Australian Broker Call

Citi rates ALG as Buy (1) -

Recent data suggests to Citi that the adverse impact of the most recent US covid outbreak may have already passed, given increased consumer confidence in October. The broker expects improved like-for-like sales growth in September for Ardent Leisure Group.

Positive sales growth should improve Main Event’s net debt position and the broker reiterates its Buy rating and $1.80 target. It's thought this may result in more cash for the group, should RedBird exercise its option for an additional stake in Main Event.

Target price is $1.80 Current Price is $1.70 Difference: $0.1
If ALG meets the Citi target it will return approximately 6% (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

Ord Minnett rates ALL as Accumulate (2) -

Aristocrat Leisure and Hong Kong-based Gopher Investments are bidding for UK online gaming software provider, Playtech. Ord Minnett feels Aristocrat Leisure offers the best strategic fit, largely due the company's industry-leading content.

Should a bidding war break out, the analyst sees short-term share price volatility though believes Aristocrat leisure will ultimately be the winner. Accumulate rating and $51 target price are retained.

Target price is $51.00 Current Price is $47.58 Difference: $3.42
If ALL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $49.79, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates ANZ as Neutral (3) -

In a post-FY21 results review, Citi expects rising US10-year yields will provide strong relative support for the Bank sector versus the broader market. The multi-year contraction in core earnings (ex-notables) is expected to abate, and the broker forecasts 2% growth in FY22.

More negatively, strong mortgage competition and stubborn cost growth are causing a lack of near-term earnings leverage to a steepening yield curve, explains Citi. Of the big four, ANZ Bank ranks third, attracting a Neutral rating and $29.25 target price.

Target price is $29.25 Current Price is $27.91 Difference: $1.34
If ANZ meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $29.46, suggesting upside of 4.8% (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

Citi rates APX as Buy (1) -

While Citi concedes Appen will require a record half to meet guidance, positive website traffic data combined with peer Telus International’s third-quarter result provides hope. The latter points to improving trends for AI data projects from the major technology companies. 

Buy rating and $17.10 target retained.

Target price is $17.10 Current Price is $10.87 Difference: $6.23
If APX meets the Citi target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $13.35, suggesting upside of 25.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

Alcoa will deploy technology improvements to reduce its capital expenditure and carbon intensity. Macquarie suggests the long-term earnings outlook has improved after incorporating updated AWAC production guidance.

The broker upgrades to Outperform from Neutral because of an improved earnings outlook and the potential for cash returns in the short term. Target is raised to $2.00 from $1.90. 

Target price is $2.00 Current Price is $1.88 Difference: $0.12
If AWC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.11, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgans rates CAT as Add (1) -

Catapult Group International's investor briefing focused on the company's market opportunity, providing an indication of the potential margin at scale, says Morgans.

The company estimates a market opportunity for the core business of US$2.6bn of which $1.4bn appears to Morgans to be addressable from the current product range.

Morgans remains a backer of the company's strategy, believing there is room to accommodate long-term growth assumptions. Add maintained. Target is $2.45.

Target price is $2.45 Current Price is $1.69 Difference: $0.76
If CAT meets the Morgans target it will return approximately 45% (excluding dividends, fees and charges).

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: 1.0

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

Citi rates CBA as Sell (5) -

In a post FY21 results review, Citi expects rising US10-year yields to provide strong relative support for the Bank sector versus the broader market. The multi-year contraction in core earnings (ex-notables) is expected to abate, and the broker forecasts 2% growth in FY22.

More negatively, strong mortgage competition and stubborn cost growth are causing a lack of near-term earnings leverage to a steepening yield curve, explains Citi. Of the big four, Commonwealth Bank ranks last, attracting a Sell rating and $94.50 target price.

Target price is $94.50 Current Price is $108.81 Difference: minus $14.31 (current price is over target).
If CBA meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $90.50, suggesting downside of -16.9% (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 CCP as Downgrade to Accumulate from Buy (2) -

Credit Corp Group provided unchanged FY22 earnings guidance at its AGM, and raised the lower end of its purchased debt ledger (PDL) guidance. Despite this, Ord Minnett lowers its rating to Accumulate from Buy, due to a recently strong share price.

The target price rises to $35 from $32 as the broker sees credit starting to rebuild in the system and future PDL supply also appears to be emerging, particularly in the US.

