Australian Broker Call

Macquarie rates APA as No Rating (-1) -

The regulator has released its draft rate of return document, for implementation in 2023 for the next five years.

Macquarie assesses the net impact of the determination is fairly neutral, with the higher market risk premium adding 42 basis points to the regulated return. This is offset by the shortening of the regulatory period to five years.

Macquarie is on research restrictions and cannot provide a rating or target at present.

Current Price is $11.27. Target price not assessed.

Current consensus price target is $9.93, suggesting downside of -11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgan Stanley rates APE as Overweight (1) -

In an indication of operating confidence, according to Morgan Stanley, Eagers Automotive has announced the intention to buy back 10% of its shares.

The broker maintains its Overweight rating and $18 target price. Industry view: In-Line. 

Target price is $18.00 Current Price is $9.30 Difference: $8.7
If APE meets the Morgan Stanley target it will return approximately 94% (excluding dividends, fees and charges).

Current consensus price target is $15.51, suggesting upside of 76.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates BHP as Outperform (1) -

With BHP Group retaining its NSW energy coal portfolio, intending to extend operations to 2030 at Mount Arthur before a planned closure, Macquarie believes this presents earnings upside.

Moreover, strong iron ore and copper prices are supporting upgrade momentum. The broker finds the free cash flow yield is attractive at spot prices, increasing to 17-18% for FY23 and FY24. The company has affirmed it is on track to deliver its climate change targets despite revising its business plan for thermal coal.

The Outperform rating and target price of $57.00 are retained.

Target price is $57.00 Current Price is $44.01 Difference: $12.99
If BHP meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $47.79, suggesting upside of 13.1% (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: 0.4

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 has assessed the best financial outcome is reached by continuing near-term mining at New South Wales Energy Coal (NSWEC), with closure in 2030.

While Morgan Stanley now includes NSWEC in its base case valuation, the $46.20 target price and Equal-weight rating are unchanged. Industry View: Attractive.

Target price is $46.20 Current Price is $44.01 Difference: $2.19
If BHP meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $47.79, suggesting upside of 13.1% (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: 0.4

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

Macquarie rates CSL as Outperform (1) -

In reviewing the outlook for global plasma supply and demand, Macquarie finds the earnings growth profile for CSL attractive out to FY24.

This is supported by an assumed recovery in plasma collection and benefits from the Rika platform as well as a contribution from Vifor.

The broker retains an Outperform rating  and lowers the target to $312.00 from $327.25, in line with revisions to earnings estimates to reflect revised timing in relation to completion of the Vifor transaction.

Target price is $312.00 Current Price is $258.68 Difference: $53.32
If CSL meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $315.92, suggesting upside of 23.4% (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

UBS rates EVN as Upgrade to Buy from Neutral (1) -

UBS upgrades Evolution Mining to Buy from Neutral. Despite the operating risks, the broker finds more value in the ASX gold sector and more need to hedge the rest of the portfolio.

The weak start to FY22 has pressured the June quarter, with up to 30% improvement in quarterly performances required to get some gold stocks to the lower end of their guidance.

The broker expects there will be a keen focus on operations such as the company's Red Lake. Target is $4.05.

Target price is $4.05 Current Price is $3.50 Difference: $0.55
If EVN meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.32, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

UBS rates GEM as Buy (1) -

UBS observes, while labour pressures exist, the child care sector has been able to pass through a substantial portion of cost inflation to the consumer.

Initiatives from both the federal and NSW government should drive incremental demand and the main risk is ongoing delays in visa approvals affecting the historical portion of workers obtained offshore.

The broker considers the valuation of G8 Education appealing on a relative basis and retains a Buy rating and $1.34 target.

Target price is $1.34 Current Price is $1.03 Difference: $0.31
If GEM meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates GMA as Downgrade to Underperform from Outperform (5) -

Genworth Mortgage Insurance Australia has flagged unchanged guidance for FY22, with a normalisation of long-term claims experience expected in FY23.

Nonetheless, Macquarie updates forecasts to include a more bearish economic environment, accounting for a 60% probability of a US recession and a "near miss" in Australia in 2023.

The broker does not include the additional 60m share buyback because of the deteriorating economic outlook. Target is reduced to $1.95 from $3.50 and the rating is downgraded to Underperform from Outperform.

