Australian Broker Call

Credit Suisse rates A2M as Underperform (5) -

Credit Suisse believes a2 Milk is being mispriced. The broker considers the PE rating, of 32x FY23 after adjusting for net cash holdings, is generally reserved for growth companies in growth industries.

The broker suspects, when considering the demographics of China, that investors may come to regard this as a mature market. The stock is considered overvalued and an Underperform rating and $5.50 target are maintained.

Target price is $5.50 Current Price is $7.39 Difference: minus $1.89 (current price is over target).
If A2M meets the Credit Suisse target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.09, suggesting downside of -14.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Credit Suisse rates ABB as Neutral (3) -

Aussie Broadband's first-quarter revenue broadly met Credit Suisse's estimates.

The company achieved about 45,000 broadband connection net additions and another 53-60,000 net additions are expected in the second quarter.

The company forecasts headwinds from increased access costs to the NBN and expects marketing expenditure to remain elevated throughout FY22. Credit Suisse maintains a Neutral rating with a $5.15 target.

Target price is $5.15 Current Price is $5.00 Difference: $0.15
If ABB meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

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 ABB as Buy (1) -

Ord Minnett assesses a strong September quarter, with a 44% increase in subscriber numbers versus the prior year, and a 3% beat versus the broker's estimate. This was considered driven by increased promotional spend in the residential and white label segment.

The analyst sees strong tailwinds into the second half, with the inclusion of the Origin Energy ((ORG)) white label customers for a full half and a buoyant enterprise market. Moreover, there is a higher base of residential customers.

The broker lifts its target price to $5.50 from $5.35 and retains its Buy rating.

Target price is $5.50 Current Price is $5.00 Difference: $0.5
If ABB meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

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

Credit Suisse rates ABP as Neutral (3) -

Abacus Property Group's portfolio occupancy rose to 92.4% in the first quarter and average rents rose 7.4%.

Credit Suisse notes the investment in listed peer National Storage ((NSR)) has increased, the latter's share price rising almost 20% since June 30, 2021.

No guidance was provided, and Credit Suisse presumes rent-relief negotiations have not been finalised. The broker retains a Neutral rating and raises the target to $3.48 from $3.36.

Target price is $3.48 Current Price is $3.56 Difference: minus $0.08 (current price is over target).
If ABP meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.42, suggesting downside of -5.3% (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 ABP as Neutral (3) -

Abacus Property Group's September-quarter and acquisitions update pleased Macquarie. 

The self storage business staged a solid performance despite concerns voiced about lockdowns at the FY21 result. 

Retail occupancy was 93.6%, or 91.9% on a like-for-like basis reports the broker, fractionally down on June 30. Commercial portfolio rent collections sat at a pleasing 97%.

Abacus has announced $113m in incremental acquisitions. The broker expects these to prove 2.6% accretive to annualised funds from operations; and notes Abacus still has $310m in the kitty before hitting its maximum gearing limit.

Earnings forecasts rise 1%, 1.8% and 1.6% for FY22, FY23 and FY24.

Target price rises to $3.58 from $3.46. Neutral rating retained.

Target price is $3.58 Current Price is $3.56 Difference: $0.02
If ABP meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.42, suggesting downside of -5.3% (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 ADH as Hold (3) -

Adairs trading update for the 16 weeks ending 17 October 2021 reveals  group sales, (which include both Adairs and Mocka), declined by -8.5%. Ord Minnett believes the first half result will be impacted by store closures, lower gross profit margins and supply-chain pressures.

Earnings forecasts for FY22 and FY23 are downgraded  -9.2% and -2.4%, by the analyst. The target price eases to $4 from $4.10 and the Hold rating is maintained. It is thought management will guide to moderating sales growth and operating margins in FY22/23.

Target price is $4.00 Current Price is $4.01 Difference: minus $0.01 (current price is over target).
If ADH meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.53, suggesting upside of 18.1% (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

UBS rates ADH as Buy (1) -

Adairs' store sales fell -27% in FY22 to date, affected by lockdowns. UBS considers this a good outcome, given the -47% reduction in trading days.

On re-opening, the company has indicated NSW stores have been busy. Although supply-site challenges continue, the broker assesses inventory levels are in line with the requirements for Christmas trading.

Buy rating and $5.40 target price retained.

Target price is $5.40 Current Price is $4.01 Difference: $1.39
If ADH meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $4.53, suggesting upside of 18.1% (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 ALG as Buy (1) -

Citi suspects Ardent Leisure Group experienced a modest slowing in like-for-like sales growth over August and September. Yet the decline in new covid cases in the US from mid-September should prove positive for Main Event.

Even slower rates of growth should still mean the Main Event net debt position improves. The broker reiterates a Buy rating and believes there is value upside under the Red Bird option. Target is $1.80.

Target price is $1.80 Current Price is $1.46 Difference: $0.34
If ALG meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates ALX as Neutral (3) -

Atlas Arteria's September-quarter update reveals signs of European recovery, although the economy is not quite out of the covid woods, reports Macquarie.

Traffic growth strengthened but revenues softened, reflecting a change in the traffic mix. Telco and other revenue rose EUR13m. Signs of weakness continue in Germany and the US. 

