Australian Broker Call

Bell Potter rates 5GG as Buy (1) -

A largely in line first quarter from Pentanet, says Bell Potter, with revenue of $5.2m up 10% quarter-on-quarter, while telco subscribers and revenue were flat. 

The company continues to be constrained by capacity, but has now installed 5G equipment on eight towers which Bell Potter notes is a critical milestone for reaching sufficient coverage density. Bell Potter expects FY24 to be a critical year for the company. 

The Buy rating is retained and the target price decreases to 11 cents from 14 cents.

Target price is $0.11 Current Price is $0.07 Difference: $0.042
If 5GG meets the Bell Potter target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates A11 as Outperform (1) -

Atlantic Lithium has secured a mining lease for its Ewoyaa lithium project from the Ghana government (the first ever granted), and Macquarie believes this has sharply de-risked the company. 

In what seems to be a follow-up on earlier research in response to the above announcement, the broker has reduced ever so slightly EPS estimates for FY24 and FY25, and lifted by 2%-3% forecasts for the following years.

Outperform rating retained. Target price steady at 66c (having lowered from 70c a week ago).

Target price is $0.66 Current Price is $0.38 Difference: $0.285
If A11 meets the Macquarie target it will return approximately 76% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates ABY as Initiation of coverage with Buy, High Risk (1) -

Citi expects online penetration in non-food retail will increase to 21% from 17% by 2030 and initiates coverage on Temple & Webster, Adore Beauty and Kogan.com.

While Buy-rated Temple & Webster is the analysts' preferred pick, Adore Beauty also earns a Buy, High Risk recommendation, especially with Beauty & Personal Care set to be one of the fastest growing categories for online retail.

The broker's High Risk determination reflects near-term uncertainty around margins, as well as a lack of exclusive brands relative to competitors.

Backing up the Buy recommendation, a survey conducted by Citi shows Adore has great customer engagement, and also offers competitive pricing with a superior delivery experience relative to omni-channel competitors. A $1.20 target is set.

Target price is $1.20 Current Price is $1.04 Difference: $0.16
If ABY meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Adore Beauty's Sep Q numbers showed revenue growth consistent with the trading update in August but tracking below consensus expectation, Morgan Stanley notes.

FY24 margin guidance was reaffirmed despite ongoing inflationary pressures.

There is no change the the brokers' investment thesis. Equal-weight and $1.15 target retained. Industry view: In-Line.

Target price is $1.15 Current Price is $1.04 Difference: $0.11
If ABY meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates AMC as Neutral (3) -

Citi's initial view on today's 1Q results by Amcor is an in-line outcome for earnings (EBIT) and revenue, with a year-on-year -8% fall in volumes, as expected.

There was volume weakness in Europe and North America, while China and India grew year-on-year, explain the analysts.

EPS of US15.6c beat the consensus estimate for US14.9c due to better than-expected interest and tax expenses, notes the broker. Earnings for Flexibles fell by -US$31m year-on-year to US$322m, while earnings for Rigid fell by -US$4m to US$62m.

Management reiterated FY24 EPS and free cash flow FCF guidance.

Neutral. Target $15.50.

Target price is $15.50 Current Price is $13.84 Difference: $1.66
If AMC meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $15.33, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Shaw and Partners rates AUT as Buy, High Risk (1) -

Shaw and Partners retains a Buy, High Risk recommendation and 8c price target following 1Q results by Auteco Minerals.

During the quarter the company acquired the Green Bay Copper-Gold Project in Canada (completed post the 3Q) and made a notable pivot to copper, in the broker's view.

There is $24.1m of cash on hand following completion of the tranche 2 placement and share purchase plan, leaving Auteco
well funded for future work programs, suggests Shaw.

