi’s AGM highlighted to Morgans strong sales growth, despite a decent moderation from the July performance (Melbourne restrictions being the main contributor).

The broker considers Christmas is pivotal to the group’s first half and financial year performance. Given the easing Melbourne restrictions, a tough year all round and no ability to travel offshore, Morgans is optimistic on Christmas trading across the board.

Morgans lifts EPS forecasts by 12.5% in FY21 but leaves the FY22/23 forecasts largely unchanged. The valuation and target price are increased to $48.50 from $45.98, due to the above earnings changes to forecasts.

The Hold rating is unchanged.

Target price is $48.50 Current Price is $47.43 Difference: $1.07
If JBH meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $49.73, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Citi rates JHG as Buy (1) -

Citi analysts saw their forecast being beaten by some 7%, adjusted and underlying, but given a low tax rate and strong investment gains, their argument is the real result is actually even stronger.

Thus Janus Henderson's Q3 report triggers EPS forecast increases of 7%, 12% and 12% respectively for FY20-FY22.

Increased forecasts have lifted Citi's valuation to US$29.90, which translates into $46.50 for the Australian shares. The broker adds a premium on top to account for take-over interest.

Price targets have thus been updated to US$32.90 and $46.85 respectively. Buy. DPS forecasts have remained unchanged.

Target price is $46.85 Current Price is $34.89 Difference: $11.96
If JHG meets the Citi target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $40.86, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

This company reports in USD. 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

Morgans rates LNK as Hold (3) -

Link Administration Holdings provided a relatively soft first quarter trading update, assesses Morgans, with revenue and operating profit (NPATA) below expectations. As a result, the broker downgrades EPS forecasts for FY21 and FY22 by -18% and -6%, respectively.

While the board has deemed the revised private equity bid (for $5.40 per share for the group, $3.80 ex PEXA) as not representing compelling value for shareholders, it has granted a period of due diligence to the bidding consortium.

Morgans thinks it will take a bid price closer to $6 to likely get the Board over the line, with the key short-term risk to the share price now relating to deal progression.

The Hold rating is unchanged and the target price is increased to $5.40 from $5.20.

Target price is $5.40 Current Price is $4.77 Difference: $0.63
If LNK meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates MCP as Buy (1) -

McPherson's has agreed to terms on the $27m acquisition of the Fusion Health and Oriental Botanical brands from Blackmores ((BKL)).

Ord Minnett assesses the brands fit well in terms of the company's strategy to acquire products with growth potential and the ability to benefit from distribution networks.

At least 25% upside for short-term earnings is envisaged from the acquisitions. However, Ord Minnett was surprised by the mix of debt/equity within the capital raising.

McPherson's has raised $37.5m via an institutional placement and intends to raise up to $10m under a share purchase plan. Buy rating retained. Target is reduced to $3.00 from $3.40.

Target price is $3.00 Current Price is $2.27 Difference: $0.73
If MCP meets the Ord Minnett target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Citi rates MQG as Neutral (3) -

Citi believes there is potential for Macquarie Group to position itself as a partner for the AMP ((AMP)) Board. Macquarie Group's earning cycle looks like it has matured and while the group has begun working on the next phase, the broker feels more needs to be done.

If Macquarie Group were to acquire AMP Capital and AMP Bank, Citi believes this would be a strong strategic fit as well as lead to cost synergies of $151m pre-tax.

While the broker sees a lucrative opportunity for Macquarie, Cit also advocates caution and due diligence. Neutral and $125 target retained.

Target price is $125.00 Current Price is $126.75 Difference: minus $1.75 (current price is over target).
If MQG 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 $128.32, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates NTO as Overweight (1) -

Nitro Software has upgraded guidance for 2020 and reaffirmed prospectus revenue forecast. Morgan Stanley lifts revenue forecasts by 6-7% for 2020-21 and observes accelerated traction in the pipeline and active migration of maintenance revenue to subscription could sustain a material uplift in FY21 recurring revenue.

The business has changed materially, moving from on-premises to software-as-a-service and from single module to usage-based, and Morgan Stanley still seeks to better understand the incremental economics and investment required to sustain an accelerating top line.

