Australian Broker Call

Macquarie rates AGL as Downgrade to Underperform from Neutral (5) -

The NSW energy roadmap released last week provides some opportunities for AGL Energy, but these are far outweighed by the structural impact, Macquarie notes. The policy will shift the markets to being in structural oversupply. At risk is 24% of NSW-Vic FY24 earnings.

AGL's developing battery business is an offset, but not near enough. The broker cuts its target to $11.43 from $14.18 and downgrades to Underperform from Neutral.

Target price is $11.43 Current Price is $13.09 Difference: minus $1.66 (current price is over target).
If AGL meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.31, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Ord Minnett rates ALL as Accumulate (2) -

Aristocrat Leisure will report its FY20 result on November 19 and Ord Minnett expects a net profit of $477.7m, down -46.6% versus FY19.

Furthermore, the broker considers Aristocrat to be approaching trading levels similar to pre-covid-19 with factors like iGaming, digital and land-based demand shock having the ability to boost trading even beyond that level.

FY20 earnings forecast has been lifted by 0.7%. Accumulate retained with the target price unchanged at $38.60.

Target price is $38.60 Current Price is $32.61 Difference: $5.99
If ALL meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $33.68, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.8

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

Credit Suisse rates ALQ as Outperform (1) -

First half results are expected on November 18. Credit Suisse anticipates underlying net profit of $88m. Management is expected to be cautious about the outlook because of a worsening pandemic in many parts of the world.

There is likely to be less of a negative impact going forward, nevertheless, as most of the operations are probably exempt from current and future lockdowns, in the broker's opinion.

Credit Suisse maintains an Outperform rating and raises the target to $10.55 from $9.75.

Target price is $10.55 Current Price is $9.94 Difference: $0.61
If ALQ meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.54, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates ALQ as Downgrade to Lighten from Hold (4) -

ALS Ltd will report its first-half FY21 result on November 19. Ord Minnett forecasts operating earnings of $142.3m, -8% below last year.

The broker is keenly awaiting information on the impact of the second-wave of lockdowns on the company's margins, as well as on further M&A opportunities.

After a period of strong trading, the broker is concerned that rising covid-19 infections, especially in the northern hemisphere and parts of Latin America, could affect ALS's operations.

Rating is downgraded to Lighten from Hold with the target price rising to $8.60 from $6.40.

Target price is $8.60 Current Price is $9.94 Difference: minus $1.34 (current price is over target).
If ALQ meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.54, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates AMI as No Rating (-1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift, the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

The broker is currently restricted from providing a rating or target for Aurelia Metals.

Current Price is $0.45. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates APT as Overweight (1) -

ASIC, in its BNPL update is not proposing new regulations. The new rules of design and distribution apply from October 2021 and will require BNPL companies to identify consumers appropriate for the product.

Morgan Stanley notes Afterpay made up 73% of total value of Australian surveyed BNPL transactions in FY19 but only 27% of outstanding balances.

The broker expects revenue from late fees fell materially in FY20, given industry-wide late transactions fell to 3-4% in the June quarter.

Overweight rating. Target is $120. Industry view: In-line.

Target price is $120.00 Current Price is $101.40 Difference: $18.6
If APT meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $93.22, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates BGL as Outperform (1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Outperform retained for Bellevue Gold. Target falls to $1.50 from $1.55.

Target price is $1.50 Current Price is $1.38 Difference: $0.12
If BGL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates CAJ as Outperform (1) -

The company has reflected better industry conditions with the purchase of a strategic asset, Credit Suisse observes. The lockdown in Melbourne was less severe on the business in the first quarter than previously feared.

The company has paid $9m for Direct Radiology, a bulk-bill provider in metro Melbourne. Importantly, the three vendor radiologists will remain for at least three years.

Credit Suisse upgrades estimates for earnings per share by 17% for FY21 and 10% for FY22. Outperform rating retained. Target rises to $0.35 from $0.30.

Target price is $0.35 Current Price is $0.27 Difference: $0.08
If CAJ meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates CMM as Underperform (5) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve begnining to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Underperform retained for Capricorn Metals. Target falls to $1.60 from $1.70.

Target price is $1.60 Current Price is $1.75 Difference: minus $0.15 (current price is over target).
If CMM meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -1.0

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

Macquarie rates CRN as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of met coal producer Coronado Resources with an Outperform rating and a $1.00 target. Coronado's Curragh mine in Australia accounts for 70% of the value, the rest coming from various mines in the US. 

