Australian Broker Call

Morgan Stanley rates ALD as Overweight (1) -

Morgan Stanley estimates Ampol could generate around $500-600m of extra cash flow from refining over the next 18 months. Refining margins globally are surging, notes the broker, and retail and wholesale fuel volumes are also recovering post covid lows.

After also updating modeling for the Z Energy transaction, (which drives material earnings earnings accretion), Morgan Stanley's target price rises to $39 from $35.

The Overweight rating is retained. Industry view is Attractive.

Target price is $39.00 Current Price is $33.08 Difference: $5.92
If ALD meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $36.95, suggesting upside of 7.6% (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

UBS rates ALL as Buy (1) -

UBS observes momentum in social casinos has been strong for some time, given growth of around 10% in a market that has been broadly flat over the past year.

There is been a resurgence in performance in Big Fish casino slots, with revenue share rising to its highest levels in the US since late 2019. The broker forecasts flat growth in Pixel revenue for the second half, offset by the strength in social casino.

Buy rating and $44.80 target maintained.

Target price is $44.80 Current Price is $34.29 Difference: $10.51
If ALL meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $43.11, suggesting upside of 30.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Morgan Stanley rates APE as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Eagers Automotive and reduce the target to $12 from $18, after factoring-in demand headwinds in 2023 and 2024 for new vehicle sales. Industry view: In-Line. 

Target price is $12.00 Current Price is $9.27 Difference: $2.73
If APE meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 57.7% (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

Morgan Stanley rates ARB as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on ARB Corp and reduce the target to $33 from $56, after factoring-in greater demand headwinds from macroeconomic concerns and any normalisation of strong covid demand.

The broker also defers some of the US store rollout story. Industry view: In-Line. 

Target price is $33.00 Current Price is $26.91 Difference: $6.09
If ARB meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $39.31, suggesting upside of 47.0% (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

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

In addition to the current sliding scale royalty, the Queensland government has announced new tiered rates for its coal royalty, effective from 1 July 2022.

In assessing the impact of BHP Group's coal asset in Queensland, Morgan Stanley estimates group earnings (EBITDA) will fall -2.2% and -1.9% for FY23 and FY24.

The analyst points out there will be limited impact as Queensland coal currently only accounts for 12% of the BHP Group 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 $40.95 Difference: $5.25
If BHP meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $47.79, suggesting upside of 16.8% (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

Ord Minnett rates BHP as Hold (3) -

Ord Minnett reduces its net present value estimate for BHP Group by -2% following materially higher coal royalties announced by the Queensland government, which impacts upon the group's BHP Mitsubishi Alliance.

As a result of the royalty increase, the broker cautions the Queensland industry as a whole has now become materially less competitive. The target price falls to $45 from $46 and the Hold rating is maintained.

Target price is $45.00 Current Price is $40.95 Difference: $4.05
If BHP meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $47.79, suggesting upside of 16.8% (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

Morgans rates BKL as Hold (3) -

Morgans feels it will be difficult for Blackmores to deliver earnings growth through to FY24 and reduces its FY22-24 earnings (EBIT) forecast by -7.7%, -12.9%, -15.5%, respectively.

The lower FY22 estimate is due to 2H headwinds, which include inflationary cost pressures and structural and competitive threats in the A&NZ market. In addition, China’s zero-covid policy and resultant economic uncertainty presents challenges.

The broker lowers its target price to $70.50 from $88.50 and maintains its Hold rating.

Target price is $70.50 Current Price is $71.69 Difference: minus $1.19 (current price is over target).
If BKL meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $79.33, suggesting upside of 20.8% (ex-dividends)

The company's fiscal year ends in June.

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 BRG as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Breville Group and reduce the target to $25 from $36 as demand for small kitchen appliances will likely be impacted by a challenging time for consumers, particularly in the EU.

In addition, the broker points to a swing towards consumer spending on services. Industry view: In-Line. 