Target price is $0.08 Current Price is $0.03 Difference: $0.049
If AUT meets the Shaw and Partners target it will return approximately 158% (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

Citi rates AWC as Buy, High Risk (1) -

Following up after 3Q results on October 19 for Alumina Ltd, Citi now takes a more conservative view on alumina tonnages (via the AWAC joint venture) and reduces its 2024/25 volume forecasts by -13% and -15%, respectively.

Given less need for working capital as a result of lower production, the broker doesn't believe Alumina Ltd will need to raise capital, especially with a US$500m debt facility in place.

The Buy/High Risk rating is unchanged and the target falls to $1.15 from $1.30.

Target price is $1.15 Current Price is $0.78 Difference: $0.37
If AWC meets the Citi target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 45.2% (ex-dividends)

The company's fiscal year ends in December.

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: 0.4

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

Ord Minnett rates BBT as Buy (1) -

BlueBet Holdings reported strong margins in its Australian business in the September quarter, including a gross win margin of 13.1% and a net win margin of 10.1%. 

While customer additions were on the softer side, the broker points out this was offset by higher turnover from active customers, increasing to $2,163 per active customer from $2,012 in the previous quarter. 

Ord Minnett feels the Australian business remains on track and considers the stock an attractive investment as the software as a service opportunity gains momentum. The Buy rating and target price of 80 cents are retained.

Target price is $0.80 Current Price is $0.21 Difference: $0.595
If BBT meets the Ord Minnett target it will return approximately 290% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates BDM as Buy (1) -

Burgundy Diamond Mines reported a strong first quarter according to Bell Potter, with diamond production totalling 1.4m carats and rough diamond sales totalling 0.8m carats. A high inventory position should unwind with four auction events remaining in the current quarter. 

Having taking ownership of the Ekati mine in July, the company has developed a new life of mine plan, launched a cost-focused business improvement framework, and continued discussion on surety bond repayments. Bell Potter anticipates positive developments ahead.

The Buy rating and target price of 50 cents are retained.

Target price is $0.50 Current Price is $0.16 Difference: $0.345
If BDM meets the Bell Potter target it will return approximately 223% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

BHP Group's announced go-ahead yesterday for Jansen potash stage 2 was as expected as the company was already in the process of ordering long-lead items.

Capex is 14% higher than Morgan Stanley had assumed, with production 4% higher, and ramp-up time of some three years exceeds the broker's assumption of two years.

There is nevertheless a fairly negligible impact on overall forecasts. Equal-weight and $44.20 target retained. Industry view: Attractive.

Target price is $44.20 Current Price is $44.50 Difference: minus $0.3 (current price is over target).
If BHP meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $44.87, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.3

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

Shaw and Partners rates BML as Buy (1) -

A strong demand outlook for lead and silver is not matched by the supply outlook, according to Shaw and Partners, and output from the Sorby Hills lead/silver concentrate operations should be highly sought after by global smelters.

This view was expressed following Boab Metals' release of 1Q results, where management noted financing plans are being advanced for Sorby Hills, including funding from the Northern Australia Infrastructure Facility (NAIF).

Buy rating and 52c target price retained.

Target price is $0.52 Current Price is $0.12 Difference: $0.405
If BML meets the Shaw and Partners target it will return approximately 352% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates C79 as Buy, High Risk (1) -

In a milestone agreement, suggests Shaw and Partners, Chrysos has announced a global partnership with Barrick Gold and MSALABS, providing validation for industry adoption of the company's technology. Visibility for near-term targets has also been improved.

The partnership involves deployment of the Photon Assay technology to Barrick’s mine sites across four continents together with lab operator MSALABS, explains the analyst.

Management has previously stated that mine site adoption is key, and the broker now anticipates close attention from miners globally to  Barrick's move.

Buy (High Risk). The target rises to $7.50 from $6.90.

Target price is $7.50 Current Price is $6.85 Difference: $0.65
If C79 meets the Shaw and Partners target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates CWP as Upgrade to Buy from Hold (1) -

While Cedar Woods Properties has managed to carry sales momentum into the first quarter, Bell Potter remains wary on full year volumes amid a lack of clarity. The company sold 316 properties, up year-on-year but down quarter-on-quarter.

