Australian Broker Call

Morgan Stanley rates 360 as Overweight (1) -

Morgan Stanley raises Life360's target price sharply to $8.50 from $6.80 to reflect recent price increase, and  the broker pegs a bull case of $14.20 should bundled hardware monetisation, direct subscription sales and a rise in retention play out as the company hopes.

The broker says higher sales and more annual plans suggest a faster-than-expected shift to positive free cash flow.

Overweight rating retained. Industry view: In-line.

Target price is $8.50

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Ord Minnett rates ABB as Buy (1) -

Aussie Broadband's AGM trading update reveals continued market share growth in the September quarter (subscriber rose sharply and broadband market share rose 6.73% on the NBN ), and management reiterates FY23 earnings (EBITDA) and revenue guidance.

Ord Minnett observes the Over The Wire acquisition is being integrated to plan and expects this will yield a sharply improved balance of earnings for the group and a better path to scale.

The broker also forecasts a growth rate in excess of 6% going forward.

EPS forecasts are shaved -3% to reflect the higher cost of capital, courtesy rising interest rates.

Buy rating retained. Target price falls to $3.61 from $4.03. 

Target price is $3.61

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates ACF as Add (1) -

Acrow Formwork and Construction Services is seeing continued strength in the civil construction formwork markets across Australia. Management upgraded guidance for FY23 earnings and profit due to a positive mix shift towards higher margin hire revenue.

A strong 1Q update and the upgraded guidance shows ongoing strong momentum in the business, according to Morgans. Forecasts for FY23-25 earnings (EBITDA) increase by between 4-6% and the target rises to $0.84 from $0.80. Add.

Target price is $0.84

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates ADH as Hold (3) -

Adairs trading update for the first 16 weeks of FY23 appears to have satisfied Ord Minnett, but management spies challenges ahead as costs and macro pressures climb.

For now, management reiterates guidance, and points to a shift to shop front over online purchases, which hit Mocka's (Adair's online channel) sales. It also plans the increase floor space by at least 5% over five years.

Hold rating retained (despite an undemanding multiple) to reflect an uncertain outlook and the broker's expectation that consumer spending will shift from furniture and homewares to discretionary categories. Target price is steady at $2.40.

Target price is $2.40

Current consensus price target is $2.68, suggesting upside of 31.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates ADH as Buy (1) -

Adairs' trading update for the first six weeks of FY23 generally met UBS's forecasts and management reiterated FY23 guidance.

Management reports consumer spending on the home is holding up, particularly at the shop front, but expects this could weaken going forward.

Mocka sales fell -10% year on year and inventory levels were tracking to plan but margins, a slowing in online sales, and a fall in demand for the Adairs' brand bode poorly, says the broker. 

EPS forecasts fall -7% for FY24 to reflect the growing challenges.

Buy rating retained to reflect on valuation and dividend grounds, target unchanged at $3.25.

Target price is $3.25

Current consensus price target is $2.68, suggesting upside of 31.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Citi rates AKE as Buy (1) -

Buy rating retained while the target price lifts to $16.50 from $15.50 as Citi's stronger-for-longer thesis seems to have been confirmed during a recent road trip visiting lithium assets.

Allkem's September quarter report seems to have surprised positively via prices received, which has triggered further upgrades to forecasts.

Citi cannot see a price correction occurring over the next six months. Negatives from the quarterly include higher capex and a delay for Stage 2 at Olaroz.

Target price is $16.50

Current consensus price target is $16.49, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Credit Suisse rates AKE as Underperform (5) -

It is Credit Suisse's view the Q1 performance was a rather "soft" one, with Mt Cattlin production and sales missing consensus forecasts by no less than -20-30%. Olaroz performed broadly in line, says the broker.

There was more disappointment as Allkem has further delayed the Stage 2 development at Olaroz, plus capex went up by a further 12% to US$425m.

Also, spodumene & carbonate prices were -3-5% softer than expected. Credit Suisse suggests spodumene prices are expected to remain broadly flat QoQ in the December quarter.

Underperform. Target price lifts to $10.80 from $10.30. The broker remains of the view that lithium's overall scarcity will come to an end in 2023, with prices expected to "correct".

Target price is $10.80

Current consensus price target is $16.49, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates AKE as Outperform (1) -

Allkem’s quarterly result was mixed, Macquarie notes, with solid shipments and cost performance from Olaroz and Mt Cattlin offset by softer than expected prices at Olaroz.

Management flagged a delay to Olaroz Stage 2 commissioning, citing key component delays caused by shipping and logistic disruptions. Olaroz commissioning and a Mt Cattlin resource update present key near term catalysts for Allkem, the broker suggests.

Target falls to $20 from $21, Outperform retained.