Macquarie says stronger traffic volumes vindicate its forecast for a strong recovery in France, which augurs well for dividends.

But the broker maintains a Neutral rating given the French elections are looming and the main driver of the share price will be the extension of asset life.

Target price is steady at $6.52.

Target price is $6.52 Current Price is $6.45 Difference: $0.07
If ALX meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.76, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates ALX as Overweight (1) -

Atlas Arteria reports total traffic for the third quarter rose 6.3% versus 2019, which was a 4.4% beat on Morgan Stanley's estimate. A strong APPR performance was owed to strong vaccination numbers in France, and to EU/French vaccine passports becoming available.

It's worth bearing in mind that APPR accounts for 88% of the broker's valuation for Atlas Arteria, while Dulles Greenway in the US is just 11%. The Overweight rating and $6.66 target price are unchanged. Industry view: Cautious.

Target price is $6.66 Current Price is $6.45 Difference: $0.21
If ALX meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.76, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in December.

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 ALX as Add (1) -

Morgans highlights a rebound in Atlas Arteria's APPR traffic back to trend, after the company released third-quarter traffic and toll revenue data. The rebound for APPR is assumed to be a catch-up spike, and not necessarily sustainable.

Revenue was stronger for both APPR and Dulles Greenway, though the latter continues to lag with a -30% decline in traffic versus 2019.The broker retains its $6.61 target price and Add rating.

Target price is $6.61 Current Price is $6.45 Difference: $0.16
If ALX meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.76, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates ANZ as Neutral (3) -

ANZ Baking Group's cash earnings in the second half will be affected by -$129m in notable items relating to remediation charges and restructuring.

Credit Suisse notes the mortgage balance sheet continued to retreat and the focus is on a fix which will come at a price. The broker wonders how it will affect the bank's cost-reduction aspirations.

Credit Suisse is wary of being too negative on the bank given its sharp discount to the sector. Neutral rating and $28.50 target retained.

Target price is $28.50 Current Price is $28.39 Difference: $0.11
If ANZ meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $29.60, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in September.

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

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

Morgan Stanley reminds us that ANZ Bank reports its FY21 result on Thursday, October 28.

After the recent announcement of second-half cash earnings being reduced by -$129m post-tax due to notable items, it's estimated the affect on ithe broker's cash profit forecast is immaterial.The Equal-weight rating and $28 target are maintained. Industry view: In-Line.

Target price is $28.00 Current Price is $28.39 Difference: minus $0.39 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.60, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates ANZ as Hold (3) -

Ord Minnett estimates ANZ Bank's second half result (due on Thursday, October 28) should confirm weak underlying growth trends in the Australian and Institutional businesses. However, there's expected to be strong growth in the New Zealand division. 

The analyst forecasts second-half cash net profit of $3.094bn, underlying pre-provision operating profit (PPOP) growth of 1% (excluding markets) and a dividend of 72cps. The Hold rating and $29.10 target price are maintained.

Target price is $29.10 Current Price is $28.39 Difference: $0.71
If ANZ meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $29.60, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates BHP as Outperform (1) -

BHP raises its cash offer for Canadian miner Noront Resources by 36% to CAD75c - a 7% premium to rival Wyloo Metals' CAD70c offer - and values the company at CAD443m. The offer is conditional on 50% acceptance and expires November 9.

Noront's board has recommended the BHP offer.

Macquarie says the bid is undemanding, constituting less than 1% of BHP's market capitalisation.

Outperform rating and $54 targe price is unchanged.

Target price is $54.00 Current Price is $38.57 Difference: $15.43
If BHP meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $44.26, suggesting upside of 15.0% (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: 0.5

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

Citi rates BPT as Buy (1) -

Beach Energy's first-quarter production met expectations although sales and revenue missed Citi's estimates. Decline rates are at the lower end of guidance in the Western Flank which leads the broker to upgrade production forecasts for the field.

Beach Energy had previously guided to a decline of -35 to -45% and the results suggest the decline is at the lower end of this range. The broker upgrades oil production expectations from the field to 3.4mmbbl.

This results in modest upgrades to estimates for FY22-23. Buy rating retained. Target inches up to $1.71 from $1.70.

Target price is $1.71 Current Price is $1.44 Difference: $0.27
If BPT meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 10.8% (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

Macquarie rates BPT as Neutral (3) -

Beach Energy's September-quarter production met Macquarie's forecast but gas pricing disappointed, triggering a -7% fall in revenue.

The broker cuts EPS -7% and -1% for FY22 and FY23 to reflect lower gas prices.

Target price rises 3.7% to $1.40 to reflect the medium-term production outlook. Neutral rating retained.

Target price is $1.40 Current Price is $1.44 Difference: minus $0.04 (current price is over target).
If BPT meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.60, suggesting upside of 10.8% (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

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

An ongoing oil production decline at Beach Energy's Western Flank caused both first-quarter revenue and production to fall shy of Morgan Stanley's forecasts. Realised gas prices were also slightly lower.

