Australian Broker Call

Macquarie rates AIA as Outperform (1) -

Following a three stage reopening plan by the New Zealand government, Macquarie revisits forecasts for Auckland International Airport.

The broker predicts a more robust passenger recovery in the medium term and lower aeronautical capex, though only modestly so in each case.

International travel is set to recommence from 17 January 2022, though again at a modest rate, points out the analyst. The Outperform rating is retained and the target price increases to NZ$8.20 from NZ$8.07.

Current Price is $7.44. Target price not assessed.

Current consensus price target is $6.90, suggesting downside of -8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.0

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

Ord Minnett rates ALK as Buy (1) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the second strategy, the broker likes the strong fundamentals (production and costs), organic/exploration upside and upcoming catalysts for several stocks including Alkane Resources.

The company is also included in the third strategy due to an unjustified relative valuation discount, and for the potential benefit of a longer-term investment horizon. The Buy rating and $1.50 target price are retained.

Target price is $1.50 Current Price is $0.81 Difference: $0.69
If ALK meets the Ord Minnett target it will return approximately 85% (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 AMI as Buy (1) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the first strategy, the broker recommends either buying generic indices or a basket (to mitigate risk) of liquid stocks with strong exposure to passive products. Aurelia Metals features within that basket and is exposed to VanEck products.

The company is also included in the other two strategies by Ord Minnett, the only stock to do so in the research note. The Buy rating and $0.95 target price are maintained.

Target price is $0.95 Current Price is $0.42 Difference: $0.53
If AMI meets the Ord Minnett target it will return approximately 126% (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

Credit Suisse rates ANZ as Neutral (3) -

Credit Suisse feels the capital certainty is a positive for the banking sector, after APRA released its final capital adequacy and credit risk capital requirements for deposit-taking institutions.

Compared to the 2020 consultation, capital standards have been slightly watered down with ‘unquestionably strong’ to be set in
regulation at 10.25% for the major banks, explains the broker. However, APRA’s expectation is that that banks hold a buffer around 11%.

The high risk mortgage definition was also narrowed to interest only and a loan-to-value ratio (LVR) of greater than 80%. The Neutral rating and target price of $28.50 for ANZ Bank are retained.

Target price is $28.50 Current Price is $26.62 Difference: $1.88
If ANZ meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.46, suggesting upside of 10.3% (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 ANZ as Hold (3) -

The new “unquestionably strong” CET1 ratio requirement by APRA for the major banks will be 10.25%, down from the 10.5% level that was proposed in the December 2020 interim paper, explains Ord Minnett.

The broker points out the majors will be expected by APRA to hold a buffer above 11%. The rules are expected to have an immaterial impact on ANZ Bank and the Hold rating and $30 price target are unchanged.

Target price is $30.00 Current Price is $26.62 Difference: $3.38
If ANZ meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $29.46, suggesting upside of 10.3% (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 APA as No Rating (-1) -

The Australian Energy Regulator (AER) released its discussion paper last week regarding gas assets and the broader policy of how to deal with net zero emissions by 2050.

Applying a 29 year life (2050 less 2021) to some of APA Group's assets, the broker estimates the company would receive another $15-30m of revenue per year in the near term.

As gas transport systems, compressors and buildings have asset lives longer than 29 years, the analyst forecasts a step change in depreciation would have a -10-20% impact on reported earnings. It's noted this doesn't affect cashflow or dividend.

The broker is restricted from providing a price target and recommendation.

Current Price is $9.70. Target price not assessed.

Current consensus price target is $10.03, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates CBA as Underperform (5) -

Credit Suisse feels the capital certainty is a positive for the banking sector, after APRA released its final capital adequacy and credit risk capital requirements for deposit-taking institutions.

Compared to the 2020 consultation, capital standards have been slightly watered down with ‘unquestionably strong’ to be set in
regulation at 10.25% for the major banks, explains the broker. However, APRA expects banks to hold a buffer around 11%.

