Australian Broker Call

Citi rates 29M as Buy (1) -

29Metals' March-quarter trading update appears to have met Citi forecasts, the company experiencing a softer quarter and management suggesting FY22 results will fall at the lower end of guidance.

The broker downgrades earnings forecasts to below the midpoint of guidance.

Citi expects copper and zinc prices to continue to enjoy near-term and structural support.

Buy rating and $3.30 target price retained.

Target price is $3.30 Current Price is $3.00 Difference: $0.3
If 29M meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

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: 0.5

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

Credit Suisse rates 29M as Neutral (3) -

29Metals made a slow start to 2022 amid disruptions. March quarter production was softer than Credit Suisse expected. At Golden Grove the mill is expected to be restored next month and in the current environment the broker does not envisage the June quarter will be much better.

Production guidance is unchanged and likely to be at the lower end of the range, the broker adds. A pick up in the second half requires successful commissioning and ramp up of the paste plant at Golden Grove and a broader easing of labour constraints.

Neutral maintained. Target is reduced to $2.85 from $2.90.

Target price is $2.85 Current Price is $3.00 Difference: minus $0.15 (current price is over target).
If 29M meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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: 0.5

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

Macquarie rates 29M as Outperform (1) -

29Metals' March Q copper production was -12% below Macquarie's forecast, impacted by labour shortages in WA and supply constraints due to floods in Queensland.

The miner has nonetheless retained FY production guidance, but cost guidance has increased due to higher treatment charges in 2022.

While the quarter was weak, expected 60% production growth out to 2024 is a tailwind, the broker suggests, and free cash flow yield remains attractive. Outperform retained, target falls to $3.50 from $3.60.

Target price is $3.50 Current Price is $3.00 Difference: $0.5
If 29M meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

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: 0.5

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

Morgan Stanley rates 29M as Downgrade to Equal-weight from Overweight (3) -

One-off impacts have contributed to weak production in the March quarter and full year production is now anticipated at the lower end of guidance, for 39-46,000t copper, 27-34,000 ozs gold, 55-65,000 ozs zinc and 1.37-1.64m ozs silver.

Morgan Stanley downgrades to Equal-weight from Overweight on valuation yet continues to believe the stock is a good zinc/copper exposure. Target is reduced to $3.20 from $3.40. Industry view: Attractive.

Target price is $3.20 Current Price is $3.00 Difference: $0.2
If 29M meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

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: 0.5

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

Morgan Stanley rates 360 as Overweight (1) -

Morgan Stanley welcomes new guidance which is in line with expectations and more skewed to quality subscriptions at the expense of transaction revenue.

The broker found the metrics were very solid for a seasonally soft quarter. Target is $8.60. Overweight. Industry view: In-line.

Target price is $8.60 Current Price is $3.77 Difference: $4.83
If 360 meets the Morgan Stanley target it will return approximately 128% (excluding dividends, fees and charges).

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

Morgan Stanley rates AD8 as Overweight (1) -

Morgan Stanley found the March quarter update positive, noting there is a material backlog for the company to work through and underlying industry demand is strong.

The broker has greater confidence that revenue has now troughed. Infield activations are now broadly available and Dante Video RX software will undertake further releases in 2022.

Overweight rating and $10.50 target maintained. Industry view is In-Line.

Target price is $10.50 Current Price is $5.64 Difference: $4.86
If AD8 meets the Morgan Stanley target it will return approximately 86% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates AD8 as Buy (1) -

Audinate Group’s March-quarter trading update outpaced UBS and consensus forecasts, a rise in gross-profit margins and demand mounting a strong defence to the supply-chain assault.

Revenue outpaced by a decent clip and the company managed to increase inventories and the order backlog grew.

The broker slows gross-profit margin forecasts, expecting labour costs will rise in FY23, although the impact is minimal at the earnings level.

Target price eases to $9.85 from $10.30 Buy rating retained.

Target price is $9.85 Current Price is $5.64 Difference: $4.21
If AD8 meets the UBS target it will return approximately 75% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates ALD as No Rating (-1) -

Diesel spreads have recently broken out to above US$40/bbl, leading Macquarie to upgrade refining margins for Ampol's Lytton and Viva Energy's Geelong refineries.

The broker is restricted on Ampol.

Current Price is $32.25. Target price not assessed.

Current consensus price target is $34.31, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates ALG as Buy (1) -

Citi's US restaurant team has conducted a survey of 150 independent restaurants and found staff shortages are easing, the read-through to Main Even being a positive.

Given wages growth remains strong, Citi expects earnings will rise, although inflation appears to be hitting sales results and commodities supply is also challenging.

Buy rating and $1.96 target price retained.

Target price is $1.96 Current Price is $1.34 Difference: $0.62
If ALG meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

AMP is selling around 75% of the Collimate assets under management to Dexus ((DXS)) which de-risks its domestic real estate and infrastructure equity business, suggests Morgan Stanley.

Morgan Stanley notes this does come at a cost, as total consideration of up to $550m for around $80m of net profit represents up to 7x PE. This is below global private market asset managers which are trading on 15-30x.

AMP is also selling $450m of sponsor stakes to Dexus which converts illiquid assets into cash and releases $60m in capital, the broker observes. Equal-weight retained. Target is $1.12. Industry view: Attractive.