Target price is $20.00

Current consensus price target is $16.49, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

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

Allkem's September-quarter trading update proved a mixed bag. Olaroz production sharply outpaced Morgan Stanley's forecasts but so did costs and capital expenditure after a six-month delay.

Mt Cattlin production disappointed but then again, costs also fell. 

Management reiterated guidance.

The broker pushes out first-production forecasts at SDV and James Bay by six months and raises capital expenditure forecasts by 20%, and the broker expects inflation and supply chain disruption could take a further toll.

EPS forecasts fall -4.9%. Equal-weight rating retained. Target price eases 35c to $15.85. Industry view: Attractive.

Target price is $15.85

Current consensus price target is $16.49, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Morgans rates AKE as Hold (3) -

Allkem's 1Q revenue missed the forecasts of both Morgans and consensus by -6 and -17%, respectively, due to smaller production at Mt Cattlin. 

A larger issue for the broker is the expected cost increases expected for Olaroz’s stage 2 expansion. As a result, higher capital and operating expenditure are forecast, though offset by a previously announced reserves increase at Mt Cattlin. 

The target price falls to $15.00 from $15.40. The Hold rating is kept as lithium prices may retrace from recent highs, expects the analyst, and lithium demand may be tested by increasing macroeconomic headwinds.

Target price is $15.00

Current consensus price target is $16.49, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Ord Minnett rates AKE as Buy (1) -

Allkem's September-quarter report disappointed Ord Minnett as a sharp production uptick in Olaroz failed to offset a growing list of obstacles, including rising costs and delays at Olaroz, and weak production (-50% below the broker's forecast) from Mt Cattlin.

Management reiterates guidance and the broker expects a reserve update and news on mine-life extensions should bring some relief in early 2023.

The broker also appreciates the company's growing free cash flow and strong balance sheet, and spies "excellent value" in the company.

Buy recommendation retained. Target price falls to $19.50 from $20.50.

Target price is $19.50

Current consensus price target is $16.49, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

UBS rates AKE as Buy (1) -

Allkem's September-quarter trading update proved mixed against UBS's forecasts as solid production at Olaroz battled with delays and higher-than-expected capital expenditure and a weaker-than expected performance at Mt Cattlin.

Management reiterated that first production would be forthcoming from Nahara within two days.

Buy rating retained. Target price falls to $17.80 from $18.70.

Target price is $17.80

Current consensus price target is $16.49, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Credit Suisse rates ALX as Underperform (5) -

Atlas Arteria's Q3 update proved weaker-than-anticipated, but Credit Suisse points out the weaker AUD is offering part offset. Price target falls to $6 from $6.30. Undeperform rating retained.

Credit Suisse is of the view that an offer from the IFM consortium is now less likely due to the larger size of the deal post the Skyway equity raising and Ontario Teachers' put option at Skyway.

Target price is $6.00

Current consensus price target is $6.59, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Citi rates AMP as No Rating (-1) -

Citi is acting as Financial Advisor to Dexus Property Group ((DXS)) to acquire Collimate Capital Limited’s real estate and domestic infrastructure equity business. Collimate Capital Limited is a wholly owned subsidiary of AMP Ltd, hence the broker remains under research restriction.

Post AMP's Q3 update, the analysts observe some positives stemming from the banking operations, and plenty of improving but still negative dynamics elsewhere in the business.

Current Price is $0.00. Target price not assessed.

Current consensus price target is $1.08, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Credit Suisse rates AMP as No Rating (-1) -

Credit Suisse points out that AMP's Q3 market update revealed a stronger-than-expected performance from the banking operations, but weak growth trends everywhere else.

EPS forecasts have been reduced by -2-4%.

Credit Suisse is under research restriction, hence no rating or price target.

Current Price is $0.00. Target price not assessed.

Current consensus price target is $1.08, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Ord Minnett rates AMP as Hold (3) -

AMP's September-quarter cash-flow update reveals strong growth in the loan book to $23.3bn from $22.7bn.

Australian Wealth Management funds under management dipped -3% to $121.4m as markets worked against the funds manager.

Net outflows more than halved year on year, although Ord Minnett expects the loss of the Australia Post contract could affect Master Trust flows.

New Zealand funds under management fell to $9.8bn from $9.4bn.

Management reiterates guidance and the broker believes this augurs well.

Hold rating and $1.20 target price retained.

Target price is $1.20

Current consensus price target is $1.08, suggesting downside of -9.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Morgan Stanley rates ANZ as Overweight (1) -

ANZ Bank will include notable items of -$113m after tax in its September half result, sharply shy of Morgan Stanley's forecast of -$95m, but the broker does not consider this to be overly material.

The bank will publish its result on Thursday, and the broker is keeping a keen eye to margin trends, expense growth amd ambitions in the mortgage market and provisioning.

Overweight rating and $26.90 target price retained. Industry view: In-line.