Cedar Woods Properties states enquiry levels remain strong, and that demand is assisted by migration, limited rental vacancies and housing shortages, with investors, downsizers and upgraders driving sales. 

The rating is upgraded to Buy from Hold and the target price of $5.30 is retained.

Target price is $5.30 Current Price is $4.43 Difference: $0.87
If CWP meets the Bell Potter target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgan Stanley rates DDR as Overweight (1) -

A Sep Q update showed Dicker Data has delivered robust growth year to date across the business despite PC headwinds, Morgan Stanley comments, adding current industry expectations are for system growth to accelerate in 2024.

Morgan Stanley believes current expectations are very achievable. Weak 2023 PC demand will provide easier comparables to cycle in 2024.

Overweight and $11 target retained. Industry view: In-Line.

Target price is $11.00 Current Price is $10.56 Difference: $0.44
If DDR meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 DDR as Downgrade to Neutral from Buy (3) -

UBS assesses a "strong" 3Q trading update by Dicker Data and upgrades FY23-25 EPS forecasts by 4% on stronger gross margin assumptions. Gross margins and sales growth beat the broker's expectations during the quarter, while opex was a miss.

Margins have improved over the past two quarters due to an improved business mix, particularly driven by the high-margin Security business, and expanding margins in New Zealand, explains UBS.

The target rises to $10.40 from $9.60 though the broker's rating is downgraded to Neutral from Buy due to a 19% share price rally since August results.

The analysts believe a major positive catalyst would be management lowering the pay-out ratio (typically around 100%) to service debt and bring down interest costs.

Target price is $10.40 Current Price is $10.56 Difference: minus $0.16 (current price is over target).
If DDR meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

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

Morgan Stanley rates DTL as Overweight (1) -

Morgan Stanley suggests Data#3's first half profit guidance of $27-29m "at least" de-risks a consensus FY24 forecast of $59.8m. The midpoint is up 14% year on year and is the first data-point on earnings power after FY23 had some investors questioning the growth algorithm.

The broker is surprised the CEO is stepping down, but not surprised in the choice of successor.

Overweight and $7.10 target retained. Industry view is In-Line.

Target price is $7.10 Current Price is $6.77 Difference: $0.33
If DTL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $7.43, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

UBS rates DTL as Buy (1) -

While UBS acknowledges a solid 1Q performance and FY24 guidance by Data#3, the mood was dampened by the announced resignation of CEO and Managing Director Laurence Baynham. 

This resignation follows the September retirement of the Chairman, and the CFO exit, which was announced last November. However, the broker likes the appointment of Brad Colledge, the current Executive GM of Software, Infrastructure & Services as the new CEO.

Consistent with the consensus expectation, management is guiding to 1H profit (PBT) in the range of $27-29m.

The Buy rating and $8.20 target are maintained.

Target price is $8.20 Current Price is $6.77 Difference: $1.43
If DTL meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $7.43, suggesting upside of 6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Bell Potter rates FDV as Buy (1) -

Frontier Digital Ventures has delivered a third consecutive quarter of net operating cash inflows, reporting inflows of $0.9m for the quarter to close out the period with cash of $15.4m. Revenues and earnings were largely flat. 

It is Bell Potter's opinion that Frontier Digital Ventures has significantly improved the quality of its portfolio over the last year, demonstrating the company has a solid platform. The broker sees potential for a re-rating with improvement to the outlook for emerging markets. 

The Buy rating and target price of 74 cents are retained.

Target price is $0.74 Current Price is $0.40 Difference: $0.345
If FDV meets the Bell Potter target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Bell Potter rates ING as Downgrade to Hold from Buy (3) -

Inghams Group's first half has exceeded Bell Potter's expectations, reporting underlying earnings of $138m and net profit of $71m.  Consistent with usual seasonality, and the broker's assumptions, the company anticipates a first half weighting.

