Australian Broker Call

Ord Minnett rates AKE as Buy (1) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Ord Minnett continues to see strong price support for lithium on a multi-year view due to supply shortages and prefers producers over developers.

Allkem is preferred in the space and the Buy rating is retained, while the target slips to $20.50 from $21.00.

Target price is $20.50 Current Price is $13.18 Difference: $7.32
If AKE meets the Ord Minnett target it will return approximately 56% (excluding dividends, fees and charges).

Current consensus price target is $16.79, suggesting upside of 15.4% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

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

Morgan Stanley lowers target prices across its coverage of the Australian Energy sector after updating for energy prices and deal flow. 

While global energy demand has moderated with the economic outlook, the broker still favours exploration and production stocks with leverage to energy prices and strong balance sheets.

Regarding Ampol, Morgan Stanley feels refining margins may have peaked and is incrementally cautious on consumer sentiment. As a result, the rating falls to Equal-weight from Overweight. 

The target falls to $31.23 from $39.00 after the analyst updates forecasts for 1H results. Industry view is Attractive.

Target price is $31.23 Current Price is $29.16 Difference: $2.07
If ALD meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $36.48, suggesting upside of 24.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates ALL as Outperform (1) -

With digital gaming data suggesting Casual Game revenue in the September half declined -10% on the previous comparable period, Credit Suisse has downgraded its Casual Game revenue forecast for Aristocrat Leisure, noting total earnings per share changes are less than -3%.

The broker had already expected flat growth from the Casual Game segment in the half, and upgraded its Social Casino segment revenue forecast. The broker finds results on trend with recent months.

The Outperform rating is retained and the target price decreases to $36.00 from $40.00.

Target price is $36.00 Current Price is $32.18 Difference: $3.82
If ALL meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $42.71, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates AWC as Buy (1) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Within Ord Minnett's base metals coverage, the price target for Alumina Ltd falls to $1.60 from $1.80. Buy.

Target price is $1.60 Current Price is $1.24 Difference: $0.36
If AWC meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.66, suggesting upside of 27.7% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Macquarie rates BHP as Outperform (1) -

Having provided further clarity on its WA iron ore growth plans, BHP Group remains Macquarie's preferred large diversified miner. The company reiterated decarbonisation targets, aiming to be net zero by 2050.

While the company progresses its production debottlenecking program to lift production to 300m tonnes per annum, studies are ongoing to further increase production to 330m tonnes per annum with results expected by 2025.

Macquarie sees possibility that BHP Group's constructive outlook on iron ore could accelerate progress. 

The Outperform rating and target price of $45.00 are retained.

Target price is $45.00 Current Price is $38.60 Difference: $6.4
If BHP meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $41.52, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Ord Minnett rates BHP as Hold (3) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

For iron ore-exposed stocks, Ord Minnett sees a lack of positive share price catalysts due to the China property slowdown, sluggish ex-China steel production and more supply in 2023.

The broker lowers its price target for BHP Group to $41 from $42 and retains its Hold rating.

Target price is $41.00 Current Price is $38.60 Difference: $2.4
If BHP meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $41.52, suggesting upside of 3.8% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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 BPT as Underweight (5) -

Morgan Stanley lowers target prices across its coverage of the Australian Energy sector after updating for energy prices and deal flow. 

While global energy demand has moderated with the economic outlook, the broker still favours exploration and production stocks with leverage to energy prices and strong balance sheets.

Due to relative uncertainty and risk-adjusted valuation, Beach Energy is among stocks least preferred by the analysts.

The target falls to $1.54 from $1.80 and the Underweight rating is unchanged. Industry view: Attractive.

Target price is $1.54 Current Price is $1.50 Difference: $0.04
If BPT meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Ord Minnett rates BSL as Buy (1) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

While not a mining company per se, BlueScope Steel is preferred over Sims in the steel sector, though both stocks lack a near-term catalyst and are considered more value plays by Ord Minnett.

The Buy rating is kept for BlueScope Steel, while the broker's target falls to $21 from $22.

Target price is $21.00 Current Price is $15.39 Difference: $5.61
If BSL meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $20.83, suggesting upside of 29.0% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates CBA as Hold (3) -

The Australian Prudential Regulation Authority had a $500m operational risk capital overlay balance remaining for CommBank, to address weaknesses in its governance, culture and risk management practices.

In November 2020, APRA reduced the bank's operational risk add-on to $500m from $1bn.

Ord Minnett only considers the announced removal of this overlay (effective September 30) as a mild positive, and retains its Hold rating and $90.00 target price.