Current spot coal prices suggest downside risk, but the broker's forecasts leave Coronado well positioned for a price recovery.

Target price is $1.00 Current Price is $0.86 Difference: $0.14
If CRN meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 41.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

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

CSL and the Australian government have committed to a deal to ensure supply of cell-based influenza vaccine as well as preparedness for future pandemics.

CSL will fund construction of the new Melbourne-based facility, with the bulk of the $800m expenditure occurring in FY22-23.

Morgan Stanley observes this expenditure is captured in existing guidance. There is no impact on current estimates, although this provides greater certainty for the longer-term outlook for Seqirus.

Equal-weight rating with a target price of $282. Industry view: In-line.

Target price is $282.00 Current Price is $315.04 Difference: minus $33.04 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $314.96, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

UBS rates CSL as Buy (1) -

CSL's subsidiary - Seqirus - is investing more than $800m to construct a new biotech manufacturing facility in Melbourne. The facility will supply influenza vaccines both locally and to the rest of the world. Construction is expected to commence in 2021 and the facility is projected to be operational by mid-2026.

UBS notes the new facility will use cell-based technology to produce influenza vaccines for seasonal and pandemic purposes. Also, it will produce CSL's proprietary vaccine adjuvant, MF59.

The broker believes the announcement is a validation of cell-based manufacturing for flu vaccines and its scale benefits and places CSL in a strong global position, with peers still mostly reliant on egg-based techniques. 

The Buy rating and target price of $346 are unchanged.

Target price is $346.00 Current Price is $315.04 Difference: $30.96
If CSL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $314.96, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Macquarie rates DCN as Underperform (5) -

Dacian Gold and NTM Gold ((NTM)) will merge, leaving Dacian shareholders with 68% of the merged entity. NTM owns the Redcliffe project which the broker presumes will become a valuable satellite operation for Mt Morgans.

Additional mine inventory would result in a boost to the broker's valuation had the broker's gold analysts not made downgrades to its price forecasts. This offsets, netting to a target reduction to 34c from 37c. Underperform retained.

Target price is $0.34 Current Price is $0.35 Difference: minus $0.01 (current price is over target).
If DCN 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 June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -1.0

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

Macquarie rates ELD as Outperform (1) -

Elders reported an underlying FY20 profit of $108m and a dividend of 13c when consensus forecasts had $101m and 11c. It was a solid result, the broker suggests, featuring margin growth across all states and products, cost controls and capital discipline.

A -10% PE discount to global peers has the broker retaining Outperform, suggesting the stock should be at a premium given the company is delivering and offers acquisition optionality. Target rises to $13.98 from $12.83.

Target price is $13.98 Current Price is $11.88 Difference: $2.1
If ELD meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates ELD as Hold (3) -

The FY20 result by Elders delivered "impressive" growth, beating Morgans forecasts on all measures.

The company benefited from improved seasonal conditions from the second quarter. This led to strong demand for farm inputs and materially higher livestock prices, explains the broker.

The analyst highlights the result also included an over ten month contribution from the AIRR acquisition, and was supported by stronger than expected performances from other acquisitions.

The broker expects another good year given the benefit from improved summer cropping conditions, a full 12 months of the AIRR acquisition (and synergies) and recent bolt-ons.

Morgans believes the company is fairly valued and retains the Hold rating, while maintaining a watching brief on livestock prices (currently at historical highs).

The target is increased to $11.68 from $10.20.

Target price is $11.68 Current Price is $11.88 Difference: minus $0.2 (current price is over target).
If ELD meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates EVN as Downgrade to Underperform from Neutral (5) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Evolution Mining downgraded to Underperform from Neutral. Target falls to $5.30 from $5.90.

Target price is $5.30 Current Price is $6.01 Difference: minus $0.71 (current price is over target).
If EVN meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.29, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Macquarie rates GOR as Outperform (1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Outperform retained for Gold Road Resources Target falls to $1.60 from $1.80.

Target price is $1.60 Current Price is $1.38 Difference: $0.22
If GOR meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates IGO as No Rating (-1) -

The broker has cut IGO earnings forecasts by -11-29% in FY21-24 due to a reduction in the broker's gold price forecasts. The broker expects IGO to nonetheless post another very strong year on buoyant nickel and gold prices.