Target price is $1.95 Current Price is $2.39 Difference: minus $0.44 (current price is over target).
If GMA meets the Macquarie target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

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

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

Despite downwardly revised guidance for FY22, Citi continues to assess G.U.D. Holdings as a higher quality business compared to before the APG acquisition.

Yet the stock has received a downgrade to Neutral from Buy to reflect increased uncertainty about an earnings recovery that is relying on normalising supply.

All up, the broker considers the FY23 earnings risk is skewed to the downside and demand could soften amid higher interest rates.

Moreover, the weaker outlook combined with inventory being higher for longer because of Chinese lockdowns suggests the balance sheet could take longer to de-gear. Target is reduced to $9.95 from $15.60.

Target price is $9.95 Current Price is $9.61 Difference: $0.34
If GUD meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $13.34, suggesting upside of 72.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates GUD as Outperform (1) -

G.U.D. Holdings has reduced FY22 earnings (EBITA) guidance to around $147m from $155-160m, which prompts Credit Suisse to reduce its target price to $14.00 from $16.40.

The broker explains that following the acquisition of AutoPacific Group ((APG)) earlier this year, the delivery of OEM vehicles into Australia has fallen due to supply chain pressures. There's now considered to be risk to the 2H 2022 component of AutoPacific Group's guidance.

Nonetheless, the analyst doesn't see risk for G.U.D. Holdings' FY23 earnings as the backlog is sufficiently large. The Outperform rating is retained.

Target price is $14.00 Current Price is $9.61 Difference: $4.39
If GUD meets the Credit Suisse target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $13.34, suggesting upside of 72.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates GUD as Outperform (1) -

In an initial review, Macquarie notes G.U.D. Holdings' businesses that serve new vehicles have been affected by a slowing in offtake from OEM customers in late April and May. Supply constraints are driving backlogs for dealers to historically high levels.

Visibility is also lower on newly-acquired APG. Inventory levels are not expected to moderate in the short term.

The company has downgraded guidance to EBITA of $147m in FY22, which is disappointing for the broker but largely attributed to timing of new vehicle supply.

The broker retains an Outperform rating and $16.95 target.

Target price is $16.95 Current Price is $9.61 Difference: $7.34
If GUD meets the Macquarie target it will return approximately 76% (excluding dividends, fees and charges).

Current consensus price target is $13.34, suggesting upside of 72.6% (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 GUD as Buy (1) -

G.U.D. Holdings has downgraded FY22 guidance for EBITA to $147m from the previous range of $155-160m. The timing and size of the downgrade is a surprise to Ord Minnett as guidance was reiterated in early April.

Management has signalled the delay in new vehicle deliveries is the main reason sales have been pushed out.

The broker believes there is underlying value on a re-based share price, although suspects the market will be sceptical about the deferred sales until actual delivery occurs. Buy rating retained. Target is reduced to $12.50 from $14.40.

Target price is $12.50 Current Price is $9.61 Difference: $2.89
If GUD meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $13.34, suggesting upside of 72.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

UBS rates GUD as Buy (1) -

G.U.D. Holdings has downgraded FY22 guidance, to $147m in EBITA. Underlying demand remains consistent with levels underpinning guidance, yet the extent of supply disruptions and new vehicle sales activity in the first half suggest to UBS there is some risk to guidance.

Still, the broker highlights the company's diversity across the automotive aftermarket and new vehicle channels. Earnings forecasts are reduced in line with revised guidance, this results in a -8% downgrade to estimates for earnings per share.

Buy rating retained. Target is reduced to $13.30 from $14.40.

Target price is $13.30 Current Price is $9.61 Difference: $3.69
If GUD meets the UBS target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $13.34, suggesting upside of 72.6% (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 HUB as Buy (1) -

The Hub24 investor briefing revealed platform flows have been affected by market volatility, albeit less than expected. Ord Minnett notes the long-term outlook is robust and the company is generating significant net inflows with a clear and credible development path.

Hub24 is developing a new affordable and accessible self-managed superannuation product, combining the power of its custody platform with Class technology.

The broker reiterates a Buy rating and reduces the target to $30 from $34, downgrading estimates for earnings per share by -8-11% over the forecast period, driven by marking to market.

