Australian Broker Call

Credit Suisse rates ACL as Outperform (1) -

As opposed to the global experience, the volume of healthcare services in Australia continues to track below pre-covid levels. Credit Suisse feels this is due to staff shortages and increased telehealth adoption, which potentially leads to less referrals.

The broker doesn't see a short-term fix and expects lower volumes to negatively impact margins, as well as the impact from higher wages. For pathology operators, these costs are partially offset by higher-margin covid testing.

While Credit Suisse raises its FY22 EPS forecast by 2%, a big catch-up in demand is no longer assumed and the FY23 estimate falls by -3% and the target price eases to $6.00 from $6.05.

Target price is $6.00 Current Price is $4.65 Difference: $1.35
If ACL meets the Credit Suisse target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates AGL as Outperform (1) -

July prices increases for AGL Energy's existing and new customers were greater than the Default Market Offer and larger than expected by Credit Suisse.

As a result, the broker increases the effective wholesale transfer price to retail customers, resulting in an increase of $230m for FY23 earnings (EBITDA).

While the increases are seen as a pull-forward of FY24 improvement, the analysts increase the target price for the company to $10.80 from $10.40 and retain an Outperform rating.

Target price is $10.80 Current Price is $8.27 Difference: $2.53
If AGL meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $9.52, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates AKE as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

Allkem benefits from record high spot prices driving strong cashflow. 

The Buy rating is retained and the target price increased to $15.55 from $15.15.

Target price is $15.55 Current Price is $9.60 Difference: $5.95
If AKE meets the UBS target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $15.36, suggesting upside of 54.2% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates ALL as Buy (1) -

Looking at monthly bookings for Aristocrat Leisure's Pixel United, Citi notes despite growth for newer titles Lightning Link and Jackpot Magic Slots being in line with expectations and older titles maintaining monthly run-rates, social casino bookings appear challenged in comparison to peers.

The broker notes while consensus expectations for Aristocrat Leisure's social casino portfolio have declined significantly since April, there is some risk the company will still not meet expectations. 

The Buy rating and target price of $41.00 are retained.

Target price is $41.00 Current Price is $35.62 Difference: $5.38
If ALL meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $43.11, suggesting upside of 18.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Citi rates ALU as Neutral (3) -

Citi is expecting Altium will deliver a strong second half, with Octopart a key driver despite demand appearing to moderate in June.

The broker notes web traffic for Octopart declined -9% month-on-month in June, an expected deceleration of growth partly driven by tough comps. Citi expects Octopart will contribute US$24m to second half revenue, up 9% on the previous half.

The Neutral rating and target price of $34.00 are retained.

Target price is $34.00 Current Price is $28.67 Difference: $5.33
If ALU meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $31.73, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Macquarie rates AMC as Outperform (1) -

Macquarie believes Amcor is on-track to deliver on its guidance of a 9.5% to 11% increase in FY22 EPS and expects Amcor will be one of the few companies to offer FY23 guidance in this reporting period.

Rising net interest expenses from its 50/50 fixed/floating debt profile and its exposure to Russia are expected to be key areas of investor focus, as will the fall in the euro against the $US to 20-year lows.

However, a weaker $A should prove a positive, says the broker, while the consumer staples profile is strongly defensive in the current environment. 

FY23, FY24 and FY25 EPS forecasts rise 1%. Target price rises to $19 from $18.07. Outperform rating retained.

Target price is $19.00 Current Price is $18.22 Difference: $0.78
If AMC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $18.62, suggesting upside of 0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates ANN as Upgrade to Buy from Accumulate (1) -

Ord Minnett conducts its quarterly currency revisions for healthcare companies and finds a very modest benefit to companies reporting in Australian dollars.

Ansell is upgraded to Buy from Accumulate on valuation grounds. Target price is steady at $33.

Target price is $33.00 Current Price is $22.87 Difference: $10.13
If ANN meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $29.60, suggesting upside of 26.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

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

Morgan Stanley estimates the major banks are unlikely to implement any new buybacks this year given an uncertain operating outlook. Overall, there are considered to be fewer capital management options for 2022-23.

The broker notes current dividend payout ratios are lower than pre-covid and forecasts low-to mid single-digit dividend growth.

The Equal-weight rating and $24.30 target for ANZ Bank are maintained. Industry view: Attractive.