Bell Potter flagged feed cost inflation looks to increase into the second half, with its feed index up 7% from June levels. This, alongside a second derivative exposure to El Nino, sees the broker downgrade its rating. 

The rating is downgraded to Hold from Buy and the target price increases to $3.95 from $3.90.

Target price is $3.95 Current Price is $3.68 Difference: $0.27
If ING meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.73, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgans rates ING as Add (1) -

The prior strong 2H FY23 operational performance by Inghams Group has flowed through to stronger 1H FY24 guidance, which was materially ahead of Morgans expectations.

Performance metrics across farming and processing operations have improved and there has been strong demand for poultry, note the analysts. Wholesale pricing has also improved and a new CEO in New Zealand has accelerated a recovery in operations.

The broker makes material upgrades to earnings forecasts and the target rises to $4.45 from $3.78. It's felt the stock remains undervalued. Add.

Target price is $4.45 Current Price is $3.68 Difference: $0.77
If ING meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.73, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Ord Minnett rates ING as Hold (3) -

Ord Minnett considers conditions good for Inghams Group, with poultry prices elevated and demand strong. The company is guiding to first half earnings of $247m, up 18% on the previous corresponding period, although expecting the second half to be seasonally weaker. 

The broker makes no changes to long-term forecasts, noting while near-term conditions may be favourable, "good fortune can turn quickly", and Inghams Group is subject to the movements of powerful supermarket customers. 

The Hold rating and target price of $3.70 are retained. 

Target price is $3.70 Current Price is $3.68 Difference: $0.02
If ING meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.73, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Morgans rates IPD as Speculative Buy (1) -

ImpediMed’s 1Q cashflow report was broadly in line with Morgans forecasts. 

The broker lowers revenue forecasts across FY24-26 and extends the cash flow breakeven point out to FY26 as changes in the Blue Cross Blue Shield (BCBS) association have impacted private coverage expectations.

Management's strategy is to get private payor reimbursement in the US and has now lowered its expectations on private payors updating their medical policies to 30% coverage by the end of 2023 from 50%. By the end of FY24: Around 85%, down from over 95%.

The Speculative Buy rating is unchanged and the target falls to 22c from 24c.

Target price is $0.22 Current Price is $0.12 Difference: $0.105
If IPD meets the Morgans target it will return approximately 91% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates KED as Buy, High Risk (1) -

Shaw and Partners assesses a "strong" 1Q cashflow report by Keypath Education International, with revenue tracking ahead of the run-rate implied by FY24 guidance.

The broker feels positive adjusted earnings (EBITDA) in the quarter have also substantially de-risked earnings guidance. The contribution margin increased to 30%, compared to the average 19% achieved in FY23.

Management is now reaping the benefit of focusing on programs with the highest returns, points out Shaw.

The Buy, High Risk rating and $1.80 target are unchanged.

Target price is $1.80 Current Price is $0.32 Difference: $1.485
If KED meets the Shaw and Partners target it will return approximately 471% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates KGN as Initiation of coverage with Sell (5) -

Citi expects online penetration in non-food retail will increase to 21% from 17% by 2030 and initiates coverage on Temple & Webster, Adore Beauty and Kogan.com.

Buy-rated Temple & Webster is the broker's preferred pick, while Kogan.com is granted a Sell rating given concerns over the transition towards a fully-fledged marketplace. It's felt the timing is wrong as Amazon and Temu are currently accelerating expansion in Australia.

Trends in offshore markets for marketplaces suggest little room for domestic competitors in the online space, and the analysts believe Australia will follow suit. A $4.00 target is set.

Target price is $4.00 Current Price is $4.38 Difference: minus $0.38 (current price is over target).
If KGN meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.53, suggesting upside of 42.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates LTR as Neutral (3) -

While Citi increases 1H FY24 exploration and head office costs following 1Q results for Liontown Resources, the $1.90 target price and Neutral rating are maintained.