Management highlighted its new product development pipeline, including US Consumer Lending, Auto Lending and a buy now, pay later product.

Target price is $35.00 Current Price is $33.43 Difference: $1.57
If CCP meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $35.17, suggesting upside of 8.2% (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 CHN as Outperform (1) -

Macquarie is impressed with the maiden resource for Chalice Mining's Gonneville deposit, at 330mt containing 17m ounces of palladium equivalent.

The broker envisages a staged expansion based on a development scenario that has more than doubled the mine life. A scoping study on Gonneville is expected by the end of FY22.

Outperform rating retained. Target rises to $9.80 from $9.00.

Target price is $9.80 Current Price is $8.70 Difference: $1.1
If CHN meets the Macquarie target it will return approximately 13% (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 CPU as Outperform (1) -

Despite weakness in Computershare's US mortgage servicing business, Macquarie believes long-term growth prospects exist, and that the expected easing of foreclosure restrictions by December should translate to an earnings recovery.

The broker notes Computershare's first-quarter unpaid principal balances, according to the Inside Mortgage Finance report, fell -2.4% while the market grew 1.9%.

The deviation reflects the Computershare skew towards non-performing loans and a capital-light strategy, in the broker's opinion. Outperform maintained. Target is reduced to $22.00 from $22.25.

Target price is $22.00 Current Price is $19.02 Difference: $2.98
If CPU meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $18.84, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

Morgan Stanley rates CPU as Overweight (1) -

Heading into Computershare's upcoming AGM commentary, Morgan Stanley upgrades the target price to $21.50 from $17.90, seeing upside risk to FY22 guidance thanks to higher interest rates, and the completion of the Wells Fargo trust acquisition.

Of all the stocks under the broker's coverage, Computershare has the greatest interest rate exposure, particularly to US rates. There's also considered to be structural growth options in staff share plans and mortgage servicing.

Overweight rating is unchanged. Industry view is In-Line.

Target price is $21.50 Current Price is $19.02 Difference: $2.48
If CPU meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $18.84, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

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: 0.1

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

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

Having reviewed the opportunities and risks for CSL's immunoglobulin, and notwithstanding elevated multiples, Macquarie envisages a favourable growth profile and says the balance sheet remains attractive.

Over the medium to longer term, immunoglobulin growth should be supported by increased diagnosis of conditions in which the product is used. The new plasma collection platform could also improve efficiency.

The broker upgrades to Outperform from Neutral and raises its target to $338.00 from $302.50. 

Target price is $338.00 Current Price is $314.88 Difference: $23.12
If CSL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $311.23, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

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

Morgan Stanley signals some risk to its below consensus forecasts for FY23 EPS, given lower-than-expected plasma growth guidance from peer Haemonetics. However, the analyst says collection trends appear volatile and it's still early days.

Equal-weight rating and target price of $280.00 are retained. Industry view: In line.

Target price is $280.00 Current Price is $314.88 Difference: minus $34.88 (current price is over target).
If CSL meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $311.23, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

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

Morgan Stanley is concerned about the lack of organic growth at Damstra Holdings. The broker points out that since the IPO, the bulk of growth has been via acquisitions and there's little to show in terms of a profit uptick or clarity on cross-sell opportunities.

Moreover, liquidity constraints limit near-term options, and the de-scoping of arrangements with Newmont are seen as having more than financial implications (potential lack of a value proposition).

The broker lowers its target price to $0.68 from $1.10 and retains its Equal-weight Industry view: In-Line.

Target price is $0.68 Current Price is $0.68 Difference: $0
If DTC meets the Morgan Stanley target it will return approximately 0% (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

Morgans rates DTL as Add (1) -

Data#3's investor briefing has highlighted the challenges of an undersupply of people and products which Morgans believes will take time to normalise. Yet the company is considered better placed than many.

Data#3 expects higher margin services growth will be greater than that of lower margin software over the next few years and this should mean gross profit expands.

Morgans maintains an Add rating. Target price rises to $6.28 from $5.92.

Target price is $6.28 Current Price is $5.84 Difference: $0.44
If DTL meets the Morgans target it will return approximately 8% (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 FCL as Outperform (1) -

Fineos Corporation has reiterated guidance at its AGM for revenue of EUR125-130m which implies 17.7% growth at the mid point.

