Australian Broker Call

UBS rates ANZ as Buy (1) -

UBS suggests the banks will need to deliver notably stronger-than-expected 2H FY24/1HFY25 results (starting this week) to justify positive share price moves so far in 2025.

ANZ Bank reports on November 8 and the broker forecasts a $6,837m cash profit while consensus expects $6,929m.

UBS expects the bank's return on equity (ROE) will decline by around -1%.

The $32 target and Buy rating are maintained.

Target price is $32.00 Current Price is $31.45 Difference: $0.55
If ANZ meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $27.44, suggesting downside of -12.9% (ex-dividends)

The company's fiscal year ends in September.

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 BHP as Overweight (1) -

In a positive for BHP Group, suggests Morgan Stanley, the Samarco settlement in Brazil has been finalised in line with the provision balance.

The analysts believe the settlement removes a significant overhang for the company though note the agreement remains subject to
final approval by the Supreme Court of Brazil.

Overweight. Target $46.85. Industry View: Attractive.

Target price is $46.85 Current Price is $42.96 Difference: $3.89
If BHP meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $45.29, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Morgans rates BHP as Add (1) -

Top preferences among Morgans diversified mining coverage are BHP Group, Rio Tinto and South32.

The broker continues to be a relative bull on iron ore and sees potential for demand to outstrip conservative forecasts by consensus.

Regarding copper, Morgans assumes benefits from a gradual recovery in manufacturing and construction activity.

For BHP Group, the analysts maintain a $47.90 target and Add rating.

Target price is $47.90 Current Price is $42.96 Difference: $4.94
If BHP meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $45.29, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Morgans rates BPT as Add (1) -

Morgans assesses the outlook for commodity forecasts over the next 12-months.

Despite lower oil demand expectations on a softer global economic backdrop, the broker notes global oil demand has been beating consensus expectations over the last year.

Morgans retains a "bullish" position on oil with expectations Chinese growth will recover and the US economy is robust enough to sustain improved growth post-election.

Oil and gas shares have been under selling pressure, and the analyst's key stock picks are Woodside Energy ((WDS)), Karoon Energy ((KAR)) and Cooper Energy ((COE)) with Add ratings.

Beach Energy unchanged target price at $1.75 and Add rating.

Target price is $1.75 Current Price is $1.27 Difference: $0.48
If BPT meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.45, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates BRE as Speculative Buy (1) -

Ord Minnett observes Brazilian Rare Earths' Sept quarter activities report including a $89m cash balance and -$7.3m in exploration costs.

The company signed a memorandum of understanding with the Bahia economic development agency to support the Rocha da Rocha project.

The analyst believes the non-binding agreement emphasises the potential for Rocha da Rocha to become a "globally" significant mining area.

Speculative Buy rating and $7 target price retained.

Target price is $7.00 Current Price is $2.57 Difference: $4.43
If BRE meets the Ord Minnett target it will return approximately 172% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates BSL as Neutral (3) -

Management at BlueScope Steel has today downgraded underlying EBIT guidance for the 1H FY25 to be in the range of $270-$310m compared to $350-$420m prior.

In an early assessment, Citi highlights North America is now expected to deliver a result slightly below half that generated in H2 of FY24, while Australia delivers around two thirds over the same comparison period.

Management explained "The revised outlook highlights the challenging operating conditions not only facing BlueScope, but the broader global steel industry.

"These challenges include the continued softness in East Asian spreads off the back of record levels of Chinese steel exports, ongoing cost inflation and a period of pause and uncertainty in the US pending the outcome of the elections and timing of further rate cuts..."

The analyst highlights the average selling price in Australia has been weighed down by a softer export coke contribution and some unfavourable impacts on inventory and inter-company profit from ongoing softness in East Asian steel pricing.

Target $23. Neutral.

Target price is $23.00 Current Price is $21.19 Difference: $1.81
If BSL meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $22.25, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Bell Potter rates CMM as Buy (1) -

Bell Potter observes Capricorn Metals' 1Q25 results showed weaker than expected production on lower grades while all-in-sustaining-costs were slightly higher from lower gold production and increased material mined.

The analyst expects a more robust 2H25 with higher gold recovery as material mined underpins improved gold grades. FY25 guidance of 110-120koz at all-in-sustaining-costs of $1370-$1470oz appears viable, the broker highlights.

Bell Potter upgrades EPS forecasts by 23% in FY25 and 25% in FY26 with a rise in the target price to $7.20 from $6.49.

