Australian Broker Call

Macquarie rates AKE as Outperform (1) -

Macquarie remains constructive on the lithium market outlook despite near-term headwinds from economic slowdowns and covid lockdowns in China. The stronger lithium price outlook drives material upgrades to earnings forecasts for both lithium miners and developers under coverage.

Outperform retained for Allkem, target rises to $21 from $20.

Target price is $21.00 Current Price is $14.96 Difference: $6.04
If AKE meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $17.06, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Ord Minnett rates AKE as Buy (1) -

Ord Minnett  has upgraded spodumene forecasts to US$6,500/t for 2023 and US$5,700/t for 2024, increases of 44% and 66%, respectively. The broker's FY24 net profit forecasts are, on average, circa 90% above consensus for the producers.

Buy retained for Allkem, target rises to $22.50 from $19.50.

Target price is $22.50 Current Price is $14.96 Difference: $7.54
If AKE meets the Ord Minnett target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $17.06, suggesting upside of 10.7% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Macquarie rates APX as Upgrade to Neutral from Underperform (3) -

Macquarie has lowered FY22-24 underlying earnings estimates for Appen by -56-61%, adjusting for the latest company guidance.

Guidance is being driven by weakness in the company’s global services revenue, in the broker's view, which in turn is being
impacted by large market-share loss from its major customers.

Appen’s de-rating may have largely now played out, but a material recovery is not forecast until 2025 the earliest. On limited further downside, Macquarie upgrades to Neutral from Underperform. Target falls to $2.70 from $3.30.

Target price is $2.70 Current Price is $2.49 Difference: $0.21
If APX meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.88, suggesting upside of 13.6% (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

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

Following Baby Bunting’s AGM trading update, Macquarie has reduced its gross margin assumptions by -200bps in FY23. Upon further
review, the broker expects FX rates to provide more substantial headwinds than previously anticipated.

The Playgear category is also a key concern, being high margin discretionary. Sales expectations are nevertheless unchanged, and Macquarie remains positive on the ability to deliver revenue growth.

But on margin compression, downgrade to Neutral from Outperform. Target falls to $2.80 from $4.95.

Target price is $2.80 Current Price is $2.67 Difference: $0.13
If BBN meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.81, suggesting upside of 51.3% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates BPT as Buy (1) -

Citi's target for Beach Energy rises to $2.20 from $2.10 after adjustments to assumed realised prices, production and costs.

The forecast for Otway gross production rises after the estimated connection date for the Thylacine offshore platform is brought forward.

The Buy rating is unchanged. 

Target price is $2.20 Current Price is $1.64 Difference: $0.565
If BPT meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates CMM as Neutral (3) -

Capricorn Metals has announced an updated resource estimate for its Mt Gibson gold project with overall ounces lifting 32%, which is an important step towards a maiden reserve at the project, Macquarie suggests, expected later this quarter.

The shallow resource and strong intersections also indicate good prospect for further growth, which the broker has tried to quantify via a larger mining inventory assumption.

Neutral retained, target rises to $4.00 from $3.50.

Target price is $4.00 Current Price is $3.85 Difference: $0.15
If CMM meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates CXO as Outperform (1) -

Macquarie remains constructive on the lithium market outlook despite near-term headwinds from economic slowdowns and covid lockdowns in China. The stronger lithium price outlook drives material upgrades to earnings forecasts for both lithium miners and developers under coverage.

Outperform retained for Core Lithium, target rises to $1.90 from $1.70.

Target price is $1.90 Current Price is $1.45 Difference: $0.45
If CXO meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates DDH as Outperform (1) -

DDH1's update signalled strong revenue  growth, Macquarie notes, with the first half well on track given seasonality. Cost recovery is still lagging, but covid impacts and supply chain pressures are easing.

Industry fundamentals are driving solid demand in all regions and exploration budgets remain strong in Australia, providing visibility for demand in FY23, management noted, with 80% of revenue currently contracted or committed.

The share buyback is ongoing. Outperform and $1.10 target retained.

Target price is $1.10 Current Price is $0.85 Difference: $0.25
If DDH meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Credit Suisse rates ECX as Outperform (1) -

Credit Suisse was unsurprised by Eclipx Group's full year result, describing the company as continuing to perform "as well as it can". Net profit increased 28% year-on-year and earnings per share increased 37%.

According to the broker, the company continues to maximise cash generation through elevated end of lease income and new business. 

Credit Suisse also expects a new simplification initiative to provide a -$6m operating expenditure reduction, and subsequent earnings boost.

