Australian Broker Call

Morgan Stanley rates 360 as Initiation of coverage with Overweight (1) -

Morgan Stanley observes Life360 has a user base of "unparalleled scale and engagement" and believes the business is under appreciated, envisaging a broader adoption and acceptance of location tracking.

Life360 plans to be a point of connection for families and has expanded from location tracking to a wide range of services such as roadside assistance, ID theft protection and phone insurance.

Morgan Stanley expects consumers will value the targeted product offers and initiates coverage on the stock with an Overweight rating and $8.60 target. Industry view is In-Line.

Target price is $8.60 Current Price is $5.96 Difference: $2.64
If 360 meets the Morgan Stanley target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Macquarie rates AIZ as Underperform (5) -

Air New Zealand expects losses will remain significant over FY22 while pre-tax losses for FY21 are not expected to exceed -NZ$450m. No material long-haul recovery is expected in FY22 amid a rolling off of government support and other mechanisms.

Despite a weaker profit outlook the cash performance has been better, Macquarie notes, with no further drawdowns of the government facility since February. Target is reduced to NZ$1.10 from NZ$1.20. Underperform retained.

Current Price is $1.45. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

UBS rates APT as Sell (5) -

Afterpay has launched one-time cards for use at non-integrated merchants such as Amazon. UBS believes this represents an evolution in the company's revenue model, from merchant fees to affiliate marketing.

The broker considers this a positive development and increases medium term sales assumptions in the US by 29%. The base case now assumes $70bn in underlying sales in existing markets and a further $13bn in sales in new markets by FY25.

The re-evaluation of the sales outlook drives an increase in the target to $42 from $37. UBS maintains a Sell rating on valuation grounds.

Target price is $42.00 Current Price is $119.30 Difference: minus $77.3 (current price is over target).
If APT meets the UBS target it will return approximately minus 65% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $121.61, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

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

The company has produced strong operating margins over FY21 as demand continues to outstrip supply. Despite some production limitations supply has performed in line with expectations.

Autosports has also acquired and 80% interest in John Newell Mazda, Alexandria. The purchase price is $12m in goodwill and $4m for the net asset interest, to be funded by existing cash.

Macquarie expects operating margins will remain elevated for the majority of FY22 but following the recent share price performance downgrades to Neutral from Outperform. Target is raised to $2.50 from $2.15.

Target price is $2.50 Current Price is $2.60 Difference: minus $0.1 (current price is over target).
If ASG meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates ASG as Buy (1) -

Autosports Group will acquire an 80% stake in John Newell Mazda. Management has forecast around $90m in revenue for the business with operating earnings and pre-tax profit margins exceeding Autosports Group's first half margins.

The company has also provided a positive trading update amid strong demand, reduced discounting and a normalisation of the parts & services back end business.

UBS envisages margins will remain elevated for the next 6-12 months. The acquisition reinforces the consolidation opportunities and the broker considers the valuation compelling. Buy rating retained. Target rises to $3.00 from $2.85.

Target price is $3.00 Current Price is $2.60 Difference: $0.4
If ASG meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates BAP as Buy (1) -

Citi believes there are plenty of medium and long-term growth opportunities for Bapcor as it cycles favourable changes to consumer mobility and retail conditions.

The main growth drivers include the rolling out of stores and private-label expansion. Bapcor remains the broker's top pick in the small cap automotive sector with a Buy rating. Target is raised to $9.55 from $9.50.

Target price is $9.55 Current Price is $8.40 Difference: $1.15
If BAP meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $9.13, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgan Stanley rates BAP as Overweight (1) -

Bapcor has updated its five-year targets with a 260 store target in Australia, up from 240, and 90 in New Zealand, up from a target of 75. The company has a new target of 65% for its own brand, up from 55%.

Bapcor has also committed to a similar consolidation of its Brisbane distribution centre, in line with Melbourne. Morgan Stanley retains an Overweight rating. Target is $9.70. Industry view: In-Line.

