Australian Broker Call

Credit Suisse rates 360 as Outperform (1) -

Credit Suisse is increasingly upbeat on the prospects as the business has weathered the headwinds from the pandemic well, retaining its user base with minimal expenditure on customer acquisition and at a breakeven level in terms of free cash flow.

Strong growth has returned and the broker reiterates an Outperform rating. Target is raised to $10.00 from $8.30. The company expects to exceed prior guidance for 2021 if the latest surge in covid-19 in the US is contained.

Target price is $10.00 Current Price is $8.00 Difference: $2
If 360 meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Morgan Stanley rates 360 as Overweight (1) -

Life360 delivered a very strong second quarter and is tracking ahead of US$110-120m annualised monthly revenue (AMR) guidance.

Despite Life360's caution not to extrapolate from an exceptional second quarter, Morgan Stanley believes there was a lot to like about the performance and the setup into second half.

Morgan Stanley has lifted organic AMR and revenue forecasts and incorporated recently acquired Jiobit - a provider of wearable location devices - into estimates for the first time, which the broker sees as value-accretive.

Overweight rating and $8.60 target. Industry view is In-Line.

Target price is $8.60 Current Price is $8.00 Difference: $0.6
If 360 meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

UBS rates A2M as Buy (1) -

UBS reiterates a Buy rating, believing the recent risk-based sell-off in the stock is unjustified. The broker expects a meaningful recovery in daigou infant formula sales over the next 10 years.

UBS also believes the corrective action to re-invigorate the English label sales channel should be successful. Target unchanged at NZ$13.50.

Current Price is $5.96. Target price not assessed.

Current consensus price target is $6.43, suggesting upside of 4.4% (ex-dividends)

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: -0.3

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

Morgans rates ADI as Hold (3) -

In a results preview, Morgans expects FY21 funds from operations (FFO) guidance to be 19.7-19.9cps. Given preliminary revaluations have been announced, the analyst will focus on leasing across the portfolio.

The key near-term leasing risk remains focussed on the Link Market Services' [part of Link Administration Services ((LNK))] lease at Rhodes Corporate Park, which expires in September 2021, and comprises around 10% of income, notes the broker.

Morgans maintains its Hold rating and $3.28 target price. Results are due on August 18.

Target price is $3.28 Current Price is $3.32 Difference: minus $0.04 (current price is over target).
If ADI meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for 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 ALL as Outperform (1) -

Industry data suggest revenue from casinos is running ahead of Credit Suisse forecasts for the September half. Therefore, the broker upgrades FY21 yields to imply a September half year yield of US$54.68 in revenue per machine per day.

Partially offsetting this is a reduction to machine shipments as Aristocrat Leisure may be encountering supply constraints for key components such as screens.

The broker retains an Outperform rating and raises the target to $44.25 from $43.25.

Target price is $44.25 Current Price is $41.70 Difference: $2.55
If ALL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $43.52, suggesting upside of 3.3% (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

Credit Suisse rates ALQ as Outperform (1) -

Management has guided to first half net profit of $115-125m at its AGM. The recovery has continued in life sciences across all jurisdictions amid robust sample flow in geochemistry.

Credit Suisse expects a price uplift in geochemistry, more favourable samples and the Nuvisan acquisition will drive earnings growth in the second half.

The company has announced the acquisition of a 49% stake in Nuvisan for EUR145m with an option to require the remainder. Credit Suisse retains an Outperform rating and raises the target to $14.10 from $13.45.

Target price is $14.10 Current Price is $12.62 Difference: $1.48
If ALQ meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

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 ALQ as Outperform (1) -

The broker sees it as a positive that ALS was prepared to provide guidance at its AGM. The broker's profit forecast sits at the high end of the range. Strong momentum notable towards the end of FY21 has carried into early FY22.

Life Sciences has continued to see growth across all geographies, with LatAm bouncing back well after being the most covid-impacted. Sampling continues to benefit from the commodities cycle. The update should lead to consensus earnings upgrades, the broker believes.

The stock is still trading at a -12% PE discount to global peers. Outperform retained, target rises to $13.80 from $13.50.

Target price is $13.80 Current Price is $12.62 Difference: $1.18
If ALQ meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

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

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

At the company's recent AGM, ALS Ltd provided first-half FY22 net profit guidance in line with Morgan Stanley's estimates and announced the acquisition of Nuvisan to increase its service offering across the pharmaceuticals supply chain in Europe.

ALS will purchase 49% of the company for EUR145m with an exclusive call option to purchase the remaining 51%.