Target price is $24.30 Current Price is $22.40 Difference: $1.9
If ANZ meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.66, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates ASX as Neutral (3) -

Credit Suisse assesses cash equities trading for the ASX was strong (though in-line with expectations) in the 2H and trade composition implies margins should be broadly stable.

The analyst points out the benefits of a record half of raisings/listings will flow through over time as initial and subsequent listing fees are amortised over 3-5 years. The Neutral rating and $85 target price are maintained.

Target price is $85.00 Current Price is $84.37 Difference: $0.63
If ASX meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $80.82, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Macquarie rates ASX as Outperform (1) -

ASX's June monthly activity report revealed an emerging recovery in futures volume (up 9.4%), and a 22% increase in June-quarter equity trading.

Capital market activity was unremarkable and Macquarie expects higher cash rates and spreads should further boost interest income.

Macquarie's EPS forecasts rise 1.3% in FY22; 0.6% in FY23 and 5.1% in FY24.

Outperform rating retained. Target price is $92, which compares with $94 on June 9.

Target price is $92.00 Current Price is $84.37 Difference: $7.63
If ASX meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $80.82, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

Macquarie rates AUB as No Rating (-1) -

AUB Group has reiterated FY22 guidance and management says the company is continuing to experience good operating conditions (which are expected to continue well into FY24) and guidance suggests it clocking growth between 19% and 22.3%.

The broker says guidance also assumes 7% to 9% rate increases, which have been above 5% in the company's portfolio through FY22.

Macquarie also expects cost inflation, increased sums insured and claims frequency will support further premium rate rises of 5%-plus next year. The broker also expects premium rates will outpace wage pressures.

Macquarie is on rating restriction.

Current Price is $18.30. Target price not assessed.

Current consensus price target is $25.92, suggesting upside of 41.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates BBN as Buy (1) -

Additional in-depth analysis has taught Citi analysts Baby Bunting Group is making progress with its product expansion into toys and babywear.

While it remains early days, further success moving into these high-margin categories should be a positive down the track.

Citi retains its Buy rating alongside a target price of $6.22.

Target price is $6.22 Current Price is $4.36 Difference: $1.86
If BBN meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $6.39, suggesting upside of 45.5% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Morgan Stanley estimates the major banks are unlikely to implement any new buybacks this year given an uncertain operating outlook. Overall, there are considered to be fewer capital management options for 2022-23.

The broker notes current dividend payout ratios are lower than pre-covid and forecasts low-to mid single-digit dividend growth.

The Equal-weight rating is retained for Bendigo & Adelaide Bank. The last updated target price from Morgan Stanley research was $9.60. Industry view: Attractive.

Target price is $9.60 Current Price is $9.27 Difference: $0.33
If BEN meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.36, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Credit Suisse rates BHP as Neutral (3) -

Analysts at Credit Suisse are concerned about a lack of growth options for BHP Group, which in turn may lead the company to chase higher-risk M&A. On top of this, a potential coal spin-off would further shrink the company's portfolio. Hence, the Neutral rating.

The target price falls to $40 from $50 after a raft of adjustments including a mark-to-market for commodity prices and exchange rates.

Target price is $40.00 Current Price is $37.76 Difference: $2.24
If BHP meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $44.34, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

UBS rates BHP as Neutral (3) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

Earnings per share forecasts decline across the diversified miners within UBS's coverage, with BHP Group's decreasing -3%, -21% and -5% through to FY24.

The Neutral rating and target price of $38.00 are retained.

Target price is $38.00 Current Price is $37.76 Difference: $0.24
If BHP meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $44.34, suggesting upside of 14.3% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.4

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

Morgan Stanley rates BOQ as Overweight (1) -

Morgan Stanley estimates the major banks are unlikely to implement any new buybacks this year given an uncertain operating outlook. Overall, there are considered to be fewer capital management options for 2022-23.

The broker notes current dividend payout ratios are lower than pre-covid and forecasts low-to mid single-digit dividend growth.

The Overweight rating is retained for Bank of Queensland. The last updated target price from Morgan Stanley research was $9.80. Industry view: Attractive.

Target price is $9.80 Current Price is $6.88 Difference: $2.92
If BOQ meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $9.31, suggesting upside of 34.7% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

UBS rates BPT as Buy (1) -

With supply availability continuing to tighten the global oil market UBS has lifted its Brent oil forecast to US$104 a barrel in FY22, up from US$95 a barrel, and to US$95, US$85 and US$80 a barrel through to FY25, driving earnings per share increases across the sector ranging 8-25% to FY24.