Buy rating unchanged.

Target price is $7.20 Current Price is $6.26 Difference: $0.94
If CMM meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.83, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Macquarie rates CMM as Outperform (1) -

Macquarie observes Capricorn Metals pre-released production figures of 25koz for 1Q25 which is 22% of FY25 guidance and slightly below the broker's expectations. Sales were down by -15% on timing issues and all-in-sustaining-costs 5% better than consensus.

Management reconfirmed FY25 guidance. Including the latest update, Macquarie lowers EPS forecasts by -6% in FY25 and lifts FY26 by 1% because of slight changes to grade assumptions.

Capricorn Metals is rated Outperform with a $7.20 target price.

Target price is $7.20 Current Price is $6.26 Difference: $0.94
If CMM meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.83, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgans rates COE as Add (1) -

Morgans assesses the outlook for commodity forecasts over the next 12-months.

Despite lower oil demand expectations on a softer global economic backdrop, the broker notes global oil demand has been beating consensus expectations over the last year.

Morgans retains a "bullish" position on oil with expectations Chinese growth will recover and the US economy is robust enough to sustain improved growth post-election.

Oil and gas shares have been under selling pressure, and the analyst's key stock picks are Woodside Energy ((WDS)), Karoon Energy ((KAR)) and Cooper Energy with Add ratings.

Cooper Energy target price unchanged at 31c.

Target price is $0.31 Current Price is $0.18 Difference: $0.13
If COE meets the Morgans target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $0.27, suggesting upside of 47.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Macquarie rates CWY as Outperform (1) -

Cleanaway Waste Management restated FY25 guidance at the AGM as well as confidence in achieving over $450m in EBIT for FY26, Macquarie states.

The FY26 goal of EBIT at $500m is based on management's strategy to improve efficiency as well as leveraging investment in systems and processes.

Macquarie notes 1Q25 trading is in line with management's expectations including solid waste services which are exposed to weaker household spending. Industrial and waste services were soft, but restructuring is finished. Liquids and health are trading as expected.

Target price moves to $3.30 from $3.25. Outperform rating unchanged. No changes to the broker's earnings forecasts.

Target price is $3.30 Current Price is $2.83 Difference: $0.47
If CWY meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.17, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Bell Potter rates CYG as Buy (1) -

A challenged macro-economic backdrop in NZ and east coast of Australia are attributed as the reasons for a weaker than expected 1Q25 trading update from Coventry Group, Bell Potter notes.

Group sales came in flat on previous corresponding period, which were more "elevated", the analyst highlights, suggesting growth around 8%-10% on underlying sales, excluding Steelmasters.

Gross margin gains are anticipated to continue with the company at final stages of a heavily capital-intensive modernisation project. 

The broker's EPS forecasts decline by -10% in FY25 and -2% in FY26. Looking through the cycle, Bell Potter believes the stock is attractively valued.

Buy rating maintained with a fall in target price to $1.75 from $1.85.

Target price is $1.75 Current Price is $1.30 Difference: $0.45
If CYG meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

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

Bell Potter explains DroneShield reported a disappointing 3Q2024 investor update, which failed to meet elevated market expectations.

The company's Sept quarter revenues of $31.1m fell -20% on the previous year, but Q32023 included a one-off $33m contract.

Assessing management's 2024 contracted revenue guidance, the broker downgrades full year revenue estimates by -20% with less material downgrades for 2025/2026.

Bell Potter lowers EPS estimates by -57% and -28% for 2024/2025.

At current share price levels, the analyst believes this is an attractive entry point and upgrades DroneShield to a Buy from Hold.

Target price is lowered to $1.20 as a result of the earnings forecast changes.

Target price is $1.20 Current Price is $0.97 Difference: $0.235
If DRO meets the Bell Potter target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 DVP as Buy (1) -

Develop Global reported 1Q25 update with revenue advancing 17% on 2Q25 because of increased activity from Bellevue Gold mine, Beta Hunt and Mt Marion sites, Bell Potter highlights.

The analyst points to Woodlawn plant upgrades ahead of plans with 33% of scope works finished, allowing the company to speed up underground development and pull forward initial ore production in 1Q2025 from 2Q2025.

Adjusting for updated commodity prices, lower mining services revenue assumptions and a fall in interest rates, the broker reduces forecasts to a higher loss in FY25 but raises its EPS estimate for FY26 by 40%.