Target price is $25.00 Current Price is $17.68 Difference: $7.32
If BRG meets the Morgan Stanley target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $27.36, suggesting upside of 58.7% (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

Morgan Stanley rates BTH as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Bigtincan Holdings though the target falls to $1.15 from $1.60 as the multiple de-rating will likely continue. Industry view: In-Line.

Target price is $1.15 Current Price is $0.48 Difference: $0.67
If BTH meets the Morgan Stanley target it will return approximately 140% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet the broker notes the earnings yield spread to bonds is lower. The low gearing and strong transaction market remains supportive of BWP Trust but UBS believes this is balanced by risks to upcoming lease expiries along with benign growth.

While upgrading to Neutral from Sell, the broker prefers Centuria Industrial REIT ((CIP)) as it offers a more defensive exposure. Target is reduced to $3.59 from $3.86.

Target price is $3.59 Current Price is $3.89 Difference: minus $0.3 (current price is over target).
If BWP meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.72, suggesting downside of -5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.5

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

Morgan Stanley rates CCX as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on City Chic Collective and reduce the target to $3.00 from $4.40, as consumer demand globally is looking increasingly challenged, particularly in the EU. Industry view: In-Line.

Target price is $3.00 Current Price is $1.81 Difference: $1.19
If CCX meets the Morgan Stanley target it will return approximately 66% (excluding dividends, fees and charges).

Current consensus price target is $4.44, suggesting upside of 149.4% (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

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

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average, to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet the broker notes the earnings yield spread to bonds is lower. The broker prefers names with low leverage and high cash flow security and believes Charter Hall is still in a position to grow its assets under management through a period of dislocation, with support from key investors.

Charter Hall is upgraded to Buy from Neutral, with the target lowered to $13.90 from $20.00.

Target price is $13.90 Current Price is $11.16 Difference: $2.74
If CHC meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $17.32, suggesting upside of 59.4% (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 CIP as Upgrade to Buy from Neutral (1) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet the broker notes the earnings yield spread to bonds is lower.

UBS considers Centuria Industrial REIT the leading pure logistics A-REIT, noting the strong demand for space from logistics tenants which supports asset valuations. The longer-term outlook for rental growth should mean industrial segments remain the preferred sub- sector for some years to come.

The broker upgrades to Buy from Neutral and reduces the target to $3.12 from $4.00.

Target price is $3.12 Current Price is $2.89 Difference: $0.23
If CIP meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.86, suggesting upside of 34.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates CLW as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet the broker notes the earnings yield spread to bonds is lower. Chartter Hall Long WALE REIT has been a beneficiary of the lower interest-rate environment.

Going forward UBS assesses the main drivers will be weighing up debt-funded acquisitions, managing debt costs, realising value from land-rich assets and addressing medium-term lease expiries. Neutral maintained. Target is reduced to $4.28 from $5.15.

Target price is $4.28 Current Price is $4.33 Difference: minus $0.05 (current price is over target).
If CLW meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.28, suggesting upside of 22.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates CNI as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet the broker notes the earnings yield spread to bonds is lower.

UBS expects growth will resume in FY24 for Centuria Capital, although performance/transaction fees are significantly reduced and the market multiple for these is much lower. Neutral maintained. Target is reduced to $2.00 from $3.14.

Target price is $2.00 Current Price is $1.93 Difference: $0.07
If CNI meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.75, suggesting upside of 45.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

The outlook for suburban office markets is challenging and UBS does not expect this will change over the next 12 months.

While a discount to net tangible assets is expected to remain for Centuria Office REIT until income growth returns, the broker does not envisage material downside and upgrades to Neutral from Sell. Target is lowered to $1.81 from $2.25.

Target price is $1.81 Current Price is $1.76 Difference: $0.05
If COF meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 29.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates CQR as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. The broker's order of preference among A-REITs is logistics, retail, then office. Charter Hall Retail REIT's target is reduced to $3.84 from $4.17. Neutral maintained..