While the broker sees better value with Santos ((STO)), it does like Beach Energy's exposure to rising domestic gas prices and cash generation outlook.

The Buy rating is retained and the target price increases to $2.05 from $1.95.

Target price is $2.05 Current Price is $1.61 Difference: $0.44
If BPT meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 13.9% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates BUB as Buy (1) -

Bubs Australia intends to invest $12m of its $63m raise into tripling the production capacity of its Deloraine facility to a 30m tins, a move that indicates company confidence in growing its US opportunity more long-term, as well as exploring new market opportunities, the broker suggests.

With the company's current US opportunity surprising to the upside, Bubs Australia remains in talks with regulatory bodies in the US to extend its market access beyond November. If successful, Citi notes the US opportunity is likely to be as large as the Chinese market. 

The Buy rated is retained and the target price decreases to $0.75 from $0.76.

Target price is $0.75 Current Price is $0.61 Difference: $0.14
If BUB meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley estimates the major banks are unlikely to implement any new buybacks this year given an uncertain operating outlook. Overall, there are considered to be fewer capital management options for 2022-23.

The broker notes current dividend payout ratios are lower than pre-covid and forecasts low-to mid single-digit dividend growth.

The Underweight rating and $79 target are unchanged for CommBank. Industry view: Attractive.

Target price is $79.00 Current Price is $92.00 Difference: minus $13 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.05, suggesting downside of -5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.6

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

Ord Minnett rates COH as Hold (3) -

Ord Minnett conducts its quarterly currency revisions for healthcare companies and finds a very modest benefit to companies reporting in Australian dollars.

Cochlear retains a Hold rating. Target price falls to $218 from $223.

Target price is $218.00 Current Price is $202.98 Difference: $15.02
If COH meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $221.42, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates CSL as Accumulate (2) -

Ord Minnett conducts its quarterly currency revisions for healthcare companies and finds a very modest benefit to companies reporting in Australian dollars.

While not a major impact on CSL, the broker notes US immunoglobulin volumes fell -8% in March, which reflects continuing tight conditions post covid, and should hamper the Behring division for 2022.

The broker notes plasma collections accelerated in May and June, pointing to a sharp rise in supply by the end of this year; and the broker expects a rise in earnings in the December half of 2023.

CSL retains an Accumulate rating. Target price rises to $315.00 from $295.00. The EPS forecast for FY23 falls -3.7%.

Target price is $315.00 Current Price is $286.13 Difference: $28.87
If CSL meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $319.32, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Citi rates CSR as Buy (1) -

CSR has updated shareholders at its recent AGM and Citi's update today is simply housekeeping to make sure the model is as up to date as possible.

The broker points out CSR has hedged its aluminium position for FY23 and maintains Aluminium EBIT guidance in range of $33-$49m despite volatility in price and other costs.

Buy rating retained while the target price reduced to $5.80 from $6.40.

Target price is $5.80 Current Price is $4.10 Difference: $1.7
If CSR meets the Citi target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 41.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates DEG as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

The broker remains largely positive on its gold coverage, including De Grey Mining, with the sector underperforming global peers. 

The Buy rating is retained and the target price decreases to $1.15 from $1.20.

Target price is $1.15 Current Price is $0.82 Difference: $0.33
If DEG meets the UBS target it will return approximately 40% (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

UBS rates DRR as Neutral (3) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

The Neutral rating is retained and the target price for Deterra Royalties decreases to $4.10 from $4.40.

Target price is $4.10 Current Price is $4.05 Difference: $0.05
If DRR meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.93, suggesting upside of 21.1% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates EML as Buy (1) -

EML Payments has announced a $320m tender with the Spanish government, a sign customers remain comfortable dealing with the company ahead of it reaching resolution with the Central Bank of Ireland (CBI) according to UBS. 

The contract will see EML Payments assist in issuing 500,000 prepaid cards, each to the value of EUR400, to support cultural products and events in a stimulus effort. The company did highlight the contract would use a material proportion of the growth cap placed on it by CBI.