The broker is currently on research restriction.

Current Price is $4.91. Target price not assessed.

Current consensus price target is $4.70, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates LOV as Outperform (1) -

Macquarie expects Lovisa Holdings' acquisition of the beeline GmbH store network to be completed between March-May 2021. This, notes the broker, is beyond the expected duration of the second-wave lockdowns in Europe.

In the broker's view, the transaction is attractive because it delivers a step-change to the store network in Europe and also because it removes a competitor that targeted a similar demographic to Lovisa’s offering.

The broker sees more upside on account of an expected return to mobility in core markets driving improving margins.

Macquarie maintains its Outperform rating with the target raised to $12.90 from $9.57.

Target price is $12.90 Current Price is $11.60 Difference: $1.3
If LOV meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $12.20, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

Macquarie believes the next leg of the residential recovery will favour multi-residential developers with key drivers including limited high-density supply pipeline, a vaccine for covid-19 helping kickstart overseas immigration and the recent rate cuts by the RBA with the subsequent reduction in mortgage rates.

Mirvac Group also provides exposure to office markets where the broker expects downside will be limited by the long weighted average lease expiry (WALE) and a less demanding cap rate. 

The broker upgrades its rating to Outperform from Neutral. Target rises to $2.91 from $2.22.

Target price is $2.91 Current Price is $2.64 Difference: $0.27
If MGR meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.62, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates NAB as Downgrade to Underweight from Equal-weight (5) -

Morgan Stanley expects bank dividends will rebound in 2021 although a recovery in underlying earnings and returns will not emerge until 2022.

The broker finds National Australia Bank's strategy clear, noting a sound operating performance and strong capital position. Still, the revenue recovery is expected to lag expectations and there is downside risk to margins and loan growth forecasts.

Current trading multiples already factor in a good recovery and Morgan Stanley downgrades to Underweight from Equal-weight. Target rises to $20.10 from $17.50. Industry view: In-line.

Target price is $20.10 Current Price is $21.59 Difference: minus $1.49 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.77, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates NCM as Downgrade to Underperform from Neutral (5) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Newcrest Mining downgraded to Underperform from Neutral. Target falls to $29 from $33.

Target price is $29.00 Current Price is $29.83 Difference: minus $0.83 (current price is over target).
If NCM meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.31, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Macquarie rates NHC as Underperform (5) -

Macquarie is cautious on the outlook for thermal coal since the markets have been hit by covid-19 led demand declines which has sent thermal coal prices plummeting to multi-year lows in 2020.

Thermal coal prices are currently -2%, -15% and -13% lower than Macquarie's forecasts for FY21-23, driving a -12-30% downside risk to its earnings estimates for New Hope Corp.

In the medium-long term, the broker thinks environmental concerns will affect the demand outlook for coal and drive investors away from thermal coal investing.

The broker reiterates its Underperform rating with the target price rising slightly to $1 from $0.90.

Target price is $1.00 Current Price is $1.16 Difference: minus $0.16 (current price is over target).
If NHC meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.31, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates NST as No Rating (-1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Macquarie is on research restrictions for Northern Star and unable to advise of a rating or target.

Current Price is $15.16. Target price not assessed.

Current consensus price target is $14.93, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates OGC as Downgrade to Underperform from Neutral (5) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

OceanaGold downgraded to Underperform from Neutral. Target falls to $1.70 from $2.00.

Target price is $1.70 Current Price is $1.91 Difference: minus $0.21 (current price is over target).
If OGC meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.95, suggesting upside of 57.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Macquarie rates ORG as Neutral (3) -

Macquarie has reduced its long-term energy price assumption to $60/MWh from $70/MWh across all markets.

The broker believes this will hurt Origin Energy's renewables portfolio but the company has a significant LNG business and retail gas business providing earnings diversification.

Neutral retained, target ticks down to $4.84 from $5.34.

Target price is $4.84 Current Price is $4.76 Difference: $0.08
If ORG meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

Macquarie downgrades its rating to Neutral from Outperform with a target price of $3.30.

The broker notes value rotation and the rising possibility of a change in government in Papua New Guinea have driven the stock up 46% since November.

According to Macquarie, reducing the breakeven and selling down the Alaska oil project are the key catalysts.