Management noted Kathleen Valley is now more than 50% complete and capex 90% committed, while first concentrate remains on schedule for mid-2024.

During the 1Q, the company added 63.5kt of ore from the open cut to the run-of-mine (ROM) stockpile, with another 69.3kt
of direct shipping ore. 

Target price is $1.90 Current Price is $1.61 Difference: $0.29
If LTR meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 49.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgans rates M7T as Add (1) -

Morgans awaits further positive news flow in FY24 after Mach7 Technologies registered large 1Q contract wins and pipeline expansion, with scale and mix at all-time highs.

The company produced a largely cashflow neutral result in its seasonally weakest period, point out the analysts. There was a record sales order book, up 10 times the previous corresponding period, with sales already representing 70% of FY24 guidance.

FY24 guidance for 20% sales order growth and 15-25% revenue growth was reaffirmed, along with an expectation for growth in revenue greater than for operating expenses.

The Add rating and $1.54 target are unchanged.

Target price is $1.54 Current Price is $0.70 Difference: $0.845
If M7T meets the Morgans target it will return approximately 122% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Shaw and Partners rates M7T as Buy, High Risk (1) -

Shaw and Partners assesses a strong 1Q for Mach7 Technologies with the cash cost run-rate better than suggested by FY24 guidance.

On the subsequent conference call with stockbroking analysts, management noted potential for sales order upside.

The broker notes metrics for contracted annual recurring revenue (CARR) and ARR continue to grow strongly, an achievement that is perhaps overlooked by the market. 

Management reiterated all key FY24 targets.

The Buy rating and $1.30 target are unchanged.

Target price is $1.30 Current Price is $0.70 Difference: $0.605
If M7T meets the Shaw and Partners target it will return approximately 87% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates MAD as Hold (3) -

Mader Group has achieved revenue of $185.1m in the first quarter, comprised $134.2m from its Australian operations, $48.5m from North American operations and $2.4m from the rest of the world.

Bell Potter points out the quarter was underpinned by strong domestic demand for infrastructure maintenance, rail and ancilliary services, along expansion of the company's customer base and work volumes in North America. Full year revenue and net profit were reaffirmed.

The Hold rating is retained and the target price increases to $7.05 from $6.90.

Target price is $7.05 Current Price is $6.30 Difference: $0.75
If MAD meets the Bell Potter target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgans - Cessation of coverage

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.4

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

Bell Potter rates NIC as Buy (1) -

Nickel Industries has reported production of 33,852t of container nickel and 26,692t of attributable nickel in the September quarter, at a cash cost of US$10,198 per tonne. The result beat Bell Potter's expectations on both production and costs.

The broker described the result as excellent, noting price realisations improved over the period and lower costs were able to more than offset marginally lower recieved prices. 

The Buy rating is retained and the target price increases to $1.80 from $1.73.

Target price is $1.80 Current Price is $0.75 Difference: $1.055
If NIC meets the Bell Potter target it will return approximately 142% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Citi rates NIC as Upgrade to Buy, High Risk from Neutral, High Risk (1) -

Citi upgrades its rating for Nickel Industries to Buy, High Risk from Neutral, High Risk, following a -22% year-to-date share price fall, and in the belief further nickel price downside is limited.

The analysts also note margins are improving both as costs decline and as the new-generation ONI & ANI rotary kiln electric furnaces (RKEFs) in Indonesia ramp-up.

For the September quarter, earnings (EBITDA) improved to US$120.7m from US$55.9m in the prior quarter, as costs declined across
the board to average -US$10,198/t for the RKEF’s, explains Citi.

The target falls to 95c from $1.00.

Target price is $0.95 Current Price is $0.75 Difference: $0.205
If NIC meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Macquarie rates NIC as Outperform (1) -

Macquarie found Nickel Industries' Q3 performance in line with its own forecasts. NPI production proved stronger, but lower grade proved the offset.

