Australian Broker Call

Bell Potter rates 360 as Buy (1) -

Life360's 2023 revenue was -1% below Bell Potter's forecast but within the guidance range, while adjusted earnings were 49% ahead of
the broker and above the guidance range. The company also provided FY24 revenue and earnings guidance well ahead of forecasts.

Management said it expects to generate positive operating cash flow in each quarter of 2024 and it will launch a new advertising model Guidance includes the start-up costs and initial revenues from this launch.

Bell Potter has upgraded its forecasts and its target to $14.50 from $11.00. Buy retained.

Target price is $14.50 Current Price is $11.30 Difference: $3.2
If 360 meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $13.63, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Morgan Stanley rates 360 as Overweight (1) -

Life360 delivered on Morgan Stanley's sales forecast, beat the broker's earnings (EBITDA) forecast and FY24 guidance exceeded consensus forecasts.

The introduction of advertising to non-paying monthly active users (MAU) is capital light, note the analysts, and even at very modest monetisation rates, implies revenue upgrades by consensus.

More negatively, Morgan Stanley notes net subscriber revenue retention softened sequentially in the 2H versus the 1H despite price increases.

The broker upgrades FY24-25 sales forecasts by 3% and 5%, respectively, and raises earnings estimates by 6% and 13%, respectively. 

The target rises to $14.40 from $11.50. Overweight rating. Industry View: In-Line.

Target price is $14.40 Current Price is $11.30 Difference: $3.1
If 360 meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $13.63, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Ord Minnett rates 360 as Buy (1) -

Ord Minnett raises its target for Life360 to $11.98 from $8.84 after FY23 results beat expectations and management's FY24 guidance metrics were either met or exceeded.

The highlight, according to the analysts, was the announced move into advertising which the broker forecasts will add around $40m of incremental earnings (EBITDA) by FY28 or around $2.00/share to Ord Minnett's target.

Advertising will add a new, high-margin (around 70%) low investment revenue stream, explain the analysts.

Management guided to core Life260 subscription revenue growth of at least 20% and adjusted earnings of between $30-35m versus forecasts by Ord Minnett and consensus of $25m and $32m, respectively.

Target price is $11.98 Current Price is $11.30 Difference: $0.68
If 360 meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.63, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Morgans rates ACF as Add (1) -

Management at Acrow has increased FY24 earnings (EBITDA) guidance by $1m following the -$9m (before earn-outs) acquisition of North Queensland-based Benchmark Scaffolding.

Morgans explains the deal is complementary to the company’s MI Scaffold operations in Mackay and will increase Acrow’s scale around Industrial Services in the state.

The analyst predicts the transaction will be 2% accretive in FY25, the first full year of ownership. The target rises to $1.43 from $1.40. Add.

Target price is $1.43 Current Price is $1.28 Difference: $0.15
If ACF meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.34, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Shaw and Partners rates ACF as Buy (1) -

Acrow has announced the acquisition of Benchmark Scaffolding at a cost of $9.0m, plus earnouts, to be funded through a combination of cash, debt and equity.

Shaw and Partners considers the purchase a sensible and complementary bolt-on. It expects Benchmark Scaffolding to be 5.1% accretive to the portfolio, on a full year basis, and capable of contributing $2.4m in annualised earnings over time.

The Buy rating is retained and the target price increases to $1.35 from $1.30.

Target price is $1.35 Current Price is $1.28 Difference: $0.07
If ACF meets the Shaw and Partners target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.34, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates AIS as Neutral (3) -

First half revenue and earnings (EBITDA) for Aeris Resources of $286m and $34m, respectively, materially exceeded forecasts by Macquarie for $265m and 5m, due to stronger realised prices than anticipated.

While the 1H loss was lower than the broker expected, caution remains with $40m of net debt on the balance sheet. It's felt there may be a requirement for either additional equity or greater debt should metal prices weaken or operational difficulties arise.

The Neutral rating and 13c target are maintained.

Target price is $0.13 Current Price is $0.12 Difference: $0.015
If AIS meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $0.16, suggesting upside of 36.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates ALX as Hold (3) -

Due to the recent quarterly update by Atlas Arteria, 2H traffic volumes and revenue held few surprises for Atlas Arteria though operating cost inflation resulted in lower-than-expected earnings.

The broker highlights distributions are not fully covered by underlying cash flows and are unlikely to increase for several years. 

A further concern for the analyst is that Atlas Arteria and its partners will need to rebuy the French motorways concession in about 11 years at a huge cost, when they are returned to the government debt free.

The target falls to $5.60 from $5.85 and the Hold rating is unchanged.

Target price is $5.60 Current Price is $5.37 Difference: $0.23
If ALX meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.83, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates AMP as Buy (1) -

In what Citi considers to be a positive for the stock, AMP is set to redeem the internal notes issues by AMP Bank which should leave the company with a capital surplus of $415m. 

As of the end of 2023, AMP had already declared a $565m capital surplus. Citi points out $55m was allocated to a final dividend for the year, and $295m to an ongoing shre buyback, leaving the company will a $215m surplus before cashing out these internal notes.

The Buy rating and target price of $1.25 are retained.

Target price is $1.25 Current Price is $1.12 Difference: $0.135
If AMP meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.11, suggesting upside of 0.9% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Bell Potter rates APM as Buy (1) -

APM Human Services International 's result was much in line with guidance provided in January. Profitability was affected by lower client flows into employment services in the Australia and the UK, while the health business is yet to reach scale, Bell Potter notes.

The outlook highlighted a mixed FY24 which overall remains subdued, however FY25 should see upside, the broker suggests.

The result was overshadowed by a revised takeover offer at $2.00. Bell Potter rises its target to the offer price less a time value discount at $1.93, up from $1.50. Buy retained.

Target price is $1.93 Current Price is $1.67 Difference: $0.26
If APM meets the Bell Potter target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.72, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgans rates AUA as Speculative Buy (1) -

Audeara's 1H loss of -$1m was an improvement on the -$1.8m loss in the previous corresponding period. Operating revenue was lower than Morgans' forecast due to both timing and recognition of Australian sales orders, and initial stocking for new EU jurisdictions.

The broker cautions gross margin improvement in the period due to customer mix will likely revert as larger distributors restock.

Earlier in the week, management announced a new technology sales order, which subsequently lifted the share price, observes Morgans.

According to management, the $2.1m order (to mass produce white label products for a specialist musical percussion instrument manufacturer) will push the company towards profitability.

The Speculative Buy rating and 14c target are unchanged.

Target price is $0.14 Current Price is $0.05 Difference: $0.087
If AUA meets the Morgans target it will return approximately 164% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates BC8 as Buy (1) -

Black Cat Syndicate has issused the assay results from 45 reverse circulation exploration holes drilled late last year. The update has included the identification of a new regional prospect, Grey Goose, located 500 metres from the Belvedere deposit. 

With the current Belvedere resource totaling 30,000 ounces, Shaw and Partners points out potential for resource growth, with exploration successfully intersecting mineralisation 75 metres from the current envelope.

The Buy rating and target price of 74 cents are retained.

Target price is $0.74 Current Price is $0.20 Difference: $0.545
If BC8 meets the Shaw and Partners target it will return approximately 279% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates CAJ as Outperform (1) -

Capitol Health's in-line1H revenue and lower operating expenses drove a 1.6% underlying earnings (EBITDA) versus Macquarie's forecast.

Underlying profit was a -7% miss against the broker's estimate due to higher D&A and interest expenses partly offset by lower tax. Lower employee costs as a proportion of sales resulted in a half-on-half increase of 200bps for the earnings margin.

The Outperform rating is maintained and the target rises to 32c from 30c.

Target price is $0.32 Current Price is $0.27 Difference: $0.05
If CAJ meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $0.30, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates CMW as Hold (3) -

Commenting on 1H results for Cromwell Property, Morgans notes gearing remains high at 44.7%, but the potential sale of Polish assets would bring this level back to around 34%.

Management has signed a letter of intent with binding commitments, and if completed, the sale is expected to occur in the 4Q of FY24.

No FY24 guidance was provided though management expects to pay a 75cpu distribution for the March quarter.

The broker's sum-of-the-parts valuation is 61cpu, which assumes the property portfolio falls -7% in value against book values at December 31, 2023. The target falls to 46c from 70c. Hold.

Target price is $0.46 Current Price is $0.42 Difference: $0.04
If CMW meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates FDV as Add (1) -

Frontier Digital Ventures' FY23 revenue was in line with Morgans' forecast, while the -$10.2m loss was a slight improvement on the -$10.5m anticipated.

Despite ongoing economic headwinds, the earnings trajectory is improving across the consolidated portfolio, notes the analyst.

The broker believes the more difficult trading environment for Zameen in Pakistan is more a cyclical issue rather than being structural.

The Add rating is unchanged and the target rises to 79c from 77c on Morgans improved group earnings margin assumptions.

Target price is $0.79 Current Price is $0.45 Difference: $0.34
If FDV meets the Morgans target it will return approximately 76% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates IMR as Initiation of coverage with Speculative Buy (1) -

Morgans initiates coverage on Imricor Medical Systems with a Speculative Buy rating and 96c target price. The company develops innovative magnetic resonance imaging (MRI)-compatible medical devices for the treatment of irregular heartbeats, explains the broker.

The current approval in Europe for atrial flutter is being expanded toward atrial fibrillation and ventricular tachycardia. Consequently, the analysts note a potentially significant increase in market potential.

Having recently completed an $8.6m capital raising, Morgans explains funds will be deployed to increase commercial procedures in Europe and the Middle East.

Also, management intends to invest in product launches across A&NZ and commence two global clinical trials to support the expanded indications mentioned above.

Target price is $0.96 Current Price is $0.47 Difference: $0.49
If IMR meets the Morgans target it will return approximately 104% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Morgans rates KAR as Add (1) -

Operating cash flow for Karoon Energy in the 2H was US$303m compared to forecasts by consensus and Morgans for US$250m and US$243m, respectively, helped by a one-off tax saving from a Brazilian government tax incentive.

Overall, the broker assesses a “strong” result, with both strong (in-line) earnings and cash flow.

Management left all major FY24 production guidance unchanged.

Add-rated Karoon remains one of Morgans top sector preferences. The target rises to $3.00 from $2.80.

Target price is $3.00 Current Price is $1.98 Difference: $1.02
If KAR meets the Morgans target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting upside of 38.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Bell Potter rates MDR as Buy (1) -

MedAdvisor reported revenue up 18% year on year, as was flagged in the Q2 update, exceeding the top end of guidance. Revenues grew across both the US (18%) and A&NZ (21%) segments, Bell Potter notes.

Management reiterated guidance for positive FY24 earnings. This would be MedAdvisor’s first full-year positive earnings print and demonstrate solid execution on the company’s pathway to profitability, the broker suggests.

Over 75% of internally projected 2H24 revenues have already been contracted and the pipeline under consideration is promising.

Target rises to 44c from 42c, Buy retained.

Target price is $0.44 Current Price is $0.29 Difference: $0.15
If MDR meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates MEI as Buy (1) -

Meteoric Resources reported final recovery results from a composite sample from its Capao do Mel deposit. The testwork successfully produced a saleable mixed rare earth carbonate (MREC) product, Bell Potter notes.

From a recoveries perspective, the results are "a fantastic first step", the broker suggests, however the company will now focus on further optimising the impurity removal process, focusing on reducing impurities like iron and aluminium.

Bell Potter views Meteoric Resources as being attractively positioned versus peers and lifts its target to 50c from 40c. Buy retained.

Target price is $0.50 Current Price is $0.19 Difference: $0.315
If MEI meets the Bell Potter target it will return approximately 170% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates MP1 as Buy (1) -

For Citi, the highlight of Megaport's second quarter update was the announcment of a $14m annual recurring revenue wide area network (WAN) deal, which it notes is essentially a repackaging of the company's existing products and services. 

The broker believes this deal highlights a renewed customer focus under the new CEO, but does point out that excluding the deal Megaport reported quarter-on-quarter underlying annual recurring revenue growth of 3%.

Citi does anticipate a slightly better performance in the coming quarter. The Buy rating is retained and the target price increases to $16.80 from $12.05.

Target price is $16.80 Current Price is $14.51 Difference: $2.29
If MP1 meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $14.25, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates MRM as Initiation of coverage with Buy (1) -

Citi sees opportunity in MMA Offshore, noting a robust cyclical upswing in offshore capital expenditure is coinciding with an undersupply of new vessels. 

The broker is anticipating peak earnings from MMA Offshore of $91m in FY26, representing 300% growth on core earnings reported for FY23, but notes persistance in the offshore capital expenditure cycle could drive higher earnings for a longer period.

Citi also points out that diversification of revenue, a comparatively younger, more sophisticated fleet, healthy balance sheet and adding length to the contract book could reduce through the cycle risk. 

The broker reinitiates with a Buy rating and a target price of $2.60.

Target price is $2.60 Current Price is $2.22 Difference: $0.38
If MRM meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.58, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates NEU as Buy (1) -

Fourth quarter Daybue sales were up 30% quarter on quarter and near the top end of Acadia’s guidance range, Bell Potter reports. Holiday seasonality impacts are expected to result in a temporary decline this quarter.

2024 implies 6%-21% growth on current fourth quarter annualised sales. It was thus a "stellar" 2023 for Neuren Pharmaceuticals, and licencing royalties from Arcadia will keep flowing in 2024, the broker notes.

It was a "clearly transformational year" from a clinical, regulatory, and financial perspective. Buy and $27 target retained.

Target price is $27.00 Current Price is $19.71 Difference: $7.29
If NEU meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates NIC as Buy (1) -

Nickel Industries reported a 2023 financial result which was slightly ahead of Bell Potter's forecasts at the earnings line but a miss at the profit lines due to higher D&A, withholding tax and finance expenses.

The result reflected record production and good cost control in an environment of materially lower nickel prices and higher input costs, the broker notes.

The highlight of the result for Bell Potter is the maintenance of profitability and good earnings margins through a low in the commodity price cycle. This is due to the miner’s low-cost operations, diversified product mix and exposure across the nickel production value chain.

Buy and $1.53 target retained.

Target price is $1.53 Current Price is $0.77 Difference: $0.76
If NIC meets the Bell Potter target it will return approximately 99% (excluding dividends, fees and charges).

Current consensus price target is $1.14, suggesting upside of 41.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Shaw and Partners rates NXG as Initiation of coverage with Buy (1) -

Shaw and Partners has initiated coverage on NexGen Energy, developer of the Saskatchewan Rook I uranium project. According to the broker it would be difficult to overstate the exceptional quality of the resource underpinning this project.

The project boasts a measured and indicated resource totalling 257m pounds at 3.1% uranium, and more than 60% of this has a grade around 17%. Shaw and Partners sees potential for the project to generate more than CAD$3bn. 

The broker initiates with a Buy rating and a target price of $17.50.

Target price is $17.50 Current Price is $10.91 Difference: $6.59
If NXG meets the Shaw and Partners target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates RDG as Buy (1) -

Resource Development reported group revenue up 135% year on year, with a miss to Bell Potter due to lower than expected revenue generated from the Onslow iron ore project contract.

Garnet sales grew to $7.5m (below the broker's $11.3m), up from $1.6m year on year, with production ramp-up to commercial rates ongoing.

Bell Potter views Lucky Bay reaching nameplate capacity by late FY25 as an important milestone for the company as it becomes an established miner, with growing expected earnings and cash flow to complement its mining services business.

Target falls to 5.5c from 6.8c, Buy retained,

Target price is $0.06 Current Price is $0.04 Difference: $0.02
If RDG meets the Bell Potter target it will return approximately 57% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates RHC as Accumulate (2) -

Ord Minnett's view on Ramsay Health Care is easily summarised: the hospitals operator continues to face material post-pandemic headwinds and challenges, but the shares are too cheaply priced.

The broker holds an optimistic view on the company's longer term outlook, including plans for increased investments in Australia and in digital overseas.

The broker's fair value estimate remains $68. Margins are currently constrained by investments in digital, explains the analysts, but by FY28 they should expand by 10%.

Forecasts for FY24 have been reduced, but slightly increased for FY25. Accumulate.

Target price is $68.00 Current Price is $54.46 Difference: $13.54
If RHC meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $58.10, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates S32 as Upgrade to Outperform from Neutral (1) -

Macquarie upgrades its rating for South32 to Outperform from Neutral due to an improved operating performance, potential capital management and after applying a higher mutliple for the aluminium operations.

Should the Illawarra metallurgical coal sale proceed, the broker anticipates the company's concentrated aluminium and base metals exposure will provide upside into next year as prices strengthen.

The analyst forecasts an additional US$1.3bn of discretionary cash will be available in FY25 under the company's capital allocation framework.

The target rises to $3.40 from $3.10. 

Target price is $3.40 Current Price is $3.02 Difference: $0.38
If S32 meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 24.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

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

UBS upgrades its rating for Select Harvests to Buy from Neutral as the new CEO is delivering ahead of initial targets for cost and cash flows. Additionally, the almond price has improved in recent months with a positive impact on the company's balance sheet.

Regarding strategic initiatives, management has increased profit benefits to $40m from $15-25m due to lower people costs, along with lower water and power costs, explains the analyst.

UBS reduces its FY25 cost forecast for Select Harvests to $6.38/kg from $6.66/kg.

The broker's target rises to $5.10 from $4.20 on higher earnings forecasts and a higher assumed multiple.

Target price is $5.10 Current Price is $4.29 Difference: $0.81
If SHV meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.07, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates SIG as Neutral (3) -

While remaining subject to regulatory approval, the Sigma Healthcare-Chemist Warehouse merger is expected to be completed in the second half of 2024. Citi notes Sigma Healthcare will pay out $700m in cash under the agreement.

Sigma Healthcare will also issue 9.9bn share, at a total consideration of $8.5bn. Citi's forecasts currently do not account for for the closure of the sale, but the broker has adjusted its modelling to reflect Sigma Healthcare's $400m raise.

The Neutral rating is retained and the target price increases to $1.15 from 78 cents.

Target price is $1.15 Current Price is $1.13 Difference: $0.025
If SIG meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $0.96, suggesting downside of -16.8% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Shaw and Partners rates SYR as Buy (1) -

In continued efforts to diversify Balama sales away from Chine, Syrah Resources has announced a binding offtake agreement with POSCO Future M, the world's largest anode chemical producer outside of China. 

As per the agreement, Syrah Resources will provide up to 5,000 tonnes of Balama concentrate per month. Shaw and Partners notes POSCO aims to invest US$93bn by the end of the decade, with 46% of that comitted to lithium-ion battery chain. 

It is the broker's opinion that this agreement highlights the global significance of Syrah Resources to battery and anode supply chain.

The Buy rating and target price of $1.30 are retained.

Target price is $1.30 Current Price is $0.69 Difference: $0.61
If SYR meets the Shaw and Partners target it will return approximately 88% (excluding dividends, fees and charges).

Current consensus price target is $0.90, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates SYR as Buy (1) -

While news of the long-term off-take agreement with Posco Future M Co was a positive for Syrah Resources, UBS was a little disappointed on the pricing, which offers no protection to the China-dominated spot price.

The agreement is to provide natural graphite product from Balama for six years commencing upon notification from Posco, on or before December 31, 2025.

Buy and $1.00 target retained.

Target price is $1.00 Current Price is $0.69 Difference: $0.31
If SYR meets the UBS target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $0.90, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in December.

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 XRO as Upgrade to Outperform from Underperform (1) -

Macquarie increases its target for Xero to $152.60 from $87 and upgrades by two rating notches to Outperform from Underperform.

These changes reflect the broker's increased confidence in the company's strategy as expressed by new key management personnel. Better product development and an improved customer value proposition are anticipated.

A demonstration of the generative AI assistant (Just Ask Xero) reflects an advanced data and AI strategy that will potentially improve efficiency, in the analysts's view.

Management will continue to focus on the US opportunity in the direct channel, notes Macquarie.

Target price is $152.60 Current Price is $134.93 Difference: $17.67
If XRO meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $121.55, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.5

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

Ord Minnett rates XRO as Sell (5) -

Morningstar analyst Roy van Keulen is not a member of the Xero fanclub and thus Ord Minnett, whitelabeling its research, isn't either. The mantra that continues permeating all research updates is: Xero's international expansion is doomed to failure.

Whereas the new CEO has outlined plans for the future at last week's investor briefings, the analyst simply doubts whether Xero ever will be successful in the USA.

Fair value estimate is $78. Sell. No changes have been made to forecasts.

Target price is $78.00 Current Price is $134.93 Difference: minus $56.93 (current price is over target).
If XRO meets the Ord Minnett target it will return approximately minus 42% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $121.55, suggesting downside of -10.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.5

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