Australian Broker Call

Macquarie rates ABC as No Rating (-1) -

Adbri has entered into a binding agreement with CRH, outlining a pathway for the latter to acquire all Adbri shares not held by Barro Group, for a price of $3.20 per share. Subject to customary approvals and fair and reasonable assessment, implementation is expected in June.

Macquarie describes Adbri's full year result as broadly in line, with the company growing revenue 13%, underpinned by price increases and volume growth in aggregates, cement and concrete.

Macquarie is research restricted for this stock and provides no rating or target price.

Current Price is $3.14. Target price not assessed.

Current consensus price target is $2.83, suggesting downside of -9.7% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

Adbri posted an in-line result but the focus is likely to remain on the CRH takeover offer, Morgan Stanley suggests, which has now progressed to Scheme Implementation Deed.

2023 earnings were up 44% and ahead of the broker. No dividend was declared. The Kwinana project remains on track and management has lowered the capital cost estimate by -4% at the midpoint.

The outlook for flattish construction materials demand is consistent with other industry participants.

Equal-weight and $3.20 target retained. Industry view: In-Line.

Target price is $3.20 Current Price is $3.14 Difference: $0.06
If ABC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates ABC as Hold (3) -

Adbri's FY23 underlying earnings (EBITDA) of $311m beat Ord Minnett's forecast by $1m and were supported by strong pricing, cost savings and modest volume growth for cement, concrete and aggregates.

Results were upstaged, in the broker's view, by the $3.20/share offer from Irish group CRH, which was first revealed last November. It's felt the offer is attractive and likely to proceed, but investors should await the scheme booklet, and need not take any action at this stage.

The Hold rating and $3.20 target are maintained.

Target price is $3.20 Current Price is $3.14 Difference: $0.06
If ABC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates ABG as Buy (1) -

Key metrics are slightly below expectations, but management at Abacus Group has reaffirmed FY24 guidance for distribution of 8.5 cents per security with payout ratio of between 85% to 95%, in line with Citi expectations and consensus.

The broker notes gearing remains relatively prudent at 30.2% post -$107m in divestments.

Citi sees valuation support relative to the rest of the sector. Buy. Target $1.45.

Target price is $1.45 Current Price is $1.09 Difference: $0.36
If ABG meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.40, suggesting upside of 24.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates ABG as Outperform (1) -

First half funds from operations from Abacus Group came in 3% ahead of Macquarie's expectations, which the broker explained as a result of discontinued operations.

The company is pursuing investment in office leasing initiatives, in a bid to shore-up future office income and cashflow outlook in a challenging environment. $50m was deployed towards leasing initiatives in the first half, with a further $50m flagged for the second half.

The Outperform rating is retained and the target price decreases to $1.21 from $1.35.

Target price is $1.21 Current Price is $1.09 Difference: $0.12
If ABG meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.40, suggesting upside of 24.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates ABG as Buy (1) -

Shaw and Partners notes the first half result from Abacus Group was characterised by stability and the quality of its office property. First half results were in line with forecasts but it has become apparent to the broker that there is more growth into FY26 and FY27 than originally modelled.

Occupancy was 94.5% in retail and office rent was up 4%. Lease spreads in office were very strong, up 12.5%, and suggest an improved outlook.

Guidance has been reaffirmed and the broker notes gearing at 31.6% is well below key peers. Buy rating retained. Target is also unchanged at $1.20.

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

Current consensus price target is $1.40, suggesting upside of 24.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates ABY as Buy (1) -

Adore Beauty's H1 result has made Citi more positive about the company's outlook, with the broker commenting revenue is more sustainable given greater mix of returning customers.

Also, the business is turning to address competition from omni-channel retailers. Citi found the trading update solid and in line with expectations.

EBIT forecasts have been lifted by 40% ($0.7m) and 23% ($1m) in FY24/25 respectively driven by better gross profit margins.

Buy rating retained with the price target jumping to $1.70.

Target price is $1.70 Current Price is $1.25 Difference: $0.45
If ABY meets the Citi target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $1.38, suggesting upside of 3.2% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates AHL as Buy (1) -

Adrad delivered first half earnings that were below Bell Potter's forecasts. FY24 guidance has been maintained for revenue and EBITDA growth that is "in the range of 5-8%".

The broker downgrades revenue estimates for FY24-26 by around -2-3% and EBITDA forecast by -5-6%. Buy rating maintained. Target is reduced to $1.25 from $1.38.

Target price is $1.25 Current Price is $0.75 Difference: $0.5
If AHL meets the Bell Potter target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates AIM as Buy (1) -

Bell Potter found the first half result from Ai-Media Technologies robust, largely supported by growth in LEXI and the transition towards higher-margin SaaS revenue. Operating earnings were broadly in line with expectations.

The broker updates its valuation to allow for changes in earnings, increasing revenue assumptions for FY24 and FY25 by 4% and 6%. Buy rating retained. Target edges up to $0.57 from $0.55.

Target price is $0.57 Current Price is $0.40 Difference: $0.17
If AIM meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates ALU as Hold (3) -

First half revenue was below forecasts, largely because of lower Octopart and lower design software revenue.

Altium has withdrawn FY24 guidance because of the proposed acquisition by Renesas Electronics but did maintain its aspirational targets for FY26 of US$500m in revenue and an underlying EBITDA margin of 38-40%.

Bell Potter downgrades revenue estimates for FY24-FY26 by -3% and EBITDA by -8% for FY24 and -5% for FY25.  Hold maintained. Target is unchanged at $66.75.

Target price is $66.75 Current Price is $65.05 Difference: $1.7
If ALU meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $66.23, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

Citi rates ALU as Buy (1) -

Altium's H1 release noticeably missed the mark, and Citi analysts have lowered forecasts. Weaker software design revenues have been identified as the key culprit.

Buy. Target $56.50.

Target price is $56.60 Current Price is $65.05 Difference: minus $8.45 (current price is over target).
If ALU meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $66.23, suggesting upside of 1.6% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

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

Altium's first half earnings result proved a -13% miss to Macquarie's forecasts, with the broker pointing out earnings margins were weak over the half at 33.4%, underpinned by reinvestment in mid-market, cloud and enterprise.

Notably, the company has withdrawn full year guidance off the back of the first half.

More positively, annual recurring revenue growth was strong, up 30% year-on-year. 

The rating is downgraded to Neutral from Outperform and the target price increases to $68.50 from $49.70.

Target price is $68.50 Current Price is $65.05 Difference: $3.45
If ALU meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $66.23, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

Morgan Stanley rates ALU as Downgrade to Equal-weight from Overweight (3) -

Given recommendations in favour of the scheme for Renesas to acquire Altium from both boards, Morgan Stanley expects Altium shares will trade more in line with the probability of deal completion, regulation approvals and counter proposals, rather than fundamentals.

Target rises to $68.50 from $50.00. Downgrade to Equal-weight from Overweight.

The company's first half results missed Morgan Stanley on all of revenue, earnings and profit, driven by Octopart weakness and higher R&D for ALU365.

However, the result was not weak enough to trigger a get-out clause, and the enterprise performance was robust, the broker suggests, which will please Renesas.

Industry view: Attractive.

Target price is $68.50 Current Price is $65.05 Difference: $3.45
If ALU meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $66.23, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

Ord Minnett rates ALU as Hold (3) -

Altium's 1H results were broadly in line with Ord Minnett's expectations. The broker's stand-alone fair value estimate remains at $47.50 but due to the Renesas bid, the $68.50 target and Hold rating are maintained.

The analyst continues to assume Altium will be acquired in the next six to twelve months at the $68.50 offer price.

In the 1H, Altium's design software business (which accounts for around 80% of group revenue) grew by 21% on the previous corresponding period. Earnings margins dropped to 50% from 53% due to increased R&D, explains Ord Minnett.