The analyst feels further leverage on the balance sheet could be a catalyst for higher medium-term returns. The broker retains its Equal-weight rating and $1.40 target price. Industry view: Attractive.

Target price is $1.40 Current Price is $1.44 Difference: minus $0.04 (current price is over target).
If BPT 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 $1.60, suggesting upside of 10.8% (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

Morgans rates BPT as Add (1) -

Lower oil volumes were behind Beach Energy's overall quarter-on-quarter sales volume decline of -11%, notes Morgans, commenting on first-quarter production.

However, this was thought largely due to timing issues and the analyst takes solace from the Otway expansion program being on-track. The broker retains its Add rating and $1.71 target and believes the negative share price reaction provides a good entry point. 

Target price is $1.71 Current Price is $1.44 Difference: $0.27
If BPT meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 10.8% (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

Ord Minnett rates BPT as Buy (1) -

Beach Energy's September-quarter production report met Ord Minnett's expectations on all key metrics and the company remains the cheapest stock under the broker's energy-sector coverage.

The analyst believes the recent increase in benchmark oil prices will require meaningful upgrades to consensus earnings forecasts. Ord Minnett maintains its $1.80 target price and Buy rating.

Target price is $1.80 Current Price is $1.44 Difference: $0.36
If BPT meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 10.8% (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

Macquarie rates CRN as Outperform (1) -

Macquarie revisits coalminers after reports that China is studing intervention measures and price caps. 

The broker is forecasting a retraction in coal prices but considers present upside is material and maintains a positive view on coalminers, which are enjoying free cash flow yields of more than 20% on the broker's forecasts and more than 50% at spot.

Macquarie raises Coronado Global Resources' target price to $2 from $1.60. Outperform retained.

Target price is $2.00 Current Price is $1.48 Difference: $0.52
If CRN meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 8.3% (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: 1.0

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

Citi rates DMP as Neutral (3) -

After the European briefing, Citi notes the significant opportunity that still exists for Domino's Pizza Enterprises in Germany and France for rolling out stores. Management has indicated that France has relatively more restrictions.

The broker expects weak sales momentum is likely to be evident in the AGM update on November 3. Denmark appears to be the most open market in Europe and France the least. The broker reiterates a Neutral rating and $148.70 target price.

Target price is $148.70 Current Price is $135.50 Difference: $13.2
If DMP meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $131.90, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates DMP as Underperform (5) -

In the European business Credit Suisse believes the company has reinforced the store growth potential while increasing scale is delivering benefits. Still, markets are in transition as consumption behaviour is yet to normalise.

A trading update is expected the AGM on November 3. Credit Suisse admits to being surprised by the rapid appreciation in the share price over the recent months and, with a stretched valuation, does not consider this the right time to be bullish on the stock.

Underperform maintained. Target is $82.28.

Target price is $82.28 Current Price is $135.50 Difference: minus $53.22 (current price is over target).
If DMP meets the Credit Suisse target it will return approximately minus 39% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $131.90, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

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

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

Domino's Pizza Enterprises reiterated its European long-term store target at the 2021 Europe Investor Day. 

Macquarie expects store ramp-ups in December and June but says covid headwinds persist, including lack of tourism, labour shortages, inflation and social distancing restrictions.

The broker revises down EPS forecasts -2.5% for FY22, but raises FY23 and FY24 forecast 4.3% and 2.8% expecting covid headwinds to dissipate.

Target price rises to $132.50 from $113.00.

The broker upgrades to Neutral from Underperform, thanks to the recent share price retreat.

Target price is $132.50 Current Price is $135.50 Difference: minus $3 (current price is over target).
If DMP 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 $131.90, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates DMP as Neutral (3) -

UBS believes the Domino's Pizza Enterprise's European store network is positioned to manage inflation and says store growth is significant albeit slightly delayed.

The broker notes labour access has tightened in Europe yet the company has an advantage as a vertically integrated operator compared with aggregators. Domino's Pizza has the technology to optimise orders and staffing.

The broker retains a Neutral rating and $150 target.

Target price is $150.00 Current Price is $135.50 Difference: $14.5
If DMP meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $131.90, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates DXS as Outperform (1) -

Credit Suisse updates Dexus's FY22 and FY23 earnings estimates to to reflect recent transaction activity (up 0.5% and 2.5% respectively). Distribution guidance has been reaffirmed for growth of not less than 2%.

The broker notes the company is trading at a discount to net tangible assets, suggesting the market is cautious about the outlook for CBD office space in a post--pandemic environment.

The company has a high weighting to the office sector albeit progressively increasing its exposure to industrial locations. Outperform maintained. Target rises to $11.26 from $11.03.

Target price is $11.26 Current Price is $10.68 Difference: $0.58
If DXS meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $11.22, suggesting upside of 3.3% (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 DXS as Hold (3) -

In a first quarter update, Dexus retained its not-less-than 2% dividend per share (DPS) growth guidance for FY22. Ord Minnett feels property metrics overall remained positive though challenging office leasing markets persist.

Dexus has increased funds under management (FUM) to $25.7bn and its development pipeline to $15.4bn. The analyst likes the strategy of selling slightly lower-grade office assets and redeploying capital into health, industrial, funds management and development.