Target price is $9.70 Current Price is $8.40 Difference: $1.3
If BAP meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.13, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Morgans rates BAP as Hold (3) -

The key highlight of Bapcor's five-year strategic targets for Morgans was articulation of the group’s long-term Asian growth ambitions. Asian revenue of $500m is targeted over five years, which includes $200m from Tye Soon. (assuming full ownership over that period).

Regarding the FY21 result on 18 August, the broker expects a strong result at least in-line with consensus forecasts, with the trading update and any margin trajectory commentary being key.

The analyst makes modest upgrades to outer year forecasts, incorporating the Tye Soon 25% stake, and lifts the target to $8.53 from $8.42. The Hold rating is maintained.

Target price is $8.53 Current Price is $8.40 Difference: $0.13
If BAP meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $9.13, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates BAP as Buy (1) -

Bapcor has increased its store targets and is now targeting 260 Burson Trade stores in Australia (up from 240), 90 BNT stores in NZ (up from 75) and 165 Service Workshops in NZ (up from 150). The Asian sales target is also increased to $500m from $100m.

The Asian target is comprised of its existing $100m target in Thailand and $200m in existing sales through the 25% stake in Tye Soon. The remaining $200m is through a combination of organic and inorganic expansion.

The company is also targeting higher levels of own brand penetration within its network, which generates higher operating margins, explains Ord Minnett.  The broker's Buy rating and $9.20 target are retained.

Target price is $9.20 Current Price is $8.40 Difference: $0.8
If BAP meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $9.13, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates BHP as Outperform (1) -

BHP Group has divested its 33.3% interest in Cerrejon for US$294m. A -US$80m impairment will be recognised at the FY21 result.

The company will also continue the divestment process for its remaining thermal coal asset in NSW and metallurgical coal assets in the BMC joint venture.

Macquarie observes earnings upgrade momentum remains strong and retains an Outperform rating and $63 target.

Target price is $63.00 Current Price is $48.40 Difference: $14.6
If BHP meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $50.50, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgan Stanley rates BHP as Overweight (1) -

Morgan Stanley believes BHP Group has taken a step in the right direction by removing its thermal coal exposure. The company will divest its 33.3% interest in Cerrejon for US$294m with completion expected in the first half of 2022.

An impairment charge of -US$80m will be recognised as an exceptional item in the second half of FY21. The remaining thermal coal asset left to divest is NSWEC.

Target is $50.70. Overweight rating. Industry view: Attractive.

Target price is $50.70 Current Price is $48.40 Difference: $2.3
If BHP meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $50.50, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Morgans rates CKF as Add (1) -

In a preview of today's FY21 result for Collins Foods, Morgans forecasts $132m of earnings (EBITDA) and notes consensus of $134m. This implies a 10.5%/9.1% split for 1H/2H growth, with Europe to be impacted by wholesale restrictions over most of the second half.

Overall, the broker expects a strong result, driven by the core engine, KFC Australia. It's felt positive same-store-sales growth can continue with improved margins, and thought KFC Aust earnings can incrementally grow into FY22. European covid headwinds should ease. 

The Add rating is unchanged and the target increased to $13.38 from $11.39 due to a roll-forward to FY22 and increased multiples in line with peer re-ratings.

Target price is $13.38 Current Price is $12.70 Difference: $0.68
If CKF meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in May.

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

Ord Minnett rates GMG as Buy (1) -

Ord Minnett points out REIT-owned and managed assets were revalued 5% higher across $100bn of assets for the six months to June. Capitalisation rates tightened -25bps on average. Valuations for neighbourhood retail and bulky goods retail assets lifted 5-10%. 

The industrial segment led the way, rising a very strong 12% following exceptional transaction activity, notes the broker. It's believed office transactions are again accelerating, with pricing holding up far better than fundamentals alone might suggest, increasing by 3%.