Target price is $68.50 Current Price is $65.05 Difference: $3.45
If ALU meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $66.23, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

UBS rates ALU as Neutral (3) -

The first half result from Altium missed UBS estimates, largely because of the normalisation of Octopart and slightly softer subscription additions as well as higher investment costs.

UBS makes downward adjustments to FY24-26 estimates, lowering these by an average of -6%.

The company remains confident it can obtain all necessary regulatory approvals for the proposed acquisition by Renesas.  Neutral rating. The $68.50 target, raised from $40.60, is reflecting the deal price being offered.

Target price is $68.50 Current Price is $65.05 Difference: $3.45
If ALU meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $66.23, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.2

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

Morgans rates AMX as Add (1) -

Following in-line 1H results for Aerometrex, Morgans notes a focus by management upon both growing annual recurring revenue (ARR) and controlling costs has resulted in better financials over the past year.

The loss improved to -$2.7m from -$3.1m in the previous corresponding period. MetroMap subscription revenues and LiDAR revenue grew by 14.7% and 50.3%, respectively, while cash at bank at the end of the period was $10.2m (with no debt).

The broker feels MetroMap is back on track after contending with competitive pressures and aviation constraints over a number of years.

The Add rating is maintained and the target rises to 50c from 45c.

Target price is $0.50 Current Price is $0.31 Difference: $0.19
If AMX meets the Morgans target it will return approximately 61% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates ANG as Buy (1) -

First half underlying EBITDA and revenue were broadly in line with forecasts. Shaw and Partners considers Austin Engineering offers compelling value under its revised strategy.

Asia-Pacific and North American revenues were up strongly while Chile has continued to grow and become a major contributor to the results.

The broker remains conscious of the potential volatility in commodity prices and factors this into forecasts but synergies from the recent Mainetec acquisition offer potential upside. Buy rating retained. Target is $0.50.

Target price is $0.50 Current Price is $0.42 Difference: $0.085
If ANG meets the Shaw and Partners target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates APA as Neutral (3) -

UBS found APA Group's H1 result in line on an underlying EBITDA comparison. Freshly issued FY24 EBITDA guidance between $1,870m-$1,910m proved slightly below consensus estimates.

UBS's focus is on the rather large development pipeline which requires more than -$1.8bn of organic growth capex over FY24-36 in addition to more than -$3bn in growth capex to be spent on renewables and electricity infrastructure in the Pilbara.

Pressure on APA Group's credit rating might well require at least 50% new equity funding, posits the broker. In addition, possible future cash calls could further dilute equity returns from new transmission or renewables projects.

Because of the above, UBS prefers to remain cautious. Neutral rating retained. Target has fallen to $8.70. Higher interest costs have led to reduced estimates.

Target price is $8.70 Current Price is $7.89 Difference: $0.81
If APA meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.71, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

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

Articore Group's first half revenue missed consensus but earnings were meaningfully ahead on higher margins, Morgan Stanley reports. A free cash flow and margin recovery were supported by price increases, more efficient paid marketing spend and opex control.

However the revenue decline is expected to continue into the second half.

Equal-weight rating retained on a 70c target. Industry view: In-Line.

Target price is $0.70 Current Price is $0.55 Difference: $0.15
If ATG meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $0.68, suggesting upside of 31.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates ATG as Hold (3) -

Margins are improving for Articore Group (formerly named Redbubble) but revenue headwinds remain, observes Morgans, after reviewing 1H results.

The group's marketplace revenue missed the consensus forecast by -5% but was broadly in line at the gross profit after paid acquisition costs (GPAPA) level.

Management expects the 2H will see a continuation of the softer consumer environment

The target falls to 70c from 71c and the Hold rating is unchanged.

Target price is $0.70 Current Price is $0.55 Difference: $0.15
If ATG meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $0.68, suggesting upside of 31.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates ATG as Neutral (3) -

First half results from Articore Group were in line with estimates. UBS assesses the business is currently constrained by the balance sheet in terms of growth, with margins maximised and costs reduced to stem cash burn.

Recent trends show the business is still struggling to grow topline and customer numbers at current margins. Gaining confidence in the outlook trajectory remains difficult, the broker suggests, without any disclosure on metrics such as customer acquisition costs, retention and trends in unit economics.

UBS believes the business needs to invest for growth and show that this can generate sustainable returns. Neutral retained. Target is reduced to $0.65 from $0.70.

Target price is $0.65 Current Price is $0.55 Difference: $0.1
If ATG meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $0.68, suggesting upside of 31.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates AWC as Neutral (3) -

Alumina Ltd's reported 2023 loss was larger than expected, and Citi analysts comment on-going restructuring/rehab/closures costs are a material negative for the overall valuation of the shares.

Target price reduced to $1.05. Neutral.

Target price is $1.05 Current Price is $1.03 Difference: $0.015
If AWC meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 2.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Macquarie rates AWC as Neutral (3) -

A disappointing result from Alumina-Alcoa (AWAC) joint venture, which reported earnings of US$165m and a net profit result of -US$318m, a significantly lower result than the market had been expecting. 

Macquarie explains this comes as a result of higher operating costs, driven by lower bauxite grades, production volumes and realised prices.

The broker also finds guidance for the year ahead to be weak, with AWAC suggesting production will total 9.4m tonnes of alumina and 161,000 tonnes of alumuminium, alongside total capital expenditure of -US$360m. 

The Neutral rating and target price of $1.10 are retained.

Target price is $1.10 Current Price is $1.03 Difference: $0.065
If AWC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Morgan Stanley rates AWC as Overweight (1) -

Alumina Ltd's 2023 result was mixed, Morgan Stanley suggests, with earnings well below but free cash flow in line. No dividend was declared as expected.

2024 production guidance is below forecast but shipments guidance above. Capex is below estimate but the broker assumes that's a deferral and not a reduction.

The broker has set a target of $1.10, in line with the implicit scrip offer price from Alcoa. Overweight retained. Industry view: Attractive.

Target price is $1.10 Current Price is $1.03 Difference: $0.065
If AWC meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 2.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Bell Potter rates CCX as Buy (1) -

City Chic Collective delivered a first half underlying EBITDA that was at the lower end of loss guidance. Bell Potter observes the first eight weeks of the second half have been soft with revenue down -33% albeit cycling a highly promotional period.

Management has signalled trading should be profitable in the second half and gross margins are expected to improve.

Bell Potter expects a seasonally stronger fourth quarter will be supported by the new product range for the North American summer and further traction in the Australian in-store business. Buy rating retained. Target is reduced to $0.62 from $0.64.

Target price is $0.62 Current Price is $0.50 Difference: $0.125
If CCX meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.57, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates CCX as Buy (1) -

At first glance, City Chic Collective's first half net loss of -$24m was greater than Citi estimated. Cost reductions worth $25m have been found and will be phased in over the next seven months, ahead of expectations.

Yet Citi warns further cost reductions may be required if online revenue cannot turn the business around.

The focus is expected to be on North America where preliminary discussions are pointing to potential for shareholder value, possibly a sale.

A sale may be positive for margins, the broker points out, but without offshore growth this could limit the multiple investors are prepared to pay. Buy/High Risk rating maintained. Target is $0.77.

Target price is $0.77 Current Price is $0.50 Difference: $0.275
If CCX meets the Citi target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $0.57, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

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

City Chic Collective's CCX's first half revenue and earnings were in-line with pre-guidance, however the start to the second half is well below consensus expectations, Morgan Stanley notes.

Earnings margins are well positioned to recover, the broker suggests, on improving gross margins, as inventory normalises, and tight opex control.

But sales continue to decline (-33% to start 2H) impacted by weak transaction volumes.

Equal-weight and 40c target retained. Industry view: In-Line.