The broker thinks the deal terms are sensible given recent Life Sciences Pharma transactions including ALS's acquisition of
Investiga at 11x EV/EBITDA in Mar-21 and SGS' acquisition of SYNLAB for 16x earnings (12x post-synergies) in 2020.

Morgan Stanley has upgraded earnings estimates by 4% for FY22, 3% for FY23, and 3% for FY24 to $249m, $267m and
$282m to reflect the impact of the Nuvisan acquisition.

Equal-weight rating is retained. Target price increases to $13.10 from $12.90. Industry view: In-line.

Target price is $13.10 Current Price is $12.62 Difference: $0.48
If ALQ meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

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

Morgans rates ALQ as Hold (3) -

After a robust trading update, Morgans assesses first half FY22 guidance was broadly in-line with expectations though sees incremental earnings risk to the upside. The broker raises its target price to $12.45 from $11.56 and maintains its Hold rating.

The trading update showed to the analyst Life Sciences (LS) volume growth in all geographies, with a Latin American recovery. LS efficiency investment is expected to drive margin accretion. There was also considered to be strong volume growth in Geochem.

The Nuvisan acquisition (49% share) makes strategic sense to Morgans. It is estimated to double the company's pharma footprint and will provide a growth platform from a complementary geography.

Target price is $12.45 Current Price is $12.62 Difference: minus $0.17 (current price is over target).
If ALQ meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.13, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

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 ALQ as Hold (3) -

Ord Minnett assesses a positive 2021 AGM update this week, with ALS Ltd guiding to first-half FY22 net profit of $115-125m. The company also announced a 49% acquisition of pharmaceutical testing company NUVISAN, with a call option over the remaining 51%.

The acquisition makes strategic and financial sense to the analyst, with the downside protected via a put option.

The mid-point of net profit guidance represents a 49% increase on the same period a year earlier. Ord Minnett forecasts a net profit of $120.9m for the half, a 10% upgrade on previous estimates. The Hold rating is retained and the target rises to $12.30 from $11.40.

Target price is $12.30 Current Price is $12.62 Difference: minus $0.32 (current price is over target).
If ALQ 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 $13.13, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

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 ALQ as Neutral (3) -

ALS has introduced first half guidance for net profit of $115-125m, ahead of UBS estimates. The broker increases cash net profit forecasts by 7%. The company is experiencing growth across all key units. Geochemistry is benefiting from strong mineral exploration.

ALS has also acquired an additional 49% stake in pharmaceutical company Nuvisan, which will allow it to expand its pharmaceutical testing offering. UBS retains a Neutral rating and raises the target to $13.00 from $12.25.

Target price is $13.00 Current Price is $12.62 Difference: $0.38
If ALQ meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $13.13, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

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 ANN as Downgrade to Neutral from Outperform (3) -

As the pandemic has driven peak earnings, Credit Suisse expects volumes to remain elevated above pre-pandemic levels going forward. Yet prices are expected to normalise as demand/supply moves towards equilibrium in the next year or so.

While first half earnings are expected to be strong the current level is not considered sustainable and the broker lowers FY23 estimates by -10%.

As the stock is trading above its historical PE multiples, limited upside is envisaged and the rating is downgraded to Neutral from Outperform. Target is reduced to $44 from $47.

Target price is $44.00 Current Price is $40.13 Difference: $3.87
If ANN meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $44.99, suggesting upside of 13.6% (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: 0.5

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

Credit Suisse rates APE as Neutral (3) -

The company's update was strong and this drives a 19% upgrade to 2021 estimates. The main focus for Credit Suisse will be the extent to which the margin impact from a normalisation of new car supply will be offset by further cost efficiencies and uplift from the used car strategies.

The broker considers the current multiple is appropriate, given the uncertainty around sustainability. Eagers Automotive expects first half underlying operating pre-tax profit to be $218.6m, which is 26% ahead of the brokers prior estimate.

Neutral maintained. Target is raised to $16.10 from $15.70.

Target price is $16.10 Current Price is $15.99 Difference: $0.11
If APE meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $17.63, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates APE as Outperform (1) -

Eagers Automotive's quarterly update revealed demand continues to outstrip supply. Second half guidance has led the broker to increase its margin expectations.

While the broker expects demand/supply to reach equilibrium next year, it continues to see upside risk to consensus forecasts and sits 10% above consensus.

The broker estimates an 18x FY22 PE, which implies a -22% discount to the small industrials compared to a +4% five-year average. Outperform retained, target rises to $18.25 from $17.50.

Target price is $18.25 Current Price is $15.99 Difference: $2.26
If APE meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $17.63, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates APE as Overweight (1) -

Driven by a continuing narrative of demand rebound and elevated margins on low supply, Eagers Automotive delivered another strong trading update, with $218.6m in underlying first-half FY21 profit before tax, up 14% on Morgan Stanley estimates.