The broker retains its Hold rating and raises its target price to $11.50 from $11.30.

Target price is $11.50 Current Price is $10.68 Difference: $0.82
If DXS meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.22, suggesting upside of 3.3% (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

Credit Suisse rates EDV as Underperform (5) -

Endeavour Group's first-quarter results met expectations. Credit Suisse expects travel restrictions and premiumisation to support above-trend expenditure on retail liquor while hotels should return to almost pre-pandemic levels of revenue.

Costs are likely to remain heightened. Sales revenue in hotels declined -10% in the first quarter and were -40% below the same period in FY20 because of government-enforced closures. Underperform rating and $6.19 target maintained.

Target price is $6.19 Current Price is $6.79 Difference: minus $0.6 (current price is over target).
If EDV 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 $6.78, suggesting upside of 2.3% (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

Macquarie rates EDV as Neutral (3) -

Endeavour Group's September-quarter trading update shows retail comp sale improved but hotel weakness continued.

Macquarie downgrades EPS estimates -5.1%. -1.5% and -1.6% across FY22, FY23 and FY24, noting FY22 capital expenditure should be roughly -$300 to -$350m as the company continues refurbishments, which the broker believes is a good investment.

The Neutral rating and $7.20 target price retained.

Target price is $7.20 Current Price is $6.79 Difference: $0.41
If EDV meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.78, suggesting upside of 2.3% (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

Morgans rates EDV as Hold (3) -

Endeavour group's first-quarter sales fell -1.2% and largely met Morgans expectations. Greater at-home consumption due to lockdowns aided Retail though this was offset by closures to a large part of the Hotels network.

While it may be easy to attribute the 34% rise in online sales (penetration 11.5% versus 8.6% in the previous corresponding period) to lockdowns, online penetration also grew outside of NSW and Victoria, points out the analyst.

The broker raises its target price to $6.95 from $6.65 on a lower risk of future lockdowns and an improved Hotels outlook. Hold rating  maintained.

Target price is $6.95 Current Price is $6.79 Difference: $0.16
If EDV meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.78, suggesting upside of 2.3% (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

Citi rates EVN as Neutral (3) -

Evolution Mining's September-quarter gold production was in line with Citi's estimates. Costs rose 14% quarter on quarter with all-in sustainable costs of $1413/oz.

Costs are expected to trend lower as production ramps up. NSW government approval has been received for the Lake Cowal underground mine.

The broker retains a Neutral rating and $4.20 target.

Target price is $4.20 Current Price is $3.77 Difference: $0.43
If EVN meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 6.0% (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

Credit Suisse rates EVN as Neutral (3) -

Evolution Mining's first-quarter production outpaced forecasts with Mungari significantly ahead, despite the high-grade Kundana only becoming available in the middle of the quarter.

Improvement should be forthcoming, as production is anticipated to be weighted to the second half amid improving grades at Cowal.

Credit Suisse reduces estimates for earnings per share by -2%. Neutral maintained. Target is $3.80.

Target price is $3.80 Current Price is $3.77 Difference: $0.03
If EVN meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 6.0% (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

Macquarie rates EVN as Neutral (3) -

Evolution Mining's September-quarter result proved a mixed bag, gold production outpacing Macquarie's forecasts, but all-in-sustainaing costs disappointing.

Cash flow outpaced thanks to lower capital expenditure (albeit likely short-lived), and acquisition costs proved a pleasant surprise.

Cowl and Mungan posted strong production and Red Lake was hit by forest fires.

Maccquarie says the outlook hinges mainly on Red Lake and Cowal lifting output.

EPS forecasts fall -3% in FY22. Target price is steady at $3.90. Neutral rating retained.

Target price is $3.90 Current Price is $3.77 Difference: $0.13
If EVN meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 6.0% (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 EVN as Accumulate (2) -

Evolution Mining's first-quarter production proved a 5% beat on Ord Minnett's forecasts. FY22 guidance remains unchanged. After allowing for a slightly lower production outlook at Red Lake and the Mt Carlton divestment, the analyst marginally lowers earnings forecasts.

The broker rolls forward its financial model raising it target price to $3.90 from $3.80. The Accumulate rating is maintained.

Target price is $3.90 Current Price is $3.77 Difference: $0.13
If EVN meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.98, suggesting upside of 6.0% (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

Credit Suisse rates FLT as Outperform (1) -

Flight Centre's liquidity has been reduced to $791m, although Credit Suisse considers it still adequate. The broker  notes Australian international leisure bookings are surpassing domestic bookings for the first time since the pandemic began.

The broker increases FY22 revenue forecasts based on a sooner-than-expected return to travel. Target is raised to $23.30 from $19.00. Outperform maintained.

Target price is $23.30 Current Price is $21.65 Difference: $1.65
If FLT meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.08, suggesting downside of -11.4% (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

Macquarie rates FLT as Neutral (3) -

Flight Centre Travel Group's revealed at its annual general meeting that it has deferred FY22 profit due to continued global uncertainty but also added it has seen a strong and instant travel recovery where borders have been re-opened.