Target price is $0.40 Current Price is $0.50 Difference: minus $0.095 (current price is over target).
If CCX meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.57, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Bell Potter rates CMM as Buy (1) -

Capricorn Metals delivered a first half result that was ahead of expectations, with a record profit outcome. No interim dividend was declared which the broker notes was consistent with the potential investment decision for the Mount Gibson gold project.

The main highlight was the strong earnings growth and sector leading cash generation. The only concern, if it materialises, surrounds the funding of the MGGP and whether the company can buy back another portion of its hedge.

Buy rating retained. Target edges up to $6.00 from $5.95.

Target price is $6.00 Current Price is $4.72 Difference: $1.28
If CMM meets the Bell Potter target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates CMM as Neutral (3) -

A first half underlying earnings result of $97m from Capricorn Metals was a 20% beat to Macquarie's expectations, with the broker pointing out exploration expenses were materially lower than it has anticipated.

The company reported a net profit result of $54m, 14% ahead of the broker, and a closing net cash position of $70m, 6% ahead of the broker. Macquarie finds the company comfortably on track to reach full year guidance of 115-125,000 ounces at $1,270-1,370 per ounce.

The Neutral rating and target price of $4.80 are retained.

Target price is $4.80 Current Price is $4.72 Difference: $0.08
If CMM meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates CNU as Outperform (1) -

On reviewing Chorus' first half result, Macquarie has found it in-line at the earnings, capital expenditure and dividend lines. However, net profits of $5m were a substantial miss to an expected $20m, an impact of accelerated copper asset depreciation and higher net interest costs.

The company reaffirmed a full year guidance range of $680-700m. 

The broker expects investor focus will be on regulatory outcomes over the next six months, with the regulatory period commencing on January 1. 

The Outperform rating and target price of NZ$8.32 are retained.

Target price is $8.32 Current Price is $7.40 Difference: $0.92
If CNU meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

Ord Minnett rates CNU as Hold (3) -

Earnings (EBITDA) for Chorus in the 1H rose by 2% year-on-year, consistent with the average annual growth recorded from FY20 to FY23, observes Ord Minnett. The analyst praises the company's ongoing earnings resilience.

Management reiterated FY24 earnings (EBITDA) guidance for between NZ$680-700m, and the broker leaves its forecast unchanged at NZ$693m.

A NZ19c interim dividend was declared.

Hold rating. Target $7.40.

Target price is $7.40 Current Price is $7.40 Difference: $0
If CNU meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

Bell Potter rates COE as Buy (1) -

Cooper Energy delivered a first half result that was ahead of Bell Potter's forecasts. Production at Orbost continues to increase and recent upgrades are lifting confidence in throughput. The BMG decommissioning is also on track.

Bell Potter observes several catalysts for the short term including higher realised gas prices and a sustained improved performance at Orbost that is now within sight.

The completion of capital-intensive BMG abandonment works should occur by mid 2024. Buy rating retained. Target rises to $0.18 from $0.16.

Target price is $0.18 Current Price is $0.14 Difference: $0.035
If COE meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $0.22, suggesting upside of 46.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates COE as Outperform (1) -

Cooper Energy has reported first half earnings of $60.9m. The earnings result was an -11% miss to Macquarie's forecasts, while net profit was a -61% miss. 

More positively, the company continues to work through a 'laundry list of improvements' at Orbost, and management is gaining confidence as results emerge. Success has been reported from new media in the polishing unit, materially extending time between absorber cleans.

Macquarie's conviction in the stock is rising, particularly given improved production rates at Orbost. 

The Outperform rating is retained and the target price increases to 20 cents from 18 cents.

Target price is $0.20 Current Price is $0.14 Difference: $0.055
If COE meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $0.22, suggesting upside of 46.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates COE as Add (1) -

Cooper Energy's 1H underlying earnings (EBITDAX) just beat the consensus forecast, while underlying profit of $5.4m was a significant beat against the consensus -$1m estimate, points out Morgans.

The main highlight for the analysts was progress at Orbost on debottlenecking, which should deliver higher production and an around -$40m capex saving, as the problem no longer needs to be rectified.

The Add rating is retained and the target rises to 28c from 25c.

Target price is $0.28 Current Price is $0.14 Difference: $0.135
If COE meets the Morgans target it will return approximately 93% (excluding dividends, fees and charges).

Current consensus price target is $0.22, suggesting upside of 46.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates COL as Buy (1) -

Further to the first half results, Citi notes there are multiple levers for Coles Group to improve profit outcomes such as private-label positioning, further reductions in theft rates and productivity improvements. The broker increases EBIT forecasts for FY24 by 4%.

Coles remains the broker's preferred supermarket with FY25 forecasts 5% ahead of consensus and the variance due to a combination of higher sales and margins in supermarkets helped by the payoff from the Witron investment. Buy rating. Target is raised to $19 from $18.

Target price is $19.00 Current Price is $16.75 Difference: $2.25
If COL meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $17.34, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates COL as Outperform (1) -

A strong first half result from Coles Group, says Macquarie, with the company demonstrating improved top line momentum. The supermarkets segment reported 4.9% sales growth over the half, and is tracking up 4.9% in the first eight weeks of the second half. 

Macquarie points out this is in stark contrast to the 1.5% sales growth reported by Woolworths Group ((WOW)) for the first eight weeks of the second half, suggesting Coles Group is gaining share. The company believes this is a reflection of value-seeking customers.

The broker expects increased regulatory scrutiny may cause some investor concern in coming months.

The Outperform rating is retained and the target price increases to $17.85 from $17.70.

Target price is $17.85 Current Price is $16.75 Difference: $1.1
If COL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $17.34, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Coles Group's results were ahead of Morgan Stanley on a better gross profit margin, with the impact of stock loss offset by cost initiatives, Coles 360 and range/promotion optimisation.

Simplify and Save drove some $90m of benefits, the broker notes, with 75% delivered in cost of doing business. This combined with a tighter focus on costs offset inflation.

Morgan Stanley sees valuation as fair, given decelerating top-line growth and continued cost pressures balanced by an improving margin trajectory underpinned by gross margin recovery, ie stock loss unwind, and efficiency gains as supply chain investment ramps up.

Equal-weight and $16.50 target retained. Industry view: In-Line.

Target price is $16.50 Current Price is $16.75 Difference: minus $0.25 (current price is over target).
If COL 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 $17.34, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgans rates COL as Add (1) -

A 1% rise for Coles Group's 1H underlying earnings (EBIT), driven mainly by the core Supermarkets segment, beat forecasts by Morgans and consensus by 3% and 5%, respectively. Liquor earnings missed expectations, notes the analyst.

Supermarket sales grew by 4% in the 1H due to improved availability, benefits from a continuity program and solid demand during key event times like Xmas and Fathers Day.

Again in early-H2, Supermarkets sales grew slightly more (by 4.9%), comfortably above Woolworths Group's ((WOW)) Australian Foods growth of around 1.5%, observes the broker.

The Add rating is maintained and the target rises to $18.70 from $16.60.

Target price is $18.70 Current Price is $16.75 Difference: $1.95
If COL meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.34, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates COL as Lighten (4) -

Coles Group's 1H sales and earnings are tracking according to Ord Minnett's virtually unchanged FY24 forecasts. The target rises to $15 from $14.50 solely due to the time value of money.

The company's 1H earnings (EBIT) margin declined by -30bps on the previous corresponding period to 4.8% due to supermarket theft, rising wage costs and expenses incurred on logistics and online fulfillment projects, explains the analyst.

Ord Minnett believes the market is underplaying the risk to relatively low-growth, defensive yield stocks like Coles and Woolworths Group ((WOW)) in the current high interest rate environment.

A fully franked interim dividend of 36cps was declared.

The Lighten rating remains for Coles Group.