Nevertheless, an Overweight rating is reiterated. Target is raised to $3.50 from $2.60. Industry view: In-line.

Target price is $3.50 Current Price is $3.08 Difference: $0.42
If NTO meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 OGC as Downgrade to Neutral from Outperform (3) -

OceanaGold 's September quarter featured production -33% below the broker's forecast and costs 32% above, attributed to exceptional rainfall events and virus impact on personnel levels at Haile.

With the virus situation in the US not improving, particularly in South Carolina (Haile), Macquarie downgrades to Neutral from Outperform.

Production is expected to rebound in this quarter but performance will likely remain subdued, the broker suggests, until Waihi recommences mid next year. Target falls to $2.00 from $2.80.

Target price is $2.00 Current Price is $1.82 Difference: $0.18
If OGC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.24, suggesting upside of 73.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Morgans rates ORE as Add (1) -

The September quarter result for Orocobre revealed that received lithium carbonate (LCE) prices remained weak, notes the broker. This lower received price was exacerbated by a reduced percentage of higher-priced Battery Grade LCE sold in the product mix.

This lower average price also reflected the decision to monetise stocks of prime grade LCE in July, in a period of market uncertainty and with covid-19 constraints, explains Morgans.

Olaroz LCE production for the September 2020 quarter was down marginally, and the analyst expects it to remain weak for the balance of FY21.

The add rating and target price of $3.36 are unchanged.

Target price is $3.36 Current Price is $2.56 Difference: $0.8
If ORE meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates ORG as Buy (1) -

Origin Energy’s September quarter revenue saw a decline of -39% versus the June quarter, missing Citi's forecast by -18%. Weak realised pricing for both LNG and domestic gas was the major reason behind the miss.

The lower prices were partly offset by overall higher production volumes, beating Citi's forecast by 7%. While LNG volumes were a slight miss, domestic gas sales saved the day (quarter).

For FY21, Citi has lifted its core net profit forecast by 4% while the FY22 net profit forecast remains mostly intact.

Citi retains its Buy rating with the target price rising slightly to $7.01 from $6.80.

Target price is $7.01 Current Price is $4.00 Difference: $3.01
If ORG meets the Citi target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 55.8% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates ORG as Neutral (3) -

Origin Energy's September quarter featured APLNG production in line, electricity volumes flat and gas down -7%, the broker notes. The outlook is for improving business demand but a consumer headwind from expected milder summer temperatures this year.

The broker is forecasting a 40% increase in electricity, gas and oil prices by FY24 which informs its valuation, but as yet no evidence of such. Neutral retained, target ticks down to $5.34 from $5.35.

Target price is $5.34 Current Price is $4.00 Difference: $1.34
If ORG meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 55.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates ORG as Add (1) -

Morgans sees significant upside for patient investors in Origin Energy. However, in the short term the broker finds it hard to identify a catalyst that may close the gap between the current share price and the analyst’s valuation.

After a quarterly update, Morgans notes APLNG’s commodity revenues fell sharply on lower realised prices. Electricity volumes are considered to be recovering, but business gas demand is still soft.

The broker lifts the free cashflow and dividend forecast on lower capital expenditure and cash tax payments.

The Add rating is unchanged and the target price is decreased slightly to $6.23 from $6.34.

Target price is $6.23 Current Price is $4.00 Difference: $2.23
If ORG meets the Morgans target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 55.8% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates ORG as Buy (1) -

September quarter production was below Ord Minnett's estimates. There were no changes to full year guidance.

APLNG has reduced upstream CSG development in response to lower demand and the broker considers this will be the main driver of improved domestic gas prices.

LNG prices are expected to recover in the current quarter, with both contract and spot prices significantly higher. The broker suggests higher gas prices could mean higher wholesale electricity prices, which will be a driver of the energy markets division.

Ord Minnett retains a Buy rating and reduces the target to $7.40 from $7.45.

Target price is $7.40 Current Price is $4.00 Difference: $3.4
If ORG meets the Ord Minnett target it will return approximately 85% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 55.8% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates RAP as Add (1) -

ResApp Health released a first quarter cash flow report which showed small but valuable first revenues from the SleepCheck and telehealth applications, reports Morgans.