Buy rating unchanged. Target price lifts to $3.50 from $3.20.

Target price is $3.50 Current Price is $2.46 Difference: $1.04
If DVP meets the Bell Potter target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Macquarie rates FCL as Outperform (1) -

Macquarie highlights cash receipts for Fineos Corp rose 23% year-on-year because of a new "name" customer.

Operating costs lifted with product manufacturing by 10% year-on-year. R&D is up 5% on the previous corresponding period.

Management expects positive free cash flow in FY25 with a focus on efficiency across platform and operations.

No change to $2.11 target price and Outperform rating.

Target price is $2.11 Current Price is $1.39 Difference: $0.725
If FCL meets the Macquarie target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in EUR. 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

Morgans rates FMG as Add (1) -

Top preferences among Morgans diversified mining coverage are BHP Group, Rio Tinto and South32.

The broker continues to be a relative bull on iron ore and sees potential for demand to outstrip conservative forecasts by consensus.

For Fortescue, the analysts consider the share price is "too cheap" and retain an Add rating.

Target falls to $21.50 from $22. 

Target price is $21.50 Current Price is $19.41 Difference: $2.09
If FMG meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.26, suggesting downside of -6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: -0.2

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

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

Following last week's equity raising by HMC Capital, Morgan Stanley believes consensus forecasts imply FY27 pre-tax EPS of between 48-51c, and post-tax EPS of around 42c.

Separately, the broker notes the key terms of the proposed issue of performance rights to the CEO (for the FY25 long-term incentive grant) have been released in preparation for the AGM in November.

The rights imply to Morgan Stanley management is eying an EPS compound annual growth rate (CAGR) of 15% to FY27.

Equal Weight rating. Target $9.10. Industry View: In-Line. 

Target price is $9.10 Current Price is $10.13 Difference: minus $1.03 (current price is over target).
If HMC meets the Morgan Stanley target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.15, suggesting downside of -21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Bell Potter rates IGO as Sell (5) -

IGO Ltd reported "strong" 1Q25 results with a beat on both production and sales compared to Bell Potter's forecasts.

The analyst notes Kwinana will be shut down for rectification in October.

Bell Potter lowers EPS estimate by -33% in FY25 and lifts FY26 by 4% due to changes in assumptions of Kwinana refinery production and sales. 

The weak lithium prices are believed to represent the greatest challenge to IGO Ltd with potential for further share price pressure.

Sell rating and $4 target price unchanged.

Target price is $4.00 Current Price is $5.35 Difference: minus $1.35 (current price is over target).
If IGO meets the Bell Potter target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.69, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Citi rates IGO as Neutral (3) -

IGO Ltd's 1Q revealed a "solid" start for Greenbushes, according to Citi, but this good news was undermined by a lack of cash sweep from Tianqi Lithium Energy Australia (TLEA) and the removal of segment-level disclosures.

Cash declined to $259m from $468m at the end of FY24. Regarding the TLEA cash sweep, management advised the market should not consider the nil dividend in Q1 as an ongoing theme, highlights the broker.

The target falls to $5.70 from $6.00. Neutral maintained.

Target price is $5.70 Current Price is $5.35 Difference: $0.35
If IGO meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.69, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

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

IGO Ltd reported 1Q25 production up 15% with sales up 10% and costs down -23%, Macquarie notes, with opacity on nickel and group costs impacting the result.

Greenbushes performed stronger than expected, however, management confirmed FY25 guidance at 1350-1550t despite the quarter achieving 28% of FY25 production. Cost guidance is unchanged at $320-$380/t.

The broker drops FY25 EPS estimate by -46% because of Cosmos losses, higher exploration/corporate costs and write downs in equity investments.

Macquarie downgrades IGO Ltd to Neutral from Outperform with an unchanged target price of $5.60.

Target price is $5.60 Current Price is $5.35 Difference: $0.25
If IGO meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.69, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Morgan Stanley rates IGO as Underweight (5) -

Production at Greenbushes exceeded by 14% forecasts by Morgan Stanley and consensus, while cash costs were 18% better than the broker anticipated due to the higher production.

Elsewhere, nickel production at Nova missed forecasts by the analysts and consensus by -18% and -20%, respectively.

The broker's target is $4.90. Underweight. Industry View: Attractive.

Target price is $4.90 Current Price is $5.35 Difference: minus $0.45 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.69, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Macquarie rates JLG as Outperform (1) -

Macquarie reviews 3Q24 results of FirstService Corp in the US, Johns Lyng's peer.