Ord Minnett suggests these figure will be of particular relevance for those REITs yet to disclose June valuations including Goodman Group. The Buy rating and $21 target are maintained.

Target price is $21.00 Current Price is $21.13 Difference: minus $0.13 (current price is over target).
If GMG meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.30, suggesting downside of -0.1% (ex-dividends)

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

Macquarie rates GOR as Outperform (1) -

Gold Road Resources expects production at the lower end of 2021 guidance following some problems with the conveyor belt and ball mill at the plant in the June quarter. The plant has returned to full operations.

Production from Gruyere in the second quarter is now expected to be 52-55,000 ounces. Additional maintenance and labour costs have also meant the cost guidance ranges have been lifted to $1675-1800/oz.

Macquarie maintains an Outperform rating and reduces the target to $1.50 from $1.60.

Target price is $1.50 Current Price is $1.32 Difference: $0.18
If GOR meets the Macquarie target it will return approximately 14% (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

Ord Minnett rates GPT as Accumulate (2) -

Ord Minnett points out REIT-owned and managed assets were revalued 5% higher across $100bn of assets for the six months to June. Capitalisation rates tightened -25bps on average. Valuations for neighbourhood retail and bulky goods retail assets lifted 5-10%. 

The industrial segment led the way, rising a very strong 12% following exceptional transaction activity, notes the broker. It's believed office transactions are again accelerating, with pricing holding up far better than fundamentals alone might suggest, increasing by 3%.

Ord Minnett suggests these figure will be of particular relevance for those REITs yet to disclose June valuations including GPT Group. The Accumulate rating and $5 target price are retained.

Target price is $5.00 Current Price is $4.82 Difference: $0.18
If GPT meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting downside of -3.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates ISD as Hold (3) -

Market share data shows Morgans that competition in the media monitoring space has escalated over the last few months. It shows that iSentia Group's share of contract value dropped meaningfully in FY21. The share of number of contracts won also fell. 

Competitors Streem and Meltwater have taken the bulk of market share, notes the broker. The target price remains at $0.175, which is the level of the current cash takeover offer from Access Intelligence. The Hold rating is unchanged.

Target price is $0.18 Current Price is $0.17 Difference: $0.005
If ISD meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates KMD as Overweight (1) -

In an quick, initial response to today's trading update, Morgan Stanley notes revised guidance for FY21 is below market consensus, suggesting earnings downgrades are forthcoming in the days ahead.

The analysts add prior to the latest covid-restrictions, Kathmandu's operations were trading ahead of expectations. They therefore consider this latest disappointment of 'transitory' nature.

Overweight. Industry view In-Line. Price target $1.80.

Target price is $1.80 Current Price is $1.48 Difference: $0.32
If KMD meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

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

Following share price strength, Morgans moves to a Hold rating from Add and increases the target to $5.85 from $4.35. It's felt several announced acquisitions/investments will contribute meaningfully to near-term earnings and deliver further medium-to-longer-term value.

The business acquisitions and property investments have a total upfront consideration of $92.2m, comprised of $62.7m in cash and $29.5m in scrip, with deferred consideration and earn-outs totalling $31.5m.

Australian corporate debt facilities have risen to $200m from $160m, and $100m in commercial property finance facilities has been secured. After this strengthening of balance sheet capacity, the analyst feels further M&A will be pursued.

Target price is $5.85 Current Price is $5.80 Difference: $0.05
If MGH meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates MGR as Hold (3) -

Ord Minnett points out REIT-owned and managed assets were revalued 5% higher across $100bn of assets for the six months to June. Capitalisation rates tightened -25bps on average. Valuations for neighbourhood retail and bulky goods retail assets lifted 5-10%. 

The industrial segment led the way, rising a very strong 12% following exceptional transaction activity, notes the broker. It's believed office transactions are again accelerating, with pricing holding up far better than fundamentals alone might suggest, increasing by 3%.