There were a number of temporary barriers preventing meaningful sales from the cough diagnostic, explains the broker.

The analyst pushes out expected sales by six months and notes it's clear there may be a longer settling in period until fully established. This in particular relates to navigating the regulatory environment for telehealth usage requirements.

The Speculative Buy rating is unchanged and the target price is decreased to $0.21 from $0.24.

Target price is $0.21 Current Price is $0.09 Difference: $0.12
If RAP meets the Morgans target it will return approximately 133% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 RMD as Upgrade to Outperform from Neutral (1) -

Credit Suisse believes ResMed is uniquely placed to benefit from a shift to home health care post the pandemic. Double-digit earnings growth is forecast over the medium term and the rating is upgraded to Outperform from Neutral.

Despite rising coronavirus cases in the northern hemisphere and the re-implementation of lockdowns, management remains confident of a sequential quarterly improvement in device sales.

The risk from competitive bidding in the US is removed and the current reimbursement rates are expected to remain for at least three years. Target is raised to $31 from $28.

Target price is $31.00 Current Price is $27.92 Difference: $3.08
If RMD meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $27.48, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Macquarie rates RMD as Upgrade to Neutral from Underperform (3) -

ResMed's quarterly earnings result indicated a rebound in the company's base business and OSA activity greater than Macquarie had expected. Ongoing improvement is expected ahead in both device volumes and opportunities regarding re-supply.

ResMed does not see any change in US reimbursement rates in the foreseeable future, removing what the broker had highlighted as a risk. Earnings forecasts thus upgraded and target rises to $27.25 form $20.00. Upgrade to Neutral from Underperform.

Target price is $27.25 Current Price is $27.92 Difference: minus $0.67 (current price is over target).
If RMD meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.48, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

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

Although the business is likely to exit the pandemic in a stronger position, Morgan Stanley believes this is encapsulated in the outperformance of the stock over the year to date.

First quarter earnings per share beat the broker's estimates, mostly because of better gross margins and slower costs growth.

The broker suspects the uplift from ventilator sale will have likely peaked in the fourth quarter of FY20 and the positive earnings revisions over the short term have largely played out.

Equal-weight. Target is raised to $27.00 from $25.90. Industry view: In-Line.

Target price is $27.00 Current Price is $27.92 Difference: minus $0.92 (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 $27.48, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Ord Minnett rates RMD as Lighten (4) -

First quarter net profit of US$193.9m was 20.5% ahead of Ord Minnett's forecasts. The sleep sector has recovered more rapidly than the broker expected, as home testing seems to have offset capacity challenges for the traditional sleep laboratories.

Earnings growth is likely to moderate over the remainder of the year as ventilator sales slow, while the broker comments the cancellation of the latest competitive bidding round means a more benign pricing environment.

Ord Minnett maintains a Lighten rating, raising the target to $23.30 from $21.00.

Target price is $23.30 Current Price is $27.92 Difference: minus $4.62 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.48, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

UBS rates RMD as Upgrade to Buy from Neutral (1) -

ResMed's first-quarter result was ahead of UBS's forecast with group revenue beating the broker's estimate by 6%. The broker is happy with the faster than expected recovery in sleep-related sales.

Ventilation sales related to covid-19 were less than June quarter levels but still managed to be ahead of the broker by about US$13m.

UBS expects strong revenue performance over the longer term and also believes ResMed will reach a net cash position in FY22. 

Rating is upgraded to Buy from Neutral with the target price rising to US$210 from US$200.

Current Price is $27.92. Target price not assessed.

Current consensus price target is $27.48, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Macquarie rates SFR as Neutral (3) -

Sandfire Resources' has acquired 85% of the Red Bore tenement adjacent to its DeGrussa mine. It's a small resource, the broker notes, but extending the life of DeGrussa, which is currently down to 2.5 years, could be a material catalyst.

No change to forecasts, Neutral and $4.50 target retained.