Looking ahead, the broker expects EML Payments to be a major beneficiary of rising rates, with the company having previously indicated it stands to gain a $14-15m earnings upside for every 1% rate increase. The broker also hopes a resolution with CBI will reduce the company's growth rate restrictions. 

The Buy rating is retained and the target price decreases to $2.10 from $2.30.

Target price is $2.10 Current Price is $1.42 Difference: $0.68
If EML meets the UBS target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting upside of 121.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates GOR as Outperform (1) -

Gold Road Resources' June-quarter result pleased Macquarie, gold production proving a 10% beat and sales a 14% beat.

These figures underpinned a beat on the cash forecast; Gruyere outpaced on all metrics; and 2022 guidance is intact.

Macquarie raises 2022 earnings forecasts 8% but trims 2023 to 2026 earnings -1% to -2% to reflect minor changes to processing cost assumptions.

The broker expects success with regional drilling should prove a positive for the miner and improved grades across the portfolio will be a key factor to reaching guidance, says Macquarie.

Outperform rating and $1.50 target price retained.

Target price is $1.50 Current Price is $1.11 Difference: $0.39
If GOR meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.68, suggesting upside of 53.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Credit Suisse rates HLS as Neutral (3) -

As opposed to the global experience, the volume of healthcare services in Australia continues to track below pre-covid levels. Credit Suisse feels this is due to staff shortages and increased telehealth adoption, which potentially leads to less referrals.

The broker doesn't see a short-term fix and expects lower volumes to negatively impact margins, as well as the impact from higher wages. For pathology operators, these costs are partially offset by higher-margin covid testing.

Credit Suisse lowers its FY23 EPS estimate by -12% on lower base business assumptions. The target falls to $4.10 from $4.20. Neutral.

Target price is $4.10 Current Price is $3.70 Difference: $0.4
If HLS meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates HPI as Add (1) -

Hotel Property Investments has declared a 2H distribution of 10.3c, in-line with FY22 DPS guidance of 20.5c.

Morgans lowers its forecasts for distributable earnings after assuming higher interest costs and the target price falls to $3.76 from $3.84. The Add rating is maintained.

Target price is $3.76 Current Price is $3.19 Difference: $0.57
If HPI meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates IAG as Underweight (5) -

Following the renewal of FY23 aggregate cover by Insurance Australia Group, Morgan Stanley notes rising reinsurance costs has resulted in higher retentions. A significantly higher catastrophe budget is expected to follow.

The Underweight rating and $3.70 target are maintained. Industry view: Attractive.

Target price is $3.70 Current Price is $4.32 Difference: minus $0.62 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.00, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates IAG as Buy (1) -

Insurance Australia Group has placed its FY23 aggregate reinsurance program and Ord Minnett notes an easing of coverage compared with FY22. The company also renewed two quota share arrangements.

The broker expects this will result in a sharp rise in allowances but expects the higher costs of the aggregate covers will have less near-term impact on Insurance Australia Group than on Suncorp ((SUN)), which is experiencing margin headwinds.

All up, Ord Minnett believes the pricing suggests the company is expecting pressure on reinsurance and perils; and expects the perils budget will rise by $150m.

Buy rating retained. Target price steady at $5.50.

Target price is $5.50 Current Price is $4.32 Difference: $1.18
If IAG meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $5.00, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates IAG as Sell (5) -

Insurance Australia Group's reinsurance renewal, while offering less coverage than last year, was a better result than UBS had anticipated, but the broker expects the cost of the renewal could have been up by more than 20% on the previous year. 

The broker highlighted the aggregate attachment point, the company's maximum claim liability, is $100m higher than the previous year, now $500m, a lower increase than UBS had expected. The company is yet to announce a catastrophe budget for FY23, but UBS expects it will increase $100m on last year's $765m. 

The Sell rating and target price of $4.10 are retained.

Target price is $4.10 Current Price is $4.32 Difference: minus $0.22 (current price is over target).
If IAG meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.00, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates IGO as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

IGO benefits from record high spot prices driving strong cashflow.  The Buy rating is retained and the target price increased to $12,75 from $12.25.

Target price is $12.75 Current Price is $9.43 Difference: $3.32
If IGO meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $13.34, suggesting upside of 37.5% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates JDO as Outperform (1) -

Macquarie is concerned about Judo Capital's loan impairments as rates rise, a position not helped by its sub-scale operation.