FirstService reported 10% organic revenue growth with restoration brands up 15% on Canada/US-based weather events.

The analyst states Johns Lyng is not "cycling" storm-related revenues which represented 4% of US revenues in FY24. The potential upside from hurricane CAT impacts is expected to be minimal. Around 12% US revenue growth is forecast by Macquarie.

Outperform rating and $4.90 target price unchanged. Broker's earnings forecasts also remain unchanged. 

The AGM is scheduled for November 13.

Target price is $4.90 Current Price is $3.98 Difference: $0.92
If JLG meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.67, suggesting upside of 21.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgans rates KAR as Add (1) -

Morgans assesses the outlook for commodity forecasts over the next 12-months.

Despite lower oil demand expectations on a softer global economic backdrop, the broker notes global oil demand has been beating consensus expectations over the last year.

Morgans retains a "bullish" position on oil with expectations Chinese growth will recover and the US economy is robust enough to sustain improved growth post-election.

Oil and gas shares have been under selling pressure, and the analyst's key stock picks are Woodside Energy ((WDS)), Karoon Energy  and Cooper Energy ((COE)) with Add ratings.

Karoon Energy target price unchanged at $2.50. No change to earnings forecasts.

Target price is $2.50 Current Price is $1.38 Difference: $1.12
If KAR meets the Morgans target it will return approximately 81% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 65.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.8

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

UBS rates MQG as Neutral (3) -

UBS suggests the banks will need to deliver notably stronger-than-expected 2H FY24/1HFY25 results (starting this week) to justify positive share price moves so far in 2025.

Reporting on November 1, Macquarie Group is expected by consensus to deliver a weaker 1H FY25, with group NPAT down by -21% half-on-half, observe the analysts.

The Neutral rating and $200 target are retained.

Target price is $200.00 Current Price is $232.49 Difference: minus $32.49 (current price is over target).
If MQG meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $209.62, suggesting downside of -10.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

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

Morgan Stanley lowers its 1H divisional EBIT margins for Metcash by around -110bpts, in the expectation conditions will remain
challenging. The target is reduced to $3.45 from $3.83. The Equal-weight rating is maintained. Industry view: In-Line.

From yesterday's Report: Management highlighted Metcash has experienced worse than expected deterioration in hardware with DIY retail stable but weakness in trade as housing construction remains under pressure and competitors are discounting. Morgan Stanley notes a new hardware CEO is "imminent".

The broker stresses 1H25 guidance update was a notable "shortfall" compared to expectations with a notable impact on the company's earnings outlook.

Food and liquor were broadly in line with expectations with food showing volume growth and slowing inflation. In liquor, independents continue to perform well and obtain market share.

Target price is $3.45 Current Price is $3.11 Difference: $0.34
If MTS meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.66, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

UBS rates NAB as Sell (5) -

UBS suggests the banks will need to deliver notably stronger-than-expected 2H FY24/1HFY25 results (starting this week) to justify positive share price moves so far in 2025.

Reporting on November 7, National Australia Bank is most likely to disappoint against consensus forecasts, believes the broker, as below system volume growth constrains revenues.

The analyst observes consensus is expecting FY24 cash profit of around $7.1bn, down -9% year-on-year, and diluted cash EPS of $2.23.

The Sell rating and $35 target are retained.

Target price is $35.00 Current Price is $38.67 Difference: minus $3.67 (current price is over target).
If NAB meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.75, suggesting downside of -15.7% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates NEM as Hold (3) -

Ord Minnett observes Newmont Corp's 3Q2024 report resulted in notable downgrades to 2025 earnings and forecast guidance into the future.

Newmont Corp is now expected to produce 5.6moz p.a. down from 6.5moz while cost forecasts have increased, up 7%.

The broker highlights free cash flow is lowered by -25% to US$3.3bn on the back of reduced FY25 EBITDA estimates to US$10.1bn.

With the upcoming Barrick Gold strategy day on Nov 18, the broker cautions there may be negative news on Nevada JV which Barrick manages.

Target price drops to $80 from $90, with Hold rating.

Target price is $80.00 Current Price is $72.60 Difference: $7.4
If NEM meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

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: 0.8

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

Morgans rates NST as Add (1) -

Northern Star Resources reported 1Q25 results which were slightly lower than Morgans' expectations with revenue below estimates by -4% on lower ounce production.