Target price is $1.12 Current Price is $1.02 Difference: $0.1
If AMP meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

UBS rates AMP as Sell (5) -

AMP will sell its Collimate real estate and domestic infrastructure equity arm to Dexus ((DXS)) for $250m upfront and a possible earn-out of a maximum $300m.

UBS considers the price disappointing but says abandonment of a costly and distracting demerger is a plus.

The broker notes Dexus will also buy AMP's co-investment stakes in Collimate funds, worth $450m, which should help buttress AMP's capital position (AMP plans to return some of the proceeds to shareholders) and perhaps support its own M&A ambitions to acquire Westpac's platform business. UBS thinks this would be a smart move. 

Sell rating and 90c target price retained. 

Target price is $0.90 Current Price is $1.02 Difference: minus $0.12 (current price is over target).
If AMP meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.08, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

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

While rising interest rates will benefit net interest margins, Morgans adopts a more cautious stance on the banking sector as the new environment will also introduce some risks. These include detiorating asset quality and reduced attractiviness of dividend yields.

In addition, rising interest rates will mean term deposit rates normalise and Term Funding Facility (TFF) drawdowns are refinanced with conventional sources of funding, explains the analyst. It's thought deposits in general may also flow out of the banking sysyem.

The broker downgrades its rating for ANZ Bank to Hold from Add as growth in home lending continues to disappoint mainly due to lower margin loans. The target price falls to $26 from $30.

National Australia Bank ((NAB)) is now Morgans preferred big four bank exposure.

Target price is $26.00 Current Price is $26.91 Difference: minus $0.91 (current price is over target).
If ANZ meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.45, suggesting upside of 8.7% (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

UBS rates BPT as Buy (1) -

Beach Energy's March-quarter trading update met UBS and consensus forecasts, strong oil and gas prices offseting lower-than-expected production in the Cooper basin due to wet weather.

The broker notes all major growth projects are running to schedule and the Otways Gas Plant's production is expected to rise to full capacity over winter, and expects a big step-change in free cash flow over the next year.

EPS forecasts rise for FY22 but fall -1% to -5% across FY23 to FY24. Buy rating retained. Target price slips to $1.80 from $1.85.

Target price is $1.80 Current Price is $1.60 Difference: $0.2
If BPT meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates CBA as Reduce (5) -

While rising interest rates will benefit net interest margins, Morgans adopts a more cautious stance on the banking sector as the new environment will also introduce some risks. These include detiorating asset quality and reduced attractiviness of dividend yields.

In addition, rising interest rates will mean term deposit rates normalise and Term Funding Facility (TFF) drawdowns are refinanced with conventional sources of funding, explains the analyst. It's thought deposits in general may also flow out of the banking sysyem.

Morgans maintains its Reduce rating and $77 target price for CommBank. National Australia Bank ((NAB)) is now Morgans preferred big four bank exposure.

Target price is $77.00 Current Price is $103.00 Difference: minus $26 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $92.45, suggesting downside of -10.4% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates CCX as Buy (1) -

City Chic Collective's March-quarter result pleased Citi, the company reporting increased store traffic and success with integrating Evans and Navabi.

The broker says anecdotal evidence that supply chains are worsening may be a plus for the company given its recent inventory build.

Citi believes the company's share-price retreat is overdone and expects a long period of international growth to be supported by market-share wins and acquisitions.

Citi Chic remains a top sector pick. Buy rating retained. Target price rises to $4 from $3.70.

Target price is $4.00 Current Price is $2.74 Difference: $1.26
If CCX meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $4.84, suggesting upside of 61.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates CCX as Outperform (1) -

The inventory build-up that dampened City Chic Collective's first half result is now paying dividends, Macquarie notes, with sales up 25% in the second half to date. 

Ongoing growth in key channels and encouraging early performance in partner channels supports the broker's conviction in the medium-term outlook for the retailer, buoyed by its buffer to ongoing supply issues.

The broker posits City Chic is well positioned for growth in the women's plus-size category, which remains, ahem, underpenetrated. Outperform and $6.70 target retained.

Target price is $6.70 Current Price is $2.74 Difference: $3.96
If CCX meets the Macquarie target it will return approximately 145% (excluding dividends, fees and charges).

Current consensus price target is $4.84, suggesting upside of 61.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates CCX as Overweight (1) -

Morgan Stanley believes City Chic Collective is executing well in a tough environment and reducing the FY22 earnings risk. Sales growth of 25.4% has been maintained in the second half to date, yet tracking below consensus of 32.9%.

The broker expects attention will start shifting to FY23 earnings where the risk profile has widened  although the risk/reward continues to look attractive.

The Overweight rating and target price of $5 are retained. Industry view: In-Line.

Target price is $5.00 Current Price is $2.74 Difference: $2.26
If CCX meets the Morgan Stanley target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $4.84, suggesting upside of 61.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates CCX as Buy (1) -

City Chic Collective is on track for strong sales growth and further improvement in earnings in FY22. Ord Minnett notes margins in the second half have been consistent, with US operations the highlight.

Second half EBITDA is expected to exceed the first half, dependent on consumer demand in May and June. Ord Minnett expects future growth will be driven by store roll-out initiatives in Australia as well as higher sales in the US while recent acquisitions should provide growth in Europe.

