Australian Broker Call

Bell Potter rates A2M as Hold (3) -

a2 Milk Co reported lower than expected results in FY24, including revenue, EBITDA and net profit, Bell Potter highlights, as the company struggled with Chinese market share.

The company's varying sales channels, including cross border, offline-to-line, Daigou and direct infant formula sales to China all reported slowing sales growth over the 2H24 while the broker points to higher marketing spend.

FY25 management guidance stands at mid-single digit revenue growth, lower than the Bell Potter and consensus forecasts with flat EBITDA margins.

The analyst revises EPS forecasts by -13% for FY25 and -8% for FY26 due to lower margins and higher NZ interest rates.

Hold rating unchanged. Target price falls to $6.20 from $7.05.

Target price is $6.20 Current Price is $5.70 Difference: $0.5
If A2M meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.66, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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 A2M as Neutral (3) -

Macquarie observes the FY24 result from a2 Milk Co met guidance and expectations. There were some supply issues affecting growth and costs which have hampered the outlook.

The broker notes China's infant formula market dropped -10.7% by value and -8.6% in volume amid pricing pressure and the company expects mid single-digit value declines in FY25 despite an expected rebound in births.

Operating issues affecting delivery are part of the supply constraints affecting the outlook but should be resolved in the first half. Neutral retained. Target is reduced to $5.60 from $5.70.

Target price is $5.60 Current Price is $5.70 Difference: minus $0.1 (current price is over target).
If A2M meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.66, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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 A2M as Hold (3) -

a2 Milk Co’s FY24 result marginally beat guidance however it was slightly below consensus estimates. a2’s execution in FY24 was a standout, Morgans suggests, especially in light of a declining and challenging market.

As the broker expected, FY25 outlook comments disappointed -- even weaker than thought due to Synlait Milk’s ((SM1)) operational issues. This will result in material consensus downgrades, Morgans suggests.

The broker's concerns that consensus forecasts and a2’s share price were getting ahead of themselves have proven correct. The stock should not have traded close to its historical PE multiple of 30x, in the broker's view, given its materially lower growth profile.

Target rises to $6.25 from $6.05, Hold retained.

Target price is $6.25 Current Price is $5.70 Difference: $0.55
If A2M meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.66, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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 AD8 as Outperform (1) -

Macquarie flags a record result in FY24 from Audinate Group, noting leading indicators look "healthy". That said FY25 is expected to be a difficult year as inventory is absorbed, although a return to growth should occur in FY26.

The company has indicated gross margins of 80% should be reached in the short term from the mix shifting to software implementations while reiterating long-term gross margin guidance of 85%.

The broker considers the long-term outlook attractive and retains an Outperform rating. Target rises to $14.60 from $10.50.

Target price is $14.60 Current Price is $11.33 Difference: $3.27
If AD8 meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $11.53, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgan Stanley rates AD8 as Overweight (1) -

Audinate Group's pre-reported FY24 result was broadly in-line with Morgan Stanley's forecasts but the FY25 customer over-ordering/de-stocking outlook was worse-than-expected.

The broker highlights the ongoing expansion of the Dante ecosystem and maintenance of Audinate's competitive position. A strong balance sheet featuring $117m of cash is considered another positive.

Management has appointed a Chief Strategy Officer to lead the M&A strategy.

Overweight. Target $10. Industry view: In Line.

Target price is $10.00 Current Price is $11.33 Difference: minus $1.33 (current price is over target).
If AD8 meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.53, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

UBS rates AD8 as Downgrade to Neutral from Buy (3) -

After the shock of Audinate Group's FY25 downgrade earlier this month, there were a number of positives within the detailed FY24 result, UBS suggests. Management noted 2-4x market growth in FY26 and beyond.

The broker continues to like the long-term opportunity and has previously flagged that a small incremental uplift in medium term growth rates can have a large swing on valuation.

That said, given the strong share price reaction to the result, together with the challenging comparables in the first half FY25 and the fact earnings will likely be heavily second half-skewed, UBS downgrades to Neutral from Buy.

Target rises to $12.20 from $10.90.

Target price is $12.20 Current Price is $11.33 Difference: $0.87
If AD8 meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $11.53, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Bell Potter rates ADA as Buy (1) -

Adacel Technologies reported mixed FY24 results, Bell Potter highlights slightly better than forecast EBITDA, above downgraded guidance.

Profit after tax exceeded expectations, once a one-off -US$1.9m impairment loss relating to the remote tower business is backed out, which was acquired in the 2H22.

The broker observes net debt of US$4.4m with FY25 guidance in line with forecasts, including the ongoing FAA support contract.

Bell Potter adjusts the FY25 earnings estimate by -9% for the contested FAA support contract from the unsuccessful tenderer, to be conservative.

Target price lowered to 65c from 75c. Buy rating unchanged.

Target price is $0.65 Current Price is $0.48 Difference: $0.17
If ADA meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Macquarie rates ALD as Outperform (1) -

In further analysis of Ampol's FY24 result, Macquarie notes a lower refining margin intersected with several company specifics such as more frequent refinery turnarounds/outages, higher costs and expenditure.

That said, the broker believes those that are focused on 2025 will be rewarded with strong earnings and dividend growth.

In convenience, the company held onto very "solid" fuel margins despite a softening in consumer demand and loss of base grade market share. Outperform retained. Target is reduced to $35.75 from $36.50.

Target price is $35.75 Current Price is $30.54 Difference: $5.21
If ALD meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $34.46, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in December.

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

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

Ampol's replacement cost of sales operating profit (RCOP) earnings (a measure of earnings from core operations adjusted for the impact of oil price volatility) were in line with Morgan Stanley's forecast but -2% adrift of consensus.

EBIT of $89.5m from the Lytton refinery missed the consensus forecast by -10% owing to unplanned outages and a refining margin of US$10.27/bbl in H1, explains the broker. Convenience Retail EBIT was $175m, also a -3% miss against consensus.

The fully franked interim dividend of 60 cents fell short of the 69.6 cents anticipated by consensus.

Target $35. Equal-weight. Industry view: Attractive.