While the company continues to meet its prospectus targets, Macquarie notes the company's book is skewed to SMEs and has easier underwriting standards than peers in that segment.

On the flipside, short-term margin benefits, low valuation and strong delivery on its prospectus promises are all counted as pluses.

EPS forecasts fall -20% in FY22; -22% in FY23 and -2% in FY24.

Target price falls to $1.70 from $2.15. Outperform rating retained.

Target price is $1.70 Current Price is $1.31 Difference: $0.39
If JDO meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $2.01, suggesting upside of 51.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates JIN as Outperform (1) -

Macquarie reviews forecasts for Jumbo Interactive and the company polishes up quite well.

The broker appreciates Jumbo's defensive profile, noting more than 90% of earnings derive from the highly resilient Australian lotteries industries, which Macquarie expects will continue to grow despite the macro malaise.

Macquarie considers the stock a bargain, noting investors can buy the Australian lottery business for a discount while gaining upside exposure to Managed Services and a Lotterywest contract expansion.

Earnings (EBITDA) forecasts are steady for FY22 but ease -3% in FY23 and -3% in FY24 to account for rising costs and a delay in Starvale.

Target price falls to $18.60 from $20. Outperform.

Target price is $18.60 Current Price is $16.31 Difference: $2.29
If JIN meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $20.10, suggesting upside of 30.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates LOV as Buy (1) -

Lovisa Holdings has opened its first stores in Canada and Poland, which is taken as a positive development by Citi analysts. This also reduces the company's reliance on rolling out its network across the USA, they add.

Citi estimates potential for Lovisa to open 120 stores over the long term across Poland and Canada, predominantly in Canada.

The broker reminds investors its top picks in small cap retail are currently Baby Bunting ((BBN)) and Bapcor ((BAP)).

The Buy rating is retained and the target price is $20.40.

Target price is $20.40 Current Price is $15.46 Difference: $4.94
If LOV meets the Citi target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $20.67, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates MIN as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

Mineral Resources benefits from record high spot prices driving strong cashflow, points out the broker. The Buy rating is retained and the target price increased to $72.00 from $54.45.

Target price is $72.00 Current Price is $42.89 Difference: $29.11
If MIN meets the UBS target it will return approximately 68% (excluding dividends, fees and charges).

Current consensus price target is $73.34, suggesting upside of 64.7% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates MMS as Upgrade to Outperform from Neutral (1) -

Minister for Climate and Energy Chris Bowen confirmed at a National Press Club address the government could cut the 5% tariff on electric vehices and abolish fringe benefits tax on affordable electric vehicles (EVs) priced up to $77,565 from July 22.

Macquarie says the policy offers a tax advantage for Novated Leases and expects it should boost the salary-package market share and conversion, compared with other distribution channels.

Macquarie considers the near-term earnings impact to be immaterial but considers the potential upside to medium-term earnings from the fringe-benefits tax policy should support the company's multiple.

The  broker notes that the lifetime cost of an EV is up to -50% less than an internal combustion vehicle and running costs are also cheaper.

Rating is upgraded to Outperform from Neutral. Target price falls to $11.20 from $12.59 to reflect the de-rating in Small Industrials price-earnings ratios.

Target price is $11.20 Current Price is $9.89 Difference: $1.31
If MMS meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.76, suggesting upside of 24.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

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

Morgan Stanley estimates the major banks are unlikely to implement any new buybacks this year given an uncertain operating outlook. Overall, there are considered to be fewer capital management options for 2022-23.

The broker notes current dividend payout ratios are lower than pre-covid and forecasts low-to mid single-digit dividend growth.

The Equal-weight rating and $26.60 target for National Australia Bank are maintained. Industry view: Attractive.

Separately, the broker points out current business conditions are well above average and the bank's franchise is performing well.

Target price is $26.60 Current Price is $28.15 Difference: minus $1.55 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $31.18, suggesting upside of 10.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates NAN as Lighten (4) -

Ord Minnett conducts its quarterly currency revisions and finds a very modest benefit to healthcare companies reporting in Australian dollars.

The exception was Nanosonics, given its modest earnings. 

EPS forecasts rise 9% for FY22 and 49.2% for FY23.

Lighten rating retained. Target price slips to $3.50 from $3.60.