The company enjoys strong cash reserves, boosted by a $400m convertible note  - enough to take it through to 2023 - and Macquarie points to upside risk when borders reopen.

Target price rises to $19.15 from $16.50. Neutral rating retained.

Target price is $19.15 Current Price is $21.65 Difference: minus $2.5 (current price is over target).
If FLT meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.08, suggesting downside of -11.4% (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 GOR as Buy (1) -

Following the Ramelius Resources ((RMS)) bid for Apollo Consolidated ((AOP)), Gold Road has offered an unconditional cash offer of 56c a share, a premium of 6% to the last close for Apollo. Gold Road is the largest shareholder in Apollo Consolidated.

If successful, the company intends to undertake continued exploration to advance the Lake Rebecca project. While the offer is slightly superior, Ord Minnett suspects Ramelius Resources could well come up with a further bid.

The broker has placed the Buy rating and $1.60 target under review.

Target price is $1.60 Current Price is $1.34 Difference: $0.26
If GOR meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

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

Ord Minnett rates HLS as Accumulate (2) -

Ord Minnett raises its earnings estimates ahead of the AGM for Healius this week. This is due to a sharp lift in polymerase chain reaction (PCR) covid testing in Australia.

Despite this, the broker retains its FY23 forecasts, its Accumulate rating and $5.50 target price. It is expected covid testing will fall in 2022 due to widespread vaccinations, and a cut in PCR reimbursement for PCR testing.

Target price is $5.50 Current Price is $4.55 Difference: $0.95
If HLS meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $5.14, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates IFL as Overweight (1) -

Morgan Stanley thinks IOOF Holdings may upgrade synergies at its first-quarter cash flow update and potentially upgrade again later on. It estimates the potential rise in the underlying net profit after tax for FY22-24 could be 3%-16%.

Recently, the company hinted at a potential synergy uplift based on acceleration of product and platform simplification, says the analyst. The Overweight rating and $5.50 target are unchanged. Industry view: In-line.

Target price is $5.50 Current Price is $4.51 Difference: $0.99
If IFL meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.28, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates JMS as Neutral (3) -

Jupiter Mines directors Yongin-Heo and Hans Mende were re-elected at the general meeting after the spill resolution related to the remuneration report at the annual general meeting.

Brian Gilbertson and Priyank Thapliyal were not re-elected, observes Macquarie, noting shareholders also resolved to remove Mr Thapliyal as managing director.

Shareholders were angered at director fees given the weak share price.

Neutral rating and 22c target price retained, the broker adding that dividend yields of greater than 15% are expected post FY23.

Target price is $0.22 Current Price is $0.23 Difference: minus $0.01 (current price is over target).
If JMS meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in February.

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

Credit Suisse rates KGN as Outperform (1) -

Kogan's first-quarter trading update showed strong sales and active customers growth. Yet EBITDA of $10.8m for the quarter implies a rate below Credit Suisse forecasts for the first half.

Hence, estimates are eased and the target is reduced to $13.88 from $14.06. Valuation continues to support an Outperform rating.

Target price is $13.88 Current Price is $11.66 Difference: $2.22
If KGN meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates LVH as Add (1) -

In explaining a Livehire share sell-off after what Morgans felt was an in-line first quarter update, the analyst believes the market was looking for more traction in the North American Direct Sourcing business (NADS). It is thought this opportunity remains highly attractive.

The broker points out the SaaS business was impacted by local lockdowns, and the net addition of three clients was slightly below expectations. The Add rating is retained and the target price decreases to $0.53 from $0.54.

Target price is $0.53 Current Price is $0.33 Difference: $0.2
If LVH meets the Morgans target it will return approximately 61% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates MQG as Overweight (1) -

Macquarie Group becomes Morgan Stanley's top pick among Australian financials. It's believed the bank has evolved into a vertically integrated private markets asset manager and developer, with potentially the world's best green capabilities among financials.

The analyst highlights a track record for developing renewable capabilities in its largest markets of the EU and US, while the same goes for Asia and Australia. The broker retains its Overweight rating and $240 target price. Industry view in-line.

Target price is $240.00 Current Price is $196.00 Difference: $44
If MQG meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $187.82, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in March.

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 NAB as Accumulate (2) -

Ord Minnett expects National Australia Bank to post sector-leading half-on-half revenue growth (excluding markets) of 3%, when the bank releases second-half results on Tuesday, November 9. The broker retains the bank as its key major bank preference

The analyst forecasts second-half cash net profit of $3.314bn, a 5% increase in underlying pre-provision operating profit (PPOP) growth (excluding markets) and a dividend of 65cps. The Accumulate rating and $29.50 target price are maintained.

Target price is $29.50 Current Price is $28.83 Difference: $0.67
If NAB meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $28.19, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates NAN as Upgrade to Add from Hold (1) -

Morgans upgrades its rating for Nanosonics to Add from Hold as there is more than 15% upside to its target price, which has been lowered to $6.97 from $7.26. The lower target comes as the analyst realigns its cost base in-line with management guidance.

By increasing the cost-base forecast to $90m from $82.5m, the broker's profit forecast falls to $10.8m from $15.3m. A continued investment in R&D helps underpin the long-term growth prospects in the business, believes Morgans.