Macquarie notes the support coming from cross-selling and up-selling opportunities. Outperform rating and $4.92 target maintained.

Target price is $4.92 Current Price is $4.30 Difference: $0.62
If FCL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.89, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Citi rates JHX as Buy (1) -

Citi forecasts an in-line September-quarter result for James Hardie Industries and forsees a structural change arising from an increased exposure to the repair and remodel (R&R) market. The overall favourable operating environment is expected to continue.

The analyst believes good momentum is reasonably assured in the US, so is pleased to see strength in other regions. Target price rises to $61.80 from $56.20. Buy rating is unchanged.

Target price is $61.80 Current Price is $53.94 Difference: $7.86
If JHX meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $58.43, suggesting upside of 6.7% (ex-dividends)

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: 0.8

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

Credit Suisse rates JHX as Neutral (3) -

James Hardie Industries' September-quarter net profit outpaced expectations and management has raised FY22 guidance to US$580-600m. Credit Suisse was impressed with the company's ability to increase margins in the face of rising costs cost.

The broker increases the target price to $51.20 from $47.40. A Neutral rating is maintained, the company's good performance being balanced by Credit Suisse's view of limited upside to volume and margins.

Target price is $51.20 Current Price is $53.94 Difference: minus $2.74 (current price is over target).
If JHX 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 $58.43, suggesting upside of 6.7% (ex-dividends)

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: 0.8

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

Macquarie rates JHX as Outperform (1) -

James Hardie Industries' September-quarter results revealed an increase of 29% in net profit. Macquarie suggests market conditions are supportive while execution has been maintained by the company's commitment to increase capacity and high-value, high-margin products.

The main risk, in the broker's view, is the effect of interest-rate fluctuations on the share price. Outperform rating maintained. Target rises to $61.75 from $59.00.

Target price is $61.75 Current Price is $53.94 Difference: $7.81
If JHX meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $58.43, suggesting upside of 6.7% (ex-dividends)

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: 0.8

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

Morgan Stanley rates JHX as Overweight (1) -

Morgan Stanley assesses a strong 2Q result for James Hardie Industries and lifts its target price to $62 from $59 and maintains its Overweight rating. Industry view is In-Line. Leverage to a strong housing market is considered key to the outlook.

There was a 9% revenue beat for the APAC region versus the broker's estimate, while revenue missed by -9% in Nth America on weaker volumes but stronger price, explains the analyst. However, there are thought to be pointers to strong demand dynamics in each market.

Target price is $62.00 Current Price is $53.94 Difference: $8.06
If JHX meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $58.43, suggesting upside of 6.7% (ex-dividends)

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: 0.8

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

UBS rates JHX as Buy (1) -

James Hardie's September-quarter profit beat UBS by 6% and the FY22 profit guidance range has been raised by 4% at the midpoint, on the back of 9% growth in North America.

The company is still targeting a longer term mix of 66% of high-value product in the region. The broker believes substitution will slow over time but agrees with the strategy of targeting not just high-value but high-quality leads.

James Hardie is also "prudently" adding capacity in all of North America, Europe and Asia-Pacific. Target rises to $59.80 from $54.70, Buy retained.

Target price is $59.80 Current Price is $53.94 Difference: $5.86
If JHX meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $58.43, suggesting upside of 6.7% (ex-dividends)

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: 0.8

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

Morgans rates MGH as Add (1) -

MAAS Group Holdings has provided FY22 operating earnings (EBITDA) guidance of $115-125m, implying growth of 52%-65%.

The company is negotiating a further four acquisitions which are expected to be completed prior to the end of 2021, when an update on contributions is expected.

Morgans notes the business has made a strong start to FY22 and the quantitative earnings guidance is a positive sign. Given the favourable leverage to industry tailwinds, the broker maintains an Add rating. Target is $5.65.

Target price is $5.65 Current Price is $4.57 Difference: $1.08
If MGH meets the Morgans target it will return approximately 24% (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 MGR as Overweight (1) -

Morgan Stanley points out new homes sales were strong in October and are tracking about 25% above pre-covid averages. This is thought to have positive implications for sales momentum at Mirvac Group.

Morgan Stanley's Overweight rating and $3.30 target price are maintained. Industry view: In-Line.