Buy rating maintained. Target is reduced to $4.00 from $5.20.

Target price is $4.00 Current Price is $2.74 Difference: $1.26
If CCX meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $4.84, suggesting upside of 61.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates CCX as Buy (1) -

City Chic Collective's trading update reveals a 25.4% jump in sales in the first 17 weeks of the second half, but net debt excluding leases rose sharply and management reiterated earnings guidance.

UBS cuts EPS forecasts -1.4% in FY22 and -11.2% in FY23, expecting lower revenue in Europe, the Middle East, Africa, Australia and New Zealand.

UBS notes growth was strong across all markets and across both physical and online platforms (proving web traffic concerns to be unfounded), notes the company has a strong inventory to battle intensifying supply chain diruption and expects strong cash flow generation to continue enabling the company to return to net positive in the first half of FY23.

Target price falls to $4.50 from $5. Buy rating retained.

Target price is $4.50 Current Price is $2.74 Difference: $1.76
If CCX meets the UBS target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $4.84, suggesting upside of 61.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates CHL as Add (1) -

In the face of covid and weather impacts for Camplify, Morgans likes the 3Q trading update which shows solid growth across key business metrics.

The price target remains at $4.75 after the broker makes negative EPS revisions to account for the current operating environment, which were offset by a reduction in estimated costs. The Add rating is unchanged.

The acquisition of Mighway and SHAREaCAMPER was approved by the New Zealand Commerce Commision in the quarter, which will add over 900 recreation vehicles to the platform, notes the analyst.

Target price is $4.75 Current Price is $2.50 Difference: $2.25
If CHL meets the Morgans target it will return approximately 90% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates COH as Buy (1) -

Cochlear will buy Oticon Medical from Demant for $170m, funded through cash, with Demant exiting the hearing-implant business.

The business is running at a loss but Citi notes Otico has a large bone-anchored business, a category in which it is Cochlear's main competitor, and considers the purchase opportunistic and defensive for Cochlear.

Citi says no liability will be assumed for the voluntary field corrective action for Oticon's Neuro Zti implant.

Buy rating and $235 target price retained for now.

Target price is $235.00 Current Price is $230.75 Difference: $4.25
If COH meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates COH as Outperform (1) -

Cochlear will acquire Demant's implant division, Oticon Medical, for $170m, adding $75-80m in annual revenue, although Credit Suisse notes the division is currently loss-making. The company's aim is to make it profitable.

Demand had issued a recall of its non-implanted Oticon implants in October 2021, temporarily halting sales of new implants amid an issue with loss of the hermiticity in a small number of these.

Cochlear will not be assuming any liability for issues that may arise from the recall.

Credit Suisse considers this a minor deal but a strategic move that removes the risk of another player entering the US market and competing more aggressively. Outperform rating and $240 target maintained.

Target price is $240.00 Current Price is $230.75 Difference: $9.25
If COH meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates COH as Neutral (3) -

Cochlear has agreed to buy Oticon Medical for $170m, funded by existing cash. Macquarie sees a deal that will increase scale so as to increase penetration of implantable devices within the hearing loss market.

However, with the stock trading at 49x forward earnings, the broker sees better value in CSL ((CSL)) in the space.

Neutral and $215 target retained.

Target price is $215.00 Current Price is $230.75 Difference: minus $15.75 (current price is over target).
If COH meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $225.70, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

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

Cochlear will acquire Demant's loss-making Oticon Medical for $170m, to be funded from existing cash. Given Oticon's small market share of the cochlear implant market, Morgan Stanley does not envisage regulatory concerns.

The risk of an emerging fourth operator in the implant market will now dissipate, the broker suggests. Equal-weight. Target is $208. Industry view: In-line.

Target price is $208.00 Current Price is $230.75 Difference: minus $22.75 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $225.70, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates COH as Hold (3) -

The acquisition of Demant's Oticon Medical implant business is a positive strategic development, Ord Minnett asserts, as it will remove a key competitor and ultimately support a boost to forecast earnings.

The broker will await regulatory approvals before integrating the proposed deal into forecasts. Despite this being a loss-making business and Cochlear intending to invest more funds, Ord Minnett asserts it is a good use of funds as Cochlear should be the main beneficiary of the exit of Oticon from the market.

Hold rating and $223 target retained.

Target price is $223.00 Current Price is $230.75 Difference: minus $7.75 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $225.70, suggesting downside of -1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates CRN as Outperform (1) -

March quarter production was slightly softer than Credit Suisse expected. The broker observes, although current peak prices may not be sustainable, rising geopolitical tensions are exacerbating supply tightness so elevated thermal coal prices continue to support firm metallurgical coal prices into the medium term.

The next likely catalyst should be capital management as Coronado Global Resources has modified its dividend policy, changing to a fixed pay-out in addition to the variable amount and maintaining the 60-100% free cash flow pay-out ratio. 

The broker believes this signals confidence in the strength of the balance sheet into the foreseeable future. Outperform retained. Target rises to $2.50 from $2.00.

Target price is $2.50 Current Price is $2.21 Difference: $0.29
If CRN meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates CRN as Outperform (1) -

Coronado Global Resources's March Q featured weaker than expected production and higher costs, and lower than expected realised coal prices, Macquarie notes. Yet the quarter saw 2% higher saleable coal production and a 24% increase in revenue.