The Outperform rating and target price of $2.50 are retained.

Target price is $2.50 Current Price is $1.77 Difference: $0.73
If ECX meets the Credit Suisse target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates ECX as Outperform (1) -

Eclipx Group posted a 29% FY22 profit increase, slighlty ahead of Macquarie, featuring elevated yields and end-of-lease income as supply remains restricted.

Management has highlighted natural hedging with interest on cash providing an offset against funding costs on the warehouse and corporate debt.

While vehicle supply, and the impact of elevated end of lease income earnings, will normalise, underlying performance supports the broker's
Outperform rating. On a lower general small caps PE multiple, target falls to $2.19 from $2.98.

Target price is $2.19 Current Price is $1.77 Difference: $0.42
If ECX meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates ECX as Overweight (1) -

Morgan Stanley feels FY22 results were robust and attributes a negative share price reaction to the ceo transition and a -$62m headwind for end of lease (EOL) income. It's thought the latter may not have been allowed for by consensus.

The broker highlights an elevated backlog and 113% cash conversion, and points to an undemanding valuation, strong balance sheet, buybacks and organic opportunities. Overweight. The $3.00 target is retained. Industry View: In-Line.

Management provided no net operating income (NOI) guidance though more generally is expecting strong demand.

Target price is $3.00 Current Price is $1.77 Difference: $1.23
If ECX meets the Morgan Stanley target it will return approximately 69% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Credit Suisse rates FPH as Neutral (3) -

Credit Suisse expects a resurgence in respiratory hospitalisations to be a key catalyst for Fisher & Paykel Healthcare. The US appears to be experiencing a strong resurgence in respiratory syncytial virus (RSV) and influenza, supporting nasal high flow demand. 

In good news for Fisher & Paykel Healthcare, the broker notes some industry participants are anticipating RSV, influenza and covid to all contribute to a rise in respiratory hospitalisations.

The broker anticipates a -60% net profit decline in the first half, and a -49% decline over the year. The Neutral rating and target price of $19.50 are retained.

Target price is $19.50 Current Price is $18.09 Difference: $1.41
If FPH meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $19.50, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

This company reports in NZD. 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

Macquarie rates GL1 as Outperform (1) -

Macquarie remains constructive on the lithium market outlook despite near-term headwinds from economic slowdowns and covid lockdowns in China. The stronger lithium price outlook drives material upgrades to earnings forecasts for both lithium miners and developers under coverage.

Outperform retained for Global Lithium Resources, target rises to $4.40 from $3.20.

Target price is $4.40 Current Price is $2.35 Difference: $2.05
If GL1 meets the Macquarie target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates IGO as Outperform (1) -

Macquarie remains constructive on the lithium market outlook despite near-term headwinds from economic slowdowns and covid lockdowns in China. The stronger lithium price outlook drives material upgrades to earnings forecasts for both lithium miners and developers under coverage.

IGO and Pilbara Minerals are the broker's preferred picks in the Australian-based lithium market. Outperform retained for IGO, target rises to $21 from $20.

Target price is $21.00 Current Price is $15.29 Difference: $5.71
If IGO meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $15.23, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Credit Suisse rates IPL as Outperform (1) -

While diammonium phosphate (DAP) continued to weaken through September and October, Credit Suisse highlights the impact on Incitec Pivot was offset by depreciation of the Australian dollar. 

Restoring cost competitive gas supply remains the biggest variable to Credit Suisse's second half outlook for the company. There is a possibility that drilling of two wells at Blacktip could be delayed, but the broker's estimates remain dependent on restoration by February. 

The Outperform rating is retained and the target price decreases to $3.90 from $4.03.

Target price is $3.90 Current Price is $3.72 Difference: $0.18
If IPL meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.18, suggesting upside of 13.5% (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 IPL as Buy (1) -

Incitec Pivot is due to report FY22 earnings on 15 November.

UBS estimates FY22 earnings (EBIT) of $1.43bn and notes the consensus estimate is for $1.45bn.

The broker attributes year-to-date share price outperformance to improved nitrogen pricing given global gas shortages, with Australian ammonium nitrate ions per particle (IPP) prices at record highs of around $1,200/t.

The Buy rating and $4.35 target are retained.

Target price is $4.35 Current Price is $3.72 Difference: $0.63
If IPL meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.18, suggesting upside of 13.5% (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

Citi rates JHX as Buy (1) -

In a first glance at James Hardie's result, Citi notes profit guidance has moved -7% lower than consensus FY23 estimates. Volumes
are the main driver, with price/mix within expectations.