Target price is $3.30 Current Price is $2.86 Difference: $0.44
If MGR meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 8.2% (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

Citi rates NAB as Neutral (3) -

Citi assesses in-line FY21 cash earnings and feels National Australia Bank has established the best core earnings outlook across the sector. The target price rises to $29.50 from $26.75.

In a post-FY21 results review for the overall sector, Citi expects rising US10-year yields to provide strong relative support for the Bank sector versus the broader market. The multi-year contraction in core earnings (ex-notables) is expected to abate, and the broker forecasts 2% growth in FY22.

More negatively, strong mortgage competition and stubborn cost growth are causing a lack of near-term earnings leverage to a steepening yield curve, explains Citi. Of the big four, National Australia Bank ranks second and attracts a Neutral rating.

Target price is $29.50 Current Price is $28.89 Difference: $0.61
If NAB meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting downside of -2.3% (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

Credit Suisse rates NAB as Neutral (3) -

Credit Suisse upgrades estimates for National Australia Bank after the FY21 result. The broker believes the bank has executed its strategy well and its portfolio is better positioned for a rebound in the economy.

The capital position is strong, expenses are under control and there is momentum on the balance sheet. The main issue for Credit Suisse is lower markets and treasury income and uncertainty surrounding the AUSTRAC investigation.

The valuation appears to capture the relative position and a Neutral rating is maintained. Target is raised to $29.00 from $28.50.

Target price is $29.00 Current Price is $28.89 Difference: $0.11
If NAB meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting downside of -2.3% (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

Macquarie rates NAB as Outperform (1) -

National Australia Bank's operating performance improved over the second half and while weak markets income dragged on revenue, this was offset by low impairments.

Macquarie notes divisional volumes and margins outpaced peers, and management has provided a credible explanation for the drag from markets income, which was the main weakness.

Macquarie retains an Outperform rating and raises the target to $30.50 from $29.00.

Target price is $30.50 Current Price is $28.89 Difference: $1.61
If NAB meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting downside of -2.3% (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

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

Following FY21 results, Morgan Stanley makes only minor changes to its forecasts for National Australia Bank and retains its Equal-Weight rating and target price of $27.90. Industry view: In-Line.

Second-half cash profit proved a -1% miss versus the broker's estimate although pre-provision profit missed by about -5.5%.

The analyst upgrades the FY22 loan forecast by about 3%,and assumes Australian housing and non-housing loan growth of circa 5.5% and 6%, respectively. Expense growth was within guidance in FY21, and management expects costs to be "broadly flat" in FY22.

Target price is $27.90 Current Price is $28.89 Difference: minus $0.99 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.47, suggesting downside of -2.3% (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

Morgans rates NAB as Hold (3) -

National Australia Bank's FY21 cash earnings were better than expected and Morgans was particularly pleased with the 2.9% growth in net interest income which was achieved from stable margins, albeit excluding markets and treasury.

The final dividend of $0.67 was also an improvement on expectations. The broker admires the margin discipline going into FY22 yet suspects the AUSTRAC investigation will be a continued source of concern.

Hold rating maintained. Target rises to $28.50 from $27.50.

Target price is $28.50 Current Price is $28.89 Difference: minus $0.39 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.47, suggesting downside of -2.3% (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

Ord Minnett rates NAB as Accumulate (2) -

Greater margin pressure than Ord Minnett envisaged within National Australia Bank's FY21 result caused a -1% miss on revenue against the broker's estimate. There was a -3% miss on a cash net profit basis, while the 67cps final dividend was a beat on the analyst's 65cps.

Nonetheless, Ord Minnett lifts its pre-provision earnings forecasts by 2% to reflect greater comfort with costs, stronger period-end loan balances and improved markets volatility. Target price rises to $31.40 from $29.50. Accumulate rating is unchanged.

Target price is $31.40 Current Price is $28.89 Difference: $2.51
If NAB meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting downside of -2.3% (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

Macquarie rates NCM as Outperform (1) -

Newcrest Mining has launched a US$2.8bn takeover of Pretium Resources which owns the Brucejack gold mine in Canada. Macquarie assesses this will sustain the company's production comfortably above 2m ounces a year.

The potential to extend the life of the mine or grow production also appears strong given the large resource base and exploration upside.