The high risk mortgage definition was also narrowed to interest only, and a loan-to-value ratio (LVR) of greater than 80%. The Underperform rating and $92.50 target price are retained for Commonwealth Bank of Australia.

Target price is $92.50 Current Price is $93.78 Difference: minus $1.28 (current price is over target).
If CBA 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 $87.25, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Ord Minnett rates CBA as Hold (3) -

The new “unquestionably strong” CET1 ratio requirement by APRA for the major banks will be 10.25%, down from the 10.5% level that was proposed in the December 2020 interim paper, explains Ord Minnett.

The broker points out the majors will be expected by APRA to hold a buffer above 11%. The rules are expected to have an immaterial impact on Commonwealth Bank of Australia and the Hold rating and $90 price target are unchanged.

Target price is $90.00 Current Price is $93.78 Difference: minus $3.78 (current price is over target).
If CBA meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.25, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.8

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

Ord Minnett rates EVN as Accumulate (2) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the second strategy, the broker likes the strong fundamentals (production and costs), organic/exploration upside and upcoming catalysts for several stocks including Evolution Mining. The Accumulate rating and $4.90 target price are retained.

Target price is $4.90 Current Price is $4.12 Difference: $0.78
If EVN meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.37, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates GOR as Buy (1) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the first strategy, the broker recommends either buying generic indices or a basket (to mitigate risk) of liquid stocks with strong exposure to passive products. Gold Road Resources features within that basket and is exposed to VanEck products.

The company is also included by Ord Minnett in the second strategy for having strong fundamentals (production and costs), organic/exploration upside and upcoming catalysts. The broker retains its Buy rating and $1.70 target price.

Target price is $1.70 Current Price is $1.46 Difference: $0.24
If GOR meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

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 KLS as Neutral (3) -

The Kelsian Group has missed out on the Region 9 (Eastern Suburbs) bus contract, which contributes to a lowering of Macquarie's target price to $6.45 from $7.85. While disappointing, it's thought there will be many bus tendering opportunities over the next 24 months.

The analyst also lowers the FY22 EPS forecast by -8% on reduced expectations for Marine & Tourism, due to new covid-19 variant concerns. The Neutral rating is maintained.

Target price is $6.45 Current Price is $6.42 Difference: $0.03
If KLS meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.12, suggesting upside of 41.6% (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

Macquarie rates LTR as Outperform (1) -

After completing bulk sampling test work at Kathleen Valley, Liontown Resources has confirmed a high-quality benchmark grade spodumene concentrate can be produced. Macquarie maintains its Outperform rating and $2 target price.

A sample will now be used to support off-take negotiations for spodumene concentrate for Stage 1, explains the broker. It's thought potential partnership and funding agreements for the Downstream Lithium Hydroxide plant will also be assisted by the results.

Target price is $2.00 Current Price is $1.85 Difference: $0.15
If LTR meets the Macquarie 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 MIN as Outperform (1) -

Following an announcement by Mineral Resources of a Port and Rail Agreement with Hancock Prospecting and Roy Hill Holdings, Macquarie sees potential to develop the Marillana project. An infrastructure pathway is now potentially provided into Port Hedland.

The analyst doesn't currently factor-in to the base case the development of Marillana. The $72 target price and Outperform rating are maintained.

Target price is $72.00 Current Price is $44.99 Difference: $27.01
If MIN meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

Current consensus price target is $53.18, suggesting upside of 16.9% (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

Morgan Stanley rates MIN as Underweight (5) -

Morgan Stanley sees the risk implied by Mineral Resources' agreement with Hancock Prospecting and Roy Hill Holdings to consider a new port facility at Port Hedland as skewed to the negative.

If agreed upon and approved by the state government it could reduce Mineral Resources' capex spend on the project but also reduce the revenue from two out of every three mining tonnes. And additional tonnes to the market should be negative for the iron ore price.

More detail is required and in the meantime the broker retains Underweight and a $38.70 target. Industry view: In-Line.