Target price is $6.97 Current Price is $5.94 Difference: $1.03
If NAN meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.12, suggesting upside of 3.8% (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

Macquarie rates NEC as Neutral (3) -

Macquarie highlights Nine Entertainment Co Holdings' rights for National Rugby League expire at the end of the 2022 season and the scrum is on.

The sticking point will be costs with the general sports right inflation; and additional 2023 team members likely to be points of contention as NRL-specific viewership declines.

Macquarie says NRL rights could rise at least 27% on the pre-covid deal ($125m), with media reports suggesting the figure could be closer to $660m. On the upside, advertising markets are on the up.

EPS forecasts rise 4%, 9% and 7% across FY22, FY23 and FY24. 

Neutral rating retained despite the compelling value, the broker spying consensus downgrades. Target price steady at $2.80.

Target price is $2.80 Current Price is $2.80 Difference: $0
If NEC meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 22.9% (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

Macquarie rates NHC as Outperform (1) -

Macquarie revisits coalminers after reports that China is studing intervention measures and price caps.

The broker is forecasting a retraction in coal prices but considers present upside is material and maintains a positive view on coalminers, which are enjoying free cash flow yields of more than 20% on the broker's forecasts and more than 50% at spot.

Macquarie raises New Hope Corporation's target price to $3.90 from $2.40. Outperform retained.

Target price is $3.90 Current Price is $2.39 Difference: $1.51
If NHC meets the Macquarie target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $2.85, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates ORG as Outperform (1) -

Origin Energy reiterated earnings guidance at the annual general meeting and reports the outlook for Australia Pacific liquid natural gas is improving, albeit uncertainty remaining around the 2022 contract.

The company guides to improved cash flow, but Macquarie considers its estimates conservative.

The broker raises the target price to $5.68 to account for the oil price rise and an increase in the Octopus valuation.

Macquarie notes Origin's earnings are at a cyclical low but this has been mitigated by the gas windfall, allowing a debt reduction and dividend increase (a 30% to 35% cash-flow payout equating to as much as 5c per share for investors).

Outperform rating retained. Target price rises to $5.68 from $5.54.

Target price is $5.68 Current Price is $5.14 Difference: $0.54
If ORG meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting downside of -0.9% (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 OZL as Downgrade to Neutral from Buy (3) -

Oz Minerals' September-quarter production was robust and Citi raises net profit estimates for 2021 by 3%. Still, the share price is up 20% over two weeks so the broker downgrades to Neutral from Buy. Target is reduced to $27.00 from $27.50.

Growth projects are going forward with the expansion of the shaft mine at Prominent Hill's Wira commencing and the West Musgrave study progressing. September-quarter copper production rose 3% despite a lower contribution from Carrapateena.

Target price is $27.00 Current Price is $25.88 Difference: $1.12
If OZL meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $24.88, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates OZL as Underperform (5) -

Geotechnical problems at Oz Minerals' Carrapateena have delivered a softer September quarter, thanks to lower copper grades. Mining is back in sequence now and grades are expected to move back to reserve over coming quarters.

Gold stockpile grades at Prominent Hill were better than expected. The broker notes there was little further news on growth plans and suspects it could be a stretch to reach guidance at Carrapateena.

Underperform maintained. Target is $21.30.

Target price is $21.30 Current Price is $25.88 Difference: minus $4.58 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.88, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates OZL as Outperform (1) -

Oz Minerals' September-quarter production and costs beat Macquarie's estimates.

The company upgrades cost and production guidance for the second time this year, thanks to strong copper prices. The broker notes a spot price scenario generates 42% higher earnings in 2022.

On the downside, non-cash adjustments, including inventory and depreciation and amortisation, trigger a broker EPS 2021 downgrade of -2%.

Macquarie upgrades 2022 and 2023 forecasts 2% and 1% to reflect production and cost improvements. Outperform rating and $32 target price retained.

Target price is $32.00 Current Price is $25.88 Difference: $6.12
If OZL meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $24.88, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in December.

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

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

Oz Minerals' third quarter update revealed higher-gold-grade stockpiles at Prominent Hill, which led to a guidance upgrade for gold production and group all-in sustaining costs (AISC).

Morgan Stanley points to lower copper grades at Carrapateena and lower mining grades and tonnages at Prominent Hill. Equal-weight rating is maintained. Target is steady at $23.50. Industry view: In-Line.

Target price is $23.50 Current Price is $25.88 Difference: minus $2.38 (current price is over target).
If OZL meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.88, suggesting downside of -1.1% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates PAN as Upgrade to Outperform from Neutral (1) -

Panoramic Resources has reported its first concentration milestone three weeks ahead of schedule and is on track for a December shipment, reports Macquarie.

The broker expects the miner will now turn its attention to exploration at Savannah.

Macquarie upgrades to Outperform from Neutral, given the risk profile is much lower.

Target price rises 22% to 28c from 23c. 