Target price is $15.00 Current Price is $16.75 Difference: minus $1.75 (current price is over target).
If COL meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.34, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates COL as Neutral (3) -

Coles Group earnings (EBIT) were ahead of UBS estimates in the first half, largely because of supermarkets as the liquor business performed below expectations. Supermarkets posted a 10 basis points gross margin expansion.

Going forward the broker is more positive about Coles, as the business is leading in 13 out of 26 categories compared with Woolworths Group ((WOW)). Yet costs are rising and the industry is facing multiple regulatory reviews.

The liquor division is being put on a more sustainable footing which requires a re-basing of sales. Neutral retained. Target is $17.00, up from $16.25.

Target price is $17.00 Current Price is $16.75 Difference: $0.25
If COL meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $17.34, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates DDR as Neutral (3) -

UBS found the 2023 results for Dicker Data mixed with fourth-quarter sales declining -1% and below forecasts. The surprising slowdown in software sales and the miss to expectations were offset by stronger gross margins.

UBS suspects the first half of 2024 will represent some topline uncertainty and sales are likely to remain soft.

The outlook is more positive going into the second half with the potential upside from the PC refresh cycle and customer uptake of AI/Copilot. The broker retains a Neutral rating and raises the target to $11.80 from $10.40.

Target price is $11.80 Current Price is $12.00 Difference: minus $0.2 (current price is over target).
If DDR meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.57, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgans rates DGL as Add (1) -

Profit in H1 for DGL Group declined by -41% on the previous corresponding period and fell well short of expectations held by both consensus and Morgans.

Earnings (EBITDA) missed the broker's forecast by -12% due to weak crop protection product sales, underutilisation of recycling facilities, falling commodity prices and the ongoing impact of overstocking by customers.

The predictability of the group's earnings continues to decline, in Morgans view, as earnings seemingly become more cyclical.

Management's FY24 guidance is for revenue and earnings in line with FY23, but profit will be lower than FY23 due to higher costs.

The Add rating is retained and the target falls to 77c from $1.05.

Target price is $0.77 Current Price is $0.61 Difference: $0.16
If DGL meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $0.96, suggesting upside of 41.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

UBS rates DMP as Neutral (3) -

Domino's Pizza released fourth quarter earnings which showed franchisee EBITDA improving. Commentary that relates to Domino's Pizza Enterprises revealed marginal growth in international sales largely because of challenges in Europe and geopolitical tensions, with the soft trends expected to continue into the first half of 2024.

UBS recently upgraded the stock to Neutral following the share price performance and improved same-store sales growth for the first seven weeks of the second half, with the risk/reward considered balanced as Australasia and Japan are strong while the rest of Asia is flat and Europe is weak.

Neutral rating and $42 target price retained.

Target price is $42.00 Current Price is $43.85 Difference: minus $1.85 (current price is over target).
If DMP meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $50.42, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Ord Minnett rates EDV as Accumulate (2) -

Endeavour Group's 1H sales and earnings only marginally missed forecasts by Ord Minnett. Higher wages, rents and depreciation offset wider gross margins, explains the broker.

For the first seven weeks of the 2H, retail and hotel segment sales were virtually flat, with consumers reducing spending on both liquor and food, observes the analyst.

The broker points out ecommerce is significantly outperforming bricks and mortar, with the retail segment's online sales rising by 6% in the 1H versus the previous corresponding period, while store-originated sales only grew by 2%.

A fully franked interim dividend of 14cps was declared.

The Accumulate rating and $6.10 target are unchanged.

Target price is $6.10 Current Price is $5.34 Difference: $0.76
If EDV meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.74, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates FLT as Buy (1) -

In a quick response to today's H1 release, Citi had to adjust for amortisation and a few other items, but then found Flight Centre Travel's interim result more or less in line with forecasts.

The travel agent has also reported a positive start into H2 (January and February). The broker highlights international competition between airlines is forcing ticket prices down, and this should bode well for Flight Centre's momentum outlook.

The broker highlights company guidance has been upgraded to $300-340m (by $30m), yet this excludes non-cash convertible amortisation.

Buy. Target $23.60.

Target price is $23.60 Current Price is $21.73 Difference: $1.87
If FLT meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $24.29, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

UBS rates FLT as Neutral (3) -

It is UBS's initial view Flight Centre Travel's H1 EBITDA slightly 'missed' with its own forecast and market consensus respectively 3% and 4% higher.

The adjusted net profit number equally missed the mark, this time by some -7%.

Management has lifted FY24 guidance to $300-340m and reported a positive start into 2024. UBS takes guidance from the strong macro backdrop, plus management hasn't seen any serious slow down from its customer base.

Neutral. Target $23.

Target price is $23.00 Current Price is $21.73 Difference: $1.27
If FLT meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $24.29, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates GEM as Neutral (3) -

An in line earnings result from G8 Education, with the company successfully growing operating earnings 25.2% to $100.6m over the full year, which Macquarie points out occured through pricing and cost discipline. 

The broker feels G8 Education has had a good start to the new year. Occupancy year-to-date is up 1.2% on the previous year, ahead of Macquarie's expectations. The broker now anticipates occupancy lifting to 71.4% over the full year. 

The Neutral rating is retained and the target price increases to $1.26 from $1.16.

Target price is $1.26 Current Price is $1.25 Difference: $0.01
If GEM meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates GEM as Neutral (3) -

UBS highlights the cost control exerted by G8 Education as agency costs reduced to 1.8% of revenue in 2023 from 5.5% in 2022. 2023 results were largely in line with forecasts.

The business has made a strong start to 2024 with better staff retention and progress on portfolio divestment.

The broker envisages further upside from accelerating occupancy improvement, agency cost control and divestments. Labour shortages remain a key constraint. Neutral retained. Target is raised to $1.25 from $1.15.

Target price is $1.25 Current Price is $1.25 Difference: $0
If GEM meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates GPT as Buy (1) -

Buy rating and target price of $4.90 retained as Citi analysts remodelled their modelling post recent 2023 update.

Bottom line: considering GPT remains exposed to 64% retail & logistics, Citi sees reasonable value at a share price discount to NTA of -23%.

FY24 FFO per share has lifted by 4.3% incorporating $24m (post tax) higher trading profits from contracted sales at Sydney Olympic Park.

Target price is $4.90 Current Price is $4.31 Difference: $0.59
If GPT meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates HLI as Neutral (3) -

While Macquarie expects the current claims environment to remain supportive of Helia Group for now, it does anticipate a normalisation over the next few years.

As per the broker, total incurred claims of -$26m were supportive of earnings, while strong house prices have encouraged house sales and driven reserve releases for Helia Group. The company announced a special 30 cents per share dividend.

The Neutral rating is retained and the target price increases to $4.00 from $3.90.

Target price is $4.00 Current Price is $4.68 Difference: minus $0.68 (current price is over target).
If HLI meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Ord Minnett rates HLI as Hold (3) -

House price strength and lower unemployment kept claims for Helia Group in the 1H lower than Ord Minnett expected. A 6.5% increase in underlying profit was supported by this claims benefit and a material boost to investment income, explains the analyst.

Gross written premiums (GWP) fell by -42% on FY22 mostly due to lower volume but lower rates and mix also impacted, notes the broker. Insurance revenue fell by -9%.

A final dividend of 15cps was declared.

The Hold rating is maintained and Ord Minnett's target is increased by 8% to $4.00 on a lower claims forecast and a lower share count to allow for more buybacks and less capital being retained in the business.

Target price is $4.00 Current Price is $4.68 Difference: minus $0.68 (current price is over target).
If HLI meets the Ord Minnett target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

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

Citi observes subdued growth in community pathology volumes is still having a negative effect on Healius, which remains heavily exposed to this market.

The company is expecting 1-3% volume growth in pathology in the second half and is instigating a fresh round of cost reductions to offset labour and rental increases. Citi suspects the new guidance will be difficult to achieve.

