Australian Broker Call

Ord Minnett rates BEN as Hold (3) -

Ord Minnett previews the first half result for Bendigo and Adelaide Bank due on Monday, 15 February. The analyst forecasts a cash net profit of $183m, up 113% half-on-half, with an interim dividend of 14 cents. 

The broker expects very strong loan growth of 10% (annualised) in the half and loan losses should be benign given deferrals were running off and JobKeeper was still in force during the half.

The analyst sees some potential for disappointment on dividends and views a “normal” payout ratio to be a challenge given the low return on equity (ROE), capital already at the midpoint of the target range, and significant loan growth.

Hold recommendation with a target price of $9.00.

Target price is $9.00 Current Price is $9.57 Difference: minus $0.57 (current price is over target).
If BEN meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.89, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Citi rates BLD as Buy (1) -

Citi maintains its Buy rating on Boral with the target rising to $5.80 from $5.70.

Boral's transformation program will deliver $300m in net savings, notes Citi. Despite rebounding construction markets, Citi believes Boral will see market volatility in the near term.

Also, while the outlook has improved, the broker highlights Boral is yet to see leverage to these improved conditions given the overweight exposure to the NSW apartment market. 

The cost out program may surprise consensus earnings to the upside, adds Citi, given a mixed track record of executing these programs. 

Target price is $5.80 Current Price is $5.01 Difference: $0.79
If BLD meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.47, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates BLD as Neutral (3) -

First half earnings were ahead of expectations. The company has set a $300m operational earnings (EBIT) improvement target, which Credit Suisse considers would be more meaningful if it was based on a bottom-up estimate.

These "transformation improvements" contain what the broker describes is an inestimable contribution from market recovery and other factors. Credit Suisse retains a Neutral rating and raises the target to $5.05 from $4.60.

Target price is $5.05 Current Price is $5.01 Difference: $0.04
If BLD meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.47, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates BLD as No Rating (-1) -

First half net profit was well ahead of Macquarie's forecasts. Boral has set a $300m transformation target for earnings (EBIT), coming from cost reductions in both Australia and North America.

Australian earnings decreased by -20% while North American earnings increased by 31%. Macquarie raises estimates for earnings per share by 22.5% and 14% for FY21 and FY22, respectively.

Macquarie is currently restricted from making a recommendation.

Current Price is $5.01. Target price not assessed.

Current consensus price target is $5.47, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgan Stanley rates BLD as Overweight (1) -

Boral's first-half operating income at $254m beat Morgan Stanley's forecast by 10% led by outperformance in North America that was partly offset by underperformance in Australia. Management highlighted weakness in multi-residential and non-residential in both markets.

The $300m transformation program exceeded the broker's expectations notes but without details on the specific initiatives that make up this quantum, Morgan Stanley finds it difficult to view the program as anything beyond aspirational at this stage.

Operating income forecasts lifted for FY21-23.

Overweight rating with the target rising to $6.10 from $5.80. Industry view is in-line.

Target price is $6.10 Current Price is $5.01 Difference: $1.09
If BLD meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.47, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates BLD as Hold (3) -

Boral reported a first-half FY21 net profit 17.5% above Ord Minnett’s estimate, as North American operating earnings (EBITDA) from continuing operations came in 8% higher, while Australia (excluding property) missed the broker's forecast by -11.5%.

The analyst believes the share price underperformed on the day of the release as management commentary was cautious on the near-term demand outlook in Australia, and there was scepticism about the $300m transformation program target that was provided.

The company confirmed it has appointed advisors to support the value assessment of the North America Building Products business unit, suggesting to Ord Minnett the potential for significant capital management.

Hold and the price target has lifted to $5 from $4.90.

Target price is $5.00 Current Price is $5.01 Difference: minus $0.01 (current price is over target).
If BLD meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.47, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

UBS rates BLD as Buy (1) -

UBS finds Boral's first-half result was mixed with better than expected operating income offset by a weaker than expected composition. 

Divisions the company plans to focus on including Boral Australia and fly ash delivered weaker-than-expected results and have softer near-term outlooks.

UBS expects the second half operating income to decline -19% to $175m. The outlook is weak for Boral, led by Boral Australia which expects no margin growth at this stage and has no recovery in major project activity until FY22.

Boral's price target falls to $5.40 from $5.60 with the Buy rating unchanged.

Target price is $5.40 Current Price is $5.01 Difference: $0.39
If BLD meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.47, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates CBA as Underperform (5) -

In its initial response to today’s profit release, which was in line with Macquarie’s expectations, the broker noted that it should not lead to material changes to pre-provision expectations and likely upgrades from lower impairments.

With the improving earnings profile and excess capital already reflected in the bank’s valuation premium, Macquarie expects peers to provide investors with better leverage to a recovery, and Commonwealth Bank to be the relative underperformer.

Underlying pre-provision cash earnings, revenue, and expenses, were all in line with Macquarie’s estimates.

The only exception were impairments which, at the headline level, were around -25% below the broker’s forecast of $1,174m.
Commonwealth Bank's franchise appears more robust than peers’, but in Macquarie’s view the current multiple is difficult to justify.

Its Underperform remains unchanged as does its price target of $78.

Target price is $78.00 Current Price is $87.42 Difference: minus $9.42 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $76.51, suggesting downside of -11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Ord Minnett rates CBA as Hold (3) -

In an initial response to today’s profit release, Ord Minnett comments Commonwealth Bank’s 1H21 result was very close to its forecast, with cash profit (NPAT) from continuing operations of $3.886bn in line with its estimate of $3.905bn.

Revenue and costs were both 1% ahead of Ord Minnett’s forecast, due to higher than forecast remediation costs, while remediation and other one-off charges of -$241m were ahead of the broker’s estimated -$200m.