Ord Minnett suggests these figure will be of particular relevance for those REITs yet to disclose June valuations including Mirvac Group. The Hold rating and $2.60 price are retained.

Target price is $2.60 Current Price is $2.95 Difference: minus $0.35 (current price is over target).
If MGR meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.80, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates MTS as Buy (1) -

Citi upgrades estimates by 3% for FY22 and 1% for FY23. The broker expects Metcash will hold onto its grocery market share that was gained through the pandemic and lockdowns present upside risk in the first half of FY22.

Despite strong sales, the broker expects margins will hold at 2% as operating leverage is limited. After 62% growth in hardware earnings in FY21 the broker still forecasts a further 10% increase in FY22.

Citi also estimates the $175m buyback is likely to be 11% accretive on an after-tax basis for super fund investors. Buy rating maintained. Target is $4.10.

Target price is $4.10 Current Price is $3.69 Difference: $0.41
If MTS meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in April.

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 MTS as Outperform (1) -

After the FY21 result, Credit Suisse highlights a material shift in the earnings (EBIT) composition of the company, with less than 50% of earnings from Food for the first time. 

The broker also notes increasing confidence in the operating environment, which was demonstrated by a higher dividend payout ratio and an off-market buyback. It's felt that some market share improvement is likely to be sustained.

In addition, the analyst highlights hardware is providing an attractive and increasingly material growth option and the company is at a considerable valuation discount to peers. The Outperform rating is unchanged and the target increases to $4.16 from $4.08.

Target price is $4.16 Current Price is $3.69 Difference: $0.47
If MTS meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in April.

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

Morgan Stanley rates MTS as Overweight (1) -

FY21 results were slightly below Morgan Stanley's estimates. Nevertheless, the broker observes ongoing elevated demand as the business continues to benefit from changes in consumer behaviour.

While the impact from contract losses, reduced provision releases and elevated insurance costs was well flagged, the broker explains it had fully appreciated the impact of the mix shift towards lower margin categories within food and liquor.

Metcash also announced a $175m off-market buyback. Morgan Stanley retains an Overweight rating and raises the target to $4.15 from $4.10. Industry view is Attractive.

Target price is $4.15 Current Price is $3.69 Difference: $0.46
If MTS meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.93, suggesting upside of 0.7% (ex-dividends)

The company's fiscal year ends in April.

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 MYX as Neutral (3) -

Credit Suisse lowers the target price for Mayne Pharma Group to $0.37 from $0.50, largely due to a change in valuation method. The Neutral rating is unchanged.

The broker believes the market is more concerned about short-term earnings headwinds for the base business and the initial launch costs of Nextstellis. However, Nexstellis is still considered transformational for the company.

The analyst forecasts launch costs of -US$10m in FY21 and -US$40m of opex in FY22, due to a large sales force (70 people). Thus, it's
forecast Nextstellis will not achieve breakeven until FY23. 

Target price is $0.37 Current Price is $0.33 Difference: $0.04
If MYX meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $0.38, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Credit Suisse rates NEC as Outperform (1) -

Nine Entertainment has announced the acquisition by Stan of UEFA club competition rights in a three-year deal (commencing August 2021). The company also guided to FY22 opex for Stan Sport in the -$70-90m range.

Credit Suisse estimates Stan would need an additional 237k subscriptions to the platform to fully cover the mid-point of these costs. Even after the addition of the UEFA rights, it's considered highly unlikely that Stan Sport will deliver these subscriptions in FY22.

However, the analyst believes the company is pursuing the right strategy. The Outperform rating and $3.40 target are maintained.

Target price is $3.40 Current Price is $2.97 Difference: $0.43
If NEC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 17.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates NHC as Buy (1) -

New Hope has raised $196m from a convertible note issue for general corporate purposes, which Citi points out could include M&A.

The broker suspects the company will be looking at the BHP Group ((BHP)) assets, as the latter is intending to exit the Mount Arthur thermal coal mine in the Hunter Valley. Citi retains a Buy rating with a $2.10 target.