Embedded in the guidance is -$15m in cost savings that was already announced back in November along with the contribution from the new restructuring program which started in the third quarter.

The broker reduces the target to $1.10 from $1.25 and downgrades to Sell from Neutral given the uncertainty surrounding restructuring and limited earnings visibility.

Target price is $1.10 Current Price is $1.26 Difference: minus $0.165 (current price is over target).
If HLS meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.61, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Macquarie rates HLS as Neutral (3) -

With Healius reporting a first half earnings result 4% ahead of Macquarie's expectations, the broker points out its revised full year forecast implies second half earnings of $67m, below the bottom end of company guidance.

The broker's forecast assumes 2% growth in pathology revenue, 8% growth in imaging revenue and incremental upside from Agilex. 

While the broker sees Healius as positively leveraged to longer-term growth in diagnostic services, it sees undertainty around the nearer term outlook. 

The Neutral rating is retained and the target price decreases to $1.35 from $1.40.

Target price is $1.35 Current Price is $1.26 Difference: $0.085
If HLS meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Morgan Stanley rates HLS as Underweight (5) -

Healius' revenue was in line with expectation and underlying earnings were in line with the guidance range, Morgan Stanley notes. Managament pointed out the sector is experiencing low growth for GP volumes to which Healius has greater exposure.

Pathology revenue was in line but Healius has again written down the value of pathology business, by -$603m, in addition to write-down of -$350m made in FY23.

FY24 earnings guidance of $70-80m was reiterated, which was initially guided to a range of $95-105m, the broker notes.

Underweight and $1.30 target retained. Industry view: In-Line.

Target price is $1.30 Current Price is $1.26 Difference: $0.035
If HLS meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Morgans rates HLS as Hold (3) -

As 1H results for Healius were pre-released, they were in line with Morgans forecasts. Pathology was the main culprit behind a double-digit fall for underlying operating income and margin compression, explain the analysts.

The broker explains Pathology has been negatively impacted as covid testing has waned, along with low volumes and cost inflation.

More positively, Lumas Imaging experienced strength in the hospital and community segments, and Agilex showed "positive signs" due to new contract wins, notes Morgans.

FY24 guidance was maintained.

The broker's target falls to $1.32 from $1.37. Hold.

Target price is $1.32 Current Price is $1.26 Difference: $0.055
If HLS meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Ord Minnett rates HLS as Buy (1) -

While higher-margin covid revenue fell by -97% in the 1H, group revenue and earnings (EBIT) were in line with Ord Minnett's forecasts. Earnings (excluding covid testing) were flat, notes the analyst, weighed down by rent and wage inflation.

Management reiterated FY24 guidance for earnings of between $70-80m, and the broker leaves its forecasts broadly unchanged.

Ord Minnett expects dividends will be reinstated in FY25 at a 60% payout ratio.

The Buy rating and $3.00 target are maintained.

Target price is $3.00 Current Price is $1.26 Difference: $1.735
If HLS meets the Ord Minnett target it will return approximately 137% (excluding dividends, fees and charges).

Current consensus price target is $1.61, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Morgans rates IPD as Speculative Buy (1) -

ImpediMed's 1H results were in line with Morgans expectations. Revenue for the period was $4.8m, with 57 SOZO units sold (32 in the US), while total contracted value (TCV) signed in the 1H was $4m.

The Speculative Buy rating and 20c target are unchanged.

The broker notes new management will be focusing on high volume US states and cost control, a strategy the market will likely appreciate.

Target price is $0.20 Current Price is $0.08 Difference: $0.12
If IPD meets the Morgans target it will return approximately 150% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates JAN as Buy (1) -

First half results from Janison Education were in line with the earlier trading update. The new information included reported net profit of $4.1m, which beat Bell Potter's estimates.

While not providing guidance, the company noted its "healthy pipeline of Solutions deals" while annualised savings of $1m are expected in the second half.

The broker upgrades estimates, resulting in increases to operating earnings forecasts of 3-6% in FY24-26. Buy rating and $0.50 target unchanged.

Target price is $0.50 Current Price is $0.33 Difference: $0.17
If JAN meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates JLG as Hold (3) -

First half results were largely in line with Bell Potter's expectations. Johns Lyng has updated FY24 guidance to include catastrophe work in hand of $177.8m and EBITDA guidance of $114.4m.

Management expects a seasonal skew in the US to the second half and potential upside in Australasia via fire safety revenue synergies and catastrophe work. Hold rating maintained. Target is reduced to $6.30 from $6.50.

Target price is $6.30 Current Price is $6.25 Difference: $0.05
If JLG meets the Bell Potter target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates JLG as Outperform (1) -

Johns Lyng's miss to Macquarie's first half estimates was largely attributable to catastrophe (CAT) revenue below forecast and the Commercial Construction (CC) segment posting a greater earnings loss then expected. Headline cash flow was disappointing.

However FY24 guidance was upgraded, with revenue up 3.5% and earnings 5%. Guidance excludes further CAT contract wins. The upgraded guidance implies 18.5% business-as-usual revenue growth and 21.6% earnings growth (excluding CC segment in run-off).

Macquarie believes valuation looks attractive, given forecast 20%-plus earnings growth in FY25 and optionality beyond that.

Target falls to $7.40 from $7.80, Outperform retained.

Target price is $7.40 Current Price is $6.25 Difference: $1.15
If JLG meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgan Stanley rates JLG as Overweight (1) -

Johns Lyng's result initially looked light on organic business-as-usual, Morgan Stanley suggests, yet headwinds were explainable and transitory, and actually signal a robust (and intact) underlying growth trajectory.

Reiterated guidance reinforces this structural picture, the broker believes, though the market may want evidence of acceleration first.

To Morgan Stanley, Johns Lyng's key growth engine remains intact and is cheaper following yesterday's share price fall. However, the broker does think the market will remain skeptical until these transitory headwinds dissipate and the underlying trajectory becomes more obvious.

Overweight and $7.20 target retained. Industry view: In-Line.

Target price is $7.20 Current Price is $6.25 Difference: $0.95
If JLG meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgans rates JLG as Add (1) -

Morgans assesses a "reasonable" 1H result for Johns Lyng with group revenue and earnings (EBITDA) exceeding forecasts by 4% and 7%, respectively.

While the result highlighted a near-term slowing for the US business, the analyst believes the growth rate will gradually improve as job volumes begin to ramp-up from the AllSate Insurance contract win.

Management increased FY24 earnings guidance by 5% to $136.5m due to an improved outlook for catastrophe response (CAT) earnings. CAT's earnings in the 1H drove the earnings beat.

The Add rating is maintained while the target eases to $7.30 from $7.40.

Target price is $7.30 Current Price is $6.25 Difference: $1.05
If JLG meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.31, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates KED as Outperform (1) -

Keypath Education International reported in line with pre-released numbers. Revenue was up 14% year on year, with the
Healthcare vertical outperforming the group on 28%, Macquarie notes.

The contribution margin of 27% almost doubled year on year as larger vintages are starting to mature and progress through the company's unit economic model. This is helping to offset the impact of programs signed recently which are in the deepest investment phase, the broker notes.

Newer vintages expected to drive future growth, and FY24 guidance is upgraded as expected.

Target rises to 67c from 46c, Outperform retained.

Target price is $0.67 Current Price is $0.52 Difference: $0.15
If KED meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates KED as Buy (1) -

First half revenue from Keypath Education International was in line with forecasts and EBITDA slightly ahead. Adjusted EBITDA is now expected to be positive in FY24 and Shaw and Partners now forecasts the business to be cash flow positive in FY25, a year earlier than previously anticipated.

The broker asserts investors should take notice of the operating leverage potential. Healthcare continues to grow strongly and is now 60% of revenue, sufficient to offset the expected declines in the mature vintages.