Credit risk migration was actually positive in the half, versus the broker’s assumption of negative.

But Capital was the key beat, at 12.6% CET1 ratio versus Ord Minnett's 12.1%. While the pro-forma CET1 ratio is very strong, circa 13%, the broker notes there is still no announcement on capital management (as expected), aside from guiding to a 70%-80% target payout ratio (Ord Minnett assumes 75% in FY22/23).

As a result of Capital’s strong first half, the bank raised its interim dividend to 150cps (equating to a cash payout of 67%), which was in line with the broker’s estimate.

Commonwealth Bank continues to guide to a -7bp FY21 impact from cash rate movements (inclusive of deposits impact, replicating portfolio and equity hedge, and flow through of announced repricing).

Ord Minnett notes that competitive pressures increased meaningfully in the half (-3bps from switching, -2bps from discounting, and -1bp from consumer finance).

The broker also commented on a clear improvement in the bank’s asset quality, with impairment expenses decreasing to -$882m, down -53% hoh but 6% above the broker's expectations, equating to 22bp/GLA.

This included a further top-up to FLA in Investment Banking & Markets reflecting uncertainty in the outlook, in particular in the aviation sector.

Target price is $78.60 Current Price is $87.42 Difference: minus $8.82 (current price is over target).
If CBA 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 $76.51, suggesting downside of -11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.4

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

Ord Minnett rates CCL as Hold (3) -

Ord Minnett reviews the profit result for Coca-Cola Amatil due on Thursday, 18 February. The broker forecasts an underlying net profit of $340.3m, down -13.6% on 2019 (as per the trading update in January), with earnings before interest and tax (EBIT) down -13.9%.

The analyst assesses the January trading will be of interest as the Coca-Cola European Partners (CCEP) proposal is seen as the key share price driver.

Hold rating and target of $12.75 are unchanged.

Target price is $12.75 Current Price is $13.11 Difference: minus $0.36 (current price is over target).
If CCL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.43, suggesting downside of -5.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Citi rates CGF as Neutral (3) -

Citi observes Challenger benefited from a stronger than expected first-half investment market adjustment and offers better value post the recent sell-off. Margins fell more than expected but are expected to recover in FY21.

The company's capital position is a little weaker which may impact its ability to add further risk. Citi has lowered its earnings forecasts for Challenger over FY21-23.

Neutral rating with the target falling to $6.70 from $7.

Target price is $6.70 Current Price is $6.15 Difference: $0.55
If CGF meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates CGF as Outperform (1) -

First half results missed Credit Suisse estimates. Challenger has reiterated guidance for a recovery in earnings in the second half with normalised pre-tax profit of $390-440m.

The broker assesses the company can meet its return on equity target of around 10% but in FY21 this is likely to be more in the range of 8.5%.

Credit Suisse downgrades life earnings estimates and upgrades funds management, making modest 2-3% upgrades to FY22-23 estimates. Outperform reiterated. Target rises to $6.65 from $6.00.

Target price is $6.65 Current Price is $6.15 Difference: $0.5
If CGF meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

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

FY21 guidance for normalised net profit remains in a range of $390-440m, despite lower rental abatements. First half results slightly missed expectations.

Macquarie notes the life division missed consensus forecasts by -6%, although this was broadly offset by strength in funds management. Given the slower rebound of life margins, the broker downgrades to Neutral from Outperform.

Target is raised to $6.30 from $4.60 to reflect the stronger life balance growth from institutional sales over the longer term.

Target price is $6.30 Current Price is $6.15 Difference: $0.15
If CGF meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

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

Challenger delivered a solid first half result, observes Morgan Stanley, with no change to guidance. The broker notes flows into funds management were strong but retail life book growth remains subdued.

Profit before tax at $196m was circa 4% ahead of Morgan Stanley's estimate while net profit of $223m was 12% ahead of consensus, driven by better positive investment experience of $87m.

Equal-weight with a target of $6.45. Industry view: In-line.

Target price is $6.45 Current Price is $6.15 Difference: $0.3
If CGF meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

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

The normalised profit (NPAT) for Challenger was -2-3% below Morgans expectations, due to a -50 basis point decline in the life cash operating earnings (COE) margin. 

The broker notes this margin is expected to be assisted in the second half when excess liquids are further invested. Morgans sees FY21 as the bottoming out of earnings and moves to an Add rating from Hold. The target is decreased to $6.72 from $6.80.

The analyst lowers FY21 and FY22 EPS forecasts by -4% and -7%, respectively, mainly reflecting higher net book growth assumptions, offset by reduced COE margin forecasts.

Target price is $6.72 Current Price is $6.15 Difference: $0.57
If CGF meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates CGF as Hold (3) -

Challenger reported a first-half FY21 life result that showed Ord Minnett greater-than-expected cost of equity (COE) margin pressure, offset partly by a very strong performance on corporate expenses and funds management.

FY21 guidance for normalised pre-tax profit (PBT) of $39–440m was maintained.

The analyst calculates the return on equity (ROE), even after deployments of liquids, is likely to remain below the mid-range targets on a normalised basis.

The Hold rating and $6.50 target are maintained.

Target price is $6.50 Current Price is $6.15 Difference: $0.35
If CGF meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates CGF as Buy (1) -

Challenger missed UBS's first-half net profit forecast by -5% but the broker is not overly concerned since the miss was more a timing issue.

Life annuity book growth was above expectations. Margin and growth recovery are both on track, notes UBS, with potential for regulatory support in the coming months.

UBS notes the company's capital position remains strong and, apart from a timing difference on capital deployment, considers this a solid result, pointing to an earnings recovery story with regulatory upside optionality.

Buy rating retained with a target price of $7.70.