Target price is $38.70 Current Price is $44.99 Difference: minus $6.29 (current price is over target).
If MIN meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $53.18, suggesting upside of 16.9% (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 NAB as Neutral (3) -

Credit Suisse feels the capital certainty is a positive for the banking sector, after APRA released its final capital adequacy and credit risk capital requirements for deposit-taking institutions.

Compared to the 2020 consultation, capital standards have been slightly watered down with ‘unquestionably strong’ to be set in
regulation at 10.25% for the major banks, explains the broker. However, APRA expects banks to hold a buffer around 11%.

The high risk mortgage definition was also narrowed to interest only and a loan-to-value ratio (LVR) of greater than 80%. The Neutral rating and $29 target price are retained for National Australia Bank.

Target price is $29.00 Current Price is $27.20 Difference: $1.8
If NAB meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting upside of 7.6% (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) -

The new “unquestionably strong” CET1 ratio requirement by APRA for the major banks will be 10.25%, down from the 10.5% level that was proposed in the December 2020 interim paper, explains Ord Minnett.

The broker points out the majors will be expected by APRA to hold a buffer above 11%. The rules are expected to have an immaterial impact on National Australia Bank and the Accumulate rating and target price of $31.40 are retained.

Target price is $31.40 Current Price is $27.20 Difference: $4.2
If NAB meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $29.47, suggesting upside of 7.6% (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 NSR as Hold (3) -

While retaining a Hold rating on valuation grounds, Ord Minnett increases its target price for National Storage REIT to $2.60 from $2.30, due to further occupancy gains and solid rate increases.

The analyst increases the FY22-24 EPS forecasts by 0.7%, 2.8% and 3.7%, respectively, and estimates a strong three-year EPS compound annual growth rate (CAGR) of 9.3%.

Target price is $2.60 Current Price is $2.46 Difference: $0.14
If NSR meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting downside of -10.0% (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

Ord Minnett rates NST as Buy (1) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the second strategy, the broker likes the strong fundamentals (production and costs), organic/exploration upside and upcoming catalysts for several stocks including Northern Star Resources.

The company is also included in the third strategy due to an unjustified relative valuation discount, and for the potential benefit of a longer-term investment horizon. The Buy rating and $12.30 target price are retained.

Target price is $12.30 Current Price is $9.66 Difference: $2.64
If NST meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $11.86, suggesting upside of 24.8% (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

UBS rates NWH as Buy (1) -

As iron ore remains one of the largest exposures, at around 30% of revenue in FY22 for NRW Holdings, UBS notes recent volatilty for the company over the weakening iron ore price and labour availability. It is, however, felt the medium-term outlook remains solid.

In particular, the replacement capex outlook in the Pilbara remains healthy, underpinned by Rio Tinto ((RIO)) and BHP Group ((BHP)), explains the analyst. The Buy rating and $2.40 target price retained.

Target price is $2.40 Current Price is $1.77 Difference: $0.63
If NWH meets the UBS target it will return approximately 36% (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

Credit Suisse rates PGH as Outperform (1) -

After a trading update from Pact Group Holdings, Credit Suisse expects cost pressures to offset revenue growth, resulting in flat FY22 earnings (EBIT) versus the previous corresponding period. The target price falls to $4.25 from $4.30.

Management sees no contribution from contract manufacturing in the 1H, which is -$10m less than the analyst expected. The Outperform rating is maintained as the broker sees upside for the core Packaging & Sustainability segment. 

Target price is $4.25 Current Price is $2.56 Difference: $1.69
If PGH meets the Credit Suisse target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 36.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

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

Macquarie lowers its rating for Pact Group Holdings to Neutral from Outperform based on global peer valuations. This comes as 1H earnings (EBIT) were guided to be $80m versus the $95m expected by Macquarie. The target price falls to $2.85 from $4.20.

The guided breakeven earnings for the Contract Manufacturing segment was largely responsible, versus the $13m for the previous corresponding period, explains the analyst. 