Target price is $3.50 Current Price is $3.96 Difference: minus $0.46 (current price is over target).
If NAN 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 $4.00, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

UBS rates NCM as Neutral (3) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

The Neutral rating is retained and the target price for Newcrest Mining decreases to $22.40 from $26.20.

Target price is $22.40 Current Price is $19.60 Difference: $2.8
If NCM meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $26.65, suggesting upside of 35.3% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Credit Suisse rates ORG as Neutral (3) -

July prices increases for Origin Energy's existing and new customers were greater than the Default Market Offer and larger than expected by Credit Suisse.

As a result, the broker increases the effective wholesale transfer price to retail customers, resulting in an increase of $80m for FY23 earnings (EBITDA).

Despite an increase in earnings forecasts, the analysts apply a new -10% valuation discount in the belief the electricity portfolio is poorly positioned amid high coal and electricity spot prices. The target price falls to $5.70 from $6.30.

Target price is $5.70 Current Price is $5.53 Difference: $0.17
If ORG meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $6.50, suggesting upside of 16.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates ORG as Buy (1) -

With supply availability continuing to tighten the global oil market UBS has lifted its Brent oil forecast to US$104 a barrel in FY22, up from US$95 a barrel, and to US$95, US$85 and US$80 a barrel through to FY25, driving earnings per share increases across the sector ranging 8-25% to FY24.

While the broker sees better value with Santos ((STO)), it does note Origin Energy looks to benefit from annual free cash flow of $1.7bn derived from APLNG through to FY24. 

The Buy rating is retained and the target price increases to $7.90 from $7.70.

Target price is $7.90 Current Price is $5.53 Difference: $2.37
If ORG meets the UBS target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $6.50, suggesting upside of 16.7% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates OZL as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

The Buy rating is retained and the target price for OZ Minerals decreases to $23.25 from $23.65.

Target price is $23.25 Current Price is $16.97 Difference: $6.28
If OZL meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $22.21, suggesting upside of 28.2% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates PGH as Neutral (3) -

Macquarie notes that Pact Group has not notified the market of changes to guidance, which it deems conservative.

The broker observes that price rises in electricity and raw materials have tripped the company up in the past, but that this time the company is well-contracted through FY23; spot gas exposure is relatively small; and Pact Group plans on passing on price increases in freight and materials.

Macquarie cuts EPS forecasts -2.5% in FY22; -10% in FY23 and -12% in FY24 to reflect the likely net impact of higher costs given the likely recovery rate and interest expenses; and is keeping a keen eye peeled to the balance sheet, where metrics remain elevated.

Target price falls to $2.20 from $2.90. Neutral rating retained.

Target price is $2.20 Current Price is $1.92 Difference: $0.28
If PGH meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.00, suggesting upside of 53.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Credit Suisse rates RIO as Outperform (1) -

Credit Suisse lowers its 2022-24 earnings forecasts for Rio Tinto by -12%, -2% and -3%, respectively, after increases to unit costs at the Aluminium division to better reflect rising energy costs.

The broker's target falls to $118 from $138 after also marking-to-market commodity prices and exchange rates. Outperform.

Credit Suisse continues to prefer Rio Tinto over BHP Group given the larger iron ore exposure, a presence in aluminium and better medium-to long-term growth options.

Target price is $118.00 Current Price is $93.37 Difference: $24.63
If RIO meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $115.50, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

UBS rates RIO as Neutral (3) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

Earnings per share forecasts decline near-term across the diversified miners within UBS's coverage, with Rio Tinto updated -11%, -15% and 10% through to FY24.

The Neutral rating is retained and the target price decreases to $98.00 from $104.00.

Target price is $98.00 Current Price is $93.37 Difference: $4.63
If RIO meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $115.50, suggesting upside of 18.8% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates RMD as Buy (1) -

Ord Minnett conducts its quarterly currency revisions for healthcare companies and finds a very modest benefit to companies reporting in Australian dollars.

ResMed retains a Buy rating. Target price rises to $38 from $35.00.

Target price is $38.00 Current Price is $32.50 Difference: $5.5
If RMD meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $35.76, suggesting upside of 11.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.8

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

Macquarie rates S32 as Outperform (1) -

Macquarie provides June-quarterly production previews for the large-cap miners, South32, BHP Group, ((BHP)), Rio Tinto ((RIO)) and Fortescue Metals Group ((FMG)) to account for recent volatility in commodities and rising costs.