While a material downgrade, Citi estimates the market will want to know implications for FY24 from this result. The broker sees price sticking and margins holding in the US as important looking forward.

Conversion of dividend to $200m buyback also positive from a share price point of view. Buy and $41.90 target.

Target price is $41.90 Current Price is $33.39 Difference: $8.51
If JHX meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $47.65, suggesting upside of 64.4% (ex-dividends)

The company's fiscal year ends in February.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

UBS rates JHX as Buy (1) -

Upon initial assessment, James Hardie Industries' Q2 result proved a disappointment, with management's guidance (lowered) implying a -10% downgrade at the midpoint, explains UBS.

US volumes and the expectation for lower margins seem to have been the main responsible. UBS points towards higher cost inflation, just about everywhere.

Buy and $52.50 target. UBS analysts still believe this company has the right strategy. With input costs starting to moderate, the broker anticipates margin recovery through FY23.

Target price is $52.50 Current Price is $33.39 Difference: $19.11
If JHX meets the UBS target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $47.65, suggesting upside of 64.4% (ex-dividends)

The company's fiscal year ends in February.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Ord Minnett rates LAU as Buy (1) -

Lindsay Australia has issued bullish AGM commentary highlighting a strong start to the year and FY earnings guidance 5% above Ord Minnett's prior forecasts.

First quarter earnings were ahead of the record prior quarter in 2022, with strong customer demand recorded for all group services including rural, rail, road and import/export logistics.

Recent weather events in NSW and Victoria have not disrupted operating conditions, the broker notes, and the high level of demand for group services is likely to continue. Buy retained, target rises to 76c from 62c.

Target price is $0.76 Current Price is $0.64 Difference: $0.125
If LAU meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates LTR as Outperform (1) -

Macquarie remains constructive on the lithium market outlook despite near-term headwinds from economic slowdowns and covid lockdowns in China. The stronger lithium price outlook drives material upgrades to earnings forecasts for both lithium miners and developers under coverage.

Outperform retained for Liontown Resources, target rises to $3.40 from $2.50.

Target price is $3.40 Current Price is $1.91 Difference: $1.49
If LTR meets the Macquarie target it will return approximately 78% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates LTR as Hold (3) -

Ord Minnett  has upgraded spodumene forecasts to US$6,500/t for 2023 and US$5,700/t for 2024, increases of 44% and 66%, respectively. The broker's FY24 net profit forecasts are, on average, circa 90% above consensus for the producers.

Hold retained for Liontown Resources, target rises to $1.80 from $1.50.

Target price is $1.80 Current Price is $1.91 Difference: minus $0.11 (current price is over target).
If LTR meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Market Sentiment: 0.5

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

Macquarie rates MIN as Outperform (1) -

Macquarie remains constructive on the lithium market outlook despite near-term headwinds from economic slowdowns and covid lockdowns in China. The stronger lithium price outlook drives material upgrades to earnings forecasts for both lithium miners and developers under coverage.

Mineral Resources is the broker's preferred pick in the broader resources sector.

Outperform retained for Mineral Resources, target rises to $125 from $98.

Target price is $125.00 Current Price is $75.38 Difference: $49.62
If MIN meets the Macquarie target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $89.64, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates MIN as No Rating (-1) -

Ord Minnett  has upgraded spodumene forecasts to US$6,500/t for 2023 and US$5,700/t for 2024, increases of 44% and 66%, respectively. The broker's FY24 net profit forecasts are, on average, circa 90% above consensus for the producers.

The broker is currently research restricted on Mineral Resources and is unable to provide a rating or target price.

Current Price is $75.38. Target price not assessed.

Current consensus price target is $89.64, suggesting upside of 13.5% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates NCK as Outperform (1) -

While current market data suggests consumer spending is holding above pre-covid levels, Macquarie anticipates macroeconomic conditions to continue to put pressure on consumer spending.

Increasing interest rates and slowing housing turnover do not bode well for consumer product companies that have benefitted from a covid-induced pull-forward of demand, and are therefore cycling tough comparables, the broker warns.

Online sales have rapidly declined, reverting to pre-pandemic trend.

Nick Scali's target falls to $12.00 from $12.70, Outperform retained on better positioning to offset headwinds.

Target price is $12.00 Current Price is $10.10 Difference: $1.9
If NCK meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates NHC as Add (1) -

Following the granting of the associated water licence (AWL) and preparations to ramp-up from mid-2023, Morgans now incorporates Acland 3 cash flows into forecasts.