Capital spending and cashflow were in line with expectations. The analyst notes the balance sheet remains robust despite the expected capital investment at Kalgoorlie Consolidated gold mines.

Morgans reiterates Add rating with an upgraded target price of $20.18 from $16.19 because of higher gold price forecasts.

Target price is $20.18 Current Price is $17.28 Difference: $2.9
If NST meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $17.55, suggesting downside of -1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Bell Potter rates PDN as Buy (1) -

Bell Potter states Paladin Energy reported a "disappointing" 1Q25 trading update with production of 640klbs against an estimated 868klbs with consensus at 917.9klbs.

Costs were also elevated at US$41.9/lb versus FY25 guidance of US$31/lb with problems on lower water allocations, increased grade variability in ore inventories, as well as lower recovery rates.

Management announced a two-week shutdown in November, with an additional three uranium offtake contracts over the quarter. 

Bell Potter questions if the issues are systemic or able to be addressed and takes a conservative outlook with the water issues resolved.

The broker lowers EPS estimates by -35% in FY25 and -4% in FY26. Buy rating unchanged with a lower target price; $14.40 from $15.70.

Target price is $14.40 Current Price is $10.36 Difference: $4.04
If PDN meets the Bell Potter target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $13.64, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 PDN as Buy (1) -

First quarter ramp-up issues at Langer Heinrich due to circuit delays and flowsheet variability issues resulted in 0.64mlb of production for Paladin Energy compared to forecasts by Citi and consensus for 0.85mlbs and 0.92mlbs, respectively.

The broker feels the subsequent -15% share price fall was an overreaction and is not overly concerned given 2H production volume guidance was 2H-weighted. It's now felt management will meet the bottom end of production guidance and top end of cost guidance.

The target falls to $14.60 from $15.00. Buy.

Target price is $14.60 Current Price is $10.36 Difference: $4.24
If PDN meets the Citi target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $13.64, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 PDN as No Rating (-1) -

Macquarie highlights operational problems for Paladin Energy resulted in lower-than-expected 1Q25 production of 0.64mlb at Langer Heinrich.

The analyst notes stockpile variability in ore grades, lower water tailings recovery and delays in second classification circuit as some of the problems.

Macquarie's FY25 production forecast falls to 3.5mlb with a slant to 2H25 ramp up which is below management's 4-4.5mlb guidance range, resulting in EPS forecast downgrades by -46% in FY25 and -12% in FY26.

Macquarie is currently under research restriction for Paladin Energy and provides no rating or target.

Current Price is $10.36. Target price not assessed.

Current consensus price target is $13.64, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Morgan Stanley rates PDN as Overweight (1) -

Following yesterday's -15% fall in share price in reaction to 1Q results for Paladin Energy, Morgan Stanley only lowers its target to $12.30 from $12.40, noting longer-term fundamentals are unchanged.

September quarter production at Langer Heinrich was negatively impacted by operational issues including stockpile grade variability, note the analysts. Recoveries were also impacted by these issues and lower-than- expected tailings water recovery.

Management left FY25 production guidance unchanged having already flagged a 2H weighting, highlights the broker.

Overweight. Industry view: Attractive. 

Target price is $12.30 Current Price is $10.36 Difference: $1.94
If PDN meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $13.64, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

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

Commissioning issues at the Langer Heinrich mine in Namibia resulted in a "disappointing" 1Q for Paladin Energy, according to Shaw and Partners. It's felt they were standard commissioning issues, and a -15% share price reaction was overdone.

The Buy, High Risk rating is maintained, and Paladin remains Shaw and Partners preferred exposure to the uranium sector

The broker's target falls to $16.00 from $16.80 after an -11% cut to the FY25 EBITDA forecast due to lower assumed production.

Target price is $16.00 Current Price is $10.36 Difference: $5.64
If PDN meets the Shaw and Partners target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $13.64, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Shaw and Partners rates PMT as Buy (1) -

Management at Patriot Battery Metals has provided an update on 2024 Summer-Fall exploration and development activities at Shaakichiuwaanaan, Quebec.

Shaw and Partners notes significant activity has occurred both in new exploration and support of project development for CV5 as management progresses a feasibility study due in the September quarter of 2025.

The Buy (High risk) rating and $1.80 target price are maintained.

Target price is $1.80 Current Price is $0.39 Difference: $1.41
If PMT meets the Shaw and Partners target it will return approximately 362% (excluding dividends, fees and charges).