Strong cash flows continue to strengthen the balance sheet, the broker notes, and Coronado has committed to additional shareholder returns. Buoyant met coal prices drive upside, with free cash flow  yields increasing to 100% at spot prices from 2023 onward.

Outperform retained, target falls to $3.20 from $3.50.

Target price is $3.20 Current Price is $2.21 Difference: $0.99
If CRN meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgans rates CRN as Add (1) -

While Coronado Global Resources' 1Q earnings (EBITDA) fell short of Morgans forecast, the broker materially upgrades its coking coal price assumptions. The long-term price forecast is now US$170/t.

The broker's target price rises to $2.73 from $1.96 and includes a premium for upside risk to the coal price forecast. The Add rating is maintained.

There's also upside risk for dividends, and at the same time, the analyst feels there's an abilty to fund organic growth/improvement and build reserves for potential M&A.

Target price is $2.73 Current Price is $2.21 Difference: $0.52
If CRN meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.81, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Citi rates DMP as Buy (1) -

Citi's US restaurant team has found there may be merit in Domino's Pizza Enterprises' push to increase sales by aggressively moving into the aggregator space given digital customer acquisition is getting tougher; demand for aggregators' services continues to rise; they provide better returns; and they allow Domino's to experiment with differential pricing.

Buy rating and $108.42 target price retained.

Target price is $108.30 Current Price is $79.50 Difference: $28.8
If DMP meets the Citi target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $98.97, suggesting upside of 25.6% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates DOW as Neutral (3) -

Downer EDI has showcased its end-market exposure and contractor capabilities in a de-carbonising environment. The decline in March quarter activity because of the weather and pandemic was not as great as Credit Suisse had feared.

Reflecting updated information FY22 EBITA forecasts are lifted by 12%. The broker considers the opportunity in front of the company is strong and volatility in earnings and cash generation has been reduced, with a reduction in the risks profile under the transition to an urban services model.

Nevertheless, more time is required for evidence that earnings are recovering and this is unlikely to occur before FY23. Neutral maintained. Target is raised to $5.55 from $5.40.

Target price is $5.55 Current Price is $5.33 Difference: $0.22
If DOW meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $6.06, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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 DOW as Outperform (1) -

In a mixed bag for Downer EDI, core earnings to date are down -4.7% on a year ago, Macquarie notes, implying a weak June quarter. Downer expects a strong December quarter with NZ now recovering and the Roads business catching up on weather effects via rectification work.

Management also expects a strong rebound in earnings in FY23, and the broker forecasts 27%.

Outperform retained, target falls to $6.25 from $6.50.

Target price is $6.25 Current Price is $5.33 Difference: $0.92
If DOW meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.06, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates DOW as Overweight (1) -

The investor briefing highlighted a strong outlook amid expectations of better margins in the future. Morgan Stanley believes delivery will be critical.

Specifically, the key to margin performance is better project execution and managing overheads.

The broker calculates Downer EDI is tracking towards $481m in core EBITA in FY22. Forecasts for FY23 are lowered and just over $100m in EBITA growth is assumed.

Morgan Stanley retains an Overweight rating, reducing the target to $6.30 from $6.70. Industry view is In-Line.

Target price is $6.30 Current Price is $5.33 Difference: $0.97
If DOW meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.06, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates DOW as Buy (1) -

Downer EDI's trading update revealed earnings slowed in the March quarter as a result of bad weather in Australia and covid-related problems in New Zealand, UBS observes.

One-offs aside, the company says strong demand remains for infrastructure services and the company has restructured its Urban Services business and is guiding to a recovery post FY23, thanks to government infrastructure stimulus and the green transition.

Downer estimates these markets will record a compound annual growth rate of 7% to 8% across FY21-FY25.

UBS forecasts earnings (EBITDA) growth of 9% and believes the company is well positioned for government infrastructure investment.

Target price eases to $6.40 from $6.50. Buy rating retained.

Target price is $6.40 Current Price is $5.33 Difference: $1.07
If DOW meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.06, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

Dexus will acquire Collimate Capital's ((AMP)) real estate and domestic infrastructure equity business. Consideration is an upfront payment of $250m plus an earn-out of up to $300m.

Dexus has also offered to acquire $180m of existing Collimate co-investments in platform funds and a committed investment of $270m in the AMP Capital Wholesale Office Fund.

The transaction is not expected to be completed until the first half of FY23. Credit Suisse is currently unable to provide a rating or target.

Current Price is $11.00. Target price not assessed.

Current consensus price target is $12.16, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates DXS as Outperform (1) -

Dexus will acquire AMP’s ((AMP)) real estate and domestic infrastructure platform, adding up to $28bn in funds under management, Macquarie notes.

The deal could be up to 5% accretive to funds from operations, but this would depend on Dexus retaining all of those funds, which is key to earnings and valuation.

The stock is trading at a -4% discount to pro forma net tangible asset value, the broker estimates, which ascribes no valuation to the funds management platform despite Macquarie calculating 14% of valuation. Outperform and $12.39 target retained.

Target price is $12.39 Current Price is $11.00 Difference: $1.39
If DXS meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.16, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgan Stanley rates DXS as Overweight (1) -

Morgan Stanley believes the acquisition of the Collimate platform ((AMP)) will be around 3% accretive on a pro forma basis. The pricing is yet to be firmed but appears to the broker to be reasonable to cheap considering recent transactions.