Target price is $90.00 Current Price is $90.61 Difference: minus $0.61 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.83, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Ord Minnett rates CHN as Buy (1) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Higher nominal interest rate expectations are dampening gold prices, explains Ord Minnett, and a strong US dollar continues to weigh.

For Chalice Mining, the broker lowers its target price to $6.50 from $7.00 and retains its Buy rating.

Target price is $6.50 Current Price is $3.72 Difference: $2.78
If CHN meets the Ord Minnett target it will return approximately 75% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Ord Minnett rates CPU as Accumulate (2) -

Ord Minnett points out 62% of revenue for Computershare derives from the US, and only 7% from A&NZ. As a result, the stock is set to benefit from a lower Australian dollar.

In addition, margin income will likely be materially higher than implied by guidance, according to the analyst, due to sharp increases in cash rates and expectations.

The broker lifts its FY23 and FY24 EPS forecasts by 7.7% and 18%, respectively, and raises its target price to $27 from $26. Accumulate.

Target price is $27.00 Current Price is $24.54 Difference: $2.46
If CPU meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $28.81, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Macquarie rates CXO as Outperform (1) -

Core Lithium has completed its maiden Direct Ship Ore (DSO) shipment through a digital exchange platform, achieving a benchmark equivalent price of US$5,822 per tonne. Macquarie finds this first sale, and solid lithium price realisation, encouraging. 

First spodumene production remains on track for the first half of 2023, and the broker assumes first shipment in June 2023. Having undertaken a $100m equity raising placement to accelerate growth, Macquarie expects capital to support the BP33 development and exploration program.

The Outperform rating and target price of $1.70 are retained.

Target price is $1.70 Current Price is $1.06 Difference: $0.64
If CXO meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates FMG as Hold (3) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

For iron ore-exposed stocks, Ord Minnett sees a lack of positive share price catalysts due to the China property slowdown, sluggish ex-China steel production and more supply in 2023.

The broker lowers its price target for Fortescue Metals to $16.80 from $17.50 and retains its Hold rating.

Target price is $16.80 Current Price is $16.93 Difference: minus $0.13 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.24, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.4

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

Ord Minnett rates ILU as Hold (3) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Iluka Resources escapes Ord Minnett's general price target reductions. The Hold rating and $11.10 target are unchanged.

Target price is $11.10 Current Price is $9.32 Difference: $1.78
If ILU meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $11.24, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates IPH as Initiation of coverage with Buy (1) -

UBS believes future M&A is not priced-in to shares of IP services group IPH, and the broker initiates coverage with a Buy rating and $11.00 target price.

The company (a leader in Asia Pacific and Canada) has a track record of successfully integrating acquisitions and delivering material synergies, notes the analyst.

Also attractive in current market conditions, the broker points out the defensive nature of IPH's business. Patent volumes are driven by corporate R&D investment, and patent/trademark applications typically providing multi-year future revenue streams;

The company also benefits from a lower Australian dollar, explains UBS.

Target price is $11.00 Current Price is $9.54 Difference: $1.46
If IPH meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $11.19, suggesting upside of 12.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

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

Morgan Stanley lowers target prices across its coverage of the Australian Energy sector after updating for energy prices and deal flow. 

While global energy demand has moderated with the economic outlook, the broker still favours exploration and production stocks with leverage to energy prices and strong balance sheets.

Due to relative uncertainty and risk-adjusted valuation, Karoon Energy is among stocks least preferred by the analysts.

The target falls to $1.98 from $2.25 and the Equal-weight rating is unchanged. Industry view: Attractive.

Target price is $1.98 Current Price is $1.86 Difference: $0.12
If KAR meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 35.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates LTR as Outperform (1) -

Liontown Resources has received Mining Proposal and Works Approval from the WA government for a 4m tonne per annum lithium and tantalum mining operation at its Kathleen Valley asset. 

In line with the project execution schedule, this allows the company to start major construction works. Macquarie finds the project well underway, with two thirds of construction tenders being progressed and long-lead items already executed.

The broker expects progress to de-risk the Kathleen Valley project. The Outperform rating and target price of $2.50 are retained.

Target price is $2.50 Current Price is $1.46 Difference: $1.04
If LTR meets the Macquarie target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates LTR as Hold (3) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Ord Minnett continues to see strong price support for lithium on a multi-year view due to supply shortages and prefers producers over developers.

The broker lowers its target for Liontown Resources to $1.50 from $1.60. Hold.

Target price is $1.50 Current Price is $1.46 Difference: $0.04
If LTR meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Market Sentiment: 0.5

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

Ord Minnett rates NCM as Hold (3) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Higher nominal interest rate expectations are dampening gold prices, explains Ord Minnett, and a strong US dollar continues to weigh.