Macquarie notes EBITDA margins improved during the period, with all of falls in nickel ore, smelting coal, and electricity prices contributing.

Any contributions from the company's 10% interest in HNC have not yet been included. The company intends to finalise its accountancy treatment in the months ahead, the broker explains.

The Outperform rating and target price of $1.10 are retained. No changes have been made to forecasts.

Target price is $1.10 Current Price is $0.75 Difference: $0.355
If NIC meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Macquarie rates ORG as Outperform (1) -

Origin Energy's major shareholder Australian Super is rejecting the offer put forward by EIG/Brookfield and Macquarie notes total no votes seem to be in the 15%-17% range on the target's share register.

This remains insufficient to actually block the proposed takeover, but risks, for obvious reasons, are on the rise.

Outperform retained, target $9.39. Macquarie argues the shares are attractive enough on their own (in case the takeover fails).

Target price is $9.39 Current Price is $9.13 Difference: $0.26
If ORG meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.02, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates PAC as Buy (1) -

A strong start to the year for Pacific Current Group, says Ord Minnett, including improving net flows and a robust fundraising outlook. Funds under management increased 5.3% over the quarter to $215.1bn, driven by net inflows of $0.7bn. 

The broker considers the company on track to meet its earnings forecasts over the coming year, and finds the stock inexpensive on that basis. Pacific Current Group is expecting the second quarter to be even stronger than the first. 

The Buy rating and target price of $12.20 are retained.

Target price is $12.20 Current Price is $9.06 Difference: $3.14
If PAC meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates PNR as Downgrade to Sell from Buy (5) -

With Pantoro having pre-released September quarter production of 13,145 ounces from its Norseman gold project, Bell Potter has estimated an all-in sustaining cost for the period of $4,200-4,400 per ounce, much higher than the broker had expected. 

Bell Potter had been looking for Pantoro to commence reporting all-in sustaining costs for Norseman in the quarterley report, alongside a reduction in cash outflows at the project. With neither of these eventuating, the broker considers the risk profile of the company heightened.

The broker is forecasting a loss of -$32m over the full year. The rating is downgraded to Sell from Buy and the target price decreases to $0.025 from $0.052.

Target price is $0.03 Current Price is $0.03 Difference: minus $0.007 (current price is over target).
If PNR meets the Bell Potter target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates PNR as Speculative Buy (1) -

Pantoro's first quarter result was weaker than Ord Minnett had anticipated, despite the company pre-releasing production. With operating costs and one-offs higher than expected, Pantoro closed out the period in a softer cash position than forecast by the broker. 

The broker is looking for continued production improvements now that merger related costs have normalised, and as the Scotia open pit accesses higher grade sections. Ord Minnett sees significant upside should the company make it through this intervening period. 

The Speculative Buy rating is retained and the target price decreases to 7 cents from 10 cents.

Target price is $0.07 Current Price is $0.03 Difference: $0.038
If PNR meets the Ord Minnett target it will return approximately 119% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgan Stanley rates PWR as Overweight (1) -

Following a qualitative FY24 update at the company's AGM, Morgan Stanley believes Peter Warren Automotive remains on track to
hit the broker's FY24 expectations.

Management noted the potential for "limited" margin contraction with improving supply, and the balance sheet supports further M&A optionality.

Overweight and $3.40 target retained.

Target price is $3.40 Current Price is $2.39 Difference: $1.01
If PWR meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $3.40, suggesting upside of 45.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates QBE as Buy (1) -

UBS believes key takeaways for investors in QBE Insurance from 3Q reporting by major peers in the US includes improving underlying core operating ratios (CORs).

Cats were also generally better than the weak previous corresponding period and also broadly better than the five-year average, notes the broker.

QBE Insurance is providing a 3Q update on November 27, and UBS expects a refresh of FY23 guidance.

The target rises to $19.50 from $19.00 and the Buy rating is unchanged.