The broker recently marked to market commodity prices, and this has driven a -2% cut in FY22 EPS forecasts for South 32 but forecasts are unchanged for FY23.

The broker has already taken a conservative stance, noting the rising cost of inputs, and there are no changes to target prices or ratings.

South 32 and BHP remain Macquarie's preferred picks; the broker takes a positive view towards Rio Tinto; and is cautious about Fortescue Metals. The broker appreciates the large-cap miners' free cash flow and resilience in the face of falling iron-ore prices.

Target price is $6.00 Current Price is $3.53 Difference: $2.47
If S32 meets the Macquarie target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $5.60, suggesting upside of 51.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates S32 as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

Earnings per share forecasts decline near-term across the diversified miners within UBS's coverage, with South32 updated -7%, -40% and 6% through to FY24.

The Buy rating is retained and the target price decreases to $5.60 from $6.00.

Target price is $5.60 Current Price is $3.53 Difference: $2.07
If S32 meets the UBS target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $5.60, suggesting upside of 51.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates SFR as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

The Buy rating is retained and the target price for Sandfire Resources decreases to $7.35 from $7.45.

Target price is $7.35 Current Price is $4.06 Difference: $3.29
If SFR meets the UBS target it will return approximately 81% (excluding dividends, fees and charges).

Current consensus price target is $6.61, suggesting upside of 58.2% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Credit Suisse rates SHL as Outperform (1) -

As opposed to the global experience, the volume of healthcare services in Australia continues to track below pre-covid levels. Credit Suisse feels this is due to staff shortages and increased telehealth adoption, which potentially leads to less referrals.

The broker doesn't see a short-term fix and expects lower volumes to negatively impact margins, as well as the impact from higher wages. For pathology operators, these costs are partially offset by higher-margin covid testing.

Sonic Healthcare remains Credit Suisse's top sector pick though FY23/FY24 earnings forecasts are lowered on lower base business assumptions. The target falls to $38 from $39. Outperform.

Target price is $38.00 Current Price is $33.38 Difference: $4.62
If SHL meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $37.96, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates SHL as Accumulate (2) -

Ord Minnett conducts its quarterly currency revisions for healthcare companies and finds a very modest benefit to companies reporting in Australian dollars.

Sonic Healthcare retains an Accumulate rating. Target price slips to $36 from $37.00

Target price is $36.00 Current Price is $33.38 Difference: $2.62
If SHL meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $37.96, suggesting upside of 14.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates SIQ as Neutral (3) -

Minister for Climate and Energy Chris Bowen confirmed at a National Press Club address the government could cut the 5% tariff on electric vehices and abolish fringe benefits tax on affordable electric vehicles (EVs) priced up to $77,565 from July 22.

Macquarie says the policy offers a tax advantage for Novated Leases and expects it should boost the salary-package market share and conversion, compared with other distribution channels.

The  broker notes that the lifetime cost of an EV is up to -50% less than an internal combustion vehicle and running costs are also cheaper.

Macquarie considers the near-term earnings impact to be immaterial to Smartgroup Corp. Target price rises to $6.62 from $6.40 after applying a -5% reduction in the Small Industrial discount price-earnings ratio.

Rating upgraded to Outperform from Neutral, the broker believing the fringe-benefits tax policy supports the company's multiple and will drive medium-term earnings.

Target price is $6.62 Current Price is $6.40 Difference: $0.22
If SIQ meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.55, suggesting upside of 15.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

UBS rates SSR as Buy (1) -

A slate of changes to UBS's resources price deck has seen the broker downgrade stocks with exposure to iron ore, met coal, copper, aluminium, alumina, nickel and zinc, but upgrade those with exposure to lithium, thermal coal and the broader energy sector.

According to the broker, investor fear of stagnant inflation across the sector has driven -20% decline of the ASX 300 Resources in the last three months, and the broker notes while stocks are cheap they do not yet present sufficient value to justify sector-wide buying. 

The broker remains largely positive on its gold coverage, including SSR Mining, with the sector underperforming global peers. 

The Buy rating is retained and the target price decreases to $29.85 from $30.50.

Target price is $29.85 Current Price is $23.80 Difference: $6.05
If SSR meets the UBS target it will return approximately 25% (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

UBS rates STO as Buy (1) -

With supply availability continuing to tighten the global oil market UBS has lifted its Brent oil forecast to US$104 a barrel in FY22, up from US$95 a barrel, and to US$95, US$85 and US$80 a barrel through to FY25, driving earnings per share increases across the sector ranging 8-25% to FY24.