The broker notes Dexus has indicated that around 50% of assets under management being acquired involve mandates rather than pooled funds and points out mandates are less sticky, as there are fewer parties involved in any decisions to move.

Overweight rating and $12.57 target are retained. Industry View: In Line.

Target price is $12.57 Current Price is $11.00 Difference: $1.57
If DXS meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.16, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates EBR as Speculative Buy (1) -

First quarter results for EBR Systems were in-line with Morgans forecasts and the Speculative Buy rating and $1.84 target price are retained.

All clinical programs remain on track including the pivotal SOLVE trial, notes the analyst. Its thought further market expansion opportunities are likely from two additional, investigator led, non-randomised studies.

Target price is $1.84 Current Price is $0.56 Difference: $1.28
If EBR meets the Morgans target it will return approximately 229% (excluding dividends, fees and charges).

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

UBS rates EML as Buy (1) -

EML Payments has downgraded FY22 guidance after higher costs and European regulatory challenges resulted in a softer March quarter, and UBS downgrades earnings forecasts.

UBS spies little room for relief, the downgrade suggesting the Central Bank of Ireland challenge may hit the sales pipeline, quality of earnings, cash conversion; and growth.

EPS forecasts fall -2% in FY22; -24% in FY23 and -40% in FY24.

Target price falls -49% to $2.30 from $4.55. Buy rating retained, the broker noting the company offers a three-year compound annual growth rate of 18% and that there are several upside catalysts.

Target price is $2.30 Current Price is $1.57 Difference: $0.73
If EML meets the UBS target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $3.26, suggesting upside of 113.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates GNX as Add (1) -

Following 3Q results for Genex Power which point to solid solar generation in the 2H, due to rising merchant prices in NSW, Morgans maintains its Add rating and $0.31 target price. The Add rating is maintained.

Average wholesale prices achieved at Jemalong exceeded the analyst's expectations. Meanwhile, management continues to forecast Kidston Hydro project will be delivered on time and on budget.

As storage is a key issue for the electricity market, Morgans feels Genex Power offers unique exposure to the theme.

Target price is $0.31 Current Price is $0.14 Difference: $0.17
If GNX meets the Morgans target it will return approximately 121% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates GOR as Outperform (1) -

Gold Road Resources had already pre-released March Q numbers that were better than Macquarie had expected. The highlight of the official report is that Gruyere appears to be experiencing only minor covid impact so far.

Full year production guidance has been maintained as has expectation of improved throughput and grades at Gruyere as the year progresses.

Outperform and $1.80 target retained.

Target price is $1.80 Current Price is $1.55 Difference: $0.25
If GOR meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting upside of 17.6% (ex-dividends)

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

UBS rates GOR as Buy (1) -

Gold Road Resources' all-in-sustaining costs for the March quarter fell -7% below UBS's forecasts, the company managing to avoid covid disruption.

UBS expects production will grow 60% by 2024, positioning it well relative to peers. 

The broker also has a keen eye peeled to the DGO Gold ((DGO))  takeover bid, considering it a good prospect.

Buy rating and $2 target price retained.

Target price is $2.00 Current Price is $1.55 Difference: $0.45
If GOR meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting upside of 17.6% (ex-dividends)

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

Morgan Stanley rates IEL as Overweight (1) -

With a change in analyst Morgan Stanley highlights the exposure to an expanding market opportunity in English language testing as well as operating leverage on the volume recovery.

Despite the disruptions caused by the pandemic the company continued to invest in the digital and operating improvements and, therefore, is expected to gain share. Meanwhile, BC India has outperformed expectations.

Overweight maintained. Target is $35. Industry view: In-Line.

Target price is $35.00 Current Price is $26.35 Difference: $8.65
If IEL meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $35.50, suggesting upside of 35.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates ILU as Sell (5) -

Iluka Resources' March-quarter trading update met Citi's forecast, realised zircon prices proving a positive surprise thanks to the Ukraine conflict.

Citi updates its zircon price forecasts for 2022 and 2023.

Citi retains a Sell rating, spying covid risks in China. Target price steady at $10.50.

Target price is $10.50 Current Price is $10.57 Difference: minus $0.07 (current price is over target).
If ILU meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.79, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Credit Suisse rates ILU as Upgrade to Outperform from Neutral (1) -

March quarter production was in line with expectations. Taking into account current price increases and supply disruptions as well as the uncertainty in the macro environment Credit Suisse lifts mineral sands price forecasts for 2022 and 2023, while maintaining a downward price trend from 2022.

Several catalysts are lining up for the second half with the next big decision being a mine at Balranald which could refresh the ageing operations.

The broker assesses the recent sell-off opens up some value and upgrades to Outperform from Neutral. Targets raised to $13.20 from $13.00.

Target price is $13.20 Current Price is $10.57 Difference: $2.63
If ILU meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $11.79, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Macquarie rates ILU as Outperform (1) -

Iluka Resources' March Q performance was largely as Macquarie expected, the highlight being a US$100/t increase in zircon prices for the June Q.

The miner boasts numerous catalysts, the broker notes, including Eneabba Phase 3, the Sierra Rutile demerger and study updates on Balranald and Wimmera.

Rising zircon, rutile and rare earth prices provide upside in the short-medium term. Outperform retained, target rises to $14.50 from $14.00.

Target price is $14.50 Current Price is $10.57 Difference: $3.93
If ILU meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $11.79, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

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

Revenue and production were broadly in line with Morgan Stanley's estimates in the March quarter. There was no update on the Sierra Rutile de-merger.

The broker notes zircon markets are tight and the situation in China is evolving, given supply disruptions because of lockdowns. Higher gas prices have also forced small manufacturers in Europe to reduce production.

No update was provided on rutile pricing, with high-grade feedstock fully committed in the first half. Equal-weight rating and $9.75 target are retained. Industry view: Attractive.

Target price is $9.75 Current Price is $10.57 Difference: minus $0.82 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.79, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates ILU as Hold (3) -

Iluka Resources' production and sales were broadly in line with Ord Minnett's forecasts in the March quarter.

The broker likes the dominant position in mineral sands and growing exposure to Australian rare earths but considers the stock fairly valued ahead of greater detail on the project pipeline.

The broker has added Eneabba phase 3 to its model which is a driver of a 10% valuation uplift. Hold rating maintained. Target is raised to $11 from $10.

Target price is $11.00 Current Price is $10.57 Difference: $0.43
If ILU meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.79, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Citi rates JHG as Neutral (3) -

Citi spies a potential re-rate for Janus Henderson if flows turn - and the broker expects this quarter will be tough one.

Thus, the broker feels the company is in limbo and vulnerable as Trian's stake is rising (to 18.9%) but its intentions are unclear.

Then there is the retirement of the CEO and CIO to deal with.

Marking to market, the company cuts EPS forecasts -10% in FY22; -8% in FY23; and -9% in FY24.

Neutral rating retained. Target price cut to $45 from $56.90.

Target price is $45.00 Current Price is $44.00 Difference: $1
If JHG meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $45.63, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates LFS as Outperform (1) -

Latitude Group updated March Q trading trends at its AGM, which were below Macquarie's expectations as subdued volume trends and elevated repayment rates have continued to weigh on earnings. Management had expected improved spending but this has failed to eventuate.

The broker has become more cautious, noting funding rates appear to be rising.

That said, the broker still sees value in a gradual improvement expected in volume trends, falling repayment rates and earnings accretion from the Humm transaction. Outperform retained, target falls to $2.25 from $2.95.

Target price is $2.25 Current Price is $1.84 Difference: $0.41
If LFS meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

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 LLC as Outperform (1) -

Lendlease has revealed at a briefing it has a military housing portfolio of over 40,000 homes and over 12,000 hotel rooms. There remains potential for additional growth, a focus on improving customer experience, and potential for a further sell-down, Macquarie reports.

Any further sell-down of military housing would aid capital generation to fund the development pipeline.

Outperform and $12.22 target retained.

Target price is $12.22 Current Price is $12.00 Difference: $0.22
If LLC meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.62, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in June.

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 MME as Add (1) -

Following a 3Q trading update which showed a step change in metrics, Morgans sees future scale benefits and a large opportunity ahead for MoneyMe, due to the recent Society One acquisition.

The broker lifts revenue projections on stronger-than-expected book growth though earnings (EBITDA) forecasts provide a partial offset due to upfront provisioning. The target rises to $2.38 from $2.37. 

Target price is $2.38 Current Price is $1.55 Difference: $0.83
If MME meets the Morgans target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates MX1 as Speculative Buy (1) -

Morgans assesses Micro-X had one of its best quarters (3Q) to date with cash receipts matching net operating outflow. At the current cash burn rate, it's estimated there are four quarters of cash on hand.

A delay in launch for the explosive detection device named Argus impacts FY23 forecasts and the target price is lowered to $0.51 from $0.54. The Speculative Buy rating is maintained.

Target price is $0.51 Current Price is $0.20 Difference: $0.31
If MX1 meets the Morgans target it will return approximately 155% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates NAB as Hold (3) -

While rising interest rates will benefit net interest margins, Morgans adopts a more cautious stance on the banking sector as the new environment will also introduce some risks. These include detiorating asset quality and reduced attractiviness of dividend yields.

In addition, rising interest rates will mean term deposit rates normalise and Term Funding Facility (TFF) drawdowns are refinanced with conventional sources of funding, explains the analyst. It's thought deposits in general may also flow out of the banking sysyem.

National Australia Bank is now Morgans preferred big four bank exposure and the target price rises to $34 from $30.50. It's felt the bank's operational performance relative to peers justifies stretched near-term valuation multiples. Hold.

Target price is $34.00 Current Price is $32.20 Difference: $1.8
If NAB meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $32.84, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Citi rates NST as Buy (1) -

Northern Star Resources' March-quarter trading update missed Citi's forecasts as production fell as poor weather caused mill downtime.

Management says the company is on track to meet guidance.

There were positives - $180m of cash flow after capital expenditure and Citi believes hard cash could surpass $500m by June 2023 as the company continues to deleverage.

Buy rating and $13 target price retained.

Target price is $13.00 Current Price is $9.66 Difference: $3.34
If NST meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates NST as Outperform (1) -

March quarter production was below estimates. Production guidance is unchanged and it appears to Credit Suisse that Northern Star Resources will need to rely on KCGM and Carosue Dam to make up for underperformance at Pogo.