Target price is $19.50 Current Price is $15.60 Difference: $3.9
If QBE meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $17.14, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in December.

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 RMS as Buy (1) -

Despite Ramelius Resources warning of a softer first quarter, the production result was weaker than Ord Minnett had anticipated. The broker admits it underestimated the impact of grade mine sequencing at Penny on total production. 

The broker continues to feel Ramelius Resources can re-rate higher as free cash flow improves, and notes the quarterly outcome doesn't takeaway from the company's ability to deliver on its outlook. 

The Buy rating is retained and the target price decreases to $2.00 from $2.05.

Target price is $2.00 Current Price is $1.66 Difference: $0.345
If RMS meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates RSG as Outperform (1) -

Resolute Mining's Q1 update revealed better-than-expected production volumes but also a "beat" on AISC (costs), while management delivered another positive surprise with better debt reduction, Macquarie comments.

The broker does acknowledge management had previously downgraded production guidance, but the AISC guidance is still regarded a key positive.

Macquarie has upgraded forecasts while labeling the Q3 report as "mixed" overall. Target remains 56c. Outperform.

Target price is $0.56 Current Price is $0.36 Difference: $0.2
If RSG meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Citi rates SIQ as Buy (1) -

Citi sees potential for an upcoming positive catalyst, and positive share price reaction, if Smartgroup Corp can secure an upcoming South Australian government contract subject to tender.

The broker suggests the contract extension until 30 June 2024, to give more time to evaluate tender submissions, is an indication
Smartgroup Corp has an increased chance of being the successful tenderer.

The government will likely make the contract announcement by either mid-December or early 2024, in Citi's view.

The Buy rating and $9.70 target are unchanged.

Target price is $9.70 Current Price is $8.58 Difference: $1.12
If SIQ meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $9.01, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

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 STG as Speculative Buy (1) -

Ord Minnett has described Straker's second quarter result as mixed, with the period marking the company's third consecutive quarter of positive earnings and free cash flow alongside record quarterly gross margins of 63%. 

Despite these positives, the company downgraded full year guidance to a single digit percentage decline. Ord Minnett was unsurprised, noting the quarterley revenue runrate needed to achieve topline growth was becoming increasingly unlikely amid tough trading conditions. 

The Speculative Buy rating iss retained and the target price decreases to $1.00 from $1.05.

Target price is $1.00 Current Price is $0.51 Difference: $0.49
If STG meets the Ord Minnett target it will return approximately 96% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates TPW as Initiation of coverage with Buy (1) -

Citi expects online penetration in non-food retail will increase to 21% from 17% by 2030 and initiates coverage on Temple & Webster, Adore Beauty and Kogan.com.

Temple & Webster is the broker's preferred pick given a unique position as a range-leader in the Furniture & Homewares category, and the lack of competition, including limited competition from Amazon at this stage.

The analysts also note brands aren’t as embedded in the category, and new entrants like Temple & Webster can be competitive across most key products.

Citi begins with a Buy rating and $6.50 target.

Target price is $6.50 Current Price is $5.59 Difference: $0.91
If TPW meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.56, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Ord Minnett rates TSK as Buy (1) -

Task Group reported a strong cash result in the September quarter, with seasonal working capital movements from the Plexure segment spurring the company on to a $12m cash flow result for the period. Ord Minnett highlights this means first half cash flow totalled $6.2m. 

The company's payments solution achieved certification in New Zealand, and is 70% to certification in Australia. Ord Minnett has increased its operating cost assumptions to account for accelerated development of the technology, reducing expected full year earnings to $13.1m. 

The Buy rating is retained and the target price decreases to 64 cents from 66 cents.

Target price is $0.64 Current Price is $0.40 Difference: $0.24
If TSK meets the Ord Minnett target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates TWE as No Rating (-1) -

Macquarie notes Treasury Wine Estates is acquiring Californian luxury wine business DAOU Vineyards in full, with an upfront consideration of -US$900m. An $825m capital raise has been announced.