Target price is $0.28 Current Price is $0.24 Difference: $0.04
If PAN meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates PLS as Outperform (1) -

Pilbara Minerals plans to install a 6MW solar array at Pilgangoora under a 15-year power purchase agreement with Pacific Energy Group as part of its transition from diesel. 

Macquarie estimates this will yield a saving of -$5 per tonne in operating costs based on spot diesel prices. The agreement will enable the operator to integrate the power network between the Pilgan and Ngungaji plants and the mine camp and administration infrastructure.

Meanwhile, the commissioning of Nugungaju has started and the broker expects this should lead to an acceleration of sales, and notes spot lithium prices in China are up 25%.

Outperform rating and $2.80 target price retained. 

Target price is $2.80 Current Price is $2.13 Difference: $0.67
If PLS meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 2.6% (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

Macquarie rates PNV as Outperform (1) -

Polynovo's September-quarter results fell just shy of Macquarie's forecasts as covid continued to constrain growth.

The broker remains positive about the medium to longer term and raises the target price to $2.85 from $2.70.

But the broker downgrades EPS forecasts -61% for FY22 after revising sales forecasts.

Outperform rating retained.

Target price is $2.85 Current Price is $1.87 Difference: $0.98
If PNV meets the Macquarie target it will return approximately 52% (excluding dividends, fees and charges).

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 RIO as Buy (1) -

Citi highlights Rio Tinto management's newfound concern about "values" in the form of decarbonisation and community relations. The broker senses a willingness to take on new growth projects although the way forward is unclear.

Capital-expenditure guidance has been raised in the outer years mainly because of decarbonisation targets. There is no change in iron-ore guidance and Jadar is still targeting first saleable production in 2026. Buy rating and $120 target maintained.

Target price is $120.00 Current Price is $98.08 Difference: $21.92
If RIO meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $116.71, suggesting upside of 20.5% (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: 0.4

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto has announced an acceleration in its decarbonisation, targeting a -50% reduction in Scope 1 (its own) and Scope 2 (energy inputs) emissions by 2030.

Macquarie says the project will cost US$7.5bn in capital expenditure through to 2030 and that, while this cuts free cash flow generation, the shares are trading on cash yield of 16% and 13% for 2021 and 2022.

EPS forecasts fall -3% across 2022 to 2025. 2021 is unchanged. Target price falls 8% to $133 from $1.45. Outperform rating retained.

Target price is $133.00 Current Price is $98.08 Difference: $34.92
If RIO meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $116.71, suggesting upside of 20.5% (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: 0.4

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

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

At an investor seminar, Rio Tinto maintained its 2021 capital-expenditure guidance at -US$7.5bn but raised 2022 capex to -US$8bn from -US$7.5bn, versus Morgan Stanley's -US$7.5bn forecast. This increase was attributable to growth and decarbonisation initiatives.

The company is aiming to reduce Scope 1 & 2 emissions by -50% by 2030 compared to its -15% prior targets. Rio Tinto also wants to cut emissions by -15% by 2025. Equal-weight rating and $110 target are retained. Industry view is In-Line. 

Regarding the iron-ore business, management noted the elevated cost inflation driven by energy costs and labour availability.

Target price is $110.00 Current Price is $98.08 Difference: $11.92
If RIO meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $116.71, suggesting upside of 20.5% (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: 0.4

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

Ord Minnett rates SCP as Hold (3) -

As part of a first quarter update, adjusted funds from operations (AFFO) and DPS guidance was for at least 15cpu. Ord Minnett lifts its funds from operations (FFO) per share forecasts by 2.8% in FY22, 1.6% in FY23 and 1.3% in FY24.

These increased forecasts stem from two announced acquisitions for a combined -$108m, reduced rental assistance and the winding-down of the SURF 3 fund. The broker maintains its Hold rating and $2.70 target price.

Target price is $2.70 Current Price is $2.77 Difference: minus $0.07 (current price is over target).
If SCP 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 $2.77, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates SHL as Hold (3) -

Ord Minnett raises its earnings estimates ahead of the AGM for Sonic Healthcare this week. This is due to a sharp lift in polymerase
chain reaction (PCR) covid testing in Australia.

Despite this, the broker retains its FY23 forecasts, its Hold rating and $45 target price. It's expected covid testing will fall in 2022, due to widespread vaccinations, and a cut in PCR reimbursement for PCR testing.

Target price is $45.00 Current Price is $38.98 Difference: $6.02
If SHL meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $44.41, suggesting upside of 11.0% (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 SLA as Buy (1) -

Silk Laser Australia reports network cash sales of $23.5m in the first quarter, after accounting for lost trading days from lockdowns, representing network sales growth of 14%, Ord Minnett observes.

Recently acquired ASC Group was not included in the numbers but the company has indicated integration is on track. The majority of the ASC network is in Victoria so the broker expects a strong second quarter on re-opening.

The broker retains a Buy rating and $4.85 target.

Target price is $4.85 Current Price is $4.65 Difference: $0.2
If SLA meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates SSM as Buy (1) -

Following the AGM, Ord Minnett reports expectations for pro-forma FY22 earnings (EBITDA) of $120m-$125m were reaffirmed. This includes a 12-month contribution (includes $17m of synergies) from the services business acquired from Lendlease ((LLC)).