Target price is $3.30 Current Price is $3.76 Difference: minus $0.46 (current price is over target).
If OSH meets the Macquarie target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.44, suggesting downside of -12.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.5

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

Citi rates OZL as Neutral (3) -

OZ Minerals has approved an additional $47m to progress the Prominent Hill expansion study. The expansion expenditure is higher than Citi anticipated while all-in operating expenditure is similar.

The broker reduces the risk weighting by -10%, given the study's progression. A final decision on the expansion will be made mid-2021. Citi retains a Neutral rating and $15.40 target.

Target price is $15.40 Current Price is $15.01 Difference: $0.39
If OZL meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.41, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Credit Suisse rates OZL as Underperform (5) -

Prominent Hill processing will be sustained at capacity through to 2024, which has positive implications for FY23-24 earnings, Credit Suisse assesses.

There is also a strong likelihood of extensions to the mine life from ongoing resource conversion.

The broker likes the stock for its copper exposure and quality cornerstone assets yet struggles with the valuation and retains an Underperform rating. Target is raised to $13.30 from $12.55.

Target price is $13.30 Current Price is $15.01 Difference: minus $1.71 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.41, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates OZL as Outperform (1) -

Macquarie includes the numbers from the Prominent Hill underground expansion study in its estimates.

The study shows a capital investment of -$450m is expected to reduce operating costs by -$10-15/t while enabling 20–50% higher throughput rates over the life of the project.

On the flip side, the broker also makes some material cuts to its gold price forecasts which more than offsets the positives from Prominent Hill. As a result, Macquarie's 2020-23 earnings forecasts fall by -6%, -19% and -10%.   

Outperform is retained. Target price falls to $17.40 from $18.

Target price is $17.40 Current Price is $15.01 Difference: $2.39
If OZL meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $15.41, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Morgan Stanley rates OZL as Overweight (1) -

The Prominent Hill expansion study returned better economics than Morgan Stanley was expecting.

The company estimates 6mtpa at a capital cost of -$450m. Deep drilling has established copper beneath the inferred resources.

Full capacity milling has been extended but the broker suspects the economics are likely to be marginal. New marginal stockpiles extend plant capacity for another 18 months, when the expansion should start.

Overweight rating. Target is $15.90. Industry view: Attractive.

Target price is $15.90 Current Price is $15.01 Difference: $0.89
If OZL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $15.41, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

UBS rates OZL as Buy (1) -

The results of the shaft study at Prominent Hill were less than UBS's preliminary forecasts. As a result, the broker has downgraded its net present value by -4%. The capex estimate of the project is circa -$450m, higher than the broker's initial forecast of -$300m.

The broker factors in a mine life out to 2037 by which time 76% of the resource is expected to be mined. 

UBS maintains a Buy rating on OZ Minerals. with the target declining to $17 from $17.60.

Target price is $17.00 Current Price is $15.01 Difference: $1.99
If OZL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $15.41, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates PRU as Outperform (1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Outperform retained for Perseus Mining. Target falls to $1.40 from $1.70.

Target price is $1.40 Current Price is $1.28 Difference: $0.12
If PRU meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.53, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates RHC as Hold (3) -

After a trading update by Ramsay Health Care, Morgans believes the near-term outlook is increasingly challenged as the pandemic makes forecasting difficult.

While surgical volumes were up across the board, the broker describes the first quarter as mixed. There were signs of recovery in Australia, but higher cost weighed on profits. 

Management noted “surgical restrictions, regional outbreaks and lower demand for some services, combined with higher costs associated with operating in the current environment, have all impacted the results".

The analyst continues to view the pandemic as a psychological crisis, with patient behaviour negatively impacting the procedural mix and doctors a capacity constraint.

 The Hold rating and target of $62.31 are unchanged. 

Target price is $62.31 Current Price is $67.60 Difference: minus $5.29 (current price is over target).
If RHC meets the Morgans target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $68.59, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

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

Turquoise Hill, 51% owned by Rio Tinto, has updated its guidance. Copper and gold production for 2020 has been maintained at 140-170,000t and 155-180,000 ounces, respectively.

The third quarter operating earnings were slightly better than Morgan Stanley expected and costs were also better.

The company has confirmed available liquidity of US$1.3bn, which should cover cash needs for the remaining 12 months, and options are being explored for capital requirements beyond that period.