Revenue guidance is now for the upper end of the $130-13 5m range with adjusted EBITDA between zero and $2m. Buy rating reiterated. Target is $1.80.

Target price is $1.80 Current Price is $0.52 Difference: $1.28
If KED meets the Shaw and Partners target it will return approximately 246% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates NOU as Speculative Buy (1) -

First half underlying EBITDA from Noumi was ahead of Bell Potter's expectations. Dairy and nutritionals turned and EBITDA profit of $2.2m compared with a loss in the first half.

Key to the outlook commentary was the expected consolidation of progress made in the past 18 months amid investment in the growth of the MILKLAB brand.

Bell Potter upgrades EBITDA forecast by 7% for FY24 and 2% for FY25. Speculative Buy rating maintained with the broker believing this is a relative value play on the growth in alternative plant-based proteins. Target is raised to $0.175 from $0.155.

Target price is $0.18 Current Price is $0.12 Difference: $0.055
If NOU meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates NXT as Buy (1) -

Post H1 release and subsequent conference call with management, Citi analysts report it looks like NextDC is very much in the sweet spot of demand and size and scope of deals are getting larger.

Citi analysts continue to see upside to FY24 EBITDA guidance, irrespective of the step-up in costs in 2H as suggested with the H1 release. NextDC is put forward as a way to play the secular shift to cloud as well as AI.

The analysts highlight the company is in discussions with customers about bringing forward deployment time frames, however, supply chain remains a challenge.

The result release itself beat EBITDA forecasts by between 6% and 10% (Citi and consensus) with lower costs the key differential. Citi highlights the company did take -$1.5m of costs related to international expansion below the line.

Buy. Target $15.45.

Target price is $15.45 Current Price is $15.16 Difference: $0.29
If NXT meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.11, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates NXT as Outperform (1) -

Macquarie has refrained from updating forecasts for NextDC post-result until after the conference call.

The company expects a record contract year. AI and hyperscale demand converting to contracted capacity is expected to drive record contract wins in FY24.

NextDC suffered underlying earnings margin contraction (-12%), driven by increased property holding costs (up 43% year on year), with direct costs up 181%.

Outperform and $17 target retained for now.

Target price is $17.00 Current Price is $15.16 Difference: $1.84
If NXT meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $15.11, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Bell Potter rates PNV as Downgrade to Hold from Buy (3) -

First half revenue and earnings were pre-released and Bell Potter gleaned little from the official reporting of the PolyNovo numbers.

The clinical trial to support an upgrade in the US registration to a PMA is nearing completion and this will support label expansion to include full thickness burns, allowing the company to market the product for that indication.

Recruitment of a trial in diabetic foot ulcers has been suspended, with too much variability cited in outcomes among the outpatient setting. Bell Potter reduces FY24 revenue forecasts by -7% and downgrades to Hold from Buy on valuation. Target is raised to $2.05 from $1.80.

Target price is $2.05 Current Price is $1.99 Difference: $0.06
If PNV meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates PNV as Outperform (1) -

PolyNovo's profit was well ahead of Macquarie but supported by a tax benefit. Earnings were in line. The company saw particularly strong growth in regions outside the US, up 122% year on year. The gross margin remains high at 95%, despite expansion outside the US.

Strong customer acquisitions over the first half supported strong growth in sales, the broker notes. Total customers (hospitals) grew 67% year on year.

Macquarie sees continued strength in sales, with entry into new geographies differentiating sales mix outside the US, along with several near and longer-term opportunities for PolyNovo, supporting valuation.

Target falls to $2.75 from $2.90, Outperform retained.

Target price is $2.75 Current Price is $1.99 Difference: $0.76
If PNV meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

While PolyNovo's 1H results were in line, Morgans upgrades its forecasts due to ongoing sales momentum across all regions, which is expected to result in average sales growth of 32% per year for the next three years.

Headline results had been pre-released. Sales growth in the 1H for the US (the most established region) and the rest of the world (ROW) was 41.7% and 122%, respectively.

The broker's target rises to $2.22 from $1.95 and the rating is upgraded to Add from Hold.

Target price is $2.22 Current Price is $1.99 Difference: $0.23
If PNV meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting downside of -5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates PPT as Neutral (3) -

Judging from Citi's early commentary, Perpetual's H1 release unveiled a litany in predominantly 'misses', but none big in magnitude.

The broker highlights Perpetual is still guiding to FY cost growth at the upper end of its 27%-31% range. Profit, dividend and revenue all missed the mark, albeit by marginal numbers.

The result is still labelled as "disappointing". If fundamentals prevail (far from guaranteed given the company might be in play) the share price should weaken, suggests Citi.

Neutral. Target $26.30.

Target price is $26.30 Current Price is $24.93 Difference: $1.37
If PPT meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $27.49, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates PPT as Neutral (3) -

In a quick response to today's H1 release, UBS notes the performance missed forecasts, caused by weak outcomes from asset management and corporate trust, plus there was a positive one-off too.

The broker highlights Perpetual's strategic review is ongoing.

Underlying cost growth is running at elevated level and UBS therefore finds management's guidance for FY24 "strange" (at odds). 

Overall, UBS finds today's update rather "disappointing". Neutral. Target $27.

Target price is $27.00 Current Price is $24.93 Difference: $2.07
If PPT meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.49, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates PWH as Downgrade to Neutral from Buy (3) -

Citi has downgraded to Neutral from Buy on a combination of share price and risks to contracts entering production, volume adjustments or contracts being pushed further out.

EVs are not yet ready to take off, the broker suggests. PWR Holdings' expansion into A&D looks set to really accelerate in FY25 and FY26, with more programs entering production stage and potentially a couple of material programs in the EVTOL sector, the broker highlights.

It seems Citi analysts are less sanguine about revenue growth for the Motorsports division, with the broker essentially worrying about a dip in FY25, before sharp acceleration again in FY26.

Forecasts have been increased by some 3% for FY24, but they have reduced by -5% for FY25. Price target lifts by 26% to $13.15.

Target price is $13.15 Current Price is $12.70 Difference: $0.45
If PWH meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.68, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates QOR as Buy (1) -

Qoria's 1H result was in line with Ord Minnett's expectations as key metrics were largely pre-released. Operating leverage was clearly evident to the broker with incremental free cash flow (FCF) margins rising by 45% year-on-year.

The analysts anticipate ongoing improvements for the 71% gross profit margin reported in the 1H.

Ord Minnett is attracted to structural tailwinds for EdTech and the potential for Qoria's best-in-class product in the US, in particular.

The Buy rating and 34c target are maintained.

Target price is $0.34 Current Price is $0.24 Difference: $0.1
If QOR meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates RDX as Accumulate (2) -

Ord Minnett describes a "mixed" 1H result for Redox. Gross profit and earnings (EBITAFX) registered beats of 5% and 6%, respectively, compared to the analyst's forecasts, yet steep price deflation drove a -5% revenue miss.

Management made a slight downgrade to FY24 guidance due to ongoing chemical price deflation globally and the weak economic backdrop.

The Accumulate rating is kept on the potential for increasing market share and offshore expansion, along with the ongoing industry consolidation. The target rises to $2.85 from $2.80.

Target price is $2.85 Current Price is $2.47 Difference: $0.38
If RDX meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

UBS rates RDX as Buy (1) -

UBS notes Redox produced adjusted EBITDAFX that was in line with expectations while revenue was slightly softer than anticipated.  The company has updated FY24 forecasts, expecting EBITDAFX of $140-151m.

The broker notes product inflation headwinds are outside the company's control although commentary signals the worst has passed. Gross margin is tracking ahead of forecasts and operating expenditure is under control.

While the organic outlook remains strong the broker suggests M&A could provide another lever for growth, given a strong balance sheet. Buy rating and $2.90 target unchanged.

