Australian Broker Call

Bell Potter rates 360 as Buy (1) -

Bell Potter makes only minor changes to forecasts following "mixed" 1Q result for Life360 which were largely pre-announced.

Management has lodged a registration statement with the SEC for a proposed IPO in the US and said the primary raise is expected to be no more than US$100m.

FY24 guidance was reiterated, but management highlighted the result would be more 2H weighted than usual due to a ramp-up in advertising revenue.

The Buy rating is retained and the target rises to $17.75 from $16.25 after Bell Potter lifts its assumed valuation multiple, given the proposed US listing, plus potential re-rating of the stock given higher peer multiples.

Target price is $17.75 Current Price is $15.11 Difference: $2.64
If 360 meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $17.31, suggesting upside of 12.9% (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: 1.0

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

Morgan Stanley rates 360 as Overweight (1) -

Life360's 1Q results were pre-announced, with around 5m monthly active users (MAU) in the quarter. Management retained FY24 guidance. April subscribers grew 32k, meeting the growth rate of 96k per quarter.

The stronger results have lifted Morgan Stanley's EBITDA FY24 forecast by 3% and 7%-8% in FY25-FY26.

The analyst attributes the new CEO and allocation of marketing spend to the improved growth in MAU, backed up by strong subscription growth.

Target price is raised to $17.50 from $16.50.Overweight rating. Industry View: In-Line.

Target price is $17.50 Current Price is $15.11 Difference: $2.39
If 360 meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $17.31, suggesting upside of 12.9% (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: 1.0

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

Ord Minnett rates 360 as Buy (1) -

Despite a "strong" Q1 outcome for all key metrics, according to Ord Minnett, management at Life360 maintained FY24 guidance.

The broker understands any reluctance to upgrade guidance, as around 65% of adjusted earnings (EBITDA) are expected in the 2H. 

With regard to the late-Q1 rise in monthly active users (MAU)/paying circles (PC's), the broker highlights management expects a continuation of this higher growth level.

The company announced plans for a US IPO. A non-binding letter of intent to partner with Hubble Network was also announced, though Ord Minnett feels the real story is the raft of new verticals able to be continuously offered to a global network of circa 66m users.

The Buy rating is unchanged and the target rises to $16.68 from $15.20.

Target price is $16.68 Current Price is $15.11 Difference: $1.57
If 360 meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $17.31, suggesting upside of 12.9% (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: 1.0

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

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

Morgan Stanley assesses AGL Energy and Origin Energy in light of the demand for power from growth in data centres.

The broker forecasts there is sufficient power available until 2030.

Accounting for the autumnal gains in plant flexibility and good weather, Morgan Stanley lifts the AGL Energy FY24 EPS forecast by 6% and FY25 is unchanged.

The analyst notes the FY24 NPAT forecast is at the upper end of the company's range, but at the lower end for FY25/FY26.

Equal-weight rating retained. The target price is revised to $9.50 from $9.18. Industry View: Cautious

Target price is $9.50 Current Price is $10.27 Difference: minus $0.77 (current price is over target).
If AGL meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.64, suggesting upside of 4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Ord Minnett rates ALX as Hold (3) -

Following "relatively weak" 1Q traffic results for Atlas Arteria, largely due to one-offs including severe snowstorms and farmers' strikes, Ord Minnett retains its longer-term forecasts.

Separately, CEO Graeme Bevans announced his intention to retire, which the analyst feels will not have any material impact on the company's ongoing strategy.

The Hold rating and $5.60 target are unchanged.

Target price is $5.60 Current Price is $5.54 Difference: $0.06
If ALX meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.66, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates BBN as Neutral (3) -

Macquarie anticipates ongoing cost pressures and an increasingly competitive operating environment in the near-term for Baby Bunting.

This view follows a deceleration in 2H year-to-date like-for-like sales (by -7.7%) from February, when sales had declined by -3.2%. The FY24 year-to-date gross margin was 36.9%, down by around -30bps from H1.

Management's new underlying NPAT guidance for FY24 of $2-4m (post AASB16) is around -73% below what consensus was expecting.

Macquarie lowers its target to $1.40 from $1.70. Neutral.

Target price is $1.40 Current Price is $1.44 Difference: minus $0.04 (current price is over target).
If BBN meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.66, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

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

2024 could well turn into the year of the gold miners, offers UBS. The sector generally is seen as offering 'value', also with the price of bullion anticipated to rise medium term.

UBS has upgraded Bellevue Gold to Buy from Neutral, with an upgrade in price target to $2.05.

Target price is $2.05 Current Price is $1.76 Difference: $0.29
If BGL meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Market Sentiment: 0.5

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

Citi rates CSL as Neutral (3) -

FY24 guidance by overseas competitor Takeda(during March quarter results) for immunoglobulin and albumin growth is consistent with Citi's forecasts for CSL.

Also, during the results for another competitor, Haemonetics, management noted the “plasma collections market remains robust, supported by strong end market demand, frozen plasma inventory deficits and a favorable collections environment.”

Overall, the broker believes immunoglobulin demand appears solid for CSL, but the revenue outlook for Vifor remains challenging.

The Neutral rating and $305 target are unchanged.

Target price is $305.00 Current Price is $279.18 Difference: $25.82
If CSL meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $316.73, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Macquarie rates DEG as Outperform (1) -

To complete the equity component of funding for the Hemi operations, explains Macquarie, a $600m raise was launched at $1.10/share, with $514m committed via an institutional placement. The remaining retail offer for $86m will open this Wednesday.

The broker's $1.70 target and outperform rating are maintained.

Target price is $1.70 Current Price is $1.23 Difference: $0.47
If DEG meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.78, suggesting upside of 53.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates DHG as Buy (1) -

Following a briefing hosted by Domain Holdings Australia last week, the analysts at Citi highlight March listings growth (an -8% year-on-year decline) was better than REA Group for the same period. April was not as strong as REA, largely a function of billing periods, explains the broker.

Management anticipates the marketing spend will increase to the low-$40m's from around $35m in FY26 due to the inclusion of Audience Boost in all depth listings.

This new piece of information implies to the broker an effective price increase in FY25 of around 6% on a gross-profit basis.

Buy. Target $3.85.

Target price is $3.85 Current Price is $3.08 Difference: $0.77
If DHG meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.35, suggesting upside of 11.0% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates EVN as Neutral (3) -

Macquarie anticipates FY25 production of at least 750koz for Evolution Mining following recent discussions with management.

Indications are FY25 production guidance is likely to be better than the broker's prior estimate, but production will be achieved at a higher cost (AISC), due to labour (around 50% of cost base) and other cost inflation, explains the broker.

The target eases to $4.00 from $4.10 and the Neutral rating is maintained.

Target price is $4.00 Current Price is $3.84 Difference: $0.16
If EVN meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.26, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Citi rates FBU as Sell (5) -

In a first glance by Citi, today's trading update for Fletcher Building appears "soft". New guidance also implies slowing 2H sales, a decline in sequential growth and a negative exit rate compared to consensus expectations for growth into FY25.

FY25 EBIT guidance was downgraded to between NZ$500-530m, an around -10% miss against the consensus forecast. Lower earnings will lift balance sheet leverage, cautions the broker.

Management attributes the miss to around -5% lower New Zealand market volumes compared to the 2Q of FY24, and circa -10% lower Australian volumes.

As a result of this update, and potentially higher-for-longer interest rates, Citi believes there will be material (negative) FY25 implications. The need for an equity raise is not being ruled by the broker.

Sell rating. Target price of NZ$3.50.

Current Price is $3.22. Target price not assessed.

Current consensus price target is $4.59, suggesting upside of 59.2% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.3

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

Ord Minnett rates GMG as Sell (5) -

Ord Minnett raises its target for Goodman Group to $24 from $20.75 after a further review of the opportunity available via data centres.

The broker predicts data centre projects will be more profitable than previously anticipated and will account for half of work-in-progress (WIP) in the next few years, up from 40% currently.

Previously, the analyst forecast WIP would fall below $9bn from the current $13bn level, but now assumes around $12bn until 2033. Management is reducing the proportion of (highly profitable) WIP via partnerships, and taking more developments on the balance sheet.

The broker retains a Sell rating on valuation, suggesting upside is fully priced into the current share price, but not the risk.

Target price is $24.00 Current Price is $33.65 Difference: minus $9.65 (current price is over target).
If GMG meets the Ord Minnett target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.05, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates GPT as Accumulate (2) -

Ord Minnett assesses a "reasonable" 1Q for GPT Group with occupancy of the retail and industrial portfolio nearly full, though office leasing conditions declined by -0.3% to 92%. Market wide data suggest rental income for office has bottomed, notes the analyst.

Management reaffirmed FY24 funds from operations (FUM) and distribution guidance.

The Accumulate rating and $5.55 target are retained

Target price is $5.55 Current Price is $4.28 Difference: $1.27
If GPT meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates GUD as Buy (1) -

At G.U.D. Holdings investor day this Wednesday, Citi believes one issue investors will focus on is whether AutoPacific (APG) earnings have recovered following Toyota and NZ disruptions.

While manufacturing disruptions around Toyota appear to have been resolved, the broker cautions any inventory held by manufacturers or dealers could delay the APG earnings recovery.

The analysts believe its is a matter of when, not if, ASP disruptions are resolved, and sees potential for a re-rate when APG finally delivers on its acquisition case earnings.

Average dollars per service in the legacy auto workshops is also the relevant measure when reviewing upcoming investor day commentary, according to Citi.

Target $12.80. Buy.

Target price is $12.80 Current Price is $9.81 Difference: $2.99
If GUD meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $12.84, suggesting upside of 31.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgans rates HLO as Add (1) -

Morgans found Helloworld Travel's Q3 report weaker-than-expected. Excluding acquisitions, the base business went backwards, the broker observes.

Management has re-affirmed FY24 guidance but the broker believes a result near the lower end of the range is most likely. Forecasts have been reduced as the broker adopts a more conservative approach.

With the shares trading on a low PE multiple, also offering a dividend yield of circa 5.8%, the broker sticks with its Add rating, while the price target falls to $3.33 from $4.26.

It is Morgans' view that, for the stock to re-rate materially from here, management will need to demonstrate a material improvement in 4Q trends.

Target price is $4.26 Current Price is $2.43 Difference: $1.83
If HLO meets the Morgans target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $3.72, suggesting upside of 53.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Bell Potter rates IRI as Buy (1) -

Integrated Research has secured $8.4m in new total contract value (TCV) for the first four months of H2, highlights Bell Potter, and released unaudited results for the ten months to 30 April.

Management also provided inaugural FY24 guidance for revenue and earnings (EBITDA) of between $76-85m and $18-25m, respectively, compared to the broker's $73.7m and $13.5m forecasts.

The Buy rating is unchanged and the target rises to 95c from 66c. The increase is due to the positive trading update, new guidance, a higher assumed valuation multiple and Bell Potter's lower assumed weighted average cost of capital (WACC).

Target price is $0.95 Current Price is $0.69 Difference: $0.265
If IRI meets the Bell Potter target it will return approximately 39% (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

Ord Minnett rates JDO as Hold (3) -

Judo Capital's 3Q result was largely as Ord Minnett expected and management reiterated FY24 underlying profit guidance, despite more loans entering arrears and becoming impaired.

The $1.20 target and Hold rating are maintained.

Target price is $1.20 Current Price is $1.34 Difference: minus $0.135 (current price is over target).
If JDO meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.20, suggesting downside of -3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates LLC as Neutral (3) -

Another profit warning in the making for Lendlease Group?

Citi analysts are asking the question following media reports over the weekend suggesting the company has been hit with a -$112m tax bill for its stake in the retirement business sold in 2021.

There's more to the story than just that. A further possible -$300m tax bill could be forthcoming given potentially inappropriate tax treatment for the sale proceeds of the retirement business, the broker reports.

If confirmed, Citi analysts believe this could potentially turn into yet another earnings downgrade for FY24 (the company already downgraded in February).

As per Citi's comments, the retirement sale profits initially seem to have been taken above the line in FY22, and the treatment of this potential tax bill could also be above the line.

Neutral. Target $6.90.

Target price is $6.90 Current Price is $6.28 Difference: $0.62
If LLC meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.65, suggesting upside of 42.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates LNW as Hold (3) -

Ord Minnett leaves its FY24 earnings (EBITDA) forecast unchanged for Light & Wonder following 1Q earnings which are tracking in line with the broker's forecast.

The broker believes "exceptional success" in Australia for the new Dragon Train game is behind the 13% revenue lift on the previous corresponding period for the core gaming business. Dragon Train was also launched late in the 1Q in the US.

The $150 target is retained. The broker keeps a Hold rating, noting Light & Wonder is yet to carve out a moat and faces stiff competition from Aristocrat Leisure ((ALL)).

Target price is $150.00 Current Price is $141.07 Difference: $8.93
If LNW meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $163.00, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates MYS as Buy (1) -

In the small cap banking space, the outlook for flat 2H earnings is supported by stabilising net interest margins and a lack of housing loan provisioning pressures, notes Ord Minnett, following a review of recent major bank results.

From among the broker's small cap research coverage for banks, Mystate is the preferred exposure due to an attractive dividend yield and an expected earnings recovery in FY25 and FY26 from cyclical lows in FY24.

The Buy rating and $3.98 target are retained.

Target price is $3.98 Current Price is $3.52 Difference: $0.46
If MYS meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates NHF as Neutral (3) -

Visa statistics from the Department of Home Affairs are a strong lead indicator for nib Holdings' International Inbound Health Insurance (IIHI) division, which accounted for around 17% of group earnings pre-covid, explains Macquarie.

The company's weighted portfolio implies to the broker 3Q granted Students visas contracted by -19% compared to the previous corresponding period, and increased by 18% for visa holders (for Workers).

As claims volumes for ARHI continue to lag expectations, short-term earnings upside remains, in the analyst's view.

The Neutral rating and $7.30 target are retained.

Target price is $7.30 Current Price is $7.46 Difference: minus $0.16 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.07, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Morgan Stanley assesses AGL Energy and Origin Energy in light of the demand for power from growth in data centres.

The broker forecasts that there is sufficient power available until 2030.

Origin Energy is currently benefiting from electricity tailwinds, the broker explains. Mark-to-market for commodity and certificate prices boost earnings as does a revised revaluation of Octopus from a third party.

Morgan Stanley lifts the FY24 and FY25 EPS forecasts by 5% and 1%, respectively.

Equal-weight rating and the target price is revised to $9.50 from $9.26. Industry view: Cautious.

Target price is $9.50 Current Price is $9.93 Difference: minus $0.43 (current price is over target).
If ORG meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.80, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgan Stanley rates ORI as Overweight (1) -

Morgan Stanley assesses the 1H24 results for Orica as confirmation of the strategic shift to "value optimisation" with higher prices as working.

The results were a beat at EBIT, 9% better than the analyst's expectations and 7% ahead of consensus.

Earnings forecasts are adjusted for the results and the Terra Insights and Cyanco acquisitions. FY24 EPS forecast declines by -8%, and FY25 by -3% after accounting for the equity issuance.

The broker retains an Overweight rating. The target is revised to $21.50 from $19. Industry view: In-Line.

Target price is $21.50 Current Price is $18.30 Difference: $3.2
If ORI meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $19.70, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates PLL as Outperform (1) -

Piedmont Lithium's 1Q revenue was in line with the consensus forecast, notes Macquarie, while earnings missed by -40%. A loss of -US$23.6m was greater than market expectations, but was within -3% of the broker's forecasts.

Earnings and cash flow could significantly improve in H2, suggests the analyst, partly underpinned by higher allocated volume from the North American Lithium (NAL) operation.

The Outperform rating and 36c target are maintained.

Target price is $0.36 Current Price is $0.20 Difference: $0.16
If PLL meets the Macquarie target it will return approximately 80% (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

Citi rates QBE as Buy (1) -

QBE Insurance's 1Q update held few surprises for Citi and management reiterated FY24 guidance.

As expected by the broker, rate momentum is slowing, but the slowdown is currently relatively modest and much less than
implied by some industry surveys.

While an -11% fall in crop premium weighed on gross written premium (GWP) growth in the 1Q (as forecast), the analysts expect this metric will improve in later quarters with management targeting significant organic growth in crop.

The Buy recommendation and $19.50 target are unchanged.

Target price is $19.50 Current Price is $17.61 Difference: $1.89
If QBE meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $18.58, suggesting upside of 5.8% (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: 0.4

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

Morgan Stanley rates QBE as Overweight (1) -

QBE Insurance's 1Q24 results largely met the expectations of Morgan Stanley's analyst.

Gross written premium (GWP) of 2% resulted from the removal of US non-core and domestic property risks and weaker crop prices, which fell -16%-21%, but were offset to a reasonable degree by organic growth.

CAT up until April is lower than expected at US$300m versus the 1H24 budget at US$609m.

Management reconfirmed FY24 GWP guidance growth of mid-single digit and the broker's forecast is unchanged.

Overweight rating and $20.10 target maintained. Industry View: In-Line.

Target price is $20.10 Current Price is $17.61 Difference: $2.49
If QBE meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $18.58, suggesting upside of 5.8% (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: 0.4

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

Morgans rates QBE as Add (1) -

QBE Insurance's quarterly update included a re-affirmation of FY24 guidance and Morgans has added 1% to its forecasts. In line with a global re-rating for general insurers, the broker has lifted its target to $20 from $17.96.

The insurer is on track for 30% growth in EPS this year and against this background the shares are considered undervalued. 

The quarterly update itself has been labeled "solid enough". Morgans suggests the insurer enjoys multiple tailwinds that will drive improved performance over the next few years. Add.

Target price is $20.00 Current Price is $17.61 Difference: $2.39
If QBE meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $18.58, suggesting upside of 5.8% (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: 0.4

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

Ord Minnett rates QBE as Lighten (4) -

Following 1Q results, Ord Minnett's forecasts still correspond with QBE Insurance's unchanged FY24 guidance for gross written premium (GWP) growth and core operating ratio (COR).

The broker points out the premium rate increase of 7.3% in the 1Q is a slowing from recent quarters and should continue to ease as returns across the insurance industry improve.

The analyst feels the market is overly optimistic on long-term profitability for QBE Insurance and retains a Lighten rating. The $14 target is also unchanged.

Target price is $14.00 Current Price is $17.61 Difference: minus $3.61 (current price is over target).
If QBE meets the Ord Minnett target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.58, suggesting upside of 5.8% (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: 0.4

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

Bell Potter rates REA as Hold (3) -

REA Group's 3Q trading update demonstrated "strong" 2H-to-date Australian residential property trends, highlights Bell Potter.

In a positive geographic-mix for residential revenue, explain the analysts, Q3 listings grew by 6%, driven by Melbourne and Sydney at
18% and 20%, respectively. The 4Q began with a 32% listing increase in April, but was cycling a weak April of 2023, notes the broker.

Management upgraded the FY24 listings growth range to 5-7% from 3-5%;, which compares to Bell Potter's 6% forecast. 

The Hold rating is maintained. The broker's target for REA Group rises to $203 from $191 on a valuation roll-forward.

Target price is $203.00 Current Price is $187.32 Difference: $15.68
If REA meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $187.23, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Citi rates REA as Neutral (3) -

Citi raises its target for REA Group to $192.60 from $187 following a stronger-than-expected 3Q and stronger listing volumes so far in FY24. The Neutral rating is maintained.

Results were released last week and a summary of the broker's initial research appears as follows:

REA Group's 3Q update revealed year-to-date listings have risen by 7% year-on-year though Citi cautions June is likely going to be down year-on-year given two less working days.

Management expects flat listings in FY25, assuming interest rates remain higher-for-longer, explains the analyst, and is guiding to margin expansion in FY25, once the benefits of 2H FY24 cost investment take hold. The expansion is expected to be less than in FY24.

Target price is $192.60 Current Price is $187.32 Difference: $5.28
If REA meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $187.23, suggesting upside of 1.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

UBS rates WTC as Buy (1) -

Further analysis of WiseTech Global's investments into Landslide Logistics has made UBS analysts more optimistic on the company's addressable market in years to come.

The broker posits its revised growth forecasts are significantly above market estimates. UBS's blended valuation has risen by 10% to $112.

The broker sees the stock's current premium as justified in light of the increased longer-term growth projections. Buy.

Target price is $112.00 Current Price is $96.72 Difference: $15.28
If WTC meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $94.02, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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