Target price is $7.70 Current Price is $6.15 Difference: $1.55
If CGF meets the UBS target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $6.72, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates CIM as No Rating (-1) -

Macquarie's initial assessment of CIMIC Group's FY20 result shows net profit at $601m was well below Macquarie's estimated $673m and down versus last year's $800m. Operating income and cash flow were also much less than expected.

The group notes the market outlook remains positive for construction and services with new work recovering. Stimulus packages in core construction and services markets and more opportunities through the strong PPP pipeline underpin this outlook, suggests Macquarie.

Macquarie is unable to provide a rating or target at present.

Current Price is $26.00. Target price not assessed.

Current consensus price target is $31.17, suggesting upside of 44.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Ord Minnett rates CIM as Buy (1) -

In an initial note, Ord Minnett notes CIMIC Group’s FY20 results were hit by covid and were broadly soft against the broker's estimates with both operating income and net profit missing the broker's forecast. 

Guidance for FY21 is positive but very soft, assesses the broker, with the company expecting a net profit of $400-$430m subject to market conditions and below the broker's estimated 534m.

According to Ord Minnett, the only bright spot was the dividend at 60c.

Buy rating with a target of $32.

Target price is $32.00 Current Price is $26.00 Difference: $6
If CIM meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $31.17, suggesting upside of 44.6% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgan Stanley rates CPU as Overweight (1) -

Morgan Stanley notes Computershare's first-half result was solid with revenue 1% ahead of the broker's estimate on the back of stronger issuer servicing.

The company has upgraded its guidance with FY21 management earnings expected to fall -8% versus last year. Operating income (ex margin) guidance is now up 14% versus last year.

Overweight rating with a target of $16.50. Industry view is In-Line.

Target price is $16.50 Current Price is $14.34 Difference: $2.16
If CPU meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $14.19, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

UBS rates CPU as Neutral (3) -

Computershare reported management net profit of $117.8m broadly in-line with UBS's forecast with management earnings per share of 21.8c versus the broker's estimated 22c. Margin income revenues were in-line and the company declared an interim dividend of $0.23 per share.

UBS notes the result in-line with expectations with some one-off costs offset by higher than guided margin income in the period. Management has increased its FY21 guidance, notes a surprised UBS, premised on a reversal of the one-off costs, seasonality and a circa 35% improvement in operating income.

Neutral with a target price of $15.

Target price is $15.00 Current Price is $14.34 Difference: $0.66
If CPU meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.19, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.1

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

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

CSL has guided to 6-10% revenue growth and 3-8% net profit growth in FY21.

Morgan Stanley estimates normalisation of China albumin sales will contribute 6% to the net profit and upgrades its FY21 net profit forecast by circa 1.5%.

While bullish the broker prefers to await the outcomes of Ig shortages before becoming more definitive in its call.

Equal-Weight with the target rising to $283 from $272. Industry view: In-Line.

Target price is $283.00 Current Price is $273.57 Difference: $9.43
If CSL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $306.81, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 CSL as Hold (3) -

Ord Minnett expects CSL to deliver a solid first half on Thursday 18 February as flu vaccine sales have been boosted by the pandemic. The broker reassures the impact of reduced plasma collections, and rising costs are likely to have only a modest impact given the long production cycle.

Full-year guidance will likely be unchanged given the uncertainty caused by the shortfall in plasma collections, which will have a greater
impact on sales and margins in the second half, explains the broker.

Hold and target increased to $294 from $293.70.

Target price is $294.00 Current Price is $273.57 Difference: $20.43
If CSL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $306.81, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

UBS rates CSL as Buy (1) -

UBS forecasts revenue to be up 16% at US$5,720m with net profit lifting by 20% to US$1502m. For Seqirus, the broker expects strong flu vaccine sales at 19%.

For FY21, UBS's net profit forecast sits at the mid-point of CSL's current guidance.

CSL reports first-half results on 18 February.

The Buy rating with target falling to $339 from $346.

Target price is $339.00 Current Price is $273.57 Difference: $65.43
If CSL meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $306.81, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Citi rates CWN as Neutral (3) -

The Independent Liquor and Gaming Authority (ILGA) inquiry into Crown's ability to operate the Barangaroo casino highlighted several issues that will require substantial changes in management, the board and business processes.

Major recommendations include a shareholder limit of 10% that could lead to a potential -25% sell-down of Consolidated Press Holdings' stake in Crown Resorts. The Bergin report also calls for the removal of three directors including the CEO.

Citi believes the implementation of the Bergin recommendations will be a drawn-out process that will be an overhang on the stock for several months.

Preferring Star Entertainment Group ((SGR)), Citi retains its Neutral rating with a $9.90 target.

Target price is $9.90 Current Price is $9.98 Difference: minus $0.08 (current price is over target).
If CWN meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.64, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

Crown Resorts has been deemed unsuitable for the Crown Sydney licence and Macquarie assesses the pathway to obtaining approval is onerous and may take two years.

The broker believes the NSW casino inquiry report brings into question the company's suitability to operate both the Melbourne and Perth casinos. Nevertheless, Macquarie expects Melbourne and Perth gambling will continue without hindrance.

As there is a high level of risk and uncertainty as to how the company will manage the pathway to approval going forward, the broker downgrades to Neutral from Outperform. Target is reduced to $8.30 from $11.00.

Target price is $8.30 Current Price is $9.98 Difference: minus $1.68 (current price is over target).
If CWN 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 $9.64, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates CWN as Buy (1) -

According to a report by The Independent Liquor and Gaming Authority, Crown Resorts has to follow a series of steps to operate a casino licence in NSW.

In UBS's view, these conditions could be achieved after undergoing material changes to the organisation and Crown is expected to pursue these changes as a priority. 