Commenting on the result, the broker notes 2021 new vehicle sales annualised at around 1.1m, well within historical range, while the US is expecting supply normalisation mid-2022 with current demand rebound.

While lockdowns may be a demand headwind, the broker suspects they would be mitigated by order backlog.

Overweight maintained. Target is $18. Industry view is In-Line.

Target price is $18.00 Current Price is $15.99 Difference: $2.01
If APE meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $17.63, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates APE as Add (1) -

Morgans lifts its EPS forecasts for FY21-FY23 by 10%, 20% and 20%, respectively, and raises its price target for Eagers Automotive to $19.20 from $17.39. This comes as the company is set to deliver first half profit (NPBT) 11% above the broker's forecast.

The analyst sees an increased likelihood of structurally higher margins, underpinned by an entrenched cost-out and other drivers. These are considered to include EA123 (online used cars), M&A, property buybacks and increasing penetration of Finance and Insurance. 

Target price is $19.20 Current Price is $15.99 Difference: $3.21
If APE meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $17.63, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates APE as Buy (1) -

Trading conditions were robust in the second quarter, as UBS notes supply/demand dynamics were supportive and there are ongoing synergies along with the seasonal benefit of end-of-financial-year sales. First half adjusted pre-tax profit was $218.6m.

The broker was impressed with the half-on-half improvement of 30%, given the prior half already benefited from multiple tailwinds.

The main issue going forward is how long demand will remain elevated and when supply pressures will start to ease. UBS reiterates a Buy rating and raises the target to $17.70 from $16.45.

Target price is $17.70 Current Price is $15.99 Difference: $1.71
If APE meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $17.63, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates AQR as Add (1) -

APN Convenience Retail is one of Morgans key picks leading into reporting season. It's expected FY22 guidance will be provided, and potentially further updates on acquisitions/development opportunities.

The REIT has been in acquisition mode over FY21, so the analyst thinks there may be further detail on future acquisition opportunities. It's estimated gearing currently sits around 31%. Morgans maintains its Add rating and $4.15 target price. Results are due on August 17.

Target price is $4.15 Current Price is $3.66 Difference: $0.49
If AQR meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

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

Morgans rates AVN as Add (1) -

In a results preview for Aventus Group, Morgans expects a general trading update across the portfolio and FY22 guidance to be provided. Funds from operations (FFO) guidance is expected to be 19.4c, up 7% on the previous corresponding period.

Occupancy was 98.5% at December, so the analyst is looking for an update on recent leasing outcomes and trends. Morgans maintains its Add rating and $3.26 target price. Results are due on August 18.

Target price is $3.26 Current Price is $3.11 Difference: $0.15
If AVN meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.06, suggesting downside of -1.7% (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 BHP as Overweight (1) -

BHP and Noront Resources have entered into a definitive Support Agreement whereby BHP is to acquire all issued and
outstanding common shares of Noront for cash CA$0.55/sh or CA$325m  on a 100% basis.

Noront has an early-stage project pipeline of base metals, platinum group metals, chromite, and diamond assets in Canada, with the most advanced project being the Nickel/Copper/PGM Eagle's Nest asset.

Morgan Stanley favourably views the optionality that BHP is building to develop assets with exposure to future-facing commodities that could enhance its overall growth profile and earnings power.

Overweight rating. Target price increases to $53.95 from $51. Industry view: Attractive. 

Target price is $53.95 Current Price is $52.47 Difference: $1.48
If BHP meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $51.06, suggesting downside of -4.3% (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

Morgans rates BHP as Hold (3) -

Morgans makes adjustments to near-term iron ore forecasts, resulting in further upgrades to earnings estimates and dividend expectations for FY21 and FY22. However, despite strong fundamentals, it's thought current demand conditions are unsustainable.

The broker now forecasts 2021 iron ore at US$167/t (was US$160/t), 2022 at US$109/t (was US$99/t) and 2023 at US$87/t (was US$85/t).

Morgans raises its target price for BHP Group to $45.50 from $44.70 and maintains its Hold rating. It's considered the investment appeal will be focused on the dividend profile.

Target price is $45.50 Current Price is $52.47 Difference: minus $6.97 (current price is over target).
If BHP meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $51.06, suggesting downside of -4.3% (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

Morgans rates CIP as Hold (3) -

In a results preview for Centuria Industrial REIT, Morgans expects funds from operations (FFO) guidance to be no less than 17.6 cents. It's thought FY22 guidance will be provided with the result.