The analyst believes shares can continue to re-rate on the recognition of those Acland 3 cash flows, ongoing strong coal prices and capital management initiatives. Add.

The target price slips to $7.00 from $7.20.

Target price is $7.00 Current Price is $6.45 Difference: $0.55
If NHC meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.60, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates ORI as Buy (1) -

Orica is due to report FY22 earnings on 9 November.

UBS estimates FY22 earnings (EBIT) of $542m and notes the consensus estimate is for $546m.

The broker attributes year-to-date share price outperformance to improved nitrogen pricing given global gas shortages, with Australian ammonium nitrate ions per particle (IPP) prices at record highs of around $1,200/t.

The Buy rating and $18 target are retained.

Target price is $18.00 Current Price is $13.93 Difference: $4.07
If ORI meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $15.96, suggesting upside of 13.3% (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 PLS as Outperform (1) -

Macquarie remains constructive on the lithium market outlook despite near-term headwinds from economic slowdowns and covid lockdowns in China. The stronger lithium price outlook drives material upgrades to earnings forecasts for both lithium miners and developers under coverage.

IGO and Pilbara Minerals are broker's preferred picks in the Australian-based lithium market.

Outperform retained for Pilbara Minerals, target rises to $7.70 from $5.60.

Target price is $7.70 Current Price is $5.20 Difference: $2.5
If PLS meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting downside of -15.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Ord Minnett rates PLS as Upgrade to Hold from Lighten (3) -

Ord Minnett  has upgraded spodumene forecasts to US$6,500/t for 2023 and US$5,700/t for 2024, increases of 44% and 66%, respectively. The broker's FY24 net profit forecasts are, on average, circa 90% above consensus for the producers.

Pilbara Minerals upgraded to Hold from Lighten, target rises to $5.10 from $4.20.

Target price is $5.10 Current Price is $5.20 Difference: minus $0.1 (current price is over target).
If PLS meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.61, suggesting downside of -15.1% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Credit Suisse rates SDR as Initiation of coverage with Outperform (1) -

SiteMinder is a singular platform allowing hotels and accommodation providers to sell, market and manage their businesses, and in initiating on the company Credit Suisse highlights adoption of hotel tech post-covid could benefit.

The broker expects SiteMinder could leverage its data to add value between hoteliers and distribution partners, where its intelligence and analytics automation can assist in maximising revenue across distribution channels. 

The broker initiatives with an Outperform rating and target price of $4.00.

Target price is $4.00 Current Price is $2.95 Difference: $1.05
If SDR meets the Credit Suisse target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $5.43, suggesting upside of 81.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates STG as Speculative Buy (1) -

Straker Translations' second quarter revenue was up 19% year on year, albeit down on the prior quarter amid uncertainty impacting global trading conditions, Ord Minnett notes. Earnings were negatively impacted by a weaker NZD increasing opex.

Cash flow returned to positive and management reiterated FY23 guidance. First announced at the AGM, Straker’s expansion
into "workplace super apps" in conjunction with US companies Salesforce and Microsoft has begun, the broker notes.

Key leading customer IBM (26% of FY22 revenue) has extended its strategic translation services agreement for an additional three years starting Jan 2023.

Ord Minnett resumes coverage with a $1.78 target, down from $1.85, and an unchanged Speculative Buy recommendation.

Target price is $1.78 Current Price is $1.28 Difference: $0.5
If STG meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgans rates SUN as Add (1) -

Suncorp Group's 1H hazard allowance was for $580m and the group revealed actual costs of -$470-530m for the first four months of the financial year.

Morgans now forecasts 1H hazard losses will exceed the allowance by -$75m though expects this will be offset by claims trailing below budget for a similar amount in the 2H, due to strong protection from reinsurance.

The Add rating and $13.70 target are unchanged.

Target price is $13.70 Current Price is $11.68 Difference: $2.02
If SUN meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $13.14, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates SUN as Buy (1) -

UBS observes management at Suncorp Group did not adjust the FY23 hazard allowance nor margin guidance range, despite revealing above-budget hazard costs for July-October of -$470-530m.

The broker notes full reinsurance remains in place and running yields are tracking higher than anticipated. It's felt these two factors will assist with any margin shortfall in the 2H.

The Buy rating and $14.80 target are unchanged.

Target price is $14.80 Current Price is $11.68 Difference: $3.12
If SUN meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $13.14, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates TPW as Downgrade to Underperform from Neutral (5) -

While current market data suggests consumer spending is holding above pre-covid levels, Macquarie anticipates macroeconomic conditions to continue to put pressure on consumer spending.