Target price is $35.00 Current Price is $30.54 Difference: $4.46
If ALD meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $34.46, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates ALD as Upgrade to Buy from Hold (1) -

By recording 1H profits of $502m, Ampol met the bottom end of its own guidance range for between $500-510m. Underlying net profit fell -4% short of the consensus forecast on increased financing costs, explains Ord Minnett.

As downside risks are already factored into the current share price, the analyst upgrades the rating to Buy from Hold.

An interim dividend of 60 cents was declared, lower than the broker's anticipated 70 cents, reflecting a payout ratio of 61%.

The $35.50 target is unchanged. 

Target price is $35.50 Current Price is $30.54 Difference: $4.96
If ALD meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $34.46, suggesting upside of 11.0% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates ALD as Neutral (3) -

Ampol reported in line with UBS but profit missed consensus estimates by -9% due to higher interest costs.

The broker estimates the combined impact of this year’s refinery turnaround and heavy capex skewed to the second half draws leverage into the mid-point of Ampol’s target range, where UBS expects it to remain through 2025.

The broker anticipates leverage will climb over 2024-25 to 2.1-2.2x, which it expects will temper investors’ expectations on the likelihood of capital management over the period.

On modest forecast earnings growth over 2024-28, Neutral retained. Target falls to $31.60 from $33.00.

Target price is $31.60 Current Price is $30.54 Difference: $1.06
If ALD meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $34.46, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in December.

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 AMC as Neutral (3) -

Amcor reported a "solid" 4Q24 result according to Citi, which met expectations.

Destocking appears to have been completed in most markets with the broker noting an inflexion point for flexible volumes, although destocking is expected to continue in the higher margin healthcare products.

Management highlighted the rigid volumes remain soft, down -8% year-on-year and no imminent turnaround is expected.

Higher incentives for employees provides a -4% EPS headwind in FY25, Citi states.  Target price rises to $17 from $15. Neutral rating unchanged.

Target price is $17.00 Current Price is $15.67 Difference: $1.33
If AMC meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $15.87, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.0

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

Citi rates ANZ as Sell (5) -

At first glance, Citi found the third quarter update from ANZ Bank provided very little new information. Lending growth continues to accelerate at 3% in the third quarter while deposit growth lagged at 2%.

Asset quality trends appear to the broker to be better than peers, likely reflecting a different business mix. Individual provisions remain low and below the peer group. Sell maintained. Target is $24.50.

Target price is $24.50 Current Price is $29.74 Difference: minus $5.24 (current price is over target).
If ANZ meets the Citi target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.66, suggesting downside of -7.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

UBS rates ASG as Buy (1) -

Autosports Group has entered an agreement to acquire the Stillwell Motor Group, a $345m revenue business operating a portfolio of three BMW, four Volvo, one Mini and one Ducati dealership in Victoria.

Autosports has a stated strategy of aiming to acquire around $250m of revenue per year, so this acquisition is not surprising to UBS, but is on the larger side with turnover representing some 13% of UBS' existing FY25 revenue forecast.

The deal could imply 12% potential upside to the broker's FY26 profit forecasts, but is unlikely to be this accretive near term given Stillwell's large relative exposure to Volvo.

Buy retained on a positive medium term view and undemanding 7x PE. Target unchanged at $3.10.

Target price is $3.10 Current Price is $2.18 Difference: $0.92
If ASG meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $3.08, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates BBN as Neutral (3) -

At first glance, Macquarie notes FY24 results from Baby Bunting indicate a decline in same-store sales growth of -6.3% with gross margins reduced to 36.8%, affected by competitor discounting.

The company expects FY25 underlying net profit in the range of $9.5-12.5m, based on same-store sales growth of up to 3% and a gross margin of 40%. Macquarie's view is more conservative. Neutral and $1.40 target.

Target price is $1.40 Current Price is $1.53 Difference: minus $0.125 (current price is over target).
If BBN meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.66, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates BSL as Buy (1) -

Citi points to lower-than-expected FY25 guidance from BlueScope Steel including the downsizing of the North Star rolling mill expansion to 300ktpa, with the option to increase to 3.5mtpa over the longer term.

In the 1H25, the broker highlights Asia is stronger on the 2H24; Australia is slightly weaker with NZ and Pacific Islands stronger.

The broker points to the higher dividend of a minimum of 60c in FY25 as a positive, as well as the extended share buyback to $270m over the next year.

US operations have been "resilient" but are expected to come under pressure in the 1H25 and be well down on 2H24. EPS forecasts are revised by -12.9% and -8.6% for FY25/FY26, respectively.

Target price falls to $23 from $23.70. Buy rating unchanged.

Target price is $23.00 Current Price is $19.89 Difference: $3.11
If BSL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $21.10, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Macquarie rates BSL as Outperform (1) -

BlueScope Steel's FY24 results beat expectations, largely on the back of North America. Macquarie found the EBIT guidance for the first half of $340-420m a little soft, driven largely because of spread impacts at North Star.

Still, the valuation is considered attractive and the business is controlling what it can. Asian market conditions could be a drag for longer, the broker adds, but a US recovery underpins its view. Outperform. Target is reduced to $24.00 from $26.10.

Target price is $24.00 Current Price is $19.89 Difference: $4.11
If BSL meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $21.10, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Morgan Stanley rates BSL as Underweight (5) -

BlueScope Steel's FY24 earnings (EBIT) missed forecasts by Morgan Stanley and consensus by -5% and -3%, respectively, while first-time 1H FY25 guidance missed forecasts by -12% and -24%.

Along with cyclically low spreads, the broker highlights the non-spread/coating businesses are also facing a challenging backdrop.

The final dividend of 30 cents beat the analysts' 25cps expectation, reflecting a shift to a 60cps per year target.

The target falls to $18.50 from $20.00. Underweight. Industry view: In-Line.

Target price is $18.50 Current Price is $19.89 Difference: minus $1.39 (current price is over target).
If BSL 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 $21.10, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

UBS rates BSL as Buy (1) -

The US drove the bulk of BlueScope Steel's first half FY25 guidance miss versus UBS. While the broker now sees limited recovery for BlueScope Coated Products in the half, it continues to see support for steel spreads and sits marginally ahead of North Star guidance.