Management expects positive underlying demand to continue in the 2H while market and supply chain disruption will persist in the near term. However, Macquarie feels this is being managed well.

Target price is $2.85 Current Price is $2.56 Difference: $0.29
If PGH meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 36.6% (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

Morgan Stanley rates PGH as Underweight (5) -

Pact Group's trading update indicated packaging/materials handling volumes are in line with expectation and margins are being managed despite increased raw material and freight costs, Morgan Stanley notes.

Contract Manufacturing Solutions has seen lower demand due to lockdowns, and higher input costs. Management expects demand to pick up in packaging in the second half and CMS demand to improve slightly, with margins remaining challenged.

CMS underperformance is disappointing and the broker has long questioned the quality of the business. Margin pressure in packaging is greater than feared. Underweight and $3.30 target retained. Industry view: In-Line.

Target price is $3.30 Current Price is $2.56 Difference: $0.74
If PGH meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 36.6% (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

Ord Minnett rates QAN as Buy (1) -

Despite potential risks for travel associated with the omicron virus strain, Ord Minnett still believes a domestic leisure-led travel recovery remains realistic.

While international travel may be delayed, the broker reiterates that domestic air travel is the key success factor.

The Buy rating and $6.50 target price are maintained.

Target price is $6.50 Current Price is $4.90 Difference: $1.6
If QAN meets the Ord Minnett target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $6.01, suggesting upside of 18.7% (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

Ord Minnett rates RED as Buy (1) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the second strategy, the broker likes the strong fundamentals (production and costs), organic/exploration upside and upcoming catalysts for several stocks including Red 5.

The company is also included in the third strategy due to an unjustified relative valuation discount and for the potential benefit of a longer-term investment horizon. The Buy rating and $0.40 target price are retained.

Target price is $0.40 Current Price is $0.28 Difference: $0.12
If RED meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Credit Suisse rates RIC as Outperform (1) -

After a recent trading update by Ridley Corp indicating an acceleration in growth trajectory from FY21, Credit Suisse raises its target price to $1.55 from $1.40.

Both the Bulk Stockfeeds and Packaged Feeds & Ingredients segments are exceeding the 16% increase in earnings (EBITDA) reported in FY21, according to management. The broker's FY22 earnings forecast now implies 14% growth, up from 12% previously. 

Target price is $1.55 Current Price is $1.33 Difference: $0.22
If RIC meets the Credit Suisse target it will return approximately 17% (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 RMS as Accumulate (2) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the former, the broker recommends either buying generic indices or a basket (to mitigate risk) of liquid stocks with strong exposure to passive products. Ramelius Resources features within that basket and is exposed to VanEck products.

The broker retains its Accumulate rating and $1.65 target price.

Target price is $1.65 Current Price is $1.62 Difference: $0.03
If RMS meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 25.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Citi rates S32 as Buy (1) -

Following the news that KGHM Polska Miedz S.A. will not take up its right to a 45% stake of the Sierra Gorda copper project, Citi has updated South 32 forecasts to account for the completed purchase of the US$1.55bn project interest in early 2022. 

Contingent payments and existing project debt of US$150m bring the total acquisition cost to US$1.87bn. Citi estimates the Sierra Gorda asset will benefit the company's before-tax earnings by around US$210m annually. 

The Buy rating is retained and the target price increases to $4.45 from $4.30.

Target price is $4.45 Current Price is $3.57 Difference: $0.88
If S32 meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $4.45, suggesting upside of 25.9% (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: 0.9

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

Morgan Stanley rates SLC as Upgrade to Overweight from Equal-weight (1) -

Superloop is a telco challenger competing for share from incumbents based on speed, price, flexibility and service. Morgan Stanley thinks the company's medium-term targets of doubling revenue share to 4-5% from 2% today is highly achievable.

Superloop's is a turnaround story, the broker believes, following leadership renewal, divestment of non-core assets, balance sheet repair and the Exetel acquisition. The broker sees upside from leveraging the company's fibre network either organically or inorganically.