After incorporating Brucejack into modelling along with the purchase price and additional dilution from the deal, which involves cash and scrip, the broker's estimates rise 1% for FY22 and fall -1% for FY24.

Outperform rating and $30 target maintained.

Target price is $30.00 Current Price is $24.96 Difference: $5.04
If NCM meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $29.57, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Morgan Stanley rates NCM as Overweight (1) -

Newcrest Mining has announced the acquisition of Pretium Resources, owner of the Brucejack gold mine in Canada, for US$2.8bn. The multiple appears high to Morgan Stanley, but the broker sees scope for improvements to production, and exploration potential.

Overweight rating and $30 target price are retained. Industry view: In-Line.

Target price is $30.00 Current Price is $24.96 Difference: $5.04
If NCM meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $29.57, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Ord Minnett rates NCM as Buy (1) -

While Ord Minnett believes Newcrest Mining's acquisition of Pretium Resources, owner of the Brucejack mine in Canada,is net present value dilutive, upside resides in further resource conversion, mine optimisation and impressive exploration potential. 

More generally, the analyst feels inflation uncertainty has boosted the appeal of gold in recent months.The Broker retains its Buy rating and $30 target price.

Target price is $30.00 Current Price is $24.96 Difference: $5.04
If NCM meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $29.57, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Credit Suisse rates NHF as Neutral (3) -

Nib Holdings has outlined its strategy to grow its private health insurance business as well as provide more diverse healthcare services. Credit Suisse finds the strategy compelling, offering meaningful potential by FY25.

The company is targeting 25% growth in its Australian resident health-insurance business to FY25, aiming to attract younger members through enhanced digital propositions.

Neutral rating and $6.70 target retained.

Target price is $6.70 Current Price is $7.29 Difference: minus $0.59 (current price is over target).
If NHF meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.94, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates NHF as Neutral (3) -

The company expects modest price rises at the next round of health-insurance-premium approvals, while the focus now is on the catching up of claims post the pandemic disruption. Macquarie suspects there is limited earnings risk to the upside in the short term as a result.

Nib Holdings also expects to agree on a new insurer for its Australasian travel product by Christmas. Macquarie retains a Neutral rating and $7.50 target.

Target price is $7.50 Current Price is $7.29 Difference: $0.21
If NHF meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgans rates NHF as Hold (3) -

Nib Holdings has emphasised, a focus on customer value in its investor briefing in order to improve its performance. Data science and an app will be used to engage with younger customers and integrate them into the health-system services.

The company is targeting 800,000 members in its Australian resident health insurance business by FY25 and white labelled products are expected to be a key driver of growth.

Morgans considers the business well managed but finds it hard to ascertain just how the long claims tailwinds linked to the pandemic will support super profits, as the operating environment is likely to normalise at some stage. Hold maintained. Target is $7.66.

Target price is $7.66 Current Price is $7.29 Difference: $0.37
If NHF meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Ord Minnett rates NHF as Hold (3) -

Following an investor day, Ord Minnett sees potentially negative sentiment arising for nib Holdings from the looming Federal election. Moreover, the analyst points to recent statements from health departments around insurers not profiting from covid-19.

The broker's target price eases to $6.90 from $7 and its Hold rating is maintained.

Target price is $6.90 Current Price is $7.29 Difference: minus $0.39 (current price is over target).
If NHF meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.94, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Credit Suisse rates NUF as Neutral (3) -

Credit Suisse expects a solid FY21 result, given crop conditions in Australia and an improving turf market in North America.

In the first half, Nufarm delivered a $10m improvement in earnings and guuides to $25m by the end of FY21, and $35-40m by the end of FY22.

The broker believes product development will need to be an increasing component of the Nufarm business, and the company has guided to increased research expenditure.

Neutral rating maintained. Target rises to $5.14 from $4.85.

Target price is $5.14 Current Price is $5.18 Difference: minus $0.04 (current price is over target).
If NUF meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.71, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates PBH as Outperform (1) -

PointsBet  has been awarded a New York sports betting licence. This demonstrates the company is a credible contender in the US market, Credit Suisse asserts.

The fact this is a 10-year licence and only nine licenses were issued increases the attractiveness of the stock as an acquisition target, the broker adds.