Target price is $30.00 Current Price is $19.45 Difference: $10.55
If HUB meets the Ord Minnett target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $31.38, suggesting upside of 73.9% (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

Morgan Stanley rates JHX as Overweight (1) -

Morgan Stanley gleans from housing data from the US Census Bureau, US siding share levels were relatively stable in 2021, with only a very minor increase in share for fiber cement.

Separately, the broker notes the KPMG FY22 asbestos actuarial report showed no material adverse trends for James Hardie Industries.

The Overweight rating and $51 target price are maintained. Industry view is In-Line. 

Target price is $51.00 Current Price is $30.02 Difference: $20.98
If JHX meets the Morgan Stanley target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $50.68, suggesting upside of 71.7% (ex-dividends)

The company's fiscal year ends in March.

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

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

While Link Administration's shares have fallen in response to ACCC concerns around the Dye & Durham takeover offer, Morgan Stanley suggests the company still has strategic value, and separate offers have been made for parts of the business.

The Equal-weight rating and $5.50 target price are retained. Industry view: Attractive.

Target price is $5.50 Current Price is $3.35 Difference: $2.15
If LNK meets the Morgan Stanley target it will return approximately 64% (excluding dividends, fees and charges).

Current consensus price target is $5.18, suggesting upside of 52.2% (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

Morgans rates LNK as Upgrade to Add from Hold (1) -

Morgans feels the recent fall in Link Administration's shares is overdone despite the ACCC raising “significant preliminary concerns” on the Dye and Durham takeover of the company. As a result, the rating is lifted to Add from Hold on valuation grounds.

The target price falls to $4.33 from $5.50 due to uncertainty around the takeover (the analyst notes it's difficult to know if the ACCC's concerns can be overcome). 

Target price is $4.33 Current Price is $3.35 Difference: $0.98
If LNK meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $5.18, suggesting upside of 52.2% (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 LNK as Accumulate (2) -

The ACCC has released a statement of issues relating to the proposed takeover of Link Administration by Dye & Durham. Ord Minnett suspects there is a strong likelihood the acquisition may not transpire.

The broker asserts there is strong fundamental value in the business and alternative takeover interest exists. The competition regulator's main concern is the potential vertical integration that arises from the acquisition of Link's stake in PEXA ((PXA)), which gives rise to competition concerns.

Ord Minnett still considers a takeover premium is warranted and maintains an Accumulate rating, reducing the target to $4.80 from $5.40.

Target price is $4.80 Current Price is $3.35 Difference: $1.45
If LNK meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $5.18, suggesting upside of 52.2% (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 RMD as Upgrade to Buy from Accumulate (1) -

Ord Minnett asserts the strategic rationale for ResMed's acquisition of Medifox Dan is consistent with its intentions to expand the SaaS offering but the price is very high, given the current market de-rating.

The broker recognises the opportunities are limited but believes, giving rising interest costs, the timing is to the vendor's advantage. Still, the core sleep business appears to be picking up and the broker upgrades to Buy from Accumulate based on valuation. Target is unchanged at $35.

Target price is $35.00 Current Price is $28.84 Difference: $6.16
If RMD meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $35.06, suggesting upside of 23.0% (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: 0.8

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

Credit Suisse rates SIQ as Downgrade to Neutral from Outperform (3) -

Credit Suisse lowers its rating for Smartgroup Corp to Neutral from Outperform. This follows the announced contract loss of a top 20 client, the Department of Education and Training Victoria.

While management estimates a FY23 revenue impact of less than -5%, the announcement was a surprise for the broker given long-standing salary packaging contracts rarely change hands. Nonetheless, no additional risk is inferred.

The target price is lowered to $7.05 from $8.58 on the contract loss and the application of a lower market multiple by the analyst.

Target price is $7.05 Current Price is $6.53 Difference: $0.52
If SIQ meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.89, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

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

Morgan Stanley raises a number of (as yet unanswered) questions (eg earnings impact) following Smartgroup Corp's loss of the Department of Education and Training Victoria contract. It's estimated 2023 revenue will be impacted by -$11m.

The broker points out 1H earnings (EBITDA) are tracking to the expected 1H/2H skew, and maintains its Equal-weight rating and $8.10 target. Industry view: In Line.

Management guided to 1H revenue and earnings for 2022 being in-line with the 1H of 2021.