Santos remains UBS's sector pick, with the broker noting sell downs of the company's Alaska asset should support a re-rate, while profits will support the project's Phase 1.

The Buy rating is retained and the target price for Santos decreases to $9.50 from $9.70.

Target price is $9.50 Current Price is $7.02 Difference: $2.48
If STO meets the UBS target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $9.81, suggesting upside of 42.8% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Ord Minnett rates TLC as Initiation of coverage with Accumulate (2) -

Ord Minnett initiates coverage on Lottery Corp with an Accumulate rating and $5.15 target price.

The broker admires the company's capacity to generate profits and deliver hefty returns to shareholders, although it suspects consensus forecasts for margin expansion from digital penetration may be overdone.

Ord Minnett considers the value lies in the company's capital-light model and its historically defensive profile during recessions, and forecasts an increase in FY25 margins.

Target price is $5.15 Current Price is $4.60 Difference: $0.55
If TLC meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates TYR as Buy (1) -

Tyro Payments' FY22 reported FY22 transaction value of $34.2bn met Ord Minnett's forecasts.

While the broker's data sources point to a positive outlook for engagement and merchant acquisition, Ord Minnett doesn't like the competitive backdrop, noting new entrants and reinvestment from banks and international payments business, which it considers a serious threat.

Target price is cut to $1.30 from $3.00 to reflect a decline in the broker's merchant-growth estimates.

Buy - Higher Risk - rating retained.

Target price is $1.30 Current Price is $0.70 Difference: $0.6
If TYR meets the Ord Minnett target it will return approximately 86% (excluding dividends, fees and charges).

Current consensus price target is $2.35, suggesting upside of 221.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgan Stanley rates WBC as Overweight (1) -

Morgan Stanley estimates the major banks are unlikely to implement any new buybacks this year given an uncertain operating outlook. Overall, there are considered to be fewer capital management options for 2022-23.

The broker notes current dividend payout ratios are lower than pre-covid and forecasts low-to mid single-digit dividend growth.

The Overweight rating and $22.30 target for Westpac are maintained. Industry view: Attractive.

Target price is $22.30 Current Price is $19.85 Difference: $2.45
If WBC meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $24.50, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

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

With supply availability continuing to tighten the global oil market UBS has lifted its Brent oil forecast to US$104 a barrel in FY22, up from US$95 a barrel, and to US$95, US$85 and US$80 a barrel through to FY25, driving earnings per share increases across the sector ranging 8-25% to FY24.

While the broker sees better value with Santos ((STO)), it does note Woodside Energy should benefit from higher spot LNG prices, with UBS lifting its forecast for North Asian spot LNG by an average 40% through to 2026.

The Woodside Energy rating is upgraded to Buy from Neutral and the target price increases to $34.25 from $32.00.

Target price is $34.25 Current Price is $30.20 Difference: $4.05
If WDS meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $34.45, suggesting upside of 13.7% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Morgans rates WPR as Add (1) -

Morgans assesses Waypoint REIT is on-track to divest $150m of assets in FY22, part of management's target to divest around -10% of the portfolio over the next 3-5 years to ultimately aide diversification.

The broker had already incorporated asset sales into forecasts but now assumes higher interest costs over the medium/longer term. The target price falls to $2.92 from $3.07. Add. 

The analyst had also previously included $100m in capital management initiatives for which more details are expected at the 1H result on August 29.

Target price is $2.92 Current Price is $2.45 Difference: $0.47
If WPR meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

UBS rates ZIP as Initiation of coverage with Sell (5) -

UBS considers Zip Co's bad debt expense to have increased 12.4% in the first half, up from 7.4% in the previous year. Despite initiatives taken to improve credit performance, the broker anticipates credit quality to remain soft this half, with improvement more likely in FY23.

The broker highlights loan book growth is key to Zip Co achieving profitability, which equates to taking on more risk, according to UBS. Company commentary has suggested a fee increase, but the broker sees risk this could put off customers less likely to default. 

The Sell rating is retained and the target price decreases to $0.45 from $0.90.

Target price is $0.45 Current Price is $0.57 Difference: minus $0.12 (current price is over target).
If ZIP meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -1.0

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