While Colorbond volumes declined -9% half on half, management noted Australian domestic volumes will be largely sideways in first half FY25. Capex remains elevated but project timelines are well signalled and, in the broker's view, justified.

Target falls to $23.50 from $25.00, Buy retained.

Target price is $23.50 Current Price is $19.89 Difference: $3.61
If BSL meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $21.10, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Morgans rates COF as Downgrade to Hold from Add (3) -

Centuria Office REIT’s FY24 result was in line with guidance however the near term outlook remains challenging with FY25 guidance below Morgans' estimates, largely due to impacts from divestments and conservative leasing assumptions.

Gearing is over 41% and post balance date the REIT successfully refinanced and renegotiated covenants.

While Morgans acknowledges the attractive yield on offer, valuation discount and repositioned balance sheet, the broker downgrades to Hold from Add until there is further clarity around leasing outcomes which will continue to put near term pressure on occupancy/cap rates/income.

Target falls to $1.35 from $1.60.

Target price is $1.35 Current Price is $1.20 Difference: $0.155
If COF meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Ord Minnett rates DHG as Buy (1) -

While describing Domain Holdings Australia's FY24 result as "robust", Ord Minnett notes FY24 metrics and FY25 guidance were broadly in line with expectations.

Listings growth in FY25 is matching the trends shown at key rival, REA Group ((REA)), highlights the analyst, and relative listings coverage has returned to approximately 100%.

The target falls to $3.50 from $3.75 and the Buy rating is maintained. Note: under prior whitelabeled research from Morningstar in early-May, the rating was Lighten and the target was $2.60.

Target price is $3.50 Current Price is $2.87 Difference: $0.63
If DHG meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.30, suggesting upside of 18.7% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Macquarie rates DRR as Neutral (3) -

At first glance, Macquarie observes Deterra Royalties posted EBITDA for FY24 that was in line with expectations while net profit slightly missed because of interest and hedging.

The broker points out Trident Royalties shareholders have approved the takeover bid by the company for a consideration of GBP144m and the transaction remains subject to UK court approval.

The acquisition will bring a Thacker Pass royalty, nine gold operating offtakes and several other developments into the portfolio. Neutral. Target is $4.

Target price is $4.00 Current Price is $3.68 Difference: $0.32
If DRR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates DXS as Neutral (3) -

At first glance the FY25 earnings guidance of 44.5-45.5c per security from Dexus and distributions of 37c are below expectations.

Therefore, Citi envisages the stock drifting lower in the short term. FY24 earnings per share of $0.48 were also slightly below expectations.

Neutral rating and $8.20 target.

Target price is $8.20 Current Price is $7.50 Difference: $0.7
If DXS meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.80, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Macquarie rates DXS as Outperform (1) -

At first glance,  the FY24 earnings from Dexus were in line with Macquarie's estimates.

The broker notes the capital allocation framework is shifted to a sector-aligned operating model, with the company targeting less than 50% exposure to any single sector and less than 15% to developments, with 7-9% investment portfolio returns.

From FY25, the distribution policy has been updated to 80-100% of AFFO, formerly 100%, with management believing this provides a sustainable source of capital to invest through the cycle. Outperform. Target is $6.51.

Target price is $6.51 Current Price is $7.50 Difference: minus $0.99 (current price is over target).
If DXS 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 $7.80, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates GPT as Buy (1) -

Citi highlighted GPT Group reaffirmed the funds from operations of 32c and a dividend of 24c for FY24, with retail and logistics continuing to perform strongly.

The group has increased leasing incentives to 43%. Office occupancy is stable. Funds management is a key area of growth, the broker notes.

EPS forecasts are raised by 1.7% for FY24 and 1.2% for FY25. Target $4.90. Buy.

Target price is $4.90 Current Price is $4.76 Difference: $0.14
If GPT meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.81, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Outperform (1) -

First half results from GPT Group were ahead of Macquarie's expectations. The main highlight has been identified as the refining of the company's strategy to position it as a "leading diversified real estate investment manager".

The broker observes the business is building a track record in attracting capital, with third-party funds increasing 65% since December 2021.

This drives upside to valuation in the medium to longer term. Macquarie retains an Outperform rating. Target is raised to $4.98 (6%).

Target price is $4.98 Current Price is $4.76 Difference: $0.22
If GPT meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.81, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

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

GPT Group's 1H funds from operations (FFO) of 16.14cpu beat the consensus forecast for 15.6cpu due to a higher-than-expected distribution from the GPT Wholesale Office Fund (GWOF), explains Morgan Stanley.

The broker highlights Trust assets are performing well, albeit conditions have marginally softened compared to FY23. 

FY25 guidance for FFO of 32cpu and a 24cpu dividend was reiterated.

Operationally, things look good for 2025-26, suggests Morgan Stanley.

Equal-weight. Target $4.70. Industry view: In Line.

Target price is $4.70 Current Price is $4.76 Difference: minus $0.06 (current price is over target).
If GPT meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.81, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in December.

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 GWA as Outperform (1) -

The FY24 earnings from GWA Group were at the upper end of the pre-reported range and Macquarie observes the business is managing well, delivering volume growth of 2.1%. The EBIT margin expanded to 17.9% and cash conversion was strong at 110%.

The broker was less impressed with the results in New Zealand and challenging conditions are expected for FY25, with freight and FX headwinds.

A mixed outlook is expected overall, with subdued activity in renovations and new residential markets and commercial end markets stronger amid firm demand in health and aged care projects. Outperform. Target edges down to $3.05 from $3.10.

Target price is $3.05 Current Price is $2.58 Difference: $0.47
If GWA meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Macquarie rates HUB as Neutral (3) -

At first glance, underlying net profit from Hub24 was slightly ahead of Macquarie's estimate, while platform EBITDA was below.

The broker suspects this will disappoint the market, given the strength of the share price heading into the result. Neutral rating and $39.40 target.

Target price is $39.40 Current Price is $50.88 Difference: minus $11.48 (current price is over target).
If HUB meets the Macquarie target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.74, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

UBS rates HUB as Neutral (3) -

Hub24's share price rallied above $50 this week and UBS, in an initial assessment of today's FY24 release, comments today's result is probably not strong enough to justify that rally.