The broker is now under research restriction, so no rating or price target for the time being.

It is noted management expects the acquisition will be mid-to-high-single-digit accretive to EPS in FY25, the first full year of ownership.

Current Price is $12.22. Target price not assessed.

Current consensus price target is $12.99, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Morgan Stanley rates TWE as Overweight (1) -

Treasury Wine Estates has announced the acquisition of DAOU Vineyards for -US$900m.

DAOU is a California US luxury wine brand, with exposure to the US$20-40 per bottle category, which is a key portfolio gap, Morgan Stanley notes, and the luxury category (+US$40 per bottle).

The broker suggests earnings upside supports financial merits of the deal, however the relative infancy of brand and recent growth raise some concerns.

DAOU's brand performance to date is impressive, but long-term sustainability of brand strength in the luxury/ultra luxury category is yet to be proven given relative infancy, the broker counters.

Overweight and $14.50 target retained. Sector view is In-Line.

Target price is $14.50 Current Price is $12.22 Difference: $2.28
If TWE meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $12.99, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

UBS rates TWE as Buy (1) -

Founders George and Daniel Daou will remain, notes UBS, after Treasury Wine Estates announced the acquisition of unlisted US luxury
wine company DAOU Vineyards.

The consideration will be -US$900m upfront plus an earn-out of up to -US$100m based on performance targets, to be funded by a fully
underwritten $825m equity raising,  a $157m placement issued to DAOU owners and US$311m of debt.

The broker notes Treasury Wine Estates will now become the market leader in the US luxury wine market.

An opportunity is now provided for DAOU to leverage Treasury's distribution in the Americas, while DAOU and Patrimony can also be established as international brands, suggest the analysts.

The transaction has not yet been included in the broker's forecasts, so the $13.75 target and Buy rating are unchanged.

Target price is $13.75 Current Price is $12.22 Difference: $1.53
If TWE meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.99, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Macquarie rates VCX as Neutral (3) -

Vicinity Centres is buying out its 49% partner in Chatswood Chase Sydney for -$307m; the deal is expected to settle in March next year.

The shopping centres owner is also selling Roxburgh Village in Victoria to JY Group for $123m; this deal is expected to settle in the same month.

Macquarie notes Vicinity Centres is planning a major redevelopment of Chatswood Chase by October next year. Management has re-affirmed guidance for FY24.

The projected loss of rent could have a minor negative impact in FY25, the broker points out. Neutral. Target $1.87. In the short term, estimates have been culled.

Target price is $1.87 Current Price is $1.70 Difference: $0.17
If VCX meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

Vicinity Centres has cleared the way for the $620m Chatswood Chase redevelopment by buying out its co-owner's 49% share at some -6.5% below book value, Morgan Stanley notes.

The broker estimates the deal is -1.8% dilutive to Vicinity's funds from operations in FY25. By FY27, Chatswood Chase could make up
some 10% of Vicinity's portfolio by value.

Chatswood Chase looks tired at present, especially since Scentre Group ((SCG)) completed the upgrade of the adjacent Westfield in 2015, so in some ways, this redevelopment is strategically required, Morgan Stanley suggests.

Equal-weight and $1.95 target retained. Sector view is In-Line.

Target price is $1.95 Current Price is $1.70 Difference: $0.25
If VCX meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates VCX as Upgrade to Neutral from Sell (3) -

True to Vicinity Centres' focus on premium assets, according to UBS, the REIT will acquire the remaining 49% interest in Chatswood Chase for -$307m from joint venture partner GIC.

This transaction, and upcoming development expenditure of -$620m will be funded via existing/new debt facilities and asset sales.

While the broker upgrades the rating for Vicinity Centres to Neutral from Sell on valuation, concerns are voiced around the upcoming capex burden and the exit of GIC.

The target falls to $1.79 from $1.82.

Target price is $1.79 Current Price is $1.70 Difference: $0.09
If VCX meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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