Loss estimates for FY22, FY23 and FY24 are increased to account for greater marketing expenditure. The broker presumes the company can then increase yield and cover marketing expenses while delivering a 3% EBITDA margin by FY26.

Outperform rating and $12.80 target maintained.

Target price is $12.80 Current Price is $8.81 Difference: $3.99
If PBH meets the Credit Suisse target it will return approximately 45% (excluding dividends, fees and charges).

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

UBS rates PDL as Initiation of coverage with Buy (1) -

UBS "initiates" coverage of fund manager Pendal Group with a Buy rating and $7.95 target (note the broker last covered Pendal in May 2020).

Pendal is a global multi-boutique with $139bn of funds under management geographically diversified across Australia, UK/Europe and the US, and the stock has de-rated materially following significant net outflows in the Septemnber quarter, the broker notes.

But the Investment performance remains robust, fees are reasonable, and distribution is improving, hence the brtoker sees value at the price.

Target price is $7.95 Current Price is $6.92 Difference: $1.03
If PDL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.06, suggesting upside of 18.3% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates PPT as Initiation of coverage with Neutral (3) -

UBS "initiates" coverage of fund manager Perpetual with a Neutral rating and $37.65 target (note the broker last covered Pendal in April 2020).

Perpetual is a global asset manager with $98bn in funds under management and diversified operations including Corporate Trust and Private Wealth. Corporate has been the key growth driver but as growth matures, Perpetual has countered with US acquisitions.

Not without risk, the broker suggests, given increased distribution costs. And the broker sees benefits as likely cyclical, preferring Pendal Group ((PDL)) in the sector.

Target price is $37.65 Current Price is $37.00 Difference: $0.65
If PPT meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $40.80, suggesting upside of 10.8% (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

UBS rates PTM as Initiation of coverage with Sell (5) -

UBS initiates coverage of Platinum Asset Management with a Sell rating and $2.25 target.

Platinum Asset Management is a value-oriented global equities boutique with $23bn of funds under management and its flagship strategy has underperformed in the past decade, leading to persistent net outflow and stagnant funds-under-management (FUM) growth. Recent market rotation out of value has led to a -40% price decline.

While a rotation back again would provide a tailwind, the broker believes capitalising on the flow opportunity remains difficult given uncompetitive fees and below-peer distribution capacity.

Target price is $2.25 Current Price is $2.99 Difference: minus $0.74 (current price is over target).
If PTM meets the UBS target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.29, suggesting upside of 11.5% (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

Credit Suisse rates SCG as Outperform (1) -

Scentre Group has confirmed guidance for a distribution of at least $0.14 per security. Credit Suisse notes recent transaction activity in Australia has provided some support for regional shopping centres.

Still, the broker does not believe there will be a reweighting of this asset class to the upside by global capital.

Scentre Group collected $1.8bn in gross billings for the 10 months ended October 2021 and the latest round of mandated rental relief has not been determined.

Credit Suisse continues to expect negative re-leasing spreads and does not expect a return to pre-pandemic earnings will be achieved, although a recovery will occur in 2022. Outperform rating maintained. Target rises to $3.27 from $3.01.

Target price is $3.27 Current Price is $3.13 Difference: $0.14
If SCG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.89, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Morgan Stanley found the operational update by Scentre Group a bit light on for detail though discerned rent collection for the four
months ended October 21 appears to be about 76%. This could be overstated with late/deferred rent, cautions the analyst.

About 95% of the stores have reopened. Management is guiding to distributions of at least 14cps for 2021. The Equal-Weight rating and $3.13 target price are maintained. Industry view: In-line.

Target price is $3.13 Current Price is $3.13 Difference: $0
If SCG meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.89, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates SCG as Buy (1) -

Following Scentre Group's operational update, Ord Minnett notes 95% of stores in Australia are now open, and cash collections are estimated to recover to 90% from 75% for November and December. FY21 dividend guidance of 14cps was retained.

Based on numerous recent transactions supporting current book values, the broker increases its target price to $3.50 from $3.20 and maintains its Buy rating.

Target price is $3.50 Current Price is $3.13 Difference: $0.37
If SCG meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.89, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates SGP as Overweight (1) -

Morgan Stanley points out new homes sales were strong in October and are currently tracking around 25% above pre-covid averages. This is thought to have positive implications for sales momentum at Stockland.