To operate a casino in NSW, Crown will need to maintain strong checks for AML and report annually to a new Independent Casino Commission in regards to its compliance obligations. 

Buy retained with a $10 target price.

Target price is $10.00 Current Price is $9.98 Difference: $0.02
If CWN meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.64, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates DMP as Underperform (5) -

Credit Suisse notes no guidance has been provided for the first half but highlights a strong finish to the period with new store openings, totalling 57 since November 27.

The broker expects franchisee like-for-like sales growth to be consistent with the October update. Earnings estimates and the target are upgraded to reflect the additional store openings. Target rises to $63.58 from $58.71. Underperform retained.

Target price is $63.58 Current Price is $97.38 Difference: minus $33.8 (current price is over target).
If DMP meets the Credit Suisse target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $75.89, suggesting downside of -21.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.1

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

Morgan Stanley rates DOW as Overweight (1) -

Morgan Stanley awaits for commentary from Downer EDI regarding mining divestments including potential timing.

For the company's urban growth strategy to be successful, the market needs to believe transport will be stable and grow over the medium term, suggests the broker.

While expecting a decline in utilities revenue with NBN contracts rolling off, the broker believes margins will hold steady. Downer mentioned dividends were expected to resume this financial year and the broker expects an update on this matter.

Target is $5.60. Overweight. Industry view: In-line.

Target price is $5.60 Current Price is $5.36 Difference: $0.24
If DOW meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.46, suggesting upside of 2.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates DRR as Upgrade to Neutral from Sell (3) -

Citi upgrades its rating to Neutral from Sell with a target of $4.50.

Citi highlights Iron ore prices rose 80% in 2020 to nine-year high levels of US$177/t before moving back to US$150/t. The broker expects prices to rise to US$165/t over the next 3 months before falling to US$140 in 2021.

Deterra Royalties will report on a fiscal year basis and report first half results on 24 Feb. Citi expects earnings of $26m but notes this will be a tricky result since the first half will have a different incorporation date (15 June 2020) and implementation date (2 Nov 2020).

Citi forecasts a first half interim dividend of $0.02 with full-year dividend expected to peak at $0.22 in FY23.

Target price is $4.50 Current Price is $4.55 Difference: minus $0.05 (current price is over target).
If DRR meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.99, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates DXS as Sell (5) -

Dexus's first-half funds from operations at 34.4c are 4% above Citi estimates and largely driven by earlier than expected recognition of trading profits. FY21 distribution guidance remains unchanged at 50.3c.

The broker finds the outlook for the office segment remains cloudy due to higher incentives and negative leasing spreads. Citi suspects a challenging outlook for rent growth looking at the tough market conditions and headwinds from work from home.

Sell rating with the target falling to $7.86 from $8.23.

Target price is $7.86 Current Price is $8.42 Difference: minus $0.56 (current price is over target).
If DXS meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.27, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates DXS as Outperform (1) -

First half results were in line with Credit Suisse estimates. No guidance has been provided other than for a distribution that is "in line with FY20".

The broker notes recent transaction evidence has been supportive of asset values which highlights the disconnect between direct real estate markets and listed A-REITs.

The broker continues to envisage value in Dexus for those with a longer-term view and maintains an Outperform rating. Target is $9.92.

Target price is $9.92 Current Price is $8.42 Difference: $1.5
If DXS meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $9.27, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates DXS as Neutral (3) -

First half results were ahead of expectations with adjusted free funds from operations of 28.8c per security. The main reason for the beat were lower maintenance expenditure and tenant incentives, given limited leasing transactions in the previous period.

The company reported gearing of 24.9% as of December 2021 which will decline to 21% after the settlement of divestments such as Grosvenor Place.

Macquarie believes the balance sheet and ability to deploy earnings in an accretive manner differentiates Dexus from other large cap A-REITs. Outperform retained. Target rises to $10.05 from $9.94.

Target price is $10.05 Current Price is $8.42 Difference: $1.63
If DXS meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $9.27, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates DXS as Underweight (5) -

Dexus delivered first-half funds from operation of 34.4c versus Morgan Stanley's 33.6c estimate. The company maintained its FY21 dividend guidance of 50.3c.

While there was no major negative from Dexus's result, Morgan Stanley is cautious especially since the company expects effective leasing spreads in Sydney to remain at -6% for another 12-18months.

Underweight rating with the target rising to $8.25 from $8.15. Industry View: In-line.

Target price is $8.25 Current Price is $8.42 Difference: minus $0.17 (current price is over target).
If DXS 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 $9.27, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates DXS as Hold (3) -

Dexus reported first-half FY21 funds from operations (FFO) ahead of Ord Minnett’s estimate, due to high first-half trading profits. Excluding trading profits, FFO was slightly below the broker's forecast.

The broker sees value though shares may trade at a discount to fair value until there is better visibility on the impact of working from home (WFH) on office demand.

Hold with the target price decreased to $9.30 from $9.90.

Target price is $9.30 Current Price is $8.42 Difference: $0.88
If DXS meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $9.27, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates DXS as Buy (1) -

Dexus's first-half result fell -3% short of UBS's forecast due to lower funds management and higher interest. Further, Dexus's distribution guidance at 50.3c implies a first half/second half skew of 57/43%.

UBs expects dividends to hit a bottom in FY22 before a gradual improvement in FY23 but notes the market remains very cautious regarding office and any signs of weakness.

In the broker's view, the market wants to see tangible evidence of improved fundamentals before turning more positive on Dexus. 

UBS retains its Buy rating with the target falling to $10.25 from $10.87.

Target price is $10.25 Current Price is $8.42 Difference: $1.83
If DXS meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $9.27, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates EHL as Outperform (1) -

Operating earnings beat Macquarie's estimates in the first half. The strong western region was offset by softness in the east. The broker believes the company, overall, can deliver strong growth in FY22.