For Newcrest Mining, the broker notes spot free cash flow yields are negative. The Hold rating is retained, while the target slips to $19 from $21. 

Target price is $19.00 Current Price is $16.66 Difference: $2.34
If NCM meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $21.69, suggesting upside of 22.2% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.4

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

Morgans rates NHC as Add (1) -

FY22 results (on September 20) for New Hope were broadly in line with Morgans expectations, while the 56cps in final dividends (31cps ordinary, 25cps special) fell short of the 60cps expected.

The main message from the results, in the broker's view, was the potential for further distribution of surplus capital. The analyst estimates $2.00/share may be available for distribution in FY23, which compares to the current forecast of $1.20/share.

After making several forecast changes, including a lower Australian dollar and higher thermal coal prices, Morgans target price for New Hope rises to $7.20 from $5.50. Add.

Target price is $7.20 Current Price is $6.30 Difference: $0.9
If NHC meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.25, suggesting downside of -6.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates NIC as Neutral (3) -

Nickel Industries has warned it expects to report third quarter earnings between $52-55m, a -31% miss to Macquarie's previous forecast and a -48% miss to second quarter earnings. The decline has been attributed to lower nickel pig iron pricing.

More positively, the company announced the first production of nickel matte from its Hengjaya Nickel project, while faster than expected ramp up at its Angel Nickel project has the asset operating at more than 130% of nameplate capacity. 

The Neutral rating is retained and the target price decreases to $0.73 from $0.74.

Target price is $0.73 Current Price is $0.75 Difference: minus $0.02 (current price is over target).
If NIC meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

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

Morgan Stanley lowers target prices across its coverage of the Australian Energy sector after updating for energy prices and deal flow. 

While global energy demand has moderated with the economic outlook, the broker still favours exploration and production stocks with leverage to energy prices and strong balance sheets.

Due to relative uncertainty and risk-adjusted valuation, Origin Energy is among stocks least preferred by the analysts. An example of uncertainty is the lack of FY23 Energy markets guidance by management.

The target falls to $6.08 from $6.22 and the Equal-weight rating is unchanged. Industry view: Attractive.

Target price is $6.08 Current Price is $5.32 Difference: $0.76
If ORG meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.48, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates PAN as Neutral (3) -

Drilling results above the 900 Fault at Panoramic Resources' Savannah project suggest thicker mineralisation than the current resource. Macquarie expects results will underpin the company's 2023 resource update, suggesting upside to the 36,000 tonne resource.

The broker highlights as a secondary mining front to the main Savannah North zone, the project helps with debottlenecking operations.

The Neutral rating and target price of $0.18 are retained.

Target price is $0.18 Current Price is $0.19 Difference: minus $0.01 (current price is over target).
If PAN meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Ord Minnett continues to see strong price support for lithium on a multi-year view due to supply shortages and prefers producers over developers.

After recent share price gains, the broker lowers the rating for Pilbara Minerals to Hold from Buy and leaves the $4.10 target unchanged, (an exception to the trend for Ord Minnett's Mining sector coverage). Allkem is the preferred exposure for lithium.

Target price is $4.10 Current Price is $4.55 Difference: minus $0.45 (current price is over target).
If PLS 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 $3.64, suggesting downside of -28.6% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Ord Minnett rates RED as Speculative Buy (1) -

Ord Minnett feels balance sheet concerns for some investors in Red 5 should be eased following an around $60m capital raising.

The target price is lowered to $0.32 from $0.38 to incorporate the raising and new grade assumptions in line with the recent resource/reserve metrics. The Speculative Buy rating is unchanged.

Funds raised will be applied to fund working capital requirements at the King Of The Hills project and for future organic growth, such as
mill expansion/exploration drilling.

Target price is $0.32 Current Price is $0.17 Difference: $0.15
If RED meets the Ord Minnett target it will return approximately 88% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates RIO as Hold (3) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

For iron ore-exposed stocks, Ord Minnett sees a lack of positive share price catalysts due to the China property slowdown, sluggish ex-China steel production and more supply in 2023.

The broker lowers its price target for Rio Tinto to $93 from $100 and retains its Hold rating.

Target price is $93.00 Current Price is $93.10 Difference: minus $0.1 (current price is over target).
If RIO meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $104.07, suggesting upside of 8.5% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Citi rates RWC as Sell (5) -

Citi expects further downside revisions for Reliance Worldwide after a review of the evolving UK environment. It's felt the negative impact of rising interest rates outweighs favourable stamp duty concessions.