Upgrade to Overweight from Equal-weight. Target rises to $1.45 from $1.05. Industry view: In-Line.

Target price is $1.45 Current Price is $1.18 Difference: $0.27
If SLC meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.42, suggesting upside of 13.9% (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 SLR as Buy (1) -

Ord Minnett strategists advise three ways to play the current gold environment depending on the individual investor's bent. There are strategies for the gold bulls (i.e. leveraged exposure), those focused on bottom-up fundamentals and value investors.

For the first strategy, the broker recommends either buying generic indices or a basket (to mitigate risk) of liquid stocks with strong exposure to passive products. Silver Lake Resources features within that basket and is exposed to VanEck products.

The company is also included by Ord Minnett in the second strategy for having strong fundamentals (production and costs), organic/exploration upside and upcoming catalysts. The broker retains its Buy rating and $2 target price.

Target price is $2.00 Current Price is $1.66 Difference: $0.34
If SLR meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.95, suggesting upside of 16.1% (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

UBS rates SVW as Buy (1) -

UBS sees Seven Group Holdings as a beneficiary of a potential boom in adjusted nominal capex growth in 2022, as indicated by the recent ABS capex intentions survey.

The target rises to $27.15 from $26.25 after marking-to-market listed investments and making minor EPS upgrades, explains the broker. The analyst feels the only hurdle for intentions may be labour mobility and availablity, though this may ultimaltely extend the cycle.

Target price is $27.15 Current Price is $21.00 Difference: $6.15
If SVW meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $27.26, suggesting upside of 27.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates TRJ as Upgrade to Accumulate from Hold (2) -

Ord Minnett sees any share price weakness for Trajan Group as an opportunity for investors to accumulate, which tallies with its rating increase to Accumulate from Hold. The target price rises to $2.70 from $2.60.

While the analyst factors-in to forecasts the recently acquired Axel Semrau GmbH, a further acquisition of similar size would likely prompt a target price of $2.95. This is on the proviso the transaction occurs in the 2H of 2022 or 1H of 2023.

Target price is $2.70 Current Price is $3.38 Difference: minus $0.68 (current price is over target).
If TRJ meets the Ord Minnett target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 WBC as Neutral (3) -

Credit Suisse feels the capital certainty is a positive for the banking sector, after APRA released its final capital adequacy and credit risk capital requirements for deposit-taking institutions.

Compared to the 2020 consultation, capital standards have been slightly watered down with ‘unquestionably strong’ to be set in
regulation at 10.25% for the major banks, explains the broker. However, APRA’s expects banks to hold a buffer around 11%.

The high risk mortgage definition was also narrowed to interest only, and a loan-to-value ratio (LVR) of greater than 80%. Fears around Westpac Bank's heavily weighted investor and interest only mortgage portfolio were unfounded, notes the analyst.

The Neutral rating and $25.20 target price are retained.

Target price is $25.20 Current Price is $20.92 Difference: $4.28
If WBC meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $26.33, suggesting upside of 27.1% (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 WBC as Hold (3) -

The new “unquestionably strong” CET1 ratio requirement by APRA for the major banks will be 10.25%, down from the 10.5% level that was proposed in the December 2020 interim paper, explains Ord Minnett.

The broker points out the majors will be expected by APRA to hold a buffer above 11%. There's thought to be a relatively modest negative impact for Westpac Bank and the Hold rating and $24.50 price target are unchanged.

Target price is $24.50 Current Price is $20.92 Difference: $3.58
If WBC meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $26.33, suggesting upside of 27.1% (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 WOR as Buy (1) -

Following reports that Worley's half-on-half earnings will be largely flat, Citi has adjusted earnings expectations and decreased FY22 underlying earnings -16%, but notes the rating is retained given expectations that the first half of FY22 was a cyclical earnings low. 

The Buy rating is retained and the target price decreases to $11.31 from $12.28.

Target price is $11.31 Current Price is $9.35 Difference: $1.96
If WOR meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $11.58, suggesting upside of 20.7% (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