Target price is $8.10 Current Price is $6.53 Difference: $1.57
If SIQ meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $7.89, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgans rates SIQ as Hold (3) -

Morgans downgrades FY22-24 EPS estimates for Smartgroup Corp by between -2.5%-3.5% following the loss of a long-term top-20 client contract. The analyst sees the loss as a one-off, while the company expects a loss of less than -5% of revenue in 2023.

Management reaffirmed 1H 2022 revenue and earnings (EBITDA)  will be flat versus the previous corresponding period, with a lack of vehicle delivery still impacting. The Hold rating is maintained and the target price falls to $7.79 from $8.78.

Target price is $7.79 Current Price is $6.53 Difference: $1.26
If SIQ meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $7.89, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates SIQ as Buy (1) -

The Department of Education and Training in Victoria has not renewed its contract, a surprise to Ord Minnett as this is a rare occasion when the company has been unsuccessful with a renewal.

The 19-year arrangement is expected to come to an end in coming months and the broker estimates an earnings impact in 2023 of -7-8%.

Despite this, the broker is a buyer of Smartgroup Corp, given a growing pipeline of novated leases and its Smart Future program which should deliver earnings growth over the medium term. Buy rating reiterated. Target is trimmed to $8.20 from $9.20.

Target price is $8.20 Current Price is $6.53 Difference: $1.67
If SIQ meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $7.89, suggesting upside of 27.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgan Stanley rates SUN as Underweight (5) -

On May30th, Morgan Stanley downgraded its rating for Suncorp Group to Underweight from Equal weight after issuing a report detailing Australia has around 8x more economic exposure to catastrophe costs than the global average.

Now the broker also sees a negative catalyst in July 2022 with reinsurance pricing increasing, and also sees potential for a higher catastrophe (CAT) budget, with Suncorp Group's CAT retentions increasing.

The underweight rating and $10.25 target are maintained. Industry view: In-Line.

Target price is $10.25 Current Price is $10.74 Difference: minus $0.49 (current price is over target).
If SUN meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.49, suggesting upside of 27.6% (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

Morgan Stanley rates TRS as Overweight (1) -

Morgan Stanley believes the sharemarket has responded positively to three events: the appointment of a new ceo; a reiteration of guidance and commentary around a potential buyback.

The broker expects that mid-teens price rises are continuing and the gross margin percentage will be maintained. Overweight. Industry view is In-Line. Target $9.50.

Target price is $9.50 Current Price is $3.39 Difference: $6.11
If TRS meets the Morgan Stanley target it will return approximately 180% (excluding dividends, fees and charges).

Current consensus price target is $6.67, suggesting upside of 114.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates TRS as Hold (3) -

Reject Shop has indicated trading is in line with expectations and consistent with consensus estimates of FY22 pre ASSB-16 EBIT of $6.5m. Ord Minnett's prior forecast assumed $8.9m.

The company is currently assessing an on-market share buyback with a decision expected in July/August. Reject Shop has also made two senior appointments; CEO Philip Bishop and chief operating officer Amy Eshuys.

Ord Minnett downgrades estimates for FY22 and FY23 by -28% and -41%, respectively and lowers the target to $3.80 from $6.40. Hold maintained.

Target price is $3.80 Current Price is $3.39 Difference: $0.41
If TRS meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.67, suggesting upside of 114.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Citi rates UNI as Buy (1) -

Universal Store's trading update signals weaker profitability compared with Citi's prior expectations. The broker retains a Buy rating, predicated on the growth opportunities, strong balance sheet and an undemanding valuation.

Citi highlights, in terms of the latter, the FY22 EV/EBIT of 7.4x is a -15% discount to retail peers, despite the company's younger customer demographic being arguably less exposed to rate rises compared with other retailers. Target is reduced to $ 5.00 from $5.83.

Target price is $5.00 Current Price is $3.43 Difference: $1.57
If UNI meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 38.8% (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

Macquarie rates UNI as Neutral (3) -

Macquarie incorporates new guidance from Universal Store's trading update. FY22 EBIT is guided to $30-31m which compares with the $44m achieved in FY21.

The company has re-stated its target of more than 100 Australasian stores, with 78 expected by June. The investment in digital is continuing. 

The broker now accounts for macro headwinds that are affecting the top line along with additional pressures on the cost base. Neutral maintained. Target is reduced to $3.50 from $4.40.

Target price is $3.50 Current Price is $3.43 Difference: $0.07
If UNI meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 38.8% (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