Current consensus price target is $0.93, suggesting upside of 138.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

This company reports in CAD. 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 QAN as Neutral (3) -

Following commentary by management at the AGM, Citi raises its target for Qantas Airways to $8.20 from $6.60 on higher earnings forecasts and improving global airline comparatives.

The broker highlights an around -$150m saving on fuel due to lower available seat kilometres (ASKs) and a lower fuel price.

The Neutral rating is unchanged.

Target price is $8.20 Current Price is $8.12 Difference: $0.08
If QAN meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $8.59, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Morgans rates RIO as Add (1) -

Top preferences among Morgans diversified mining coverage are BHP Group, Rio Tinto and South32.

The broker continues to be a relative bull on iron ore and sees potential for demand to outstrip conservative forecasts by consensus.

Regarding copper, Morgans assumes benefits from a gradual recovery in manufacturing and construction activity.

For Rio Tinto, the analysts maintain a $127 target and Add rating. It's felt the company will benefit from strengthening iron ore, copper and aluminium markets while the growing lithium exposure adds to upside potential via management's cycle-low entry.

Target price is $127.00 Current Price is $120.12 Difference: $6.88
If RIO meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $126.83, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in December.

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: 0.5

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

UBS rates RMD as Neutral (3) -

UBS observes ResMed reported better than expected sales at 1Q25 results with gross margin meeting expectations and lower than forecast costs compared to consensus.

The analyst lifts FY25 gross margin forecast to 59.9% from 58.3%. The FY26 estimate rises to 60.3% from 58.8% as this quarter's margin is viewed as achievable going forward.

With a slight upward revision in the broker's sales forecasts, the EPS estimates rise 4% in FY25 and 5% in FY26. ResMed is expected to be net-cash positive by end of FY25 and is expected to retain share buybacks of US$75m per quarter.

Neutral rating unchanged. Target price rises to US$250 from US$225.

Current Price is $39.07. Target price not assessed.

Current consensus price target is $40.12, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in USD. 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 S32 as Add (1) -

Top preferences among Morgans diversified mining coverage are BHP Group, Rio Tinto and South32.

The broker continues to be a relative bull on iron ore and sees potential for demand to outstrip conservative forecasts by consensus.

Regarding copper, Morgans assumes benefits from a gradual recovery in manufacturing and construction activity.

For South32, the analysts see upside from a broader recovery in global/Chinese growth conditions given the company's diversified portfolio and high earnings leverage to metal prices.

The $4.10 target and Add rating are maintained.

Target price is $4.10 Current Price is $3.73 Difference: $0.37
If S32 meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.84, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Citi rates SKO as Buy (1) -

While today announcing the acquisition of corporate booking platform GetThere from Sabre Corporation for -US$12m, management at Serko also decided to bring forward the release of 1H results. 

Investors should approve, suggests the broker, highlighting the Booking.com for Business is accelerating into H2. The analyst also sees potential for free cash flow (FCF) upgrades given a lower spend in H1.

Earnings (EBITDA) of NZ$3m (excluding acquisition costs) missed the analyst's NZ$4m forecast due to lower-than-expected capitalisation. However, on a capex adjusted basis, NZ$0.3m of earnings beat the expected -NZ$1.8m loss.

Target $3.40. Buy rating.

Target price is $3.40 Current Price is $2.46 Difference: $0.94
If SKO meets the Citi target it will return approximately 38% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

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

The 1Q operational report for Santana Minerals showed "excellent" results, according to Shaw and Partners, from the ongoing resource definition drilling into the high-grade zone at the Rise and Shine deposit at the Bendigo-Ophir Gold Project.

Buy rated (High risk). Following a three for one stock split, the broker's target for Santana Minerals falls to 93c (previously $2.86).

Target price is $0.93 Current Price is $2.10 Difference: minus $1.17 (current price is over target).
If SMI meets the Shaw and Partners target it will return approximately minus 56% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Morgans rates STO as Hold (3) -

Morgans assesses the outlook for commodity forecasts over the next 12-months.

Despite lower oil demand expectations on a softer global economic backdrop, the broker notes global oil demand has been beating consensus expectations over the last year.

Morgans retains a "bullish" position on oil with expectations Chinese growth will recover and the US economy is robust enough to sustain improved growth post-election.

Oil and gas shares have been under selling pressure, and the analyst's key stock picks are Woodside Energy ((WDS)), Karoon Energy ((KAR)) and Cooper Energy ((COE)) with Add ratings.