Growth should come from underground rental and new mining services projects commencing in FY22 and tendering levels, the broker notes, remain high. Outperform maintained along with the $1.30 target.

Target price is $1.30 Current Price is $1.14 Difference: $0.16
If EHL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates EHL as Add (1) -

Key first half operating financials for Emeco Holdings broadly met Morgans expectations, with the flat second half rental outlook likely disappointing momentum investors.

A lack of definitive dividend guidance/policy may also have disappointed given the company's improving balance sheet, notes the analyst. It's considered management continues to weigh up capital management against growth investment where sensible.

The Add rating is maintained. The target price is increased to $1.32 from $1.25, as Morgans likes the improved balance sheet.

Target price is $1.32 Current Price is $1.14 Difference: $0.18
If EHL meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates FBU as Neutral (3) -

Macquarie updates forecasts to allow for stronger volumes in New Zealand in the second half. First half results are due on February 17.

Building consents in New Zealand are indicative of 8% volume growth into the March quarter. The broker's long-term assumptions are unchanged.

Australian construction volumes are expected to have stabilised in the December half after a difficult 2020. Macquarie forecasts margin progression in Australia up to around 5% as opposed to the company's 7% target.

Neutral rating maintained. Target rises to NZ$6.20 from NZ$5.28.

Current Price is $6.05. Target price not assessed.

Current consensus price target is N/A

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.2

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

Macquarie rates GEM as Upgrade to Neutral from Underperform (3) -

Macquarie reviews sector conditions and upgrades to Neutral from Underperform. Feedback from the industry signals improving occupancy with some potential for limited price increases.

This is offsetting rent and sector funding, where there is limited appetite from financiers that may affect divestment plans.

The broker upgrades 2020 earnings (EBIT) by 5%, adjusting its model such that earnings per share are reduced by -11%. EPS estimates for 2021 and 2022 are raised by 161% and 21%, respectively.

Rating is upgraded to Neutral from Underperform and the target is raised to $1.20 from 85c.

Target price is $1.20 Current Price is $1.23 Difference: minus $0.03 (current price is over target).
If GEM 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 $1.16, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Credit Suisse rates GXY as Downgrade to Underperform from Neutral (5) -

December quarter production met full year guidance. Record sales were a positive, Credit Suisse notes, but a further improvement in recoveries is required to reduce costs. No sales price was disclosed.

2021 production is guided at 162-175,000t, 55% above the prior year. This assumes full plant throughput at Mount Cattlin from the second quarter.

Credit Suisse downgrades to Underperform from Neutral on valuation grounds. Target is raised to $2.10 from $1.30. The broker notes the updated feasibility study on Sal de Vida is due for release in the June quarter.

Target price is $2.10 Current Price is $2.64 Difference: minus $0.54 (current price is over target).
If GXY meets the Credit Suisse target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.34, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

This company reports in USD. 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

Macquarie rates IAG as Neutral (3) -

Macquarie's initial impressions of Insurance Australia Group's first-half result are positive with strong growth in gross written premiums and margins amid low expectations. A dividend of 7c was announced where Macquarie expected none. 

Macquarie maintains its Neutral rating with a target of $5.10. 

Target price is $5.10 Current Price is $5.06 Difference: $0.04
If IAG meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.50, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates ILU as Hold (3) -

Ord Minnett assesses strength in pigment demand continues to exceed expectations and further price rises are expected. Additionally, Titanium dioxide (TiO2) demand is considered equally strong, especially for high-grade feedstock, with rutile prices improving.

Finally, 2021 and 2022 are considered recovery years for zircon, although the broker could be seeing the turning point as supplier discipline has done its job with inventories tightening.

Consequently, the analyst lifts near-term zinc, rutile and synrutile (Z/R/SR) prices by 4% in 2021 and 5% in 2022, lifting overall earnings forecasts by 36% and 28%, respectively.

Hold maintained. Target is raised to $6.50 from $6.30.

Target price is $6.50 Current Price is $6.75 Difference: minus $0.25 (current price is over target).
If ILU meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.14, suggesting downside of -11.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Citi rates JHX as Neutral (3) -

James Hardie Industries delivered strong December quarter operating results, observes Citi.

The broker has revised its forecasts to sit at the mid-point of the company's upgraded guidance range of US$440-$450m. Cash flow was strong helped by higher demand and the company announced a special dividend of 70c. 

The company is delivering record volume growth and Citi expects this to persist for two more quarters. Post a strong FY21, the broker expects gross margin expansion to continue in FY22.

While earnings risk is to the upside, Citi feels quarterly group operating income growth likely peaked in the December quarter and will moderate over the next 6-12 months.

Neutral retained with the target rising to $41.80 from $38.15.

Target price is $41.80 Current Price is $41.17 Difference: $0.63
If JHX meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $43.43, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Macquarie rates JHX as Outperform (1) -

Third quarter results revealed an increase in net profit of 59% and the company has lifted net profit guidance for FY21 to US$440-450m.

The result beat Macquarie's estimates on volume and margins in North America. Surprisingly, a special dividend of US$0.70 was declared.

Outperform retained and the broker notes a strong market environment across all geographies as consumers reassess their living environment in light of the pandemic. Target rises to $45.30 from $45.25.

Target price is $45.30 Current Price is $41.17 Difference: $4.13
If JHX meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $43.43, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Morgan Stanley rates JHX as Overweight (1) -

Morgan Stanley considers the third quarter result for James Hardie was hard to fault, delivering an earnings beat (by 14%), guidance upgrade and capital management (special dividend of US$0.70cps).