The broker suggests a 90-120bps increase in mortgage rates to around 5.5% has a more material impact on housing activity.

The Sell rating and $3.80 target price are unchanged.

Target price is $3.80 Current Price is $3.35 Difference: $0.45
If RWC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 37.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.4

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

Ord Minnett rates S32 as Buy (1) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Within the base metals coverage, the analyst considers South32 is a standout with diversified cash flows and unlikely further downside for aluminium prices as half of the industry is losing money.

Aluminium price forecasts are largely responsible for the target falling to $4.40 from $5.00, explains Ord Minnett. Buy. 

Target price is $4.40 Current Price is $3.56 Difference: $0.84
If S32 meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 31.8% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.9

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

Ord Minnett rates SFR as Hold (3) -

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Within the base metals coverage, the target price for Sandfire Resources falls to $3.30 from $3.80. The broker requires a lower share price before raising the existing Hold rating.

Target price is $3.30 Current Price is $3.62 Difference: minus $0.32 (current price is over target).
If SFR meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.34, suggesting upside of 36.3% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.6

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

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

Ord Minnett lowers its target prices for stocks under its Mining sector coverage, after undertaking a mark-to-market review of September-quarter commodity prices.

Given the odds of a global recession continue to increase, the broker feels risks for mining stocks are skewed to the downside.

Among non-mining steel producers BlueScope Steel is preferred over Sims, which Ord Minnett downgrades to Hold from Buy. Both stocks lack a near-term catalyst and are considered more value plays.

The target for Sims falls to $15.40 from $18.50.

Target price is $15.40 Current Price is $13.20 Difference: $2.2
If SGM meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $16.22, suggesting upside of 20.8% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgan Stanley rates STO as Overweight (1) -

Morgan Stanley lowers target prices across its coverage of the Australian Energy sector after updating for energy prices and deal flow. 

While global energy demand has moderated with the economic outlook, the broker still favours exploration and production stocks with leverage to energy prices and strong balance sheets.

The Overweight rating is retained for Santos, while the target price falls to $9.30 from $11.00. The broker also raised its risk factor for Barossa after the Federal Court set aside acceptance of an environmental plan on 21 September. Industry view: Attractive.

Target price is $9.30 Current Price is $7.17 Difference: $2.13
If STO meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $9.46, suggesting upside of 26.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates TLC as Neutral (3) -

Credit Suisse estimates lottery sales are down -11% in the September quarter, as low jackpots and tough comparables drag on results. The broker expects Lottery Corp may look to seed jackpots in an effort to lift sales in the December quarter. 

Implying a -0.5% revenue growth decline in each of the remaining three quarters in FY23, Credit Suisse has lowered its full year revenue growth expectations for FY23 to -5%. The broker's earnings per share forecasts decrease -8-10% across its forecast period. 

The Neutral rating is retained and the target price decreases to $3.85 from $4.65.

Target price is $3.85 Current Price is $4.13 Difference: minus $0.28 (current price is over target).
If TLC meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.90, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

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

Morgan Stanley lowers target prices across its coverage of the Australian Energy sector after updating for energy prices and deal flow. 

While global energy demand has moderated with the economic outlook, the broker still favours exploration and production stocks with leverage to energy prices and strong balance sheets.

Regarding Viva Energy, Morgan Stanley feels refining margins may have peaked and is incrementally cautious on consumer sentiment. As a result, the rating falls to Equal-weight from Overweight. 

The target falls to $2.89 from $3.30 after the analyst updates forecasts for 1H results. Industry view is Attractive.

Target price is $2.89 Current Price is $2.65 Difference: $0.24
If VEA meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 20.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates WDS as Overweight (1) -

Morgan Stanley lowers target prices across its coverage of the Australian Energy sector after updating for energy prices and deal flow. 

While global energy demand has moderated with the economic outlook, the broker still favours exploration and production stocks with leverage to energy prices and strong balance sheets.

The Overweight rating is retained for Woodside Energy, while the target falls to $37.00 from $40.00. Industry View is Attractive. 

Target price is $37.00 Current Price is $32.05 Difference: $4.95
If WDS meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $35.36, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.5

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

Citi rates XRO as Buy (1) -

Citi reviews Intuit's revised international strategy and feels a reduced focus on accounting software localisation in markets such as Singapore is a positive for Xero.

On the flipside, Intuit’s commentary on the difficulty to localise accounting solutions in new markets has implications for Xero’s margins, according to the broker. Xero will expand into new markets such as Europe in time.

The Buy rating and $106.80 target price are retained.

Target price is $106.80 Current Price is $71.50 Difference: $35.3
If XRO meets the Citi target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $97.01, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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