Target price is $26.90

Current consensus price target is $27.61, suggesting upside of 7.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

Since August 9, Bendigo & Adelaide Bank has underperformed peers by -17- 29%. While Macquarie continues to expect the bank to be impacted by intense mortgage competition and its community banking revenue-share arrangement, there appears to be light at the end of the tunnel.

Improved saving deposit spreads and rising swap curves should offset margin pressures and rising expenses. Macquarie's margin forecast for FY23 is 15 basis points ahead of consensus.

Target rises to $9.25 from $9.00, upgrade to Outperform from Neutral.

Target price is $9.25

Current consensus price target is $9.72, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates CWY as Outperform (1) -

Cleanaway Waste Management's trading update was firm in light of complex trading conditions, Macquarie suggests. The broker has nevertheless trimmed earnings forecasts, being more cautious on cost pressures (diesel) and recent trends in Old Corrugated Cardboard.

FY23 guidance was reaffirmed. Key sensitivities to guidance, the broker notes, will be post collections volumes, labour availability (and cost) and commodity prices such as OCC and diesel.

Target falls to $2.90 from $3.10, Outperform retained.

Target price is $2.90

Current consensus price target is $2.82, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates EBR as Speculative Buy (1) -

EBR Systems' WiSE (wireless stimulation endocardially) system was developed to eliminate the need for cardiac pacing leads.

While the company has identified a potential increased rate of battery depletion in some WiSE systems (one confirmed case), management is not expecting any change to the timing or data from the pivotal SOLVE trial.

Despite this, FDA submission and potential commercialisation has moved out by six months and Morgans lowers its target to $0.987 from $1.38.

The Speculative Buy rating is unchanged. The analyst points out the battery depletion doesn't impact the function of the device, as the battery hasn’t been fully depleted.

Target price is $0.99

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgans - Cessation of coverage

Market Sentiment: 0.0

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

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

Morgans raises its rating for Insurance Australia Group to Add from Hold after management left FY23 guidance unchanged at the AGM.

Also, the company recently announced it will lower its business interruption (BI) claims provision and will undertake a share buyback.

With the BI claims outcomes looking decidedly more favourable and following an investment mark-to-market exercise, the broker increases its target to $5.24 from $4.95.

Target price is $5.24

Current consensus price target is $5.07, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates ICT as Buy (1) -

iCollege's September-quarter trading update pleased Ord Minnett, thanks to strong growth in English language student numbers (now 87% above pre-covid peaks), despite a miss on forecasts.

The broker notes the new Brisbane campus is growing.

Buy rating retained. Target price rises to 29c from 25c.

Target price is $0.29

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates JRV as Outperform (1) -

Jervois Global has reported quarterly cobalt sales -6% lower than Macquarie's estimate, and a small earnings loss compared with the broker's $5.4m forecast due to higher realised feed costs.

Additionally, Jervois has reported a write-down of its cobalt inventories due to lower cobalt prices.

However Idaho Cobalt Operations construction is 71% complete and Macquarie remains optimistic on the long-term outlook. Outperform and 70c target retained.

Target price is $0.70

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates MSV as Speculative Buy (1) -

Morgans retains its Speculative Buy rating and $0.60 target for Mitchell Services after 1Q financials were in line with the broker's forecasts.

The analyst feels the current 7% dividend yield is sustainable, with further dividend/capital management upside after additional balance sheet deleveraging. It's felt the share price has formerly been held back with the emphasis on growth over dividends.

Target price is $0.60

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates NEC as Neutral (3) -

Media reports have Nine Entertainment considering a partial sale of Stan. With several streamers are transitioning to an advertising and subscription hybrid model, Macquarie views Stan as a natural avenue for Nine to monetise its first party data advantage.

Nine has previously not ruled out an ad-based hybrid, and the broker suggests there is a low likelihood of Stan being divested by Nine. In the meantime, negative earnings revisions will weigh on the share price due to softer ad markets and elevated FTA costs.

Target falls to $2.03 from $2.29, Neutral retained.

Target price is $2.03

Current consensus price target is $2.99, suggesting upside of 51.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgans rates NVX as Speculative Buy (1) -

Morgans lifts its rating to Speculative Buy from Hold and increases its target by 47% to $3.11 following news Novonix is in negotiations to secure a grant.

The US$150m grant from the US Department of Energy (DOE) is for a 30ktpa facility for the manufacture of battery anodes, which is potentially expandable to 75ktpa.

The DOE announcement includes an estimate for total spend of just over -US$1bn for the next facility, which the analyst believes partly allows for an expansion.

While the capital intensity is greater than expected, the broker also expects stronger anode pricing in the long term.

Target price is $3.11

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates RBL as Add (1) -

Following a softer 1Q trading update by Redbubble, Morgans retains its Add rating on valuation grounds though acknowledges the near-term margin headwinds/customer acquisition cost pressures impacting the business.

Total revenue fell around -4% on the previous corresponding period and -2% on the sequential quarter.

The company is in an investment-phase with additional brand spend/headcount, notes the analyst. The target is lowered to $1.00 from $1.65.

Target price is $1.00

Current consensus price target is $0.72, suggesting upside of 55.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Redbubble's September-quarter trading update sharply disappointed UBS's forecasts, triggering a sharp about-face.

Trends that were holding up in the June quarter (like margins and improved channel mix) sharply reversed in the September quarter, says the broker, and free shipping and marketing spend more than offset recent price rises.

Add to that rising balance sheet risk and the broker believes the company will have to cut operating expenditure to reduce cash burn.

Rating is downgraded to Neutral from Buy. Target price slumps to 60c from $1.55.

Target price is $0.60

Current consensus price target is $0.72, suggesting upside of 55.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Credit Suisse rates RMD as Outperform (1) -

Previewing the Q1 update from ResMed, Credit Suisse is anticipating a very strong result with industry feedback suggesting significant increases in CPAP supply during the period.

Credit Suisse is positioned above market consensus for key financial metrics and is forecasting 21% US device revenue growth, cycling 40% in the pcp.

Also, the broker remains of the view the market continues to under-appreciate the long term, structural gains for ResMed on the back of technical problems haunting main competitor Philips.

Outperform rating retained. Target price $40.

Target price is $40.00

Current consensus price target is $36.83, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.5

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

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

Steadfast Group's annual general meeting and September-quarter earnings update impressed Ord Minnett.

The broker raises earnings forecasts to reflect management's observation of improved market conditions.

Ord Minnett considers the company's earnings to be highly defensive, appreciates its strong free cash flow, and expects EPS growth could exceed 10% in the short to medium term.

Rating upgraded to Buy from Accumulate. Target price is steady at $5.50.

Target price is $5.50

Current consensus price target is $5.98, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates SDR as Buy (1) -

Citi is of the view that SiteMinder released a "solid" trading update, potentially adding 5%-10% to market consensus forecasts for revenue growth in H1.

The broker also highlights ARR is now growing above pre-covid levels.

Citi remains cautious about the general macro-outlook but also states it remains confident SiteMinder will grow revenues by 25% over the next two years.

Buy rating retained. Target price is $5.20.

Target price is $5.20

Current consensus price target is $5.91, suggesting upside of 93.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates SDR as Buy (1) -

SiteMinder's September-quarter trading update reveals accelerating momentum says UBS, in both subscriptions and transactions, and the company is back to its pre-covid growth trajectory. Annual revenue grew 31%.

UBS spies upside to consensus ratings, which have implied a slowing.

Buy rating retained. Target price is steady at $6.80.

Target price is $6.80

Current consensus price target is $5.91, suggesting upside of 93.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates SLR as Outperform (1) -

Silver Lake Resources' reserves and resources have been boosted by maiden estimates for Sugar Zone (Canada). However grade was lower than Macquarie expected, while Australian operations reserves fell due to depletion.

With first guidance recently announced for Sugar Zone delivery of key improvement projects at the mine remain important, the broker notes.

Outperform retained, target falls to $1.50 from $1.80.

Target price is $1.50

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates SMR as Add (1) -

Morgans assesses 3Q production for Stanmore Resources was resilient in the face of industry challenges and a weaker steel outlook. Forecasts are raised and it's now thought a net cash position by the 2H of 2023 is achievable.

The target rises to $4.10 from $3.45. With HCC pricing at US$300/t, the broker reminds investors of the company's "incredible" cash flow leverage. The Buy rating is retained.

The company has a clear M&A advantage in the northern Bowen Basin, where further acquisitions are likely, according to Morgans.

Target price is $4.10

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates VEA as Outperform (1) -

In an initial response to Viva Energy's Q3 update released earlier today, Macquarie comments the fuels business continues to perform but the refining margin has proved weaker-than-expected during the period.

The broker is confident the margin for the Geelong refinery will improve in Q4.

The Outperform rating and $3.50 target are left unchanged.

Target price is $3.50

Current consensus price target is $3.21, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates WHC as Add (1) -

First quarter sales for Whitehaven Coal were a -16% miss compared tro Morgans forecast due to excessive wet weather though coal pricing more than offset volume losses.

The broker sets a new target of $11.50, up from $8.60, after blending its base and bull case scenarios to reflect upside risk for coal prices. It's felt share price momentum will continue as the company provides an option over an extended energy market dislocation.

A further source of price momentum should arise, according to the analyst, after approval of buyback resolutions at the October 26 AGM. The Add rating is retained.

Target price is $11.50

Current consensus price target is $11.38, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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