Target price is $3.84 Current Price is $3.88 Difference: minus $0.04 (current price is over target).
If CQR meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.22, suggesting upside of 8.8% (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

Credit Suisse rates CRN as Outperform (1) -

Queensland's government has a new royalties scheme effective from July1 2022. This applies a 20% royalty for coal prices that are over $175/t, 30% for prices over $225/t and 40% for over $300/t.

Credit Suisse understands  the royalties calculation will be based on Coronado Global Resources' weighted average realised prices at Curragh. As a result the broker trims its target to $ 3.00 from $3.40.

The share price has been declining following the announcement and the broker believes the associated valuation impact has largely been incorporated while yields remain attractive. Outperform maintained.

Target price is $3.00 Current Price is $1.53 Difference: $1.47
If CRN meets the Credit Suisse target it will return approximately 96% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting upside of 86.4% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Citi rates DHG as Buy (1) -

Citi believes NSW stamp duty changes (announced as part of the government budget) are a step in the right direction, as it may trigger other states to make similar changes.

Given the limited scope of changes, the broker doesn't expect a material increase in listings for Domain Holdings Australia. The Buy rating and target price of $6.15 are retained.  

Target price is $6.15 Current Price is $2.73 Difference: $3.42
If DHG meets the Citi target it will return approximately 125% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 73.6% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates DXS as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower.

Despite the material underperformance the broker believes there is a credible downside scenario for the sector. Development expenditure could be cut and decisions delayed. Dexus is one of the A-REITs most likely to be affected in this scenario. Neutral. Target is reduced to $9.25 from $11.15.

Target price is $9.25 Current Price is $9.15 Difference: $0.1
If DXS meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $11.31, suggesting upside of 25.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates ELT as Speculative Buy (1) -

Morgans initiates coverage of tin miner Elementos with a Speculative Buy rating and $1.02 target price. The company owns the Oropesa Tin project in Spain, which is thought to offer unique exposure to near-term production.

Management released an Optimisation Study for Oropesa in March, showing strong project economics, assesses the analyst. The project is considered low risk, technically advanced and contains a large JORC mineral resource, sutable for conventional open cut mining.

Target price is $1.02 Current Price is $0.41 Difference: $0.61
If ELT meets the Morgans target it will return approximately 149% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates EVT as Buy (1) -

Citi sees upside to its FY23 Hotel revenue and profit forecasts for Event Hospitality & Entertainment, as hotels are recovering quicker than expected.

The analyst believes the company is materially undervalued for a number of reasons including strong pent-up demand as travel restrictions ease. Also, structural concerns regarding cinemas are believed to be less than originally thought.

In addition, the cost-out program could result in higher-than-expected medium-term earnings, suggests the broker. The Buy rating and $18.35 target price are maintained.

Target price is $18.35 Current Price is $14.34 Difference: $4.01
If EVT meets the Citi target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates GMG as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. The PE ratio of Goodman Group is -17% below its five-year average. If bond yields moderate, the broker expects fund managers should benefit from a PE re-rating as the cost of capital stabilises. UBS reduces the target to $18.57 from $24.66.  Neutral maintained.

Target price is $18.57 Current Price is $17.53 Difference: $1.04
If GMG meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $24.24, suggesting upside of 40.6% (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

Credit Suisse rates GNC as Neutral (3) -

Credit Suisse believes investors are likely to assess GrainCorp as a good alternative to the earnings volatility that besets other parts of the market. The business is better placed for an inflationary environment after several years of above-trend earnings.

There has been no change to medium-term guidance for $240m in EBITDA in a normal year of crop production, i.e. FY24. The financial position is very strong.

Hence, the  broker asserts further capital management is possible. Growing conditions remain favourable on the east coast of Australia and upgrades to crop forecasts are likely. This should support FY23 and FY24 earnings.  Neutral rating maintained. Target is $8.91.

Target price is $8.91 Current Price is $9.54 Difference: minus $0.63 (current price is over target).
If GNC meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.22, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates GNC as Outperform (1) -

Macquarie expects GrainCorp's earnings momentum will continue into FY23, supported by another above-average east coast winter crop. Strong global demand for Australian grain and oilseeds along with supply chain margins for exports also underpin the business.