Increasing interest rates and slowing housing turnover do not bode well for consumer product companies that have benefitted from a covid-induced pull-forward of demand, and are therefore cycling tough comparables, the broker warns.

Online sales have rapidly declined, reverting to pre-pandemic trend.

Temple & Webster's target falls to $4.00 from $5.80, downgrade to Underperform from Neutral as an online pure-play.

Target price is $4.00 Current Price is $5.54 Difference: minus $1.54 (current price is over target).
If TPW meets the Macquarie target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.64, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates WBC as Buy (1) -

Westpac's FY22 cash earnings of $5,276m and revised $8.6bn cost base were in line with consensus expectations, according to Citi.

The broker attributes a negative share price reaction to a slowing of net interest margin (NIM) leverage, which was masked by an opportunistic build of liquids late in the financial year.

The analyst believes consensus will upgrade core earnings forecasts, and the stock remains cheap. Buy.

The $30 target is unchanged, despite Citi's -2-4% lower FY23-25 cash earnings forecasts due to stronger mortgage competition and lower wealth income.

Target price is $30.00 Current Price is $23.19 Difference: $6.81
If WBC meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $25.87, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Credit Suisse rates WBC as Neutral (3) -

Credit Suisse notes Westpac appears less leveraged to rate rises than peers, reporting lower exit margin momentum. The bank exited the year with a margin of 185 basis points. 

The broker has adjusted its earnings estimates by 3% and -5% in FY23 and FY24, accounting for both higher income and expenses. 

The Neutral rating and target price of $24.40 are retained.

Target price is $24.40 Current Price is $23.19 Difference: $1.21
If WBC meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $25.87, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Macquarie rates WBC as Neutral (3) -

Westpac delivered meaningful improvement in underlying pre-provision earnings of 12% in the second half, Macquarie notes, although performance continued to be impacted by charges of some -$1.5bn.

With the ongoing benefit of higher rates and replicating loan portfolio tailwinds, the broker expects margins to peak in first half FY23 at around 2.06% and begin to moderate gradually in the second half.

But Macquarie continues to see downside risk to the rebased expense guidance which is one of the key reasons for its forecasts being below consensus. Target rises to $24.00 from $23.50, Neutral retained.

Target price is $24.00 Current Price is $23.19 Difference: $0.81
If WBC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $25.87, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgan Stanley rates WBC as Overweight (1) -

Following FY22 results, Morgan Stanley believes Westpac remains a turnaround story and was encouraged by 2H trends, though uncertainty remains on how to counter margin headwinds and deliver a "step change" in costs.

Pre-provision profit and margin trends were slightly better than consensus and the revised FY24 cost target was in line with the broker's expectation.

The net interest margin (margin) increased by 5bps in the 2H and was slightly ahead of consensus, though it slightly trailed the broker's estimate.

Management revised the FY24 target for 'ongoing' costs to $8.6bn from $8bn, which the analyst believes is a credible move. Morgan Stanley leaves its cost estimates largely unchanged at around 4% higher than management's target.

The Overweight weighting is unchanged, while the target slips to $24.00 from $24.40. Industry view: In line.

Target price is $24.00 Current Price is $23.19 Difference: $0.81
If WBC meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $25.87, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgans rates WBC as Add (1) -

Morgans assesses Westpac's FY22 result met or exceeded expectations and the 64cps fully franked 2H dividend was a beat by 3cps. Interest rate leverage in the net interest margin (NIM) was considered a key positive.

The key negative, according to the analyst, was the cost target of $8.6bn, revised up from $8bn, due to higher inflation, a later timing of business exits and longer phasing of regulatory costs.

The broker lowers FY23-25 cash EPS forecasts by around -2-8%, while DPS forecasts suffer larger percentage falls on a lower assumed payout ratio due to the economic backdrop.

The target falls to $25.80 from $26.68 and the Add rating is unchanged.

Target price is $25.80 Current Price is $23.19 Difference: $2.61
If WBC meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $25.87, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates WBC as No Rating (-1) -

Second-half FY22 cash earnings from Westpac Bank were directly in line with Ord Minnett’s estimates, but 3% above expectations at the pre-provision operating profit level due to stronger than forecast net interest income.

The bank’s capital position was also better than the broker's forecast.

Ord Minnett is currently restricted from making a recommendation.

Current Price is $23.19. Target price not assessed.

Current consensus price target is $25.87, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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