Equal-weight rating. Target is $100. Industry view: Attractive.

Target price is $100.00 Current Price is $97.82 Difference: $2.18
If RIO meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $107.07, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Macquarie rates RRL as Underperform (5) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Underperform retained for Regis Resources. Target falls to $3.90 from $4.50.

Target price is $3.90 Current Price is $4.09 Difference: minus $0.19 (current price is over target).
If RRL meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.47, suggesting upside of 41.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates RSG as Outperform (1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve begnining to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Outperform retained for Resolute Mining. Target falls to $1.00 from $1.40.

Target price is $1.00 Current Price is $0.83 Difference: $0.17
If RSG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates SAR as No Rating (-1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Macquarie is subject to research restrictions on Saracen and cannot advise a rating or target.

Current Price is $5.68. Target price not assessed.

Current consensus price target is $5.98, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SBM as Underperform (5) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve begnining to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Underperform retained for St Barbara. Target falls to $2.30 from $2.80.

Target price is $2.30 Current Price is $2.73 Difference: minus $0.43 (current price is over target).
If SBM meets the Macquarie target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.54, suggesting upside of 35.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates SBM as Overweight (1) -

Gwalia ventilation upgrades were completed in the September quarter and should improve production and consistency, according to Morgan Stanley.

The broker notes a Gwalia optimisation study is due in the December quarter and could add further value.

Morgan Stanley assesses the company trades at an around -50% discount to peers and this should start to close.

Overweight rating is maintained with a target price of $3.90. Industry view is Attractive. 

Target price is $3.90 Current Price is $2.73 Difference: $1.17
If SBM meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 35.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SFR as Neutral (3) -

Macquarie downgrades its FY21-24 earnings forecasts for Sandfire Resources after incorporating material cuts to its gold price forecasts.

Sandfire Americas has launched a CAD$30m rights issue to fund the next phase of spending on the Black Butte project. According to the broker, some important catalysts include the T3 Project's release of its optimised feasibility report and the approval of the project.

Neutral rating is retained with the target falling to $4.20 from $4.50.

Target price is $4.20 Current Price is $4.35 Difference: minus $0.15 (current price is over target).
If SFR meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.24, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates SHL as Outperform (1) -

Testing rates for coronavirus have rapidly expanded in the US and Europe. Sonic Healthcare has around 70% earnings exposure to the northern hemisphere, Credit Suisse points out.

The broker calculates the margins earned on these tests far exceed historical averages. Operating earnings estimates are raised by 13% for FY21, to account for the stronger margin and increased testing.

The broker expects a -$1bn reduction in net debt in FY21 and a net cash position in FY23.

The company is expected to use excess capital to pursue bolt-on acquisitions in the fragmented anatomic pathology market in both US and Germany. Outperform retained. Target rises to $39 from $38.

Target price is $39.00 Current Price is $34.66 Difference: $4.34
If SHL meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $37.07, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates SKC as Outperform (1) -

SkyCity Entertainment made some senior management changes and provided a trading update for the period July-October 2020.

Trading remained resilient, observes Macquarie, with the New Zealand and Australian properties domestic revenues at 88% and 92% of pre-covid levels during the first four months of the first half of FY21.

Overall, the broker considers the business to be in good shape due to improved trading despite ongoing social distancing/border closures.

The broker retains an Outperform rating and NZ$3.45 target.

Current Price is $2.84. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

UBS rates SKC as Neutral (3) -

SkyCity Entertainment's FY21 New Zealand revenue for (year to date) at 88% of pre-covid-19 levels is a touch below UBS's forecast of revenue at 90% of pre-covid-19 levels.

The group's update points to improving operating margins for New Zealand. SkyCity continues to expect the FY21 operating income to be well below the pre-covid-19 levels. 

UBS retains a Neutral rating with a target of NZ$3.05.

Current Price is $2.84. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates SLK as Neutral (3) -

The broker considers buoyed domestic tourism, defensiveness of the group's earnings and possible additional contract wins have already been priced in.

Tourism volumes in the second half may exceed those of pre-pandemic levels given the pent up demand, suggests the broker.

Neutral rating is retained with the target price rising to $6.18 from $5.37.