FY22 guidance has been reaffirmed for EBITDA of $590-670m and net profit of $310-370m. Further detail surrounding the strategy was included in the investor briefing with the company intent on enhancing the performance of existing assets.

Innovation is expected to drive the next round of growth amid opportunities in alternative protein, technology, animal nutrition and grower services.

Outperform rating and $11.10 target maintained.

Target price is $11.10 Current Price is $9.54 Difference: $1.56
If GNC meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $10.22, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates GNC as Neutral (3) -

GrainCorp has reaffirmed FY22 guidance in its investor briefing, with receivables and exports on track.

Management also suspects its through-the-cycle EBITDA estimate of $240m could be conservative if global grain supply is disrupted for a prolonged period and the joint-venture in Canada scales up successfully.

UBS assesses the stock is "fair" but acknowledges the scope for further earnings upgrades in FY23. Neutral maintained along with a $10.00 target, which is lowered from $10.05.

Target price is $10.00 Current Price is $9.54 Difference: $0.46
If GNC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.22, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates GPT as Buy (1) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. The broker envisages a normalisation post the pandemic as abatements ease and foot traffic returns, driving improvement in GPT Group's CBD-exposed assets. Target is reduced to $4.58 from $5.60 and UBS maintains a Buy rating.

Target price is $4.58 Current Price is $4.20 Difference: $0.38
If GPT meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $5.10, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates HDN as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Homeco Daily Needs REIT screens favourably on a demographic basis compared with peers and is well-positioned given recently-developed assets. Moreover, it is less reliant on supermarket turnover rent for growth, the broker notes.

Neutral maintained. Target is reduced to $1.30 from $1.59.

Target price is $1.30 Current Price is $1.32 Difference: minus $0.02 (current price is over target).
If HDN meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.53, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates INA as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. UBS maintains a Neutral rating for Ingenia Communities, reducing the target to $3.92 from $5.43.

Target price is $3.92 Current Price is $3.86 Difference: $0.06
If INA meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

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

UBS rates LIC as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. In its base case, the broker expects Lifestyle Communities to achieve the mid point of the three-year development settlement target and the cap rate for the ground rents is 4.5%.

UBS retains a Neutral rating and reduces the target to $11.96 from $17.75.

Target price is $11.96 Current Price is $12.32 Difference: minus $0.36 (current price is over target).
If LIC meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

UBS rates LLC as Buy (1) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. UBS retains a Buy rating and $12 target for Lendlease Group.

Target price is $12.00 Current Price is $9.11 Difference: $2.89
If LLC meets the UBS target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $12.53, suggesting upside of 37.4% (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

Morgan Stanley rates LOV as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Lovisa Holdings and reduce the target to $18 from $21.50 though remain relatively upbeat compared to some other emerging companies. There's thought to be benefits from re-opening leverage as consumers start going out.

Also, the company's low-cost products may be viewed as a trade-down alternative, explains Morgan Stanley. Industry View: In-Line.

Target price is $18.00 Current Price is $13.47 Difference: $4.53
If LOV meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $21.47, suggesting upside of 61.1% (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

UBS rates MGR as Buy (1) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower.

Despite the material underperformance the broker believes there is a credible downside scenario for the sector. Development expenditure could be cut and decisions delayed. Mirvac Group is one of the A-REITs most likely to be affected in this scenario. Buy maintained. Target is reduced to $2.45 from $2.70.

Target price is $2.45 Current Price is $2.04 Difference: $0.41
If MGR meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.66, suggesting upside of 29.1% (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

Citi rates MTS as Neutral (3) -

Prior to Metcash's FY22 results due on June 27, Citi remains Neutral-rated and lowers its target price to $4.20 from $4.40. Based on industry feedback, the outlook for the 2H of FY22 and FY23 is expected to be positive for supermarkets.

The broker forecasts FY22 earnings (EBIT) of $441m, largely due to an increase in Hardware sales as Total Tools continues its store expansion.

Target price is $4.20 Current Price is $3.92 Difference: $0.28
If MTS meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in April.

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 NEA as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Nearmap and reduce the target to $1.80 from $2.60 to recognise the wider sector de-rate and reflect ongoing weaker sentiment. No changes to earnings forecasts are made. Industry view In-Line.

Target price is $1.80 Current Price is $1.03 Difference: $0.77
If NEA meets the Morgan Stanley target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $1.77, suggesting upside of 80.3% (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 PMV as Equal-weight (3) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Equal-weight on Premier Investments and reduce the target to $20.50 from $28.75 in anticipation of softer demand for apparel and accessories. Industry view: In-Line.

Target price is $20.50 Current Price is $19.66 Difference: $0.84
If PMV meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $29.83, suggesting upside of 52.1% (ex-dividends)

The company's fiscal year ends in July.

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

Morgan Stanley rates PSQ as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Pacific Smiles though the target falls to $2.30 from $3.00. Covid and flu have caused patient cancellations/no-shows and dentist sick days. It's thought these factors create uncertainty for the remainder of the colder months.

Industry view: In-Line.

Target price is $2.30 Current Price is $1.93 Difference: $0.37
If PSQ meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates REA as Buy (1) -

Citi believes NSW stamp duty changes (announced as part of the government budget) are a step in the right direction, as it may trigger other states to make similar changes.

Given the limited scope of changes, the broker doesn't expect a material increase in listings for REA Group. The Buy rating and $153.50 target price are maintained.

Target price is $153.50 Current Price is $99.34 Difference: $54.16
If REA meets the Citi target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $133.43, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates REP as Buy (1) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. In its base case UBS values the assets of RAM Essential Services Property Fund at a discount to the direct market, reflecting a modest increase in cap rates as interest rates rise. Buy rating maintained. Target is reduced to $0.94 from $1.09.

Target price is $0.94 Current Price is $0.82 Difference: $0.12
If REP meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.03, suggesting upside of 28.8% (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

UBS rates RFF as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. Upside for Rural Funds centres on successful development and leasing of macadamia properties. Neutral maintained. Target is reduced to $2.62 from $2.92.

Target price is $2.62 Current Price is $2.65 Difference: minus $0.03 (current price is over target).
If RFF meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

UBS rates SCG as Buy (1) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. Those A-REITs the broker believes could benefit from de-leveraging with minimal impact to earnings in a higher interest rate environment include Scentre Group.

Target is reduced to $2.94 from $3.30. Buy maintained.

Target price is $2.94 Current Price is $2.62 Difference: $0.32
If SCG meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 14.9% (ex-dividends)

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 SCP as Lighten (4) -

Shopping Centres Australasia Property announced a -$180m acquisition of a convenience-based shopping centre portfolio spread across QLD. 

Ord Minnett retains its Lighten rating though feels the defensive non-discretionary-based income portfolio is well positioned in the current macroeconomic environment. The $3.00 target price is retained.

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

Current consensus price target is $2.95, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates SCP as Downgrade to Neutral from Buy (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

UBS observes Shopping Centres Australasia Property has been a beneficiary of "shop local" trends and a rebound in retail sales. Yet, at the same time, the business is looking to grow its third-party funds management. The broker finds more value in Homeco Daily Needs ((HDN)).

Rating is downgraded to Neutral from Buy and the target lowered to $2.72 from $3.14.

Target price is $2.72 Current Price is $2.74 Difference: minus $0.02 (current price is over target).
If SCP meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.95, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates SGP as Buy (1) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower. The base case for Stockland is cap rates increasing 70 basis points from the current book value of 5.5%.

While most of the underperformance has likely played out, in a downside scenario the broker points out residential volumes are likely to contract sharply, and with a consequent drop in margin as negative operating leverage hits Stockland.

Buy rating maintained. Target is reduced to $4.39 from $5.11.

Target price is $4.39 Current Price is $3.65 Difference: $0.74
If SGP meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting upside of 27.5% (ex-dividends)

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

Morgans rates SMR as Add (1) -

Morgans suggests a unique opportunity has arisen to acquire Stanmore Resources shares, following a share price fall on fears around global steel activity. It's thought profit-taking from the March entitlement offer and confusion around royalty impacts are weighing.

The Queensland government announced a big royalty hike for local coal miners and while this results in -US$146m in royalties over 2022-23, net present value impacts are modest, explains the analyst. Upside leverage to the coal price is crimped, but not dramatically.

The broker lowers its target price to $3.35 from $3.80 and the Add rating is unchanged.

Target price is $3.35 Current Price is $1.79 Difference: $1.56
If SMR meets the Morgans target it will return approximately 87% (excluding dividends, fees and charges).

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

Morgan Stanley rates SYM as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecasts across the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Symbio Holdings though the target falls to $4.80 from $7.00 on a lower growth outlook as the likelihood of new acquisitions in new markets will be likely delayed. Industry View; In Line.

Target price is $4.80 Current Price is $3.84 Difference: $0.96
If SYM meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates TAH as Outperform (1) -

In Queensland, Tabcorp will make $150m in payments to the government by March 2023, conditional on legislative reform. In return, the company's tax and fee structure will be harmonised such that gross profit could increase by up to $30m.

In NSW, the government has signalled its intention to level the playing field and allow for a tax transition allowance, to ensure Tabcorp is not worse off.

Credit Suisse points out there is a risk that Tabcorp fails to secure necessary reforms in NSW or extend transition payments and in that case it could be worse off by about -$16m in gross profit from FY25. Outperform retained. Target rises to $1.30 from $1.25.

Target price is $1.30 Current Price is $1.07 Difference: $0.23
If TAH meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in June.

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 TPW as Overweight (1) -

Due to challenging macroeconomic conditions, Morgan Stanley adopts a more conservative stance for a range of emerging companies under its coverage.

Higher inflation and interest rates have created higher uncertainty, and the broker cuts EPS forecastsacross the coverage by up to -37% in FY23 and by up to -81% in FY24. Price targets fall by around -30% on average.

The analysts remain Overweight on Temple & Webster though the target falls to $6.00 from $9.00 as housing activity/pricing is expected to decline, and lead to softer demand for homeware and furniture products. Industry view: In-Line.

Target price is $6.00 Current Price is $3.53 Difference: $2.47
If TPW meets the Morgan Stanley target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $7.39, suggesting upside of 125.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates VCX as Neutral (3) -

UBS notes markets are increasingly pricing in negative outcomes including a potential recession or stagflation. On the back of a material underperformance by the A-REIT sector and revising its valuation framework, UBS adjusts price targets down by -15% on average to reflect valuations that show a "normalised" higher growth/rate environment as well as a DCF-based scenario.

Most sector valuation metrics screen as "cheap" versus the past 10 years, yet UBS notes the earnings yield spread to bonds is lower.

Despite the material underperformance the broker believes there is still a credible downside scenario for the sector. Development expenditure could be cut and decisions delayed. Vicinity Centres is one of the A-REITs most likely to be affected in such a scenario. Neutral. Target is reduced to $1.73 from $1.85.

Target price is $1.73 Current Price is $1.88 Difference: minus $0.15 (current price is over target).
If VCX meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.91, suggesting upside of 3.5% (ex-dividends)

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 VEA as Overweight (1) -

Morgan Stanley estimates Viva Energy could generate around $500-600m of extra cash flow from refining over the next 18 months. Refining margins globally are surging, notes the broker, and retail and wholesale fuel volumes are also recovering post covid lows.

The analyst thinks share price performance will depend on whether refining margins keep rising and how the Geelong Energy hub
develops. The target price rises to $3.30 from $2.70 and the Overweight rating is unchanged.

Target price is $3.30 Current Price is $2.81 Difference: $0.49
If VEA meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 10.4% (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