That said, all assets will require a material step up to reach the lower end of guidance, in the broker's view. Credit Suisse retains an Outperform rating and $11 target.

Target price is $11.00 Current Price is $9.66 Difference: $1.34
If NST meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates NST as Outperform (1) -

In a mixed quarterly result, Northern Star Resources' production and costs both slightly disappointed Macquarie in total and FY cost guidance has been lifted due to a move to accelerate Pogo productivity.

The miner plans to provide revised resources and reserves shortly with an update on the KCGM mill expansion study, which is not yet in the broker's valuation, later this quarter.

Northern Star anticipates stronger June Q production driven by improved mill availability at Kalgoorlie and better grades at Yandal. The broker retains Outperform and a $14.00 target.

Target price is $14.00 Current Price is $9.66 Difference: $4.34
If NST meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates NST as Overweight (1) -

Following the March quarter results, Morgan Stanley updates its model to increase mining cost estimates at Pogo also noting Northern Star Resources has increased net growth capital guidance to $620m from $570m.

The broker envisages good brownfield expansion potential and suggests investors look beyond the quarterly results and buy on the dip.

Overweight maintained. Target reduced to $12.35 from $12.80. Industry View: Attractive.

Target price is $12.35 Current Price is $9.66 Difference: $2.69
If NST meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates NST as Buy (1) -

Ord Minnett found the March quarter result soft amid weaker production at Carosue Dam and higher costs at Thunderbolt and Kalgoorlie. The broker has already modelled production below guidance at Pogo so the net impact of the downgrade to estimates appears more modest.

Furthermore, Ord Minnett asserts the sell-off in the stock along with a pullback in gold sentiment represents an opportunity to increase exposure to the company. Buy rating retained. Target reduced to $12.50 from $12.70.

Target price is $12.50 Current Price is $9.66 Difference: $2.84
If NST meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates NST as Buy (1) -

Northern Star's March-quarter production fell -10% below UBS forecasts, while all-in-sustaining costs met the broker.

Management guided to steady production but higher costs as Pogo ramps up.

UBS remains a fan, appreciating the optionality and growth relative to peers and expects the KCGM mill expansion study will amplify this.

Buy rating retained. Target price slips to $11.80 from $12. 

Target price is $11.80 Current Price is $9.66 Difference: $2.14
If NST meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $12.44, suggesting upside of 27.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates NUF as Buy (1) -

Nufarm has guided to strong earnings growth of roughly 40% at the guidance-midpoint with its trading update, says UBS, well above consensus forecasts.

Good agricultural conditions and favourable commodity prices contributed to the jump. The company also guided to a first-half skew.

UBS upgrades EPS forecasts 19% in FY22 and 12% in FY23.

Buy rating retained, UBS considering the valuation to be undemanding. Target price rises to $7.90 from $6.73.

Target price is $7.90 Current Price is $6.59 Difference: $1.31
If NUF meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.78, suggesting upside of 3.4% (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 PAN as Outperform (1) -

Panoramic Resources’ March Q result was solid, featuring beats in nickel and copper production, in-line shipments and stronger cash flow generation -- which has turned positive for the first time since the re-start, Macquarie notes.

Exploration results continue to impress, which are likely to translate into upgrades to reserves and resources at Savannah North, the broker believes.

With the ramp-up at Savannah accelerating, a material step-up in cash flow generation is expected from the September quarter. Outperform and 40c target retained.

Target price is $0.40 Current Price is $0.33 Difference: $0.07
If PAN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates PAN as Add (1) -

Morgans maintains its Add rating and $0.39 target price for Panoramic Resources following 3Q results. The company is also kept as the broker's preferred ASX nickel exposure.

Mining and milling operations at Savannah continue to improve, according to the analyst, with ore mined up 42% and ore milled rising by 20% quarter-on-quarter.

With maintenace completed on the mill and WA border restrictions easing, Morgans anticipates operations will continue to ramp-up.

Target price is $0.39 Current Price is $0.33 Difference: $0.06
If PAN meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates PGL as Neutral (3) -

Prospa Group's March Q demonstrated origination momentum, Macquarie notes, up 42.4% year on year and driving closing gross loans up 13.4% during the quarter and average gross loans up 16.5%. Book expansion and steady yields delivered revenue growth.

Prospa's balance sheet and funding support further growth, the broker suggests.

The broker nonetheless retains Neutral and lowers its target to 98c from $1.07 on a -20% discount to other non-bank financial institutions as Prospa is yet to pay a dividend.

Target price is $0.98 Current Price is $0.90 Difference: $0.08
If PGL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates PPH as Neutral (3) -

Pushpay Holdings' has “received unsolicited, non-binding and conditional expressions of interest or approaches from third parties looking to acquire” the firm, Macquarie notes.

Otherwise, management has reaffirmed guidance, expecting underlying earnings within the range US$61.5-63.5m. The broker is at US$62.5m.

The broker retains Neutral, suggesting the subsequent 24% jump in share price to be sufficient. Target price falls -21% to NZ$1.32 to reflect longer term earnings forecast revisions and valuation assumptions.

Current Price is $1.13. Target price not assessed.