Target price is $2.90 Current Price is $2.47 Difference: $0.43
If RDX meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates RDY as Outperform (1) -

ReadyTech Holdings' first half revenue increased 14% year on year but was below expectation. The company noted timing on several enterprise contracts shifted to FY25, Macquarie points out, resulting in guidance for FY24 revenue growth being lowered.

The earnings margin of 31.8% was down -80bps year on year, driven partly by ongoing investment in R&D and sales & marketing despite some major contract delays. Good cost control is otherwise noted by the broker.

Contract delays are disappointing and provide headwinds to growth, but Macquarie still sees valuation as attractive given the growth outlook. Target falls -11% to $3.80, Outperform retained.

Target price is $3.80 Current Price is $3.26 Difference: $0.54
If RDY meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates RDY as Buy (1) -

ReadyTech Holdings delivered results that were broadly in line with expectations. FY24 revenue guidance has been reduced slightly but Shaw and Partners does not consider this a reason to become negative.

The enterprise strategy is working amid 16 deals worth $7m. The broker does not believe the improvement in net revenue retention is fully appreciated.

While modest changes to FY24-27 revenue targets have been made the margin guidance is unchanged and Shaw and Partners believes this highlights growing confidence the organisational capability is now at scale.

Buy rating reiterated. Target slips to $4.90 from $5.00.

Target price is $4.90 Current Price is $3.26 Difference: $1.64
If RDY meets the Shaw and Partners target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Citi observes Reece had conditioned the market to expect a soft first half and instead delivered a "resilient" result. The broker was impressed with revenue being largely in line and gross profit 5% ahead of expectations.

No guidance was provided as is the usual case while management pointed out Australasian conditions will get harder. The US beat came because of positive volumes, compared with consensus expectations that had priced in falls.

Following the result, Citi increases EBIT expectations materially, by 26% through FY24-26. The valuation methodology has also changed to just a DCF from a blended average. 

As a result the rating is upgraded to Neutral from Sell and the target increases to $28.90 from $14.20.

Target price is $28.90 Current Price is $28.50 Difference: $0.4
If REH meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $21.37, suggesting downside of -21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Macquarie rates REH as Underperform (5) -

Reece reported a first half result that beat Macquarie's expectations, driven by a strong operating performance both in US and A&NZ.

Management commentary remains cautious, the broker notes, regarding the timing of both single-family construction and an R&R activity recovery in the US, while in A&NZ, management expects the previously-mooted slowdown to affect second half trading.

Reece continues to trade well in complex market conditions, Macquarie admits, but the broker remains focused on the stretched valuation as the company faces tough market conditions.

Target rises to $19.40 from $16.50, Underperform retained.

Target price is $19.40 Current Price is $28.50 Difference: minus $9.1 (current price is over target).
If REH meets the Macquarie target it will return approximately minus 32% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.37, suggesting downside of -21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Morgan Stanley rates REH as Underweight (5) -

Despite "subdued" conditions, Reece still delivered a strong first half and a material beat of consensus, Morgan Stanley notes. However the positive share price response ignores a very clear message from management that conditions in Australia will deteriorate over the next 12 months.

Management flagged a softer second half demand environment in A&NZ. The broker notes that over the last 12 months backlogs have
helped support the residential construction market but sees these trends reversing in FY25 as the resi pipeline is exhausted.

Weak approvals data will begin to be reflected in activity, and Morgan Stanley expects to see demand for Reece products to progressively decline across 2024.

Target rises to $19 from $12, Underweight retained. Industry view: In-Line.

Target price is $19.00 Current Price is $28.50 Difference: minus $9.5 (current price is over target).
If REH meets the Morgan Stanley target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.37, suggesting downside of -21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Morgans rates REH as Reduce (5) -

Despite the subdued macroeconomic backdrop, the 1H result for Reece came in ahead of Morgans forecasts due to higher-than-expected earnings growth for A&NZ and the US.

The broker highlights a 60bps rise in the group earnings (EBITDA) margin to 11.6%, while the return on capital employed (ROCE) measure rose by 80bps to 16.1%.

Management anticipates a softening 2H environment for A&NZ in the 2H.

Morgans remains cautious on the outlook in A&NZ and the US and believes Reece is overvalued. The Reduce rating is kept, while the target rises to $22.10 from $15.50 on earnings upgrades and a financial model roll-forward.

Target price is $22.10 Current Price is $28.50 Difference: minus $6.4 (current price is over target).
If REH meets the Morgans target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.37, suggesting downside of -21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Ord Minnett rates REH as Lighten (4) -

Following a "resilient" result for Reece, Ord Minnett raises its target to $20.80 from $15.50 though the Lighten rating is retained on the expectation volumes in A&NZ and the US will decline over the next year.

Due to strong cost discipline, explain the analysts, underlying profit beat the broker's forecast by 13%, while adjusted earnings also came in 12% ahead of expectation. Margins improved across both A&NZ and the US.

Management anticipates the subdued demand environment will continue in H2, with an expected softening occurring in A&NZ.

Target price is $20.80 Current Price is $28.50 Difference: minus $7.7 (current price is over target).
If REH meets the Ord Minnett target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.37, suggesting downside of -21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

UBS rates REH as Sell (5) -

EBITDA margins in the first half drove a beat to UBS estimates as Reece delivered cost control and operating efficiencies despite the subdued demand.

Headwinds still exist in Australasia and the broker believes a significant pulling forward of expenditure during the pandemic still needs to unwind.

Favourable US positioning provides support but Australasia remains the primary driver of earnings. Sell rating retained. Target is raised to $18.00 from $16.60.

Target price is $18.00 Current Price is $28.50 Difference: minus $10.5 (current price is over target).
If REH meets the UBS target it will return approximately minus 37% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.37, suggesting downside of -21.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

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

First half results from Resimac Group were ahead of market expectations with Citi noting the beat was attributable to lower operating costs and improved bad debts. Despite a pullback in marketing expenditure the broker found momentum improved in the second quarter.

Settlements trended higher and applications were up 79% which signals to Citi that management was successful in moving products within residential at the right price. Rating is upgraded to Neutral from Sell amid better visibility and the target lifted to $1.00 from $0.95.

Target price is $1.00 Current Price is $1.00 Difference: $0
If RMC meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates RMC as Neutral (3) -

Resimac Group's profit fell -28% half on half and the interim dividend was down by -12%. The main earnings drag was from lower net interest income (-12%), Macquarie notes, as average loan volumes stagnated and net interest margin fell -7bps.

Competition remains intense for mortgages, as Resimac Group continues to shrink its mortgage book, but the mix-shift towards higher-yielding lending segments presents impairments risk, the broker warns.

Macquarie believes the biggest funding cost headwinds are behind us, and the funding disadvantage to the banks has incrementally closed.

While there are positives, with a potential reduction in funding costs and an uplift in settlements, banks still retain a large funding advantage over non-banks, the broker suggests, and mortgages remains a difficult space to compete in.

Target rises to $1.10 from $1.01, Neutral retained.

Target price is $1.10 Current Price is $1.00 Difference: $0.1
If RMC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates SDF as Outperform (1) -

Writing yesterday, Macquarie expects today's result from Steadfast Group will show a miss to consensus earnings forecasts. Ahead of the result, FY24 guidance is unchanged.

The broker lifts its target to $6.40 from $6.10 and retains Outperform.

Target price is $6.40 Current Price is $5.93 Difference: $0.47
If SDF meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.43, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Morgan Stanley rates SDR as Overweight (1) -

SiteMinder had pre-reported so no surprises. Guidance is reaffirmed. The focus is then on qualitative factors, Morgan Stanley suggests.

As investors await evidence of new product traction, core subs growth remained strong and, more importantly, SiteMinder remains on track to demonstrate leverage and hit free cash flow targets, hence the broker sees limited de-rating risk.