Both earnings and dividend have missed UBS's estimates but both seem in line with consensus, the broker comments. New FUA guidance midpoint is below consensus but UBS suggests it is likely conservative.

The broker posits the small miss in EBITDA may suggest some disappointment around costs. Neutral.

Target price is $41.00 Current Price is $50.88 Difference: minus $9.88 (current price is over target).
If HUB meets the UBS target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.74, suggesting downside of -10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates INA as Buy (1) -

In an initial assessment of today's FY24 result from Ingenia Communities, Citi notes EPS of 23.3c beat the consensus forecast by 6% and came in at the top end of the prior guidance range.

The broker attributes the 'beat' to higher-than-expected profit from development settlements in joint ventures. FY24 settlements came in at 462, ahead of Citi's 445 forecast.

While FY25 EPS guidance slightly missed the consensus forecast, the analysts believe management is being conservative given the settlements in joint ventures are likely to ramp-up in FY25.

Buy rating. Target $5.30.

Target price is $5.30 Current Price is $5.08 Difference: $0.22
If INA meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.23, suggesting downside of -2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates IRE as Neutral (3) -

First half earnings were ahead of expectations and guidance from Iress implies a second-half adjusted EBITDA of $57-63m, with Macquarie's estimates towards the top of the range.

While cost reductions and increased discipline have underpinned earnings growth, the broker suggests revenue growth will be the focus going forward.

Neutral retained. Target is raised to $10.25 from $9.70. This reflects upgrades to estimates of 9.9% for FY24 and 4.6% for FY25.

Target price is $10.25 Current Price is $10.43 Difference: minus $0.18 (current price is over target).
If IRE meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.26, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Morgans rates IRE as Hold (3) -

Iress reported first half adjusted earnings up 52% year on year, at the top end of recent guidance. While the previous "exit run-rate" guidance is no longer being provided, Morgans expects second half drivers should see the upper end of guidance achievable.

With Mortgage, Sales & Originations divested, debt has fallen and Iress will reinstate the dividend in Feb-25. The balance sheet now provides optionality, the broker notes.

Overall, Morgans remains positive given improved product investment; further earnings improvement to come, the potential to further realise value from underperforming or valued assets, and "realistic corporate appeal".

Hold retained on fair value, target rises to $11.20 from $10.74.

Target price is $11.20 Current Price is $10.43 Difference: $0.77
If IRE meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $10.26, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Citi rates JDO as Sell (5) -

At first glance, Judo Capital's FY24 results were slightly ahead of expectations. Going forward, Citi finds FY25 guidance is slightly better than previously anticipated.

Consensus is currently forecasting around 10% pre-tax profit growth relative to guidance of 15%.

The broker believes the market will want to understand further detail surrounding the pipeline of investments, net interest margin breakdown and asset quality to evaluate the risk implied in guidance. Sell. Target is $1.26.

Target price is $1.26 Current Price is $1.39 Difference: minus $0.125 (current price is over target).
If JDO meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.25, suggesting downside of -18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates LLC as Buy (1) -

Lendlease Group reported lower than expected FY25 guidance along with the FY24 results report with asset sales generating an anticipated $315-$360m on after tax earnings, Citi notes. 

The forecast includes $130-$160m from the communities sale, which is still under review by the ACCC with a final report in September.

The broker notes gearing has reduced to 21% in June but is forecast to decline to around 6%-7% post the $1.9m in asset sales announced to date.

Overhanging the company is the outlook for new project wins and development earnings in FY26, once the asset sales are completed, the analyst highlights.

EPS forecasts are revised by -7.2% for FY25 and 6.2% for FY26. Buy. Target $7.10.

Target price is $7.10 Current Price is $6.30 Difference: $0.8
If LLC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.36, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Macquarie rates LLC as No Rating (-1) -

Macquarie observes FY24 operating earnings of $263m were at the lower end of guidance. Lendlease Group is guiding to FY25 earnings per share of 54-62c, up 52%. The range includes 48c that is secured or highly probable, the broker adds.

The company is targeting gearing - was 21.1% in FY24 - to be within 5-15% by the end of FY26. Macquarie is on research restrictions and cannot advise of a valuation at present.

Current Price is $6.30. Target price not assessed.

Current consensus price target is $6.36, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

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

Morgan Stanley identifies small positive steps for Lendlease Group from FY24 results where profit of $263m was in line with management's guidance for between $260-275m.

FY25 EPS guidance fell short of the broker's forecast as the running cost of the Capital Release Unit was higher-than-expected. This unit is responsible for realising capital from projects, which allows reinvestment in other development opportunities and a return of value to shareholders.

Management reiterated plans for a $500m buyback program, largely subject to completion of the Communities sale.

Equal-weight rating. Target $6.35. Industry view: In-Line. 

Target price is $6.35 Current Price is $6.30 Difference: $0.05
If LLC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.36, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Citi rates MND as Buy (1) -

In an initial view, Monadelphous Group's FY24 revenue and EBITDA proved ahead of Citi's forecasts. The dividend was also well ahead.

The broker believes the business is well-positioned to continue delivering topline growth into FY25, noting there was no mention of skilled labour shortages in the report.

The company has highlighted significant opportunities across resources and energy, pointing to continued investment in iron ore and high levels of production. Buy rating and $16.20 target.

Target price is $16.20 Current Price is $11.82 Difference: $4.38
If MND meets the Citi target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $14.40, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates MND as Outperform (1) -

At first glance, FY24 net profit from Monadelphous Group was in line with Macquarie's estimate, while the dividend and margin exceeded expectations.

The broker notes there was no discrete guidance, although the company envisages opportunities across resources and energy amid decarbonisation expenditure, investment in iron ore and new gas projects. Outperform rating and $14.15 target.

Target price is $14.15 Current Price is $11.82 Difference: $2.33
If MND meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $14.40, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates MND as Neutral (3) -

Upon initial assessment, UBS has seen Monadelphous Group releasing an In line FY24 result, with qualitative outlook comments more upbeat than the market was expecting.

The broker suggests management's comments are likely to support consensus forecast for 8% revenue growth in FY25 on flat margins. Neutral.

Target price is $15.00 Current Price is $11.82 Difference: $3.18
If MND meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $14.40, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates MYS as Upgrade to Buy from Accumulate (1) -

MyState Bank and Queensland-based Auswide Bank ((ABA)) have announced a merger agreement aimed at enhancing their broker networks and expanding their reach across Australia.

Following in-line FY24 results, Ord Minnett increases its target for Mystate to $4.31 from $4.20 and upgrades to Buy from Accumulate based on an attractive fully franked dividend yield and the delivery of expected merger synergies.

In a significant uplift for patient shareholders, suggests the broker, net synergies are expected to be around -$160m or 95cps.

Target price is $4.31 Current Price is $4.03 Difference: $0.28
If MYS meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates NHC as Hold (3) -

Bell Potter observes the July quarter production of 2.5mt for New Hope against the broker's 4.7mt forecast, with sales lower than expected at 2.6mt versus its estimate of 3mt.

Some -0.4-0.5mt of sales from Bengalla were impacted by rail issues from protesters, weather and labour problems, the broker highlights, with New Acland offsetting the miss due to a thermal coal sales price of $181/t.

The company reported notably lower than forecast quarterly EBITDA, on the back of softer sales.

Bell Potter revises EPS forecasts by -10% for FY24 and 2% for FY25. The Hold rating and $4.70 target are maintained.

Target price is $4.70 Current Price is $4.98 Difference: minus $0.28 (current price is over target).
If NHC meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.12, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Macquarie rates NHC as Neutral (3) -

Fourth quarter production from New Hope missed expectations, affected by wet weather at Bengalla and rail issues.

New Acland's ramp up and more coal access at Bengalla may mean higher production in FY25 and the ramp up at Malabar also presents a catalyst, Macquarie notes.

The broker reiterates a Neutral rating. Target is raised to $4.70 from $4.00.

Target price is $4.70 Current Price is $4.98 Difference: minus $0.28 (current price is over target).
If NHC meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.12, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Citi rates NST as Buy (1) -

Following an August site visit to Kalgoorlie gold mines, Citi updates capital cost forecasts and inventory levels for Northern Star Resources.

There are minor changes to EPS forecasts with the company set to report FY24 results on August 22.

No change to $15.90 target price and Buy rating.

Target price is $15.90 Current Price is $14.44 Difference: $1.46
If NST meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $15.51, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

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

Citi attributes the downgrade in the earnings outlook for Nufarm to ongoing global de-stocking with competition remaining robust.

The revised FY24 earnings account for adverse pricing and the North American product mix, with a -$184m revenue loss and -$67m loss in EBITDA forecast by the analyst in FY24.

Gearing is anticipated to rise above Nufarm's target range. Citi highlights a 2H24 dividend is unlikely.

The broker revises EPS forecasts by -95.2% for FY24 and -53.7% for FY25.

The stock is downgraded to Sell from Neutral. Target price falls to $3.65 from $4.80.

Target price is $3.65 Current Price is $3.94 Difference: minus $0.29 (current price is over target).
If NUF meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.59, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Shaw and Partners rates NXL as Buy (1) -

Nuix Neo helped boost the annualised contract values growth to 12% for Nuix which was above the 10% guidance growth. Shaw and Partners highlights EBITDA was in line with guidance.

The broker dissects the results and points to Neo contributing $12 to the contract values off a $4.1m level in the 1H24.

Management guided to 15% growth in contract values in FY25 with Neo performing well for government and enterprise customers.

Shaw and Partners highlights Nuix could be one of the best Ai themed exposures on the market

The target price rises to $5.20 from $3.00 because of higher cashflow forecasts. Buy rating (High risk) unchanged.

Target price is $5.20 Current Price is $4.38 Difference: $0.82
If NXL meets the Shaw and Partners target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

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

Macquarie was disappointed with the first half earnings from oOh!media, amid softer revenue from road and retail.

The broker concedes the trading outlook is more optimistic, as outdoor media continues to gain share, but suspects renewals and winning government contracts are diluting the margin.

The company is restructuring its GTM strategy and increasingly digitising the portfolio and announced new contract wins with annualised income benefits of $38m. Macquarie points out these are mostly council or government tenders that are typically lower margin.

Rating is downgraded to Neutral from Outperform and the target reduced to $1.56 from $2.28.

Target price is $1.56 Current Price is $1.46 Difference: $0.105
If OML meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.72, suggesting upside of 20.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates OML as Buy (1) -

oOh!media's first half revenue decrease of -3% was a -4% miss versus UBS' forecast, but a higher gross margin and lower D&A resulted in a profit beat.

Market share loss in the June Q was a key driver behind the softer result and the broker expects September to remain below market, followed by a rebound in December as initiatives to recoup share take effect and new contracts come online.

oOh!media remains competitive in winning new contracts and achieving solid gross margin outcomes on renewals, UBS notes. Valuation is attractive, at a 13.5x one year forward PE for "a quality media operator".

Target falls to $1.85 from $1.95, Buy retained.

Target price is $1.85 Current Price is $1.46 Difference: $0.395
If OML meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.72, suggesting upside of 20.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates PRN as Buy (1) -

Citi observes Perenti reported slightly lower than forecast FY24 earnings, at first glance, with revenues some -2% below expectations.

Notably, $184m in free cashflow and gearing were in line guidance with a positive outlook for FY25 for both metrics, the analyst highlights.

The broker believes the 4c final dividend was much higher than forecast and is indicative of the solid operating performance.

Buy rating with a $1.30 target price. Citi thinks the market will look over the slightly softer results to the improved cashflow performance and balance sheet.

Target price is $1.30 Current Price is $1.02 Difference: $0.28
If PRN meets the Citi target it will return approximately 27% (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

Macquarie rates PRN as Outperform (1) -

At first glance, Macquarie notes Perenti's FY24 revenue was in line with the midpoint of guidance while EBITA margins were up 20 basis points to 9.4% and supported by reduced corporate overheads that offset the decline in contract mining margins to 11.3%.

DDH rig utilisation is lower than originally forecast because of soft market conditions, although earnings are still within the bounds of the original investment thesis, the broker notes. Outperform rating and $1.70 target.