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Macquarie rates PSI as Neutral (3) -

PSC Insurance Group has entered into an agreement to acquire Alan Wilson Insurance Brokers, an Australia-based broking business and Steadfast Group ((SDF)) network member, for $17.5m in cash.

Macquarie notes incremental earnings of $1.8m per annum represents a 9.7x earnings acquisition multiple, within management’s target range of 8-10x.

There broker estimates there is still some $87m of acquisition capacity in the second half to the midpoint of PSC’s target leverage range. Neutral retained, target rises to $4.75 from $4.65.

Target price is $4.75 Current Price is $4.53 Difference: $0.22
If PSI meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates RMS as Outperform (1) -

Ramelius Resources' March Q was softer than Macquarie expected due to planned mill shutdowns and labour shortages impacting haulage from satellite mines. The miner expects a rebound in the June Q, noting that following the opening of the WA border, satellite ore haulage soon recovered.

Edna May's Stage 3 cutback feasibility study, expected mid-2022, and Rebecca's study work have the potential to change the broker's production and cost outlook.

Outperform and $1.80 target retained.

Target price is $1.80 Current Price is $1.47 Difference: $0.33
If RMS meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgans rates RMS as Add (1) -

Following lower 3Q gold production versus the 2Q for Ramelius Resources, Morgans notes trucks must keep rolling and the mills turning to hit the company's Q4 targets.

The broker points out that following the reopening of WA borders, trucking tonnages and gold production turned a corner in March, which may explain why management has maintained FY22 production guidance.

The target price falls to $1.86 from $1.91 on near-term forecasts for elevated production costs. The Add rating is maintained.

Target price is $1.86 Current Price is $1.47 Difference: $0.39
If RMS meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates RMS as Accumulate (2) -

March quarter production was weak as Edna May produced lower throughput and grade, comments Ord Minnett. Ramelius Resources has tightened guidance yet Ord Minnett's forecasts were already at the lower end.

The broker finds no reason to deviate from management's guidance, given the reliable track record and maintains an Accumulate rating, noting the stock screens cheaply on near-term metrics. Target is reduced to $1.55 from $1.60.

Target price is $1.55 Current Price is $1.47 Difference: $0.08
If RMS meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 16.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

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

Morgan Stanley points out the FY22 result reflected material benefit from testing throughout the pandemic and this masks the underlying challenges for Sigma Pharmaceuticals.

A deterioration in operating performance was also coupled with the resignations of both the CEO and the CFO.

The new ERP system has been singled out as the key reason for the material disruption and Morgan Stanley believes FY23 will now be the true test for new management to restore profitability levels.

The broker downgrades to Underweight from Equal-weight. Target is reduced to $0.43 from $0.48. Industry view is In-Line.

Target price is $0.43 Current Price is $0.48 Difference: minus $0.05 (current price is over target).
If SIG meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.50, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in January.

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 SYR as Neutral (3) -

Credit Suisse notes the logistics constraints are easing as the Pemba project ramps up. March quarter pricing of US$573/t was in line with expectations and a higher price is anticipated, driven by 10,000t of Pemba exports achieving a US$200/t higher spot price.

The broker maintains a Neutral rating on the back of the de-risking of the Vidalia expansion yet acknowledges the company finally appears to be on a positive ramp-up trajectory. Target rises to $1.75 from $1.65.

Target price is $1.75 Current Price is $1.84 Difference: minus $0.09 (current price is over target).
If SYR meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Morgan Stanley rates TRS as Overweight (1) -

The Reject Shop has announced that Andre Reich will step down as CEO effective immediately. Morgan Stanley expects a negative reaction to the resignation, noting the progress he has made over the past two years.

The strength of the management team has been a key component of the broker's Overweight view. The company has noted trading to date is consistent with consensus, at around $4.9m in net profit. Overweight. Industry view is In-Line. Target $9.50.

Target price is $9.50 Current Price is $4.00 Difference: $5.5
If TRS meets the Morgan Stanley target it will return approximately 138% (excluding dividends, fees and charges).

Current consensus price target is $7.53, suggesting upside of 91.2% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates VEA as Outperform (1) -

Diesel spreads have recently broken out to above US$40/bbl, leading Macquarie to upgrade refining margins for Ampol's Lytton and Viva Energy's Geelong refineries.

The broker retains Outperform on Viva Energy and raises its target to $2.90 from $2.80.

Target price is $2.90 Current Price is $2.69 Difference: $0.21
If VEA meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.76, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

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

While rising interest rates will benefit net interest margins, Morgans adopts a more cautious stance on the banking sector as the new environment will also introduce some risks. These include detiorating asset quality and reduced attractiviness of dividend yields.

In addition, rising interest rates will mean term deposit rates normalise and Term Funding Facility (TFF) drawdowns are refinanced with conventional sources of funding, explains the analyst. It's thought deposits in general may also flow out of the banking sysyem.

Morgans lowers its rating for Westpac to Hold from Add. Remediation issues are thought to be crimping the bank's Australian business loan growth (high-margin loans), and generally distracting the business bankers.

The target price is reduced to $23.90 from $29.50. National Australia Bank ((NAB)) is now Morgans preferred big four bank exposure.

Target price is $23.90 Current Price is $23.45 Difference: $0.45
If WBC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $24.64, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in September.

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