Santos is Hold rated with a 5.3% rise in target price to $7.90 from $7.50.

Target price is $7.90 Current Price is $6.89 Difference: $1.01
If STO meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $8.21, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Ord Minnett rates SUN as Accumulate (2) -

Ord Minnett flags Suncorp Group's investor day as a "stand alone " insurer on Nov 6. The company's guidance is for 20% growth in general insurance net profit after tax for FY25, the broker states, with consensus estimates expecting a "slow-down" to 2%.

The company is concentrating on Trans-Tasman general insurance at the upper end of its insurance margin of 10%-12%.

Ord Minnett notes annual buybacks of circa $250m lifting the expected dividend yield to 5% for 1%-2% EPS accretion. A further $500m in capital is expected to be returned to shareholders.

For Suncorp Group, the target is $19.65. Accumulate.

Target price is $19.65 Current Price is $18.21 Difference: $1.44
If SUN meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.80, suggesting upside of 2.7% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

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

Shaw and Partners target for Southern Cross Gold rises to $3.69 from $3.26 after the broker raises its exploration target estimate to 2.5moz gold equivalent from 2moz.

This higher estimate follows recent drilling success including the latest results from the Christina prospect at the 100%-owned Sunday Creek Gold-Antimony Project, described by the analysts as "spectacular".

These results confirmed the prospect as the fourth new domain at Sunday Creek, along with Apollo, Rising Sun and Golden Dyke, explains the broker.

The Buy, High Risk rating is maintained. 

Target price is $3.69 Current Price is $3.41 Difference: $0.28
If SXG meets the Shaw and Partners target it will return approximately 8% (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 TPW as Hold (3) -

Bell Potter observes a recent slowdown in revenue growth at the AGM trading update tor Temple & Webster with revenue growth for the first 17 weeks at 21% year-on-year compared to 16%-17% for Sept to Oct 24.

The results exemplify the higher seasonality for Nov/Dec months the analyst highlights, with a cross-channel campaign initiated in late-Oct.

Management reconfirmed EBITDA margins of 1%-3% allowing for higher marketing spend to advance market share.

Bell Potter tweaks EPS estimates and retains Hold rating with $12.20 target price unchanged.

Target price is $12.20 Current Price is $12.44 Difference: minus $0.24 (current price is over target).
If TPW meets the Bell Potter target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.52, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Citi rates TPW as Buy (1) -

Citi stresses competitive dynamics remain highly favourable to Temple & Webster taking market share despite the slight moderation in sales momentum revealed at the AGM. 

Following yesterday's research note (see summary below) the broker leaves the $13.50 target unchanged after a higher assumed multiple compensates for lower earnings forecasts in outer years. Buy.

From yesterday's Report: Citi notes the October trading update from Temple & Webster at the AGM shows growth of 21% year-on-year, for the year-to-date period.

The broker suggests this implies a slowdown in the sales from late August to October to 18%, year-on-year, although last year was very strong in comparison.

Management retained FY25 margin guidance of 1%-3% despite some margin pressure. The analyst believes the update supports 25% growth for FY25.

Target price is $13.50 Current Price is $12.44 Difference: $1.06
If TPW meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.52, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Macquarie rates TPW as Outperform (1) -

On the back of 21% revenue growth year-to-date on the previous corresponding period for Temple & Webster, Macquarie expects 1H25 results to be boosted by Black Friday and Christmas.

The 21% growth reveals an estimated slowdown from Aug 18 to Oct 24 to 18% which results in a fall for FY25 sales growth estimates to 21% from 26% growth, the analyst notes.

Repeat customers came in at around 60% of orders, up from circa 57% in FY24, with growth in active customers to support revenue growth in FY25.

Margins at 1%-3% remain in the target range and higher international freight rates only affect around 30% of sales.

The target price lifts to $13.55 from $12.90 with a lower share count from buy backs. Outperform rating unchanged.

Target price is $13.55 Current Price is $12.44 Difference: $1.11
If TPW meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.52, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgan Stanley rates TPW as Overweight (1) -

Morgan Stanley highlights sales growth of 21% so far in FY25 for Temple & Webster is below the 25% expected by consensus.

The broker expects minimal changes to consensus FY25 sales/EBITDA forecasts, highlighting margin guidance was reaffirmed and management has a strong track record of exceeding expectations.