Target price is $4.50 Current Price is $4.42 Difference: $0.08
If SFR meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates SGF as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley suspects guidance is conservative, at net profit of $22-24m. This signals earnings are almost back to pre-pandemic levels and does not include the prospect of Victoria coming out of lockdown, which should provide upside potential.

The broker suggests earnings should also be leveraged to a turnaround within leasing.

As a result, uncertainty is considered more than priced into the stock and Morgan Stanley upgrades to Overweight from Equal-weight. Target is raised to $2.30 from $2.00. Industry view: In Line.

Target price is $2.30 Current Price is $1.69 Difference: $0.61
If SGF meets the Morgan Stanley target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Citi rates WBC as Buy (1) -

Citi's initial response to today's FY20 release by Westpac reveals numerous pluses and minuses, with higher costs creating a "miss" on core profits but a much higher dividend plus asset quality surprising on the upside.

The analysts now see Westpac entering FY21 on stronger footing, ready to retake lost momentum. Buy. Target $23.50.

Target price is $23.50 Current Price is $17.91 Difference: $5.59
If WBC meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $20.20, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

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

Western Areas' September quarter fell short of expectations led by seismic activity at the Flying Fox mine. In a first for Western Areas, the company has reduced its nickel guidance by -10% and expects costs to be higher.

Citi views the recent sell-off as overdone and sees this as an opportunity to buy a pure-play nickel stock. The broker thinks the higher nickel ore prices and producer cost inflation tilt short-term price risks to the upside.

Citi upgrades its rating to Buy from Neutral with the target price reduced to $2.35 from $2.65.

Target price is $2.35 Current Price is $1.93 Difference: $0.42
If WSA meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates WSA as Outperform (1) -

September quarter production was soft, affected by a seismic event at Flying Fox. There were also lower grades at Spotted Quoll versus Credit Suisse's expectations. FY21 production guidance is now downgraded by -10%.

The main concern for the broker is how much of the downgrade is structural. The disclosure suggests this is a deferral and not an impairment and the issue, in the broker's view, reflects increasing challenges as Flying Fox nears the end of its life.

Credit Suisse assesses the market sell-off is overdone and retains an Outperform rating. Target is reduced to $2.35 from $2.50.

Target price is $2.35 Current Price is $1.93 Difference: $0.42
If WSA meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

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

Western Areas' September quarter production was materially weaker than expected and has led to a -10% reduction in FY21 guidance, with Flying Fox and Spotted Quoll swinging to lower grades. Macquarie has cut earnings forecasts as a result.

The broker notes this would lead to a -$100m funding gap by mid-2022, which could be covered by existing debt facilities, but could also be a non-issue if nickel prices continue to trade at current spot compared to Macquarie's forecast.

For now, downgrade to Neutral from Outperform. Target falls to $2.00 from $2.80.

Target price is $2.00 Current Price is $1.93 Difference: $0.07
If WSA meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates WSA as Overweight (1) -

Following the first quarter, which was weak, Morgan Stanley reduces forecasts for short-term cash flow. September quarter nickel production missed estimates by -24% because of mining issues at Flying Fox and Spotted Quoll. This resulted in lower grades.

The company expects the problems should ease in the second quarter. Odysseus is progressing to plan and the broker assesses upside in the de-risking of the project.

Target is reduced to $2.55 from $2.75. Overweight rating.  Industry view: Attractive.

Target price is $2.55 Current Price is $1.93 Difference: $0.62
If WSA meets the Morgan Stanley target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates WSA as Neutral (3) -

Led by seismicity and difficult geological conditions, Western Areas produced 3.8kt of nickel in the September quarter which was -25% below UBS's estimate at 32% higher costs.

The miner has also cut the production guidance to 17-19kt from 19-21kt earlier while increasing the cost guidance to $3.50-$4.00/lb from $3.25-3.75/lb.

With the mines at Forrestania nearing the end of their lives and becoming increasingly unable to maintain consistent performance, UBS believes the future of the business is the Odysseus project.

UBS retains its Neutral rating with the target price reducing to $2.12 from $2.35.

Target price is $2.12 Current Price is $1.93 Difference: $0.19
If WSA meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.45, suggesting upside of 30.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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