Ord Minnett believes trading conditions for the Utilities segment are likely to improve during the second quarter and retains a Buy rating and $1.42 target price. The broker likes the increasingly diversified revenue streams and multi-year forward order book.

Target price is $1.42 Current Price is $0.92 Difference: $0.5
If SSM meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates SUL as Buy (1) -

Citi observes Super Retail Group's trading momentum is solid despite the lockdowns. Pent-up demand is expected to serve the company well in November and December.

Given lengthy lockdowns are unlikely now, the broker does not expect excessive discounting on the elevated inventory position.

No earnings guidance was provided but higher freight costs were highlighted, which should have a short-term impact on gross margins. Citi reiterates a Buy rating and raises the target to $16.00 from $14.70.

Target price is $16.00 Current Price is $13.23 Difference: $2.77
If SUL meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $14.07, suggesting upside of 11.4% (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

Credit Suisse rates SUL as Outperform (1) -

Super Retail Group's September-quarter sales revenue outpaced Credit Suisse forecasts despite the restrictions affecting the store network. Gross-margin improvements have been maintained which signals to the broker revenue was not led by promotions.

While the focus is on the recommencement of international travel, the broker believes domestic leisure is most favourably positioned for re-opening, given the much greater volume of travellers.

Like-for-like sales were -12% below FY21 and 10% above FY20. Outperform rating maintained. Target is raised to $14.52 from $14.41.

Target price is $14.52 Current Price is $13.23 Difference: $1.29
If SUL meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $14.07, suggesting upside of 11.4% (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 SUL as Downgrade to Hold from Accumulate (3) -

Ord Minnett downgrades Super Retail Group's rating to Hold from Accumulate after assessing a full valuation and sees downside risk of up to -7% for consensus earnings forecasts. This comes despite like-for-like sales growth being thought resilient in the first 16 weeks of the first half. 

The analyst believes gross margins have likely peaked at 48% in FY21 and expects them to moderate by -70bps per year over the next two years. The return of promotions and increased logistics costs are cited as the main causes. Target price rises to $14.20 from $14.

Target price is $14.20 Current Price is $13.23 Difference: $0.97
If SUL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.07, suggesting upside of 11.4% (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

UBS rates SUL as Buy (1) -

Super Retail Group's AGM update indicated like-for-like sales fell -12% in the first quarter, largely because of lockdowns affecting stores.

Across the divisions, trading appears to have improved at BCF and Rebel, UBS notes, assisted by easier comparables and stronger online growth, while deteriorating in SCA and Macpac.

UBS highlights a strong inventory position and the company is well-positioned for the key months of November and December. Buy rating and $13.50 target maintained.

Target price is $13.50 Current Price is $13.23 Difference: $0.27
If SUL meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $14.07, suggesting upside of 11.4% (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 SYD as Hold (3) -

Sydney Airport's September traffic update revealed a -99% decline in total passenger numbers versus 2019 levels. Ord Minnett expects travel between NSW and Victoria by November 5, and travel in general to pick up after increased vaccination rates.

The analyst assumes international passengers will be down -95% in the second half and down by -65% in 2022, before approaching 2019 levels in 2024. Hold rating and $8.75 target are maintained.

Target price is $8.75 Current Price is $8.30 Difference: $0.45
If SYD meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.60, suggesting upside of 2.8% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates WBC as Hold (3) -

Ord Minnett predicts Westpac Banking Corporation will announce a large off-market buyback during its second-half result (due on Monday, November 1). The broker expects more pressure on revenue than consensus forecasts allow for.

The analyst forecasts second-half cash net profit of $1.871bn, a -2% decline in underlying pre-provision operating profit (PPOP) - excluding markets - and a dividend of 58cps. Hold rating and $27 target price are maintained.

Target price is $27.00 Current Price is $25.68 Difference: $1.32
If WBC meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $28.37, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in September.

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 WEB as Downgrade to Neutral from Outperform (3) -

Macquarie downgrades Webjet to Neutral from Outperform in response to recent share-price strength. Target price rises to $6.65 from $6.45.

Webjet's annual general meeting tells Macquarie that global uncertainty persists but signs of a strong and instant recovery have featured where borders have re-opened (international leisure bookings now outpace domestic bookings)

The broker pushes out the growth profile 6-9 months to reflect A&NZ border closures. Several countries are profitable or approaching break-even.

EPS forecasts rise 15% and 4% for FY22 to FY24.

Target price is $6.65 Current Price is $6.51 Difference: $0.14
If WEB meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.12, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in March.

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

Macquarie rates WHC as Outperform (1) -

Macquarie revisits coalminers after reports that China is studing intervention measures and price caps. 

The broker is forecasting a retraction in coal prices but considers present upside is material and maintains a positive view on coalminers, which are enjoying free cash flow yields of more than 20% on the broker's forecasts and more than 50% at spot.

Macquarie retains Whitehaven Coal's Outperform rating and $3.90 target price.

Target price is $3.90 Current Price is $3.05 Difference: $0.85
If WHC meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $3.85, suggesting upside of 28.9% (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