Target $13.15. Overweight rating. Industry View: In-Line.

Target price is $13.15 Current Price is $12.44 Difference: $0.71
If TPW meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.52, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Ord Minnett rates TPW as Hold (3) -

Ord Minnett notes Temple & Webster's current revenue is below consensus with sales slowing to around 18% in Sept/Oct from circa 26% year-on-year for July/Aug. The broker notes Oct was stronger than Sept with an expected stronger seasonal Nov and Dec period upcoming.

Margin guidance remained at 1%-2% with an improving 2H25 as the company is cycling softer comparisons.

Hold rating with $11.50 target price.

Target price is $11.50 Current Price is $12.44 Difference: minus $0.94 (current price is over target).
If TPW meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.52, suggesting upside of 1.1% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Macquarie rates VAU as Outperform (1) -

Macquarie observes Vault Minerals reported "mixed" 1Q25 results with production below the broker's and consensus estimates, while all-in-sustaining-costs were better than expected.

The company had closing cash and bullion of $525m with no bank debt, a rise of $70m on the previous quarter, but below the analyst's $79m forecast.

Management retained FY25 guidance of 390-430koz and costs of $2,250-$2450. Year-to-date production represents 24% of guidance at the mid-point and sales at 25% of mid-point guidance.

No change to 50c target price and Outperform rating. Minimal changes to EPS forecasts by Macquarie.

Target price is $0.50 Current Price is $0.38 Difference: $0.12
If VAU meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates VAU as Buy (1) -

Ord Minnett observes Vault Minerals reported a decent 1Q25 result with slightly higher sales than forecast and lower costs than expected.

The broker highlights the company is preparing for improved volumes and grades at Koth/Mt Monger from 2H25.

Management retained FY25 guidance.

Target price rises to 53c from 52c. Buy rating unchanged.

Target price is $0.53 Current Price is $0.38 Difference: $0.15
If VAU meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

UBS rates WBC as Neutral (3) -

UBS suggests the banks will need to deliver notably stronger-than-expected 2H FY24/1HFY25 results (starting this week) to justify positive share price moves so far in 2025.

Reporting on November 4, Westpac is most likely to positively surprise against consensus forecasts, believes the broker, helped by higher replicating portfolio earnings and ongoing capital returns.

The analyst forecasts FY24 cash net profit of circa $6.8bn. The Sell rating and $33 target are retained.

Target price is $33.00 Current Price is $32.16 Difference: $0.84
If WBC meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $27.92, suggesting downside of -13.5% (ex-dividends)

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

Morgans rates WDS as Add (1) -

Morgans assesses the outlook for commodity forecasts over the next 12-months.

Despite lower oil demand expectations on a softer global economic backdrop, the broker notes global oil demand has been beating consensus expectations over the last year.

Morgans retains a "bullish" position on oil with expectations Chinese growth will recover and the US economy is robust enough to sustain improved growth post-election.

Oil and gas shares have been under selling pressure, and the analyst's key stock picks are Woodside Energy, Karoon Energy ((KAR)) and Cooper Energy ((COE)) with Add ratings.

Target price for Woodside Energy unchanged at $33.

Target price is $33.00 Current Price is $24.28 Difference: $8.72
If WDS meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $27.80, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in December.

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: 0.0

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

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

Updates by Citi on today's 1Q result for Zip Co will follow, but new research by the broker early today involved a preview of the now-released result.

The broker raises its target to $2.90 from $1.90 and downgrades to Neutral from Buy on valuation.

On cue, the analysts updated for the result around midday, highlighting US growth continues to surprise on the upside.

In an early assessment, Citi anticipates consensus will need to upgrade total transaction value (TTV), revenue and cash EBTDA forecasts given the ongoing momentum in the US and a strong net transaction margin (NTM) in A&NZ.

US total transaction value (TTV) beat Citi's forecast by 5% after rising to 43% year-on-year from 42%. Also, revenue yield in the US increased to 7.1%, reflecting higher usage of the Zip app, in the broker's view.

Considering Zip Plus has not been actively promoted as yet (and is higher yielding), Citi is impressed by a 19.2% increase in revenue yield.

In a further positive, funding costs continue to fall, with the weighted average margin of 2.13% on the latest note issuance, down from 2.65% previously.

Target $2.90 and Neutral.

Target price is $2.90 Current Price is $2.79 Difference: $0.11
If ZIP meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.60, suggesting downside of -16.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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