Morgan Stanley retains an Overweight rating, $5 target and In-Line industry view.

Target price is $5.00 Current Price is $4.52 Difference: $0.48
If SGP meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 8.0% (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 SWM as Outperform (1) -

At its AGM, Seven West Media has guided to FY22 operating earnings (EBITDA) within a range of $278-286m - ahead of expectations.

Credit Suisse notes 7Plus revenue has been strong, supported by user take-up during the Olympics. The company's target for 40% revenue share in the TV advertising market in the first half of FY22 is maintained.

Credit Suisse retains an Outperform rating and raises the target to $0.90 from $0.80.

Target price is $0.90 Current Price is $0.56 Difference: $0.34
If SWM meets the Credit Suisse target it will return approximately 61% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 43.1% (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

UBS rates SWM as Buy (1) -

UBS had already upgraded its outlook for the free-to-air ad market and Seven West Media's update at its AGM did indeed reflect an improved outlook in FTA. The broker nevertheless awaits Nine Entertainment's ((NEC)) AGM to confirm overall market conditions.

Seven revealed 145% growth in broadcaster video on demand, including 50% post-Olympics, but the broker questions whether BVOD revenues can be sustained over a multi-year timeframe. FY22 earnings forecast rises 9% but no change further out.

Buy rating and 95c target retained.

Target price is $0.95 Current Price is $0.56 Difference: $0.39
If SWM meets the UBS target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $0.83, suggesting upside of 43.1% (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

Credit Suisse rates SYD as Neutral (3) -

Credit Suisse points out the bid for Sydney Airport by the Sydney Aviation Alliance requires ACCC approval and the regulator could use the opportunity to highlight its view regarding the inadequate economic regulation of Australian airports.

The broker suspects an attempt could be made to require bidders to divest holdings in other Australian airports to a non-significant level. A review is likely to cause delays and, Credit Suisse suspects, add significant risk to completing the deal.

Neutral rating and $8.75 target maintained.

Target price is $8.75 Current Price is $8.40 Difference: $0.35
If SYD meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates TPW as Neutral (3) -

Macquarie reassesses Temple & Webster in the wake of the trading update from Wayfair. The broker expects trading in the short term will be affected by uncertainty as restrictions brought on by the pandemic ease.

The broker applies a -10% discount to valuation to directly reflect the impact of this uncertain outlook. Target is reduced to $12.10 from $13.45. Neutral maintained.

Target price is $12.10 Current Price is $10.79 Difference: $1.31
If TPW meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $14.66, suggesting upside of 40.9% (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

Citi rates WBC as Buy (1) -

In a post-FY21 results review, Citi expects rising US10-year yields to provide strong relative support for the Bank sector versus the broader market. The multi-year contraction in core earnings (ex-notables) is expected to abate, and the broker forecasts 2% growth in FY22.

More negatively, strong mortgage competition and stubborn cost growth are causing a lack of near-term earnings leverage to a steepening yield curve, explains Citi.

Of the big four, the analyst feels Westpac Bank has the best upside for the patient investor. Buy rating and $27.50 target price.

Target price is $27.50 Current Price is $22.52 Difference: $4.98
If WBC meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $26.33, suggesting upside of 16.0% (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

Citi rates WES as Sell (5) -

Citi lifts its target price for Wesfarmers to $50 from $49 following the scheme implementation deed with Australian Pharmaceutical Industries ((API)) at $1.55/ share, net of dividends declared.

The analyst feels the transaction is likely to go ahead and factors the new business into the broker's financial model. Sell rating is retained on valuation.

Target price is $50.00 Current Price is $59.85 Difference: minus $9.85 (current price is over target).
If WES meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.96, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates WPL as Neutral (3) -

Macquarie notes Woodside Petroleum has already taken on the project risk for Scarborough via the put option with BHP Group ((BHP)). Now, the Scarborough project resource estimates from BHP Group appear substantially lower than that which Woodside has been carrying since 2019.

The broker reduces Scarborough project volumes to align with the more conservative estimate from BHP Group, which is likely to have been used in a merger calculation, and pending more information from Woodside.

As a result, Woodside's target is lowered to $23.75 from $24.95. Neutral rating retained.

Target price is $23.75 Current Price is $22.98 Difference: $0.77
If WPL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $25.80, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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