Target price is $2.10 Current Price is $1.76 Difference: $0.34
If NHC meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.91, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates PLS as Outperform (1) -

Fourth quarter spodumene shipments were 96,000dmt, 10% ahead of Macquarie's expectations. The Ngungaju plant has started earlier than expected and a faster ramp up has driven a 25% upgrade to the broker's spodumene production forecasts for FY22.

Macquarie finds the recent drilling results between Pilgangoora and Altura pits encouraging and expects upgrades to reserves and resources in the first quarter of FY22. Target is raised to $1.60 from $1.50. Outperform maintained.

Target price is $1.60 Current Price is $1.44 Difference: $0.16
If PLS meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates RMD as Downgrade to Neutral from Buy (3) -

Citi believes the recall of the Philips DreamStation devices creates an opportunity for ResMed. Philips is unlikely to be able to supply new patients until January 2022.

The broker upgrades ResMed's estimates for earnings per share in FY22-23 by 5-10% and increases the target to $32.50 from $28.50. The broker also downgrades to Neutral from Buy as the share price now reflects the base case scenario.

Target price is $32.50 Current Price is $32.64 Difference: minus $0.14 (current price is over target).
If RMD meets the Citi target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $30.82, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Ord Minnett rates SCG as Hold (3) -

Ord Minnett points out REIT-owned and managed assets were revalued 5% higher across $100bn of assets for the six months to June. Capitalisation rates tightened -25bps on average. Valuations for neighbourhood retail and bulky goods retail assets lifted 5-10%. 

The industrial segment led the way, rising a very strong 12% following exceptional transaction activity, notes the broker. It's believed office transactions are again accelerating, with pricing holding up far better than fundamentals alone might suggest, increasing by 3%.

Ord Minnett suggests these figure will be of particular relevance for those REITs yet to disclose June valuations including Scentre Group. The broker maintains a Hold recommendation with a target price of $3.

Target price is $3.00 Current Price is $2.74 Difference: $0.26
If SCG meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.84, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Ord Minnett rates SGP as Lighten (4) -

Ord Minnett points out REIT-owned and managed assets were revalued 5% higher across $100bn of assets for the six months to June. Capitalisation rates tightened -25bps on average. Valuations for neighbourhood retail and bulky goods retail assets lifted 5-10%. 

The industrial segment led the way, rising a very strong 12% following exceptional transaction activity, notes the broker. It's believed office transactions are again accelerating, with pricing holding up far better than fundamentals alone might suggest, increasing by 3%.

Ord Minnett suggests these figure will be of particular relevance for those REITs yet to disclose June valuations including Stockland. The Lighten rating and $4.30 target are retained.

Target price is $4.30 Current Price is $4.75 Difference: minus $0.45 (current price is over target).
If SGP meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.63, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates WBC as Overweight (1) -

Westpac has announced the sale of its motor vehicle dealer finance and novated leasing business to Angle Finance. Only a small proportion of the automobile loan portfolio will be transferred, meaning the financial impact is immaterial, Morgan Stanley notes.

Westpac will retain $10bn in automobile loans which will run down over time. The bank will also progressively cease new retail automobile loan originations.

The Overweight rating and $29.20 target are retained. Industry view: In-line.

Target price is $29.20 Current Price is $25.82 Difference: $3.38
If WBC meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $28.49, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

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 Hold (3) -

The sale of the motor vehicle dealer finance and novated leasing businesses will add to Westpac Bank's capital surplus. However, Ord Minnett notes management indicated at its 1H21 result that it would defer any decision on possible capital management.

The bank awaits the finalisation of APRA’s new capital rules (expected in November this year). The sale in itself is considered by the broker to be a reasonable outcome for shareholders though is immaterial in the scheme of the group. Hold and $27.50 target retained.

Target price is $27.50 Current Price is $25.82 Difference: $1.68
If WBC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $28.49, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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