Target price is $6.18 Current Price is $6.65 Difference: minus $0.47 (current price is over target).
If SLK meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates SLR as Outperform (1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Outperform retained for Silver Lake Resources. Target falls to $2.40 from $2.90.

Target price is $2.40 Current Price is $2.03 Difference: $0.37
If SLR meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates SSR as Buy (1) -

The September result was ahead of UBS's expectations with production at 164koz. The company flagged a dividend of $0.05 for the first quarter of 2021, with management hinting at the possibility of more in future if the free cash flow remains strong.

UBS notes the company may also go for buybacks. The broker considers SSR Mining to be at an inflection point for cash flow, with the company’s major assets entering a cash harvest mode. 

Buy rating and $33 target retained. 

Target price is $33.00 Current Price is $26.74 Difference: $6.26
If SSR meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

After a business update from Suncorp Group, Morgan Stanley sees better than expected impairment trends in the bank. Additionally, the broker notes stronger business interruption (BI) provisions in the General Insurance segment, funded by lower motor claims.

Morgan Stanley upgrades cash EPS forecasts for FY21 and FY22 by 2% and 4%, respectively, on lower bank impairments.

The Equal-weight rating is unchanged. The target is increased to $9.90 from $9.50. Industry view: In-line.

Target price is $9.90 Current Price is $9.26 Difference: $0.64
If SUN meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.64, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates SUN as Add (1) -

Suncorp Group expects covid-19 impacts on the insurance business to be broadly neutral in the first half. Lower claims frequency offsets an extra top-up to provisions for business interruption (BI) risks, explains Morgans.

In the bank, a strong credit quality performance resulted in very low impairment losses, notes the broker.

Morgans lifts EPS forecasts for FY21 and FY22 by 1% and 2%, respectively to reflect the slightly lower bank bad debt assumptions. 

The target price rises to $10.20 from $9.90. The Add rating is unchanged.

Target price is $10.20 Current Price is $9.26 Difference: $0.94
If SUN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $10.64, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates SUN as Accumulate (2) -

Suncorp Group's latest update on the impact of covid-19 on its general insurance business in the first half shows provisioning an additional $125m for business interruption (BI) claims mainly due to the Victorian lockdown.

Management expects a neutral effect on profit, albeit with margins substantially weaker than last year.

Ord Minnett sees Suncorp as cheaper than Insurance Australia Group ((IAG)) with the stock offering more upside potential once margins eventually stabilise.

The Accumulate rating is unchanged with a target price of $11.85.

Target price is $11.85 Current Price is $9.26 Difference: $2.59
If SUN meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $10.64, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Newcrest Mining downgraded to Neutral from Outperform. Target falls to $1.10 from $1.30.

Target price is $1.10 Current Price is $1.03 Difference: $0.07
If WAF meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

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

Morgan Stanley expects bank dividends will rebound in 2021 although a recovery in underlying earnings and returns will not emerge until 2022.

While retail bank profitability is under threat, Westpac's franchise performance has been weak and the broker expects a turnaround will take time.

Nevertheless, the outlook for the housing market is improving and mortgage market share loss will moderate. Non-core asset sales are also likely and provisioning is sound.

Hence, Morgan Stanley upgrades to Overweight from Equal-weight. Target is raised to $20.40 from $17.00. Industry view: In-line.

Target price is $20.40 Current Price is $18.60 Difference: $1.8
If WBC meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $20.37, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates WGX as Outperform (1) -

Macquarie's Macro Desk Strategy team now believes the US ten-year bond yield has troughed.

With the yield curve beginning to lift the team has cut its 2021-23 gold price forecasts by -17% to -12%, resulting in earnings forecast downgrades for all gold miners under coverage.

Outperform retained for WestGold Resources. Target falls to $2.80 from $3.20.

Target price is $2.80 Current Price is $2.52 Difference: $0.28
If WGX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates WHC as Underperform (5) -

Macquarie notes the thermal coal markets have been impacted by covid-19 driven demand declines, leading to thermal coal prices dropping to multi-year lows.

These low prices drive -20-100% downside risk to the broker's earnings for Whitehaven Coal. In the medium-long term, environmental concerns are expected to drive investors away from thermal coal investing.

Underperform retained, target rises to $1 from to $0.80.

Target price is $1.00 Current Price is $1.18 Difference: minus $0.18 (current price is over target).
If WHC meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.49, suggesting upside of 15.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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