Target price is $1.70 Current Price is $1.02 Difference: $0.68
If PRN meets the Macquarie target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates REH as Neutral (3) -

Citi believes the "quality" of the Reece earnings was on display with the latest FY24 results, with the US adding six stores and growing margins before interest and tax 13% year-on-year.

Management also pointed to some slight deflation and possible market share gains.

A&NZ are expected to slow with little certainty around domestic interest rate cuts. Citi highlights management is expected to initiate cost outs.

No guidance for FY25 was offered with the broker tweaking EPS forecasts. No change to Neutral rating and target price slips to $26.80 from $26.90.

Target price is $26.80 Current Price is $26.04 Difference: $0.76
If REH meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $22.28, suggesting downside of -14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.8

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

Macquarie rates REH as Underperform (5) -

FY24 results from Reece were slightly ahead of Macquarie's forecasts, driven by the US business as Australasian EBIT contracted.

The broker notes caution prevails regarding market conditions but the business model transition in the US appears to be gaining traction.

Trading was "solid", Macquarie adds, even though gross profit margins were under pressure in the second half. Underperform retained as the valuation is still considered stretched. Target is raised to $22.85 from $19.40.

Target price is $22.85 Current Price is $26.04 Difference: minus $3.19 (current price is over target).
If REH 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 $22.28, suggesting downside of -14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.8

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

Morgan Stanley rates REH as Underweight (5) -

Morgan Stanley reiterates its Underweight rating for Reece as management continues to predict challenging conditions in both key markets, despite delivering in-line unaudited FY24 results.

In Australia particularly, the broker also expects construction activity and therefore demand for Reece's products to be challenging through FY25. It's thought the current valuation multiple for the company is unsustainably high.

The FY24 dividend of 25.8 cents aligned with forecasts by Morgan Stanley and consensus. Target $19. Industry view: In-Line.

Audited FY24 financial results are due on August 22.

Target price is $19.00 Current Price is $26.04 Difference: minus $7.04 (current price is over target).
If REH meets the Morgan Stanley target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.28, suggesting downside of -14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.8

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

Morgans rates REH as Reduce (5) -

Reece’s FY24 result was slightly weaker than Morgans' expectations. The earnings margin rose 30bp to 11.1% due to good cost control
despite softer housing conditions in A&NZ, return on capital employed increased 20bp to 15.5% and the balance sheet remains strong.

A&NZ earnings were below forecasts as conditions continued to soften in the second half, the broker notes. Management expects the near term to remain challenging in both regions.

While Morgans continues to see Reece as a good business with a strong culture and long track record of growth, trading on a 42.3x FY25 PE, the broker feels the stock is overvalued in the short term. Reduce retained, target falls to $21.00 from $22.10.

Target price is $21.00 Current Price is $26.04 Difference: minus $5.04 (current price is over target).
If REH meets the Morgans target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.28, suggesting downside of -14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.8

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

Ord Minnett rates REH as Lighten (4) -

Following largely in-line FY24 results for Reece, where a weaker-than-expected A&NZ result was largely offset by a stronger US operating result, Ord Minnett maintains a Lighten rating.

While end-markets are expected to remain subdued in the near-term, with a potential further softening in the A&NZ region, the broker believes the longer-term promises an eventual upturn in housing activity in both of Reece's key markets.

Ord Minnett highlights a strong balance sheet with net debt down to $518m from $725m in FY23. The target rises to $23.50 from $20.80. 

Target price is $23.50 Current Price is $26.04 Difference: minus $2.54 (current price is over target).
If REH 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 $22.28, suggesting downside of -14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.8

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

UBS rates REH as Sell (5) -

Weak revenues saw an outsized margin decline for Reece in FY24. While UBS expects the Australian topline to remain soft, earnings margins should get some support with the base now reflecting wage increases and labour cost reduction strategies only in the early stages.

While Reece only added three new US branches in the second half, its growth strategy is broadly unchanged with 10-15 new branches per annum achievable. UBS still expects a broadly flat margin profile over the next 24 months given this rollout remains a mix of M&A and organic adds.

While Reece continues to make good progress in its US expansion, the broker still sees any benefits as more than offset by a weakening Australian end-market and increasing near-term competition.

Given this backdrop and the elevated multiple, the broker retains Sell. Target unchanged at $20.50.

Target price is $20.50 Current Price is $26.04 Difference: minus $5.54 (current price is over target).
If REH meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.28, suggesting downside of -14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.8

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

Bell Potter rates RRL as Buy (1) -

The Federal Minister for Environment and Water has thrown a spanner in the progression of the McPhillamy's Gold project and specifically its tails storage facility, by protecting a part of the approved project for Regis Resources.

Bell Potter highlights the project cannot proceed in its current form. An alternative site would necessitate a new full approvals process.

The analyst believes it is an "outlier' decision, but the project has nevertheless stopped with a possible write-down in the carrying value by -$190m.

There is a 180 days appeals window, and the broker believes the -$996m capex for this project has already been discounted by the market.

Buy rating unchanged.Target price falls to $1.85 from $2.15.

Target price is $1.85 Current Price is $1.62 Difference: $0.235
If RRL meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 11.8% (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

Macquarie rates RRL as Outperform (1) -

Regis Resources has received a notice from the federal government of a Section 10 declaration to protect part of McPhillamys land. The company has indicated this declaration impacts a critical area, notably tailings storage, and means the project is not viable, while all options are being considered.

While McPhillamys was not part of Macquarie's base case, the declaration does reduce the potential to monetise the project. The focus is now on existing operations, and the broker expects these will generate 91% of market capitalisation over the next five years.

Catalysts include life extensions at Tropicana and Duketon via underground resources. Outperform. Target is reduced to $2.60 from $2.70.

Target price is $2.60 Current Price is $1.62 Difference: $0.985
If RRL meets the Macquarie target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 11.8% (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

Morgan Stanley rates RRL as Overweight (1) -

Making McPhillamys unviable, notes Morgan Stanley, Regis Resources has received a notice from the Australian Federal government for a Section 10 declaration of protection over part of the approved project site.

Management is weighing all legal options, but further studies and restart of approvals could take 5-10 years with no certainty of a viable solution, explains the broker.

The project accounts for around 7% (10cps) of Morgan Stanley's base case valuation for Regis Resources.

Overweight rating. Target $1.85. Industry view is Attractive.

Target price is $1.85 Current Price is $1.62 Difference: $0.235
If RRL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 11.8% (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 RWC as Buy (1) -

On first inspection, Citi believes Reliance Worldwide reported a "strong" FY24 result with EBITDA some 3% better than expectations.

No divisional breakdown was afforded, although US big box plumbing compared favourably with the 2H24 US margin around 100 basis points high than consensus forecasts.

Sales weakness in the UK has stopped with rate cuts potentially assisting, the analyst notes.

Management is targeting cost out benefits of $10m-$15m in FY25, but depreciation/amortisation charges are expected to be higher and depress net earnings.

Citi assesses the market will approve of the "quality" of the better-than-expected result. Buy rated. Target price $5.20.

Target price is $5.20 Current Price is $4.70 Difference: $0.5
If RWC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.44, suggesting upside of 6.3% (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: 0.8

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

UBS rates RWC as Buy (1) -

Upon first read, UBS believes Reliance Worldwide reported H1 net profit in line with consensus and its own forecast, despite higher than expected depreciation.

Strong cash conversion sees leverage further reduced, the broker notes. Consolidated EBITDA guidance (ex Holman) for improved margin year-on-year is considered a positive.

UBS posits D&A is the only drag in FY25 and may offset most of the optimism on EBITDA margins. Buy.

Target price is $5.90 Current Price is $4.70 Difference: $1.2
If RWC meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $5.44, suggesting upside of 6.3% (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: 0.8

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

Morgan Stanley rates SEK as Overweight (1) -

After further contemplation of Seek's FY24 result (where FY25 guidance disappointed) Morgan Stanley believes current weakness is cyclical (not structural) and the current share price (which has fallen by -25% in 2024) represents an opportunity.

Following discussions with industry contacts, the broker suggests lower interest rates will provide a potential positive catalyst for a recovery in hiring activity and Job Listings.

Pricing power also remains, note the analysts. Morgan Stanley forecasts yield increases of 10% in each year over the FY25-27 period.

Overweight retained. Target falls to $28 from $31. Industry View: Attractive.

Target price is $28.00 Current Price is $21.83 Difference: $6.17
If SEK meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $26.18, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates SGM as Buy (1) -

Sims posted a FY24 EBIT result of $43m that beat Citi's estimates. At first glance, the underlying net loss of -$45m was larger than forecast because of higher-than-expected depreciation.

The final dividend of $0.10 was unexpected, and the broker believes this reflects a stronger-than-expected balance sheet. Buy rating retained. Target is $13.50.

Target price is $13.50 Current Price is $11.04 Difference: $2.46
If SGM meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $12.70, suggesting upside of 14.8% (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 SUN as Neutral (3) -

Accounting for falling interest rates, Citi believes this will offer a market boost in the 1H25 and accounts for most of the raise in the FY25 EPS forecast for Suncorp Group.

The broker expects $4.1bn from the bank sale to be returned to shareholders around the 3Q25 including a 30c special dividend and a share consolidation.

Gross written premium growth is forecast to subside to 8.2% in FY25 from 13.9% in FY24 with the company expecting a flat reinsurance premium.

Citi revises EPS estimates by 5.3% and 3.3% in FY25/FY26. Target price revised to $17.70 from $17.50. Neutral rating unchanged.

Target price is $17.70 Current Price is $17.41 Difference: $0.29
If SUN meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Macquarie rates SUN as Neutral (3) -

Macquarie found the FY24 result from Suncorp Group slightly ahead of expectations.

Commentary regarding using buybacks for long-term capital management was greeted positively, with the broker noting plans for around a 60-80% payout ratio as well as active capital management and "systematic" on-market buybacks.

The key area to watch will be the plan for the commercial division in Australia to go to #2, from #4, Macquarie adds. Neutral retained. Target is raised to $17.00 from $15.80.

Target price is $17.00 Current Price is $17.41 Difference: minus $0.41 (current price is over target).
If SUN meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.63, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgan Stanley rates SUN as Overweight (1) -

Suncorp Group's FY24 cash net profit missed forecasts by consensus and Morgan Stanley by -4% and -7%, respectively, while the FY25 outlook was broadly in line with expectations.

In a compelling outlook, suggests the broker, the group should expand margins in FY25, return $4.1bn from the Bank sale, and start on-market buybacks from Life sale proceeds.

Bringing Morgan Stanley's expected capital return to around $7bn, almost $2.5bn (or $2.00/share) is also expected if Suncorp Group replicates insurance Australia Group's ((IAG)) capital structure via extra debt, reinsurance, and unlocking capital in the corporate.

The target falls to $19.95 from $20.20. Overweight rating is unchanged. Industry View: In-Line.

Target price is $19.95 Current Price is $17.41 Difference: $2.54
If SUN meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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’s FY24 cash profit was -5% below consensus, Morgans reports. The final dividend (44cps) was 2cps above consensus
and represented a 72% payout ratio. The miss was mainly due to a slightly softer General Insurance business than expected, with the bank largely in line.

FY25 guidance points to solid earnings momentum continuing into this year, and Morgans sees Suncorp’s unveiled FY25-FY27 business strategy as uncomplicated, and focused on driving the insurance business harder.

With a solid outlook into FY25 and still offering some 10% total shareholder return upside on a 12 month view, the broker maintains Add. Target rises to $18.92 from $18.47.

Target price is $18.92 Current Price is $17.41 Difference: $1.51
If SUN meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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 FY24 profit missed the consensus forecast by -7% due to the unwinding of the claims discount, notes Ord Minnett.

Guidance for FY25 indicates to the broker an underlying insurance trading ratio (ITR) towards the top end of management's 10–12% target range and a broadly flat expense ratio.

The 44 cent final dividend missed the consensus forecast by -3%.

The Accumulate rating is kept and the target rises to $19.20 from $18.20 on the broker's higher cash profit forecast in FY25 after incorporating higher premiums and improved insurance margins.

Target price is $19.20 Current Price is $17.41 Difference: $1.79
If SUN meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 3.5% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

UBS rates SUN as Buy (1) -

UBS' Buy rating on Suncorp Group reflects ongoing repricing across the general insurance industry, specific improvements to
underwriting and capital management.

Thereafter management may also consider optimising reinsurance and capital structures. The broker thinks the FY24 results demonstrated that these expectations remain on track.

On a proforma basis, UBS estimates Suncorp's insurance division is trading at 16.1x PE relative to Insurance Australia Group's ((IAG)) 18.4x. The broker expects this gap can narrow further as the capital return date arrives.

Buy and $19 target retained.

Target price is $19.00 Current Price is $17.41 Difference: $1.59
If SUN meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $18.63, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Shaw and Partners rates SXG as Buy (1) -

Southern Cross Gold reported the latest drilling results from the Rising Sun prospect at the Sunday Greek Gold-Antimony Project, with Shaw and Partners noting high grade mineralisation 150m down, extending the current mineralisation.

The broker recently revised the gold price forecast to US$3000oz in 2025 and 2026 with the Southern Cross Gold valuation lifting to $6.28 from $3.26.

The Buy rating (High risk) and $3.26 target price are unchanged.

No changes to earnings forecasts.

Target price is $3.26 Current Price is $2.58 Difference: $0.68
If SXG meets the Shaw and Partners target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates VCX as Neutral (3) -

FY24 earnings from Vicinity Centres were in line with expectations. At first glance, Citi notes strong leasing outcomes support current and future income growth.

The company has acquired a 50% interest in Lakeside Joondalup, also securing property and retail development management rights which provide the opportunity to leverage the retail management platform and enhance asset performance.

Guidance for FY25 FFO of 14.5-14.8c is slightly ahead of expectations and could provide some short-term share support, the broker adds. Neutral and $2.10 target.

Target price is $2.10 Current Price is $2.18 Difference: minus $0.08 (current price is over target).
If VCX meets the Citi target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.04, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates WBC as Sell (5) -

On the back of the Westpac 3Q24 trading update Citi adjusts net profit forecasts by 1.7% and 1% for FY24/FY25, respectively.

The uplift results from higher revenue estimates and a better-than-expected net interest margin at the latest update.

Lower costs and bad/doubtful debts also assisted, but the analyst expects these factors will trend higher in the 4Q24, due to seasonal factors.

Target $24.75. Sell unchanged.

Target price is $24.75 Current Price is $30.40 Difference: minus $5.65 (current price is over target).
If WBC meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.58, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Macquarie rates WBC as Underperform (5) -

The third quarter cash earnings from Westpac were ahead of expectations, supported by lower impairment charge.

Macquarie notes the bank has outperformed peers by 8-16% over the year to date and there is limited scope for continued outperformance.

Along with the rest of the sector, the broker considers the stock expensive and maintains an Underperform rating. Target is $26.

Target price is $26.00 Current Price is $30.40 Difference: minus $4.4 (current price is over target).
If WBC 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 $26.58, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates WBC as Underweight (5) -

Westpac's 3Q cash profit beat Morgan Stanley's forecast by 1% though pre-provision profit was a -2% miss. The net interest margin (NIM) and impairment charges were better-than-expected while net interest income and expenses were in line.

Non-interest income and the CET1 ratio were slightly below the broker's forecasts and the overall proforma capital position was in line.

Overall, operating trends in Q3 were broadly as Morgan Stanley expected.

Target $25.60. Underweight rating. Industry View: In-Line.

Target price is $25.60 Current Price is $30.40 Difference: minus $4.8 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.58, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Hold (3) -

Westpac's third quarter trading update indicated the bank is tracking ahead of previous expectations, Morgans suggests, with net interest margin higher and costs and impairment charges lower than prior forecasts.

Westpac has good momentum in Australian home loan and deposits, the broker notes, both higher than system growth. The net interest margin was effectively flat at 194bps, above prior market expectations.

If the bank can materially improve its business performance, eg through regulatory capital releases or its multi-year technology simplification initiative, then it could outperform its peers on return on equity increases and lifts in cash returns to investors, Morgans suggests.

Target rises to $26.11 from $24.15, Hold retained.

Target price is $26.11 Current Price is $30.40 Difference: minus $4.29 (current price is over target).
If WBC meets the Morgans target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.58, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates WBC as Hold (3) -

Ord Minnett highlights a "robust" core net interest margin (NIM) from Westpac's 3Q results after a rise of 2bps to 1.82%.

Cash profit for the quarter exceeded market expectations by $100m aided by an exceptionally low credit impairment charge
of just 4bps, explains the analyst.

The broker forecasts special dividends of 15cps for both the 2H of FY24 and FY25.

The Hold rating and $27 target are maintained for Westpac. The target was $28 before Ord Minnett moved back to in-house research from whitelabeling Morningstar analysis.

Target price is $27.00 Current Price is $30.40 Difference: minus $3.4 (current price is over target).
If WBC meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.58, suggesting downside of -12.2% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

UBS rates WBC as Neutral (3) -

In UBS' view, Westpac's third quarter result is similar in shape to both CommBank ((CBA)) and National Bank ((NAB)), with better
net interest margin and lower bad debts, although underlying asset quality trends have not deteriorated to the same extent.

Importantly, costs seem to be running in line with the broker's expectation. The pro forma CET1 ratio of 11.9% is slightly higher than UBS's estimate.

The shares are trading at a 16x PE, which is above two standard deviation points relative to long term averages. Hold and $30 target retained.

Target price is $30.00 Current Price is $30.40 Difference: minus $0.4 (current price is over target).
If WBC meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.58, suggesting downside of -12.2% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates WEB as Buy (1) -

Demerger plans, released earlier this month, are a second coming for Webjet, suggests Ord Minnett. It's felt market opinion that the B2C division is ex-growth and the black sheep of the group is overplayed.

The broker notes existing Webjet shares will trade on an ex-demerger entitlement basis on September 23, which is also likely to be
the date B2C shares commence trading on the ASX.

Target improves to $10.99 from $10.50 after the broker applies a higher valuation multiple post de-merger. Buy.

Target price is $10.99 Current Price is $8.48 Difference: $2.51
If WEB meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $10.49, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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