Australian Broker Call

Citi rates ANZ as Sell (5) -

Citi’s first glance at ANZ Bank's FY24 results reveals cash earnings lower than expected by -1.5% against consensus forecasts, but 1% above the analyst's estimate.

Excluding the Suncorp Group's ((SUN)) bank acquisition, cash earnings fell -8% year-on-year and -7% from the previous half.

The broker notes the result was achieved with lower bad and doubtful debt charges compared to banking peers, implying an even more significant underlying fall in earnings.

Citi observes management’s focus on acquisition integration and "Plus" opportunities but highlights risks around rising costs to reshape the bank.

Sell rated. Target price: $25.

Target price is $25.00 Current Price is $31.71 Difference: minus $6.71 (current price is over target).
If ANZ meets the Citi target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.44, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

UBS rates ANZ as Buy (1) -

On first take, UBS observes ANZ Bank reported FY24 results which were in line, although made "messy" due to the acquisition of Suncorp Group's ((SUN)) bank.

The broker notes net interest income grew 3%, meeting expectations, with net interest margins up 2bps to 1.58%. Costs rose 6%, around 2% above consensus forecast, and the cost-to-income ratio was worse than anticipated at 53%.

On balance, UBS believes the consolidated results were approximately -1% "light" on consensus, with the 2H24 dividend at 83c per share.

Australian retail performed well in 2H24, offset by softer institutional markets-related results.

Buy rating maintained with a $32 target price.

Target price is $32.00 Current Price is $31.71 Difference: $0.29
If ANZ meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $27.44, suggesting downside of -14.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

UBS rates BHP as Neutral (3) -

UBS highlights BHP Group is expected to discuss strategy around how to sustain/grow copper production at the Nov 17-20 site visits to Escondida and Spence.

The broker notes the group's copper production is expected to see a near-term decline, with volumes projected to decrease by -300kt, to approximately 1.6mt by FY30 before rebounding to around 2.1mt in the mid-2030s.

BHP management is planning capex of around -US$10bn in Chile and an additional -US$10bn in South Australia to support this growth.

The company’s strategy for Chile includes options to expand Spence and Los Colorados, optimise leaching technologies. BHP's intention is to double copper production from South Australia, the broker notes.

Neutral rated with $43 target price.

Target price is $43.00 Current Price is $42.99 Difference: $0.01
If BHP meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $45.46, suggesting upside of 4.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.8

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

Citi rates BRG as Neutral (3) -

Following Breville Group's AGM, Citi again stresses the market may be under-appreciating the risk to the group from rising competition in the coffee category.

Also, while a premium relative to peers may be warranted because of management's consistent execution, the stock appears expensive to the broker.

The $36.51 target and Neutral rating are maintained.

Target price is $36.51 Current Price is $31.35 Difference: $5.16
If BRG meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $33.73, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Morgan Stanley rates BRG as Overweight (1) -

Breville Group's AGM trading update indicates the underlying business remains on track, suggests Morgan Stanley, with resilient demand evident and a steady gross margin. Limited changes are expected for consensus forecasts, in the analysts' view.

A negative consequence for Breville of the Trump victory is heightened US tariff risk, notes the broker, though inventory build (pre-tariffs), shifting production out of China, and raising prices provide offsets.

Overall, Morgan Stanley views the tariff-related earnings risk as more one-off or temporary in nature.

Target $35. Overweight. Industry view: In-Line.

Target price is $35.00 Current Price is $31.35 Difference: $3.65
If BRG meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $33.73, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Ord Minnett rates BRG as Accumulate (2) -

Ord Minnett notes Breville Group's trading update showed ongoing sales momentum into 1H25 from 2H24 across all three geographies. Sales in America and EMEA advanced by 12%.

Regarding tariffs, management highlighted an acceleration in "migration strategies" from Chinese-manufactured goods to Mexico and other Asian countries to offset the higher cost of goods sold in the US market. Inventories are being increased as a precaution.

The analyst sees upside risks to sales growth in the US as customers pull forward purchases in anticipation of tariffs.

Accumulate rated with a $33 target price. No change to earnings forecasts.

Target price is $33.00 Current Price is $31.35 Difference: $1.65
If BRG meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $33.73, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates DMP as Buy (1) -

While the analysts at Citi were impressed by the new CEO on a recent conference call, it appears unlikely substantial changes are on the cards at Domino's Pizza Enterprises, which, the analysts suggest, may disappoint some in the market.

There is also potential for an earnings downgrade at February's 1H result, in the broker's view, given same-store sales (SSS) are not meeting management's expectations.

Citi retains a Buy rating with a $37.50 target.

Target price is $37.50 Current Price is $30.10 Difference: $7.4
If DMP meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $35.15, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

UBS rates JHX as Buy (1) -

UBS previews James Hardie Industries' upcoming 2Q25 results, highlighting challenges with a slower recovery in new construction and remodeling segments due to high mortgage rates and adverse weather, including hurricanes.

The analyst expects limited near-term volume growth and potential pressure on the FY26 outlook, noting the impact of interest rate cuts may have a 6-9 month delay.

UBS anticipates further cost control efforts to partially offset lower volumes and forecasts a decline in net profit for FY25.

A Buy rating is maintained, as UBS has confidence in the company's longer-term structural growth potential.

The target price slips to $56.50 from $57.50.

Target price is $56.50 Current Price is $48.35 Difference: $8.15
If JHX meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $56.81, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.7

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

Citi rates NAB as Sell (5) -

After further contemplating National Australia Bank's FY24 result, Citi feels the bank's higher relative multiple may be under threat.

The broker anticipates a weakening of the prior share price outperformance and premium valuation, previously based on better revenue growth and a reputation for cost and investment discipline.

The Sell rating and $26.50 target are maintained.

Yesterday's Broker Report stated: At first glance, Citi believes National Australia Bank's FY24 results are in line with market expectations. Revenue came in marginally below estimates, and bad and doubtful debts were slightly higher.

The broker notes lower costs and a reduced effective tax rate as offsetting factors for the bank.

The results revealed some potential "red flags" to Citi, including a decline in business banking profitability in 2H24, some pressure on net interest margins, and upward trends in bad debts.

Management announced an increase in spending to -$1.8bn in FY25 from -$1.6bn in FY24 and guided toward lower growth in costs.

Target price is $26.50 Current Price is $39.33 Difference: minus $12.83 (current price is over target).
If NAB meets the Citi target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.48, suggesting downside of -18.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Macquarie rates NAB as Underperform (5) -

National Australia Bank's FY24 result showed a robust capital position with CET1 at 12.4%, Macquarie notes, but believes there is limited room for future credit quality improvements, as the credit cycle may be turning.

Macquarie highlights the adverse impact of deposit mix shifts and rising mortgage arrears, especially in New Zealand.

The broker stresses risks to future earnings due to management's strategy to increase investment spending to -$1.8bn for FY25, aiming to improve business banking, proprietary mortgage channels, and deposit growth.

Macquarie’s EPS forecasts increase by 2% for FY25 and decrease by -1% for FY26. The analyst remains cautious on the bank's valuation, viewing it as high, given an outlook of weaker revenue and pre-provision earnings growth.

Underperform rating and $32.50 target price retained.

Target price is $32.50 Current Price is $39.33 Difference: minus $6.83 (current price is over target).
If NAB meets the Macquarie target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.48, suggesting downside of -18.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Morgan Stanley rates NAB as Overweight (1) -

National Australia Bank remains Morgan Stanley's preferred major bank despite a slightly softer-than-expected (by the broker) 2H result, though consensus forecasts were met.

Loan losses were flat half-on-half, but higher underlying losses from single names were offset by provision releases, explain the analysts.

The bank noted in May that credit quality was deteriorating, so 2H trends were "not surprising" to management.

The target price rises to $38.40 from $38, as the broker's minor earnings downgrades are offset by a stronger capital position and a higher book value per share. Overweight rating. Industry view: In-Line.

Target price is $38.40 Current Price is $39.33 Difference: minus $0.93 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.48, suggesting downside of -18.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Morgans rates NAB as Reduce (5) -

Morgans fails to identify any major positive surprises within National Australia Bank's FY24 results to justify recent share price strength.

The broker makes -6-8% downgrades to FY25-27 cash EPS forecasts. Cash EPS was in line with expectations in the second half, supported by an unexpected reduction in the effective tax rate.

Return on equity (ROE) fell by -20bps in the second half, and the broker considers the quality of revenue to have declined, with a higher percentage contribution from the Markets & Treasury (M&T) division.

As the dividend payout ratio approaches the top end of the 65-75% target range, Morgans assumes the DPS will be held flat at 85cps per half for now.

The target price falls to $29.45 from $31.48. Reduce.

Target price is $29.45 Current Price is $39.33 Difference: minus $9.88 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.48, suggesting downside of -18.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Ord Minnett rates NAB as Lighten (4) -

Ord Minnett notes National Australia Bank's FY24 results were largely as expected, offering few surprises to the analyst.

Non-performing loans increased to 1.39% of gross loans, up from 1.13% the previous year. Mortgage delinquencies are rising, while hardship calls are stabilising, the broker notes.

Management highlighted a strategic focus on becoming a customer-centric organisation in A&NZ, which, as the broker quips, remains unchanged from the approach of the past ten CEOs.

Ord Minnett lowers EPS estimates by -4% for FY26. The Lighten rating and $33 target price are unchanged.

Target price is $33.00 Current Price is $39.33 Difference: minus $6.33 (current price is over target).
If NAB meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.48, suggesting downside of -18.4% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

UBS rates NEC as Buy (1) -

UBS highlights a decline in total TV tracking for 2Q25 of -10% against 1Q25, which was in line with expectations and boosted by the Olympics.

The broker notes conditions remain weak. Media index data show October has remained "challenging" for free-to-air, recording a fall of -11% year-on-year in September.

The analyst remains cautious on the outlook for 2H25 advertising market. With UBS's economist pushing out the expected interest rate cut to May from February 2025, UBS lowers net profit forecasts by -2% and -8% in FY25/FY26 with a further easing in TV ad spending.

Stan continues to perform well, UBS forecasts 75k addition in net paying subs for FY25. The Buy rating is unchanged.

Target price slips to $1.65 from $1.80. Buy rating unchanged.

Target price is $1.65 Current Price is $1.11 Difference: $0.545
If NEC meets the UBS target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $1.73, suggesting upside of 53.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Citi rates NHF as Neutral (3) -

nib Holdings has recorded the best start to a year for Australian Residents Health Insurance (ARHI) sales since FY08, highlights Citi. Growth of 3.2% in the first four months is likely exceeding system growth of around 2%, suggests the broker.

In New Zealand, there has been only 0.8% growth over the four months as management works to restore margins in this business, explains the analyst. It is expected at least two years will be needed to bring margins back to management's target.

The Neutral rating is maintained, as the broker suspects the market will be cautious about the CEO change and will require more evidence management has ARHI claims inflation under control. Target remains at $6.55.

Target price is $6.55 Current Price is $6.03 Difference: $0.52
If NHF meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $7.05, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

UBS rates NWS as Neutral (3) -

UBS's initial analysis of News Corp's first-quarter results highlights a profit beat driven by strong cost control, with revenue aligning with expectations. The Book Publishing segment outperformed, while investments in Digital Real Estate had a dampening effect.

Year-on-year, revenue and earnings (EBITDA) increased by 3% and 14%, respectively. Reported EPS of $0.21 surpassed UBS's forecast of $0.15 and the consensus estimate of $0.17.

UBS maintains a target price of $47.30 and a Neutral rating, anticipating a macroeconomic uplift is necessary to drive a broader re-rating across News Corp's businesses.

Target price is $47.30 Current Price is $47.21 Difference: $0.09
If NWS meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $48.15, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.7

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

Citi rates ORA as Neutral (3) -

Citi weighs potential implications for Orora from Trump’s victory, despite limited insight into the timing or magnitude of any proposed tariffs.

The broker estimates 45% of Orora's sales are in the US, with a potential -2-5% headwind to sales, though a strengthening US dollar may provide a cushion to earnings.

The Neutral rating is maintained. Target $2.80.

Target price is $2.80 Current Price is $2.38 Difference: $0.42
If ORA meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.66, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Macquarie rates PFP as Outperform (1) -

Macquarie retains an Outperform rating on Propel Funeral Partners. The target price rises to $7.00 from $6.98, following a solid 1Q25 performance, meeting the broker's expectations.

The company's 1Q25 revenue and EBITDA grew year-on-year by 16% and 15%, respectively, driven by a 13% increase in volumes, primarily in Australia.

The broker notes organic volume growth helped offset a slowdown in average revenue per funeral, which is expected to stabilise around a 3% growth rate over the long term.

Margins improved slightly from FY24 levels, despite a marginal dip year-on-year.

Macquarie lowers EPS forecasts by -2% for FY25 due to weaker growth assumptions for revenue per funeral, with M&A activity providing upside potential.

Outperform. Target $7.

Target price is $7.00 Current Price is $5.99 Difference: $1.01
If PFP meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $6.53, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

Morgan Stanley rates PFP as Overweight (1) -

Morgan Stanley assesses a "solid" trading update by Propel Funeral Partners at its AGM, showing year-on-year revenue and earnings (EBITDA) growth of 16% and 15%, respectively.

These outcomes compare to the broker's forecasts of 14.8% growth in revenue and 14.3% improvement in earnings.

Overweight. Target $6.40. Industry view: In-Line.

Target price is $6.40 Current Price is $5.99 Difference: $0.41
If PFP meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $6.53, suggesting upside of 9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

Ord Minnett rates PFP as Accumulate (2) -

Propel Funeral Partners' 1Q25 results were below consensus forecasts by -1% to -2% for 1H25, Ord Minnett observes.

Organic revenue growth advanced 6% over the previous period, with 3% growth in organic volumes. Higher costs impacted EBITDA margins.

The broker believes the outlook remains "positive," retaining an Accumulate rating and a $6.30 target price.

Target price is $6.30 Current Price is $5.99 Difference: $0.31
If PFP meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.53, suggesting upside of 9.1% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

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

Macquarie downgrades Pro Medicus to a Neutral rating from Outperform.

The broker notes  recent share price gains have been driven by multiple expansion, largely reflecting anticipated contract wins and renewals.

US market share, critical to the stock's valuation, is projected to grow to 15% by FY30 and 30% by FY35 at current valuation and target price levels.

Macquarie indicates potential growth could be driven by AI developments and new offerings in cardiology.

The target price increases to $180.50 from $152.50 due to a change in the discount rate, raising the valuation.

Pro Medicus is set to attend the Radiological Society of North America conference from December 1-4.

Target price is $180.50 Current Price is $200.00 Difference: minus $19.5 (current price is over target).
If PME meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $134.10, suggesting downside of -33.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.4

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

Macquarie rates QBE as Neutral (3) -

Following a review of QBE Insurance's global (re)insurance peers' 3Q24 results, Macquarie highlights stable premium rate increases across key markets for the insurer, particularly in the US.

The casualty segment was strong, though driven by higher reinsurance costs.

QBE Insurance continues to trade at a 13.9% price-earnings multiple premium over its international peers, above its historical average, with a strong capital position, the broker notes.

While the company remains competitively positioned, Macquarie flags ongoing pressures from high catastrophe losses and regulatory challenges in the US.

Neutral rating remains with a $17.10 target price. No changes to earnings forecasts. QBE is due to report its 3Q2024 trading update on Nov 27.

Target price is $17.10 Current Price is $18.47 Difference: minus $1.37 (current price is over target).
If QBE meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.81, suggesting upside of 3.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Citi rates REA as Buy (1) -

Citi has taken an early look at today's 1Q result by REA Group and sees potential for minor earnings upgrades. Revenue growth of 21% year-on-year beat the broker's 20% estimate, with the strength in the core Residential business a key highlight.

Management noted growth in Audience Maximiser and Luxe in addition to price increases and depth penetration to justify Buy Yield growth of 15% year-on-year, stronger than the broker's forecast. Also, seller leads were up by 80%, up from circa 70% growth in 4Q24.

While REA India revenue growth of 42% also beat Citi's forecast, growth slowed from 47% in 4Q24 likely due to strong growth in Housing Edge.

Management is guiding to double digit yield growth in FY25.

On the negative side of the ledger, cost growth was higher than expected but reflects timing of marketing spend, explains the analyst.

Buy. Target $230. unchanged.

Target price is $230.00 Current Price is $233.53 Difference: minus $3.53 (current price is over target).
If REA meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $234.43, suggesting downside of -0.1% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

UBS rates REA as Buy (1) -

In a first glance, UBS notes a slight miss in today's REA Group’s 1Q revenue result due to a minor drag from geographic mix, with underlying depth uptake and October listings growth remaining strong.

Year-on-year revenue and earnings (EBITDA) rose by 21% and 23%, respectively, while Australian Residential Buy yield grew by 15%, just below the broker’s 16% forecast.

Underlying depth growth aligns with UBS expectations, driven by uptake of Premium Plus and additional products.

UBS sets a target of $263. Buy.

Target price is $263.00 Current Price is $233.53 Difference: $29.47
If REA meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $234.43, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Morgan Stanley rates SCG as Overweight (1) -

Operationally, things are tracking well at Scentre Group, according to Morgan Stanley, after reviewing the REIT's 3Q update.

Total sales rose by 1.9% compared to the previous corresponding period, while occupancy increased to 99.4% from 99.3% as of June 30.

Management reiterated 2024 guidance for funds from operations (FFO) and DPS.

Target $4.35. Overweight. Industry view: In-Line.

Target price is $4.35 Current Price is $3.42 Difference: $0.93
If SCG meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

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 SDF as Equal-weight (3) -

Morgan Stanley believes Steadfast Group will now meet more client product needs in both Australia and the US, having acquired 100% of H.W. Wood and HWI France for -$46.1m.

The acquisition is a Lloyd's broker with operations in France and Greece, employing 75 staff.

The analyst sees "significant" revenue synergies as management will now be able to bring Lloyd's binders in-house over the next two years.

Now with more growth options outside Australia, recent investor concerns are being addressed, which could lead to a share price re-rating, in the broker's view.

Equal-weight rating. Target price $6.64. Industry view: In-Line.

Target price is $6.64 Current Price is $5.56 Difference: $1.08
If SDF meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.82, suggesting upside of 20.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Citi rates SIG as Neutral (3) -

Citi raises its target for Sigma Healthcare to $2.50 from $1.40 following ACCC approval of the merger with Chemist Warehouse. The Neutral rating is maintained.

The analyst forecasts the combined group will generate EBIT of around $800m in its first full year (FY26).

The network continues to grow in Australia, and the broker notes prospects for further international expansion, suggesting more growth potential than other large-cap peers in the retail sector.

Target price is $2.50 Current Price is $2.43 Difference: $0.07
If SIG meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting downside of -23.2% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

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

Morgans rates SIG as Hold (3) -

Morgans raises its target for Sigma Healthcare to $2.21 from $1.23 and retains a Hold rating after the "transformational merger" with Chemist Warehouse Group received ACCC approval.

Following the clearance of several additional hurdles, including shareholder and court approvals and prospectus preparation, the broker anticipates the merger will complete early in 2025.

Target price is $2.21 Current Price is $2.43 Difference: minus $0.22 (current price is over target).
If SIG meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.97, suggesting downside of -23.2% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

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

Ord Minnett rates SIG as Accumulate (2) -

Ord Minnett highlights the ACCC's approval of the Sigma Healthcare and Chemist Warehouse merger after accepting an "enforceable undertaking" from Sigma.

The analyst believes this is the best-case outcome for the merged group. Sigma must commit to allowing franchisees to terminate agreements and switch wholesalers within contracted periods, implement data protection tools, and retain its community service obligations.

The target price rises by 75c to $2.15 from $1.40. The Accumulate rating remains.

Target price is $2.15 Current Price is $2.43 Difference: minus $0.28 (current price is over target).
If SIG meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.97, suggesting downside of -23.2% (ex-dividends)

The company's fiscal year ends in January.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

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

Bell Potter rates SIQ as Buy (1) -

Bell Potter reports an ongoing "cooling" in the auto market. Channel checks indicate Tesla has lowered prices for both Model Y and Model 3 vehicles by -$3000 under a novated lease plan.

The promotion is for 4Q2024, with deliveries required before December 20, 2024, following a -26% year-on-year decline in Tesla sales in October, marking seven months of weak performance.

Less well-known EV brands grew 22% year-on-year in an overall declining passenger segment, the broker notes. Plug-in hybrid and hybrid sales continued to cannibalise petrol and diesel vehicles in October.

Bell Potter highlights Smartgroup Corp’s share price has fallen -11% over the last three weeks and opines this does not reflect the expected earnings profile.

The Buy rating remains, with a target price increase to $10 from $9.75. No change to the broker's earnings forecasts.

Target price is $10.00 Current Price is $7.70 Difference: $2.3
If SIQ meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $9.78, suggesting upside of 24.5% (ex-dividends)

The company's fiscal year ends in December.

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

Citi rates SKO as Buy (1) -

Citi raises its target for Serko by 25% to $4.25 and reiterates a Buy rating, given the stock is trading at 3x FY26 forecast revenue.

The broker sees material potential upside to its long-term forecasts for Serko if the aspirational revenue target of NZ$250m by FY30 is achieved. The analyst is currently forecasting NZ$200m.

Additionally, the company's purchase of Sabre’s GetThere online booking tool, while not material, could be subject to execution risk, in the broker's view.

Target price is $4.25 Current Price is $3.53 Difference: $0.72
If SKO meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 1.0

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

UBS rates SUN as Buy (1) -

Suncorp Group's Investor Strategy update focused on technology modernisation, reinsurance optimisation, and capital management, UBS  highlights.

The broker believes these initiatives, especially the -$560m investment in upgrading legacy policy systems, will support the insurer's growth aims and potentially close the valuation gap with Insurance Australia Group ((IAG)).

UBS believes the group's approach to reinsurance, a new stop-loss initiative, could lower earnings volatility.

Capital management was highlighed as a priority. The analyst expects ongoing buybacks from funds arising from NZ Life's sale supported by growth of 10% p.a. in surplus earnings retention.

UBS maintains a Buy rating with its target price raised to $20.20 from $19.00.

Target price is $20.20 Current Price is $18.69 Difference: $1.51
If SUN meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $19.14, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

UBS rates SWM as Sell (5) -

UBS maintains a Sell rating on Seven West Media, with the price target reduced to 14c from 16c.

The broker attributes the downgrade to persistent weakness in metro free-to-air advertising markets, projecting further softness into FY26.

UBS observes that while the company might gain incremental revenue share in 2Q25 from broadcasting cricket, the advertising environment remains challenging, especially with economic pressures delaying a potential interest rate cut until May 2025.

UBS has lowered its FY25-FY26 NPAT forecasts by -3%, -17%, respectively, due to lower ad revenue expectations.

Target price is $0.14 Current Price is $0.16 Difference: minus $0.02 (current price is over target).
If SWM meets the UBS target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.15, suggesting downside of -13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Citi rates WDS as Sell (5) -

Management commentary on construction was incrementally positive, as expected by Citi, during the Woodside Energy site visit at Pluto.

The broker now expects first LNG production to occur in the second half of 2026, implying consensus may be too optimistic.

Citi also suggests consensus may be overly optimistic regarding Pluto's decline, resulting in around 5% overall overvaluation for the project.

Target $23. Sell.

Target price is $23.00 Current Price is $24.25 Difference: minus $1.25 (current price is over target).
If WDS meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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

Macquarie rates XRO as Outperform (1) -

Macquarie believes Xero is "walking the walk" in its shift toward profitable growth, supported by potential tax loss recognition of approximately NZ$452m, which could provide upside to forecasts.

The broker notes discounting initiatives are in place to boost subscriber growth, expected to have minimal long-term impact on customer lifetime value.

Macquarie sees potential for continued operational leverage and higher gross margin expansion from the integration of Xero’s AI assistant, JAX.

Macquarie’s EPS forecasts rise slightly by 1% for FY25 and 2% for FY26.

The broker reiterates its Outperform rating on Xero, with its target price lifted to $188.50, up 2% from $184.40, driven by ongoing product enhancements and strategic acquisitions, including Syft.

Target price is $188.50 Current Price is $155.18 Difference: $33.32
If XRO meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $165.28, suggesting upside of 4.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.8

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