The broker explains the result was driven by strong margins in North America Fiber Cement (30%), strong revenue growth in APAC (9% versus pcp) and improved cost performance in APAC. 

The analyst lifts the profit (NPAT) forecast for FY21 by 4% to US$452m, which is at the top end of revised guidance, and the FY22 NPAT forecast increases by 8% on higher group earnings and lower interest expense.

Overweight rating reiterated. Target rises to $44 from $43. Industry view is Cautious.

Target price is $44.00 Current Price is $41.17 Difference: $2.83
If JHX meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $43.43, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Ord Minnett rates JHX as Accumulate (2) -

James Hardie delivered a very strong third-quarter result, with net profit beating Ord Minnett’s forecast by 21% due to stronger margins across all divisions. A US$0.70 special dividend was announced, which was considered a positive surprise.

The earnings (EBIT) from the North America fibre cement (NAFC) division were 14.3% above the broker's estimate, while Asia Pacific (APAC) EBIT and Europe EBIT beat forecasts by 11.5% and 11.0%, respectively.

Management lifted full-year net profit guidance to US$440–450m, up 11% at the mid-point.

Target price is increased to $45 from $42. Accumulate rating is retained.

Target price is $45.00 Current Price is $41.17 Difference: $3.83
If JHX meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $43.43, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

UBS rates JHX as Buy (1) -

James Hardie's third-quarter result was strong, observes UBS, with net profit 12% ahead of the broker's forecast. The company's US operating income was 9% ahead of estimates with exterior volume growing at 19.3% versus the broker's 17.6% forecast.

The beat was led by rising demand for new housing with competitors unable to meet this demand. FY21 net profit guidance has been raised by 7% at the top end to US$450m.

UBS thinks James Hardie appears to be outlining a vision to become a home-owners' exterior cladding supplier of choice by leveraging its fiber cement technology and curb appeal.

Target rises to $45.50 from $43 with a Buy rating.

Target price is $45.50 Current Price is $41.17 Difference: $4.33
If JHX meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $43.43, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.6

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

Morgans rates KGL as Speculative Buy (1) -

All primary approvals have been received from the NT government for the development of KGL Resources’ wholly-owned Jervois copper-gold-silver mine.

As a result, Morgans now adopts a valuation on an NPV basis at $0.619, with all the risks attendant to financing, constructing, commissioning and operating a resource project in a remote area with commodity price and exchange rate risk.

The pre-production capital cost was estimated at -$200m. The resource of contains 462,200t of copper, 21.4Jmoz of silver and 175,700oz of gold.

Morgans slightly alters the rating to Speculative Buy from Add and increases the target to $0.619 from $0.377.

Target price is $0.62 Current Price is $0.42 Difference: $0.199
If KGL meets the Morgans target it will return approximately 47% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Credit Suisse rates LFG as Initiation of coverage with Outperform (1) -

Credit Suisse notes Liberty Financial has a strong track record of high earnings growth while carefully managing risk. The broker envisages scope for further growth for an improving operating environment and potential for increased non-bank market share.

Credit Suisse initiates coverage with an Outperform rating and $8.50 target. The main risks envisaged are residual macro economic uncertainty associated with the pandemic, and increased customer defaults along with a decline in property markets.

Target price is $8.50 Current Price is $8.10 Difference: $0.4
If LFG meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates LLC as Neutral (3) -

In an initial response to the news of Lendlease Group's CEO's retirement in May 2021, Macquarie speculates on what could be the key focus areas going ahead. 

The broker thinks the group will continue on its quest to simplify the business, looking to recycle about $1bn of capital from the sale of telecommunications, solar farms and retirement. This will allow the group to focus more on its core offering, adds Macquarie.

Also, to achieve its return on equity targets, Lendlease Group needs to increase profits from investor partnering which Macquarie believes will be difficult in the short-term. 

Neutral with a target price of $13.16.

Target price is $13.16 Current Price is $12.10 Difference: $1.06
If LLC meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $14.07, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates MIN as Outperform (1) -

In an initial response to Mineral Resources' first-half result, Macquarie notes the overall result is strong with both operating income and earnings ahead of the broker's earnings. Operating cash flow was -21% lower than forecast due to higher tax related to the Wodgina transaction.

The broker highlights mining services earnings were a key positive and going ahead the segment has a strong outlook underpinned by new external contracts.     

Outperform retained with a target of $45.80.

Target price is $45.80 Current Price is $37.00 Difference: $8.8
If MIN meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $39.70, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MP1 as Hold (3) -

The initial assessment of Megaport's first-half shows the result was a miss on Ord Minnett's estimate. While revenue of $36m was up 39% versus last year, gross profit of $18.2m missed Ord Minnett's $20.9m estimate driven by upfront costs associated with the Japan launch.

Net loss at -$38m was well below the broker's expected -$20.4m and includes a -$17m fx loss due to the appreciation of the AUD versus USD. 

Megaport maintains its short-term commitment to normalised operating income breakeven by the end of FY21 with the second half focused on revenue growth.

Ord Minnett retains its Hold rating with a target of $12.80.

Target price is $12.80 Current Price is $13.23 Difference: minus $0.43 (current price is over target).
If MP1 meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.84, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates MQG as Sell (5) -

After guiding to a tougher second half in November, the group and market were both surprised by the unexpected turnaround in the December quarter.

Citi notes the covid recovery-led market volatility in key commodities led to higher client hedging and trading activity and helped management provide profit guidance for the first time.

Even then, Citi believes FY22 expectations are still too high since earnings in FY22 will have to contend with a strong AUD/USD among other factors.

Sell rating is maintained with the target raised to $125 from $120.