After all, Morgan Stanley notes, 40k-plus paying properties is a lot of customers, so improved monetisation and retention are the most efficient growth drivers.

Target rises to $5.70 from $5.45, Overweight retained. Industry view: In-Line.

Target price is $5.70 Current Price is $5.22 Difference: $0.48
If SDR meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates SDR as Add (1) -

Morgans is impressed by management's performance in the 1H to keep improving profitability and unit economics for SiteMinder, while maintaining solid growth momentum.

The broker leaves its underlying earnings (EBITDA) and free cash flow (FCF) forecasts unchanged, despite a slight miss for both underlying earnings and profit in the 1H.

Management noted the 2H has begun well and reiterated FY24 guidance. The launch of Dynamics Revenue Plus remains on track for mid-2024.

The Add rating and $6.25 target are maintained.

Target price is $6.25 Current Price is $5.22 Difference: $1.03
If SDR meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates SDR as Buy (1) -

While SiteMinder's interim normalised net loss of -$13.8m was greater than Ord Minnett's -$12.4m forecast, the broker is enthused by a business “well on the road to proving up its business model”.

In a bullish signal, suggests the analyst, management is not weighing any acquisition opportunities, implying organic opportunities will currently suffice for growth.

Ord Minnett believes management will execute against guidance for positive free cash generation in H2 and beyond. The target is increased to $6.72 from $5.68. Buy.

Target price is $6.72 Current Price is $5.22 Difference: $1.5
If SDR meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates SDR as Buy (1) -

Further to the first half, UBS notes, overall, SiteMinder delivered a positive result. Unit economics were strong and new partners have already signed onto Channel Plus.

New subscriber additions occurred across all geographies which is driving longer term growth in providing a base for further penetration of transaction products. The broker suggests the core offering remains appealing and maintains a Buy rating. Target is $6.55.

Target price is $6.55 Current Price is $5.22 Difference: $1.33
If SDR meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates SLH as Buy (1) -

Shaw and Partners found the first half results from Silk Logistics "credible", given mixed market conditions, with revenue and underlying EBITDA ahead of expectations.

Challenging conditions are expected to continue into the second half and this is reflected in FY24 guidance. Revenue is guided in the range of $540-560m while EBITDA is in the range of $92-98m.

The broker notes recent acquisitions have diversified the service offering and this should enable the business to win market share and attract larger customers over time. Buy rating maintained. Target is reduced to $2.30 from $3.00.

Target price is $2.30 Current Price is $1.50 Difference: $0.8
If SLH meets the Shaw and Partners target it will return approximately 53% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates SUN as Hold (3) -

As a consequence of a late-January trading update, 1H results for Suncorp Group revealed few surprises for Ord Minnett.

General insurance underlying profit increased by 28% largely due to solid growth for home and motor insurance, while commercial and personal injury insurance also performed well, explains the analyst.

For FY24, the broker forecasts gross written premium (GWP) growth of 12% across A&NZ, and an underlying insurance margin (UIM) of 11%, which nicely tallies with management's guidance for between 10-12%.

An interim dividend of 34cps was declared.

Ord Minnett expects the sale of Suncorp Bank will complete by mid-2024.

The Hold rating and $13.50 target are retained.

Target price is $13.50 Current Price is $15.37 Difference: minus $1.87 (current price is over target).
If SUN meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.31, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Ord Minnett rates TRJ as Buy (1) -

Consistent customer destocking weighed on 1H results for Trajan Group, explains Ord Minnett, though customer demand rebounded in the latter part of the period.

Normalised core earnings (EBITDA) of $6.9m fell short of the broker's $12.9m estimate, owing to the softer 1H revenue.

While margins for the half were softer on those lower revenues, management expects a material increase in both revenue and earnings in the 2H after delivering upon the around $4m backlog, and after an easing in customer destocking.

Guidance is for FY24 revenue of between $163-167m, and normalised core EBITDA in the range of $22.3-23.7m.

The Buy rating is unchanged, but the target eases to $2.20 from $2.35.

Target price is $2.20 Current Price is $1.02 Difference: $1.18
If TRJ meets the Ord Minnett target it will return approximately 116% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates TYR as Outperform (1) -

Tyro Payments' first half result was mixed, Macquarie suggests, with revenue being broadly in line with expectations. Within revenue, improved payments margins and increased banking yields/fees were offset by lower transaction value (TV) and elevated churn.

Operating expenses were also higher due to a one-off cost being included in operating earnings.

While the market saw downside risk to total value or 'TV' guidance at the AGM, the reduction was more than the broker had anticipated. Despite this, FY24 guidance was upgraded due to mix, non-lending interest income and increased banking product fees.

Macquarie recognises the top-line trends are disappointing, however the second half exit rate lays a solid foundation for FY25, in the broker's view.

Target falls to $1.45 from $1.55, Outperform retained.

Target price is $1.45 Current Price is $1.08 Difference: $0.37
If TYR meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 48.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

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

Tyro Payments' first half revenues were up 9% year on year, ahead of consensus, and earnings were up 40%, missing consensus, Morgan Stanley notes.

The broker views Tyro as a cyclical as well as structural story, and the results, including the lowered second half outlook, confirm a period of weaker turnover and total transaction value ahead.

But Tyro continues to focus on improving efficiency, which is pushing earnings and cash flow higher, notwithstanding cyclical headwinds.

The key debate, Morgan Stanley suggests, is what is the sustainable earnings margin for Tyro, as a relatively small player (5% market share) operating in the very competitive terminals/payments space in Australia?

Equal-weight retained. Target falls to $1.30 from $1.60. Industry view: Attractive.

Target price is $1.30 Current Price is $1.08 Difference: $0.22
If TYR meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 48.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgans rates TYR as Add (1) -

Morgans observes some revenue headwinds but improving profitability for Tyro Payments in the 1H. Normalised gross profit of $105m met the consensus forecast, while earnings (EBITDA) were a -3% miss.

The broker anticipates a softer 2H revenue outlook due to some issues with the Bendigo & Adelaide Bank ((BEN))) Alliance and a tougher core business transaction backdrop.

Customer transaction value for the Alliance fell by -11% on the previous corresponding period because of a customer mix more impacted by cost of living pressure, explained management.

Morgans believes Tyro's underlying operating performance is encouraging and maintains an Add rating. The target falls to $1.47 from $1.61.

Target price is $1.47 Current Price is $1.08 Difference: $0.39
If TYR meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 48.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

UBS rates TYR as Buy (1) -

First half results from Tyro Payments were mixed with revenue and EBIT ahead of UBS estimates and EBITDA slightly below. Guidance for FY24 has been updated with transaction value ranges lowered to $43-44bn and the lower end of the EBITDA range tightened to $54-58m.

Merchant growth slowed to 2.8% with applications remaining strong but with churn jumping to a record 16%.

UBS finds little chance of a multiple re-rating until the top-line growth rate recovers in order to deliver higher quality earnings outside of simple price increases and cost control. Buy rating retained. Target is reduced to $1.55 from $1.65.

Target price is $1.55 Current Price is $1.08 Difference: $0.47
If TYR meets the UBS target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 48.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates WDS as Neutral (3) -

Woodside Energy's underlying earnings were in line with Macquarie however profit beat by 25%, and as a result the final dividend was higher than expected at US$0.60/sh (fully franked).

Recent Scarborough selldowns deliver material de-risking and bolster the balance sheet going forward, the broker suggests. Consensus appears to factor in dividends based on US$77/bbl oil which looks 5-7% too high when Macquarie runs a same oil assumption.

Woodside may find support at these levels, the broker notes, following Scarborough selldowns and the dividend surprise, but falling gas/LNG prices are a key concern.

Target rises to $32 from $31, Neutral retained.

Target price is $32.00 Current Price is $30.28 Difference: $1.72
If WDS meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $33.58, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25: