Australian Broker Call

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

Higher-than-expected logistics costs have driven Australian Vintage to a FY22 underlying earnings guidance -12% below Morgans' previous forecast. A -$4.5m logistics cost increase related to supply chain challenges is expected to add cost pressure in the first half.

Despite softer guidance, the broker notes metrics still demonstrate sustainable growth in recent years with guidance around 40% above FY20 results and just -5-7% below last year's record. Morgans expects limited potential for additional capital return in FY22. 

The rating is downgraded to Hold from Add and the target price decreases to $0.90 from $1.06.

Target price is $0.90 Current Price is $0.84 Difference: $0.06
If AVG meets the Morgans target it will return approximately 7% (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 BWX as Outperform (1) -

BWX reported a 13% increase in sales in the Sep-Q for its recently acquired Go-To business, despite the closure of Mecca stores which represented 30% of sales in FY21. Macquarie now expects 22% compound annual growth in Go-To revenues over FY21-24, up from 13%.

The broker nonetheless expects margin pressure for Go-To due to logistics headwinds and the need for marketing spend. Sukin expectations are trimmed due to lockdowns and a focus on the US rollout.

Outperform and $6.00 target retained.

Target price is $6.00 Current Price is $4.55 Difference: $1.45
If BWX meets the Macquarie target it will return approximately 32% (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

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

Morgan Stanley perceives the stability offered over the last two years by smaller-mall REITs with regional exposure may become relatively less attractive as mobility increases. It's thought slowing regional migration and limited balance sheet capacity may also weigh.

As a result, the analyst's rating for Charter Hall Retail REIT falls to Underweight from Equal-weight. In relative terms, the broker prefers Shopping Centres Australasia Property Group ((SCP)) which has a higher three year compound annual growth rate.

The price target falls to $4.05 from $4.10. Industry view: In-line.

Target price is $4.05 Current Price is $4.22 Difference: minus $0.17 (current price is over target).
If CQR meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.16, suggesting downside of -1.4% (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

Citi rates DHG as Re-initation with Buy (1) -

Citi re-initiates coverage on Domain Holdings Australia. Recent listing activity surges, expected to remain elevated near-term, have benefited the market but Citi notes increasing mortgage rates will likely drive slower housing activity and negative listing growth in FY23.

Recent investments in property data solutions to create a property ecosystem also offer growth and revenue opportunity in Citi's view, where investment could be leveraged for an increased share of mortgage broking and refinancing activity.

The broker notes Domain is more exposed to a weak housing market but has a comparably more attractive valuation than market leader REA Group ((REA)). The broker re-initiates with a Buy rating and a target price of $6.50.

Target price is $6.50 Current Price is $5.41 Difference: $1.09
If DHG meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 1.4% (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

Citi rates DXS as Sell (5) -

Dexus has announced the sale of the 383 Kent Street asset for a total $385m, in what Citi notes is a continuing diversification away from office space following the divestment of -$1.6bn from the company's office exposure in FY21.

The broker sees Dexus' diversification away from office space, as well as market commentary of office rental weakness, as a potential indicator for future headwinds in the segment. 

The Sell rating and target price of $9.54 are retained.

Target price is $9.54 Current Price is $11.13 Difference: minus $1.59 (current price is over target).
If DXS meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.22, suggesting upside of 0.3% (ex-dividends)

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 DXS as Outperform (1) -

Dexus Property has sold its Kent St asset in Sydney at a 1.3% premium to book value, which Macquarie estimates as being -1% dilutive to annual funds from operations. The REIT will continue to sell down high capital intensity assets.

Funds will be recycled into new development and funds management opportunities. Such recycling will prove funds from operations (FFO) accretive in the longer term, the broker notes, and funds management offers upside risk.

Outperform retained, target rises to $11.93 from $11.90.

Target price is $11.93 Current Price is $11.13 Difference: $0.8
If DXS meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $11.22, suggesting upside of 0.3% (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

Citi rates HVN as Buy (1) -

Citi notes momentum has improved for Harvey Norman Holdings as New South Wales and Victoria emerge from lockdowns, and despite reported like-for-like sales growth of -11.1% year-to-date the broker continues to expect 8% growth in the remainder of the first half.

The broker expects strong housing demand and trade shortages to continue to support home-related category sales through FY22 at least, despite estimating a -5-6% drag on non-food retailers in the year to account for resuming travel and decreased stimulus payments.

The Buy rating and target price of $6.00 are both retained.

Target price is $6.00 Current Price is $5.10 Difference: $0.9
If HVN meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $6.25, suggesting upside of 22.6% (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

Credit Suisse rates HVN as Neutral (3) -

Credit Suisse upgrades 1H estimates after Harvey Norman's 1Q sales and profits comfortably exceeded expectations. In identifying a point of difference with JB Hi-Fi ((JBH)), the analyst points to the value-adding property portfolio and longer-term offshore growth.

The broker notes, that with the exception of Malaysia, all regions are now free to trade. Share price outperformance is considered unlikely in the face of declining earnings over FY22 and FY23. Neutral rating and target eases to $5.61 from $5.65. 

Target price is $5.61 Current Price is $5.10 Difference: $0.51
If HVN meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $6.25, suggesting upside of 22.6% (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

Macquarie rates HVN as Outperform (1) -

Harvey Norman has seen sales fall -11% year on year so far in FY22 due to lockdowns. For the four months to October, profit is down -35.5% year on year but up 70.1% over two years, Macquarie notes.

November and December should see sales rebounding post-lockdowns and in the Black Friday period but taking similar US electronics retailer reports as a guide, the broker notes rising supply chain costs and higher promotional activity are providing margin pressure.

Outperform and $6.40 target retained.

Target price is $6.40 Current Price is $5.10 Difference: $1.3
If HVN meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.25, suggesting upside of 22.6% (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

UBS rates HVN as Buy (1) -

UBS was positioned 14% above consensus estimates prior to Harvey Norman's 1Q AGM trading update, yet stiil manages to lift its FY22 EPS forecast by 1%, while keeping FY23 unchanged. A&NZ and Malaysian lockdowns weighed on sales and profit, notes the broker.

The analyst believes the company is well positioned based on the strength of consumer demand in retail, as well as prior positive reopening experiences. The Buy rating and $7 target price are retained.

Target price is $7.00 Current Price is $5.10 Difference: $1.9
If HVN meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $6.25, suggesting upside of 22.6% (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

Credit Suisse rates MPL as Outperform (1) -

Credit Suiise notes policyholder growth trends continued further in the September quarter, and expects margins to stay strong in the private health insurance sector. This is based upon the September Private Health Insurance quarterly statistics released by APRA.

The broker also points to ongoing market share gains by Medibank Private at the expense of Bupa. The Outperform rating and $3.70 target price are retained.

Target price is $3.70 Current Price is $3.48 Difference: $0.22
If MPL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 1.5% (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

Credit Suisse rates NHF as Neutral (3) -

Credit Suiise notes policyholder growth trends continued further in the September quarter, and expects margins to stay strong in the private health insurance sector. This is based upon the September Private Health Insurance quarterly statistics released by APRA.

The broker also points to ongoing market share gains by nib Holdings at the expense of Bupa. The Neutral rating and $6.70 target price are retained.

Target price is $6.70 Current Price is $7.00 Difference: minus $0.3 (current price is over target).
If NHF meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.94, suggesting downside of -1.1% (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

Citi rates REA as Re-initation with Neutral (3) -

Citi re-initiates coverage on REA Group. Recent listing activity surges, expected to remain elevated near-term, have benefited the market but Citi notes increasing mortgage rates will likely drive slower housing activity and negative listing growth in FY23.

Recent investments in property data solutions to create a property ecosystem also offer growth and revenue opportunity in Citi's view, where investment could be leveraged for an increased share of mortgage broking and refinancing activity.

REA Group's premium valuation does not offer attractive risk reward for Citi given potential listing declines in FY23. The broker re-initiates with a Neutral rating and a target price of $175.00.

Target price is $175.00 Current Price is $164.87 Difference: $10.13
If REA meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $171.31, suggesting upside of 3.8% (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

Credit Suisse rates RHC as Neutral (3) -

Credit Suisse notes that industry trends are consistent with Ramsey Health Care's recent 1Q trading update. This comes as APRA released Private Health Insurance hospital statistics indicating private hospital industry benefits increased 9.3% year-on-year in 3Q21.

While the analyst sees volume tailwinds post covid-19 for the company, higher costs will likely weigh on profitability. The broker retains its Neutral rating and $68 target price.

Target price is $68.00 Current Price is $67.73 Difference: $0.27
If RHC meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $68.88, suggesting upside of 1.9% (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

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

Morgan Stanley perceives the stability offered over the last two years by smaller-mall REITs with regional exposure may become relatively less attractive as mobility increases. It's thought slowing regional migration and limited balance sheet capacity may also weigh.

As a result, the analyst's rating for Shopping Centres Australasia Property Group falls to Equal-weight from Overweight. In relative terms, the broker prefers the group over the Charter Hall Retail REIT ((CQR)), which has a lower estimated three year compound annual growth rate.

The target price of $2.95 is unchanged. In-Line industry view.

Target price is $2.95 Current Price is $2.90 Difference: $0.05
If SCP meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

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 VEA as Outperform (1) -

As part of Viva Energy Group's strategy update, management doesn't preclude the possibility of capital returns in excess of the 50-70% dividend payout target. However, Credit Suisse feels capital investment is more likely.

The analyst estimates 2022 refining margins will remain well above the recent historical average, while retail margins have been a little softer. It's thought the latter may point to less demand resulting from the escalation in retail petrol prices.

The Outperform rating and $2.59 target price are retained.

Target price is $2.59 Current Price is $2.25 Difference: $0.34
If VEA meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates VEA as Outperform (1) -

Viva Energy's strategy day relieved Macquarie given no major surprises but management did highlight strategies designed to defend its core business while adding new earnings streams.

Convenience will be a more important part of Viva’s business on a 4-5 year view, and even more as the Coles Express Alliance ((COL)) expires in 2029.

The broker maintains Outperform and a $2.60 target on the back of increasing mobility over FY22 (cars on the road) but warns accelerating EV penetration poses a threat.

Target price is $2.60 Current Price is $2.25 Difference: $0.35
If VEA meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates VEA as Overweight (1) -

Viva Energy Group has unveiled its new-energies initiative, reports Morgan Stanley.

Of note was a target to generate $50m in earnings streams over the next 3-5 years - most likely from the Geelong Energy hub and/or from buying the 50% balance of Liberty convenience, says the broker.

The company also plans to reduce capital expenditure to roughly $500m over four years.

Morgan Stanley estimates this would generate roughly $100m in free cash flow, increasing to roughly $500m in the event of a recovery in refinery margins.

Viva Energy also announced net zero plans for the Retail, Fuels and Marketing business by 2030, and for complete operations by 2050, which the broker expects will result in the closure of the refinery.

The company is using the Geelong hub to provide a hydrogen fuelling network, has plans to submit submissons to Victorian state regulators by year end and expects a final investment decision by September 2022. 

It is considering a feasibilty study on converting biofuels into sustainable aviation fuels in partnership with global hydrogen fuel-cell supplier Hyzon.

Meanwhile, the broker expects oil demand will remain robust over the transition period, noting that in Norway where electric vehicle sales constitute 70% of new car sales, gasoline and diesel sales have been solid.

Overweight retained and $2.50 target price retained. Industry view: Attractive.

Target price is $2.50 Current Price is $2.25 Difference: $0.25
If VEA meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates VEA as Buy (1) -

Following Viva Energy Group's investor day, UBS maintains its investment thesis and sees asymmetric upside from improving refining margins and improving fuel demand as travel restrictions ease. 

Moreover, the broker anticipates higher retail margins from minimum stockholding obligations which come into effect 1 July 2022. Progress on Geelong LNG import project is considered to remain on track. The Buy rating and $2.50 target price are unchanged.

Target price is $2.50 Current Price is $2.25 Difference: $0.25
If VEA meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.55, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates WEB as Neutral (3) -

Citi spotted an operationally good first half result for Webjet, with activity in the period driving a more positive outlook. Business-to-business transactions were the period's main driver but the broker looks to business-to-customer for potential upside moving forward. 

The pace of integration of WebBeds into the Americas was a key positive for Citi having shown material traction, although a softer than expected result from Europe somewhat offset.

The Neutral/High Risk rating is retained and the target price increases to $6.46 from $6.35.

Target price is $6.46 Current Price is $5.67 Difference: $0.79
If WEB meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates WEB as Neutral (3) -

In-line with commentary from WebJet, Credit Suisse pushes out the timeline for a full travel recovery to the 2H FY23. In the near-term the company is considered to be at the mercy of government travel restrictions. The target price falls to $5.40 from $5.70.

The company's 1H earnings (EBITDA) loss was broadly in-line with the analysts expectation. A winter covid resurgence is considered a risk. The Neutral rating is maintained.

Target price is $5.40 Current Price is $5.67 Difference: minus $0.27 (current price is over target).
If WEB 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 $6.22, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in March.

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

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

Webjet's first-half result exceeded a low guidance bar, sales meeting Morgan Stanley's forecasts and earnings disappointing.

The broker is less than impressed with Webjet's M&A forays, reporting several B2B purchases where the cost of capital exceeded return on invested capital; and the divestment of B2C acquisitions below even pre-covid peak earnings.

Morgan Stanley also decries the heavily discounted highly dilutive equity raising near the bottom of the cycle.

Target price rises to $5 from $4.30 to reflect changes in capital expenditure assumptions and non-cash interest expenses. FY22 EPS forecasts fall to -8.7c from -3.4c.

The broker would like to see progress on margins; evidence of B2B differentiation; and internally developed technology that boosts performance before changing its view. Equal-weight rating retained. Industry view: In-line.

Target price is $4.30 Current Price is $5.67 Difference: minus $1.37 (current price is over target).
If WEB meets the Morgan Stanley target it will return approximately minus 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.22, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in March.

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 WEB as Upgrade to Add from Hold (1) -

While Webjet continues to feel covid impacts, and does not expect a return to pre-covid booking levels until the second half of FY23, Morgans notes the company did generate positive operating cashflow in the first half totaling $32.8m. 

With Webjet's larger businesses profitable in November, the broker is forecasting six months of positive underlying earnings. Given cost out targets, Morgans expects the company to exceed FY19 underlying earnings in FY24. 

The rating is upgraded to Add from Hold and the target price increases to $6.60 from $6.20.

Target price is $6.60 Current Price is $5.67 Difference: $0.93
If WEB meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates WEB as Buy (1) -

For Ord Minnett's early response to Webjet's first-half result, see yesterday's report. Today the broker comments the release suggests a rebound in the business is near.

All-in-all, Ord Minnett believes Webjet seems well positioned for a very strong summer season across Europe and North America as industry conditions improve by mid 2022.

The analyst is equally confident the -20% in cost reductions can be sustained. Buy rating and $7.31 target price, up from $7.12.

Target price is $7.31 Current Price is $5.67 Difference: $1.64
If WEB meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in March.

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 WEB as Buy (1) -

Following WebJet's 1H results, UBS suggests investors focus upon the medium-term earnings capability as well as the short-term recovery. Progress is being made for cost out within B2B, and market share gains are creating top line momentum, explains the analyst.

1H22 revenue was a 9% beat versus the broker's estimate though higher cost reinvestment resulted in a minor earnings (EBITDA) miss. The Buy rating is unchanged and the target price increases to $6.95 from $6.85.

Management is expecting to achieve pre-covid total transaction value (TTV) by the 2H FY23. This indicates to the analyst TTV further out should be even higher, if share gains are maintained at higher margins.

Target price is $6.85 Current Price is $5.67 Difference: $1.18
If WEB meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $6.22, suggesting upside of 10.4% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates WHC as Overweight (1) -

Morgan Stanley believes the coal price has further to run - at least into the March quarter - which should prove a boon for Whitehaven Coal, and updates its FY22-24 earnings estimates in response to the September-quarter results. 

The broker says the company is better positioned than in the previous coal cycle, yet is trading below its lowest five-year mutliple on FY22 earnings.

Morgan Stanley does spy some near-term production risk but expects this should improve in the June half.

Whitehaven boasts a strong free cash flow yield of 54% in FY22 and 26% in FY23, auguring well should the spot coal price hold steady, says the broker. 

Overweight rating and $3.80 target price retained. Industry view: In-Line.

Target price is $3.80 Current Price is $2.54 Difference: $1.26
If WHC meets the Morgan Stanley target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $3.94, suggesting upside of 53.8% (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 WPL as Add (1) -

Woodside Petroleum achieved a final investment decision on the US$12bn Scarborough/ Pluto Train 2 project this week, with Morgans noting the company will retain a 100% interest in Scarborough but divest a -49% stake of Pluto Train 2.

It is Morgans' view that mega-project Scarborough has an average return profile, expecting a 13.5% internal rate of return, while budget and scheduling risk leaves little error margin, and that Woodside Petroleum may be better served by turning focus to higher return assets.

More positively, the broker notes the BHP Group ((BHP)) Petroleum merger should boost Woodside Petroleum's earnings power and add necessary market and geographical diversity, and outweighs risks presented by Scarborough.

The Add rating is retained and the target price increases to $29.95 from $29.65.

Target price is $29.95 Current Price is $22.81 Difference: $7.14
If WPL meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $26.62, suggesting upside of 16.8% (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