Target price is $125.00 Current Price is $143.14 Difference: minus $18.14 (current price is over target).
If MQG meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $145.50, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates MQG as Neutral (3) -

Macquarie Group has signalled FY21 profit will be slightly lower than FY20. Credit Suisse upgrades estimates by 5-7%, driven by improved Macquarie Capital and Commodities & Global Markets earnings.

Credit Suisse continues to assess the business as high-quality with a diversified earnings base. Target is raised to $141 from $128 and a Neutral rating is retained.

Target price is $141.00 Current Price is $143.14 Difference: minus $2.14 (current price is over target).
If MQG meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $145.50, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates MQG as Overweight (1) -

Morgan Stanlety was positively surprised by Macquarie Group's profit upgrade at an operational briefing, which also highlighted the ongoing growth opportunities for Macquarie asset management (MAM) and the Macquarie Capital division.

The broker increases FY21 earnings forecasts by circa 13.5%, largely from better lumpy items (gains on sale and impairments). FY22 and FY23 earnings forecasts also rise around 1.5% on advisory fees and mortgages, and the price target rises to $160 from $155.

The company's business model positions it to benefit from three “global mega trends” in decarbonisation, digitalisation and urbanisation, explains the analyst.

Overweight rating and In-Line industry view maintained. 

Target price is $160.00 Current Price is $143.14 Difference: $16.86
If MQG meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $145.50, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MQG as Accumulate (2) -

Ord Minnett assesses the third quarter was a standout period for Macquarie Group, driven by very strong conditions in the Commodities & Global Markets division and an improvement in realisation gains for Macquarie Capital.

Updated management guidance for FY21 group net profit was well ahead of the analyst’s previous forecast, driving a 16% upgrade. The broker is reluctant to capitalise such a strong quarter across the forecast horizon and lifts FY22 and FY23 estimates by 2–3%.

Accumulate rating retained and target price raised to $155 from $144.

Target price is $155.00 Current Price is $143.14 Difference: $11.86
If MQG meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $145.50, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

UBS rates MQG as Neutral (3) -

UBS observes Macquarie Group's update on December quarter shows a strong cyclical recovery in revenue with market conditions improving significantly. Even so, the group expects FY21 earnings to be slightly down on FY20.

The broker has a positive medium-term view on Macquarie Group as hard asset deal-flow improves and asset recycling accelerates. 

Looking at the recovery in trading and markets revenue and the significant operating leverage, UBS upgrades the group's FY21 earnings forecast by 15%.

Neutral rating with the target price rising to $145 from $135.

Target price is $145.00 Current Price is $143.14 Difference: $1.86
If MQG meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $145.50, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates NST as No Rating (-1) -

In an initial response, Macquarie notes Northern Star Resources' first half result was strong with net profit and cash flow ahead of Macquarie's forecasts. The 9.5c interim dividend was marginally ahead of the broker's expected 9c.

Pogo made its first meaningful contribution to the company's earnings, highlights the broker, generating an operating income margin of 47%. This is better than both the Kalgoorlie operations and KCGM, Macquarie adds. 

Macquarie is on research restrictions for Northern Star and unable to advise of a rating or target.

Current Price is $11.90. Target price not assessed.

Current consensus price target is $13.77, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates ORI as Outperform (1) -

Macquarie observes Orica is lagging in the post-pandemic recovery although potential remains. Despite the conditions, the broker still envisages leverage to the global economic recovery which, along with internal initiatives, should provide a firm medium-term growth profile.

US coal production is down -12% so far in 2021, reflecting a warmer than usual US winter. Meanwhile, Burrup is on target to deliver more than 85% utilisation in FY21 with $25m in earnings (EBIT). Outperform retained. Target is reduced to $18.46 from $19.00.

Target price is $18.46 Current Price is $15.42 Difference: $3.04
If ORI meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $18.25, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates SCP as Sell (5) -

Shopping Centres Australasia announced first-half funds from operations (FFO) of 6.72c. While this was well above consensus at 6c, it was below Citi's forecast of 7.3c and highlights just how uncertain retail REIT earnings can be in the current environment, comments the analyst.

Management has guided to FY21 FFO guidance of at least 14.4c which Citi expects will be well-received by the market. The group announced two new acquisitions and more is expected in the medium term.

Management expects to return to pre-covid levels of distribution once proceeds from the 2020 equity raising have been deployed and the pandemic has passed.

Target is reduced to $1.79 from $1.83. Sell rating.

Target price is $1.79 Current Price is $2.32 Difference: minus $0.53 (current price is over target).
If SCP meets the Citi target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.43, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Credit Suisse rates SCP as Neutral (3) -

First half results were slightly ahead of Credit Suisse estimates. The introduction of earnings guidance - with free funds from operations in FY21 of 14.4c - is considered positive, although the broker suspects the company is being conservative with its second half outlook.

While rent collection in the half year was 99%, the company has noted rents are taking longer to collect. Occupancy remains high at 98.2%.

Credit Suisse errs on the conservative side and does not assume acquisitions in estimates, although the balance sheet has capacity to fund acquisitions via debt. Neutral maintained. Target is reduced to $2.50 from $2.57.

Target price is $2.50 Current Price is $2.32 Difference: $0.18
If SCP meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.43, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates SCP as Outperform (1) -

First half results were in line with Macquarie's estimates. The broker observes the tenant base continues to perform well and there is capacity for upgrades via deployment of funds.

The company has guided to at least 14.4c per security in FY21. A medium-term target of adjusted earnings per security of 15.0c is guided, following finalisation of the pandemic-related impacts and full deployment of equity raisings.

Macquarie retains its Outperform rating with the target price easing to $2.56 from $2.63.

Target price is $2.56 Current Price is $2.32 Difference: $0.24
If SCP meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.43, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates SCP as Overweight (1) -

Shopping Centres Australasia Property Group has reported first half funds from operations (FFO) slightly ahead of Morgan Stanley's forecast.

The company provided full-year FY21 FFO guidance of 14.4cps and adjusted funds from operations (AFFO) of at least 12.2cps.

The analyst highlights the leasing structure remains robust with 3-5% annual fixed increases for 80% of specialty tenants.

The broker maintains an Overweight rating. The target of $2.69 is unchanged. In-Line industry view.

Target price is $2.69 Current Price is $2.32 Difference: $0.37
If SCP meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.43, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates SCP as Hold (3) -

Shopping Centres Australia Property Group reported first half funds from operations (FFO) in-line with Ord Minnett's forecast, as net tangible assets (NTA) rose 1.4% to $2.25, supported by positive revaluations.

Management guided to FY21 FFO of at least 14.4 cents and FY21 adjusted FFO (AFFO) of 12.2 cents.

The broker highlights cash collections have stabilised at 99% though are continuing to take longer to collect than pre-covid-19 with 85% collected within 30 days.

Hold and $2.60 target price are unchanged.

Target price is $2.60 Current Price is $2.32 Difference: $0.28
If SCP meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.43, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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 Neutral (3) -

UBS notes Shopping Centres Australasia Property Group delivered a solid rebound in funds from operations which were up 16% versus the second half of FY20.

The group expects to regain full-year adjusted funds from operation of more than 15c once the pandemic period ends and equity raising proceeds are fully deployed, expected by UBS in FY24.

Ongoing strong sales in supermarkets and discount department stores is a key feature of this result as investment appetite remains strong for the asset class, adds the broker.

Neutral rating with the target falling to $2.43 from $2.53 target.

Target price is $2.43 Current Price is $2.32 Difference: $0.11
If SCP meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.43, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Citi rates SUN as Neutral (3) -

Citi has upgraded its FY21 earnings forecast for Suncorp Group by 3% to reflect the strong first half beat. Citi also considers Suncorp Group's dividend yield solid, noting there could be a capital return as early as the first quarter of 2022.

Bank volumes contracted during the first half but Suncorp aims to grow in the second half and accelerate momentum in FY22. Citi sees this as achievable albeit challenging given expected headwinds in the second half from lower net interest margin and higher costs.

Neutral rating with the target rising to $11.50 from $11.10.

Target price is $11.50 Current Price is $10.73 Difference: $0.77
If SUN meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates SUN as Outperform (1) -

This first half results were ahead of expectations and the banking division stood out for Macquarie. Nevertheless, the broker does not expect a continuation of the stellar performance in the second half.

Gross written premium growth was 4.0%. The FY21 hazards allowance is unchanged and the business interruption provision was increased to -$214m. Macquarie retains an Outperform rating and raises the target to $13.00 from $11.50.

Target price is $13.00 Current Price is $10.73 Difference: $2.27
If SUN meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

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

Given strong capital, dividend and a modest rise in business interruption, Morgan Stanley assesses Suncorp Group's first half result was a good result.

The broker believes management is moving closer to returning excess capital and a new strategy positions the company for sustainable topline growth in the insurer and the bank.

The analyst lifts the FY21 cash profit (NPAT) forecast by 7% on a better first half result, while FY22 is unchanged. In FY23 profit forecasts lift again by 7% as the broker assumes broad delivery of the three-year plan.

Equal-weight rating. Target is increased to $11.10 from $10.35. Industry view: In-line.

Target price is $11.10 Current Price is $10.73 Difference: $0.37
If SUN meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates SUN as Add (1) -

Suncorp Group posted first half cash earnings that were 11% above company-compiled consensus figures and up 39% on the previous corresponding period. The dividend was 18% above consensus. Morgans upgrades EPS forecasts for FY21-22 by around 10%.

The broker upgrades earnings for many reasons including higher gross written premium (GWP) forecasts and lower banking bad debts. 

The Add rating is maintained and the target increased to $12.63 from $11.32.

Target price is $12.63 Current Price is $10.73 Difference: $1.9
If SUN meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates SUN as Accumulate (2) -

Suncorp Group reported a first-half FY21 net profit below Ord Minnett’s forecast, boosted by the bank achieving a high net interest margin (NIM) and low bad debt charges.

The broker highlights capital was strong, exceeding the group target by $1.026bn after dividends. A fully franked interim dividend of 26 cent was declared, versus the analyst's 22 cent forecast.

Australian general insurance saw a strong headline result with volume growth though underlying it was weak, explains the broker.

The Accumulate recommendation and $12.83 target are unchanged.

Target price is $12.83 Current Price is $10.73 Difference: $2.1
If SUN meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates SUN as Buy (1) -

UBS notes while Suncorp Group's first-half result delivered a strong headline beat, it mostly reflected one-offs across both general insurance and banking.

The broker considers the group's general insurance margin outlook noisy, which has been tempered with a higher near-term expense outlook and a rebase in investment income yields.

Suncorp lifted its business interruption provisions by -$29m to address additional court cases around prevention of access and UBS thinks the group is adequately provisioned on this issue.

Buy rating and $11.15 price target.

Target price is $11.15 Current Price is $10.73 Difference: $0.42
If SUN meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.74, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates VOC as Neutral (3) -

UBS sees a higher probability for MIRA's ((MQG)) current $5.50 bid for Vocus Group to succeed given conducive macro conditions and MIRA's track record in the space.

Vocus also appears to be tracking well against its FY21 operating income targets, cementing the broker's view. Based on MIRA's indicative price, UBS believes MIRA could generate a circa 5-7% equity internal rate of return.

Neutral with a target of $4.40.

Target price is $4.40 Current Price is $4.97 Difference: minus $0.57 (current price is over target).
If VOC meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.70, suggesting downside of -5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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