The broker forecasts FY22 FFO growth of 3.7% (18.4 cents), DPS of 17.5c, and expects catalysts relate to further asset revaluations and accretive acquisitions. Morgans maintains its Hold rating and $3.71 target price. Results are due on August 5.

Target price is $3.71 Current Price is $3.78 Difference: minus $0.07 (current price is over target).
If CIP meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.77, suggesting upside of 0.4% (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 CMW as Hold (3) -

In a results preview for Cromwell Property Group, Morgans expects focus will be on outlook comments, FY22 distribution guidance and a strategy update following recent board changes.

The broker expects revaluations with the result, and based on peer revaluations, doesn't expect a material move in Australian core asset values. However, there's considered downside risk to the Polish assets, and likely upside risk for the European logistics properties.

Morgans maintains its Hold rating and $1.14 target price. Results are due on August 26.

Target price is $1.14 Current Price is $0.88 Difference: $0.26
If CMW meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges).

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 COF as Hold (3) -

In a results preview for Centuria Office REIT, Morgans expects FY21 funds from operations (FFO) to be at the upper end of guidance range of 19.7-19.9c, versus 18.6c in the previous corresponding period.

The broker expects FY22 guidance to be provided with the result, and currently forecasts FFO of 18.5c with upside and downside risk relating to leasing outcome. Morgans maintains its Hold rating and $2.49 target price. Results are due on August 3.

Target price is $2.49 Current Price is $2.46 Difference: $0.03
If COF meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting downside of -7.5% (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 COH as Hold (3) -

Ord Minnett has increased its earnings forecasts for Cochlear in FY21 and FY22, due to strong June quarter results from US peers, which indicates elective procedure volumes have rebounded. Also, discussions with US Cochlear clinics confirmed patient numbers are rising. 

While the resurgence of covid-19 in developing countries is worrisome, the earnings impact should be manageable, given that such regions account for about 20% of revenues, explains the broker.

The analyst expects further growth in implant volumes in FY22, even allowing for some share loss to Advanced Bionics, recently acquired by Swiss rival Sonova. The broker lifts its target price to $230 from $216 and retains its Hold rating.

Target price is $230.00 Current Price is $243.59 Difference: minus $13.59 (current price is over target).
If COH 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 $219.30, suggesting downside of -11.6% (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

Ord Minnett rates CRW as Buy (1) -

Ord Minnett highlights the recent June quarterly report was highlighted by a 41% jump in cash receipts versus the previous corresponding period. There was also a 39% increase in active members, and a 50% rise in total transaction value (TTV), ex-gift cards and travel.

The broker notes the TTV growth is pleasing, indicating that utilisation among the member base continues to climb. Ord Minnett maintains its Buy rating and $2.10 target price.

Target price is $2.10 Current Price is $0.90 Difference: $1.2
If CRW meets the Ord Minnett target it will return approximately 133% (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

UBS rates CTD as Buy (1) -

Successful vaccination roll-out across the US and UK looks set to drive a re-opening of travel industries yet Australia is lagging with another setback amid further lockdowns in NSW.

The broker favours those stocks with greater exposure to a faster-re-opening, domestic travel and/or specific tailwinds. UBS reiterates a Buy rating for Corporate Travel and raises the target to $24 and $22.

Target price is $24.00 Current Price is $21.10 Difference: $2.9
If CTD meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $22.22, suggesting upside of 1.7% (ex-dividends)

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 CVN as Neutral (3) -

Carnarvon Petroleum's June quarer cash burn was in line with expectation. A high impact drilling period is approaching in the first half, with the broker seeing upside potential.

But the broker would like to see a de-risking of funding for Dorado -- partial sell-down or new debt facility -- before becoming more positive. Neutral retained, target dips to 30c from 31c.

Target price is $0.30 Current Price is $0.26 Difference: $0.04
If CVN meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

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

Credit Suisse rates DHG as Upgrade to Outperform from Neutral (1) -

Credit Suisse reviews listings growth forecasts to take into account an unseasonably strong end to FY21. The broker now models 28.5% volume growth in listings for Domain Holdings in the second half.

Changes to earnings estimates reflect a pulling forward of volume growth into FY21 and heading into FY22 the broker assumes just 2% growth in listings.

Rating is upgraded to Outperform from Neutral with upside envisaged in current trading levels. Target is raised to $5.40 from $5.15.

Target price is $5.40 Current Price is $4.72 Difference: $0.68
If DHG meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.03, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in May.

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

Morgans rates FDV as Add (1) -

At an aggregate level, the first half/second quarter update was in-line with Morgans estimates, and showed a strong rebound in most businesses. The broker makes minor changes to its forecasts, increases its target price to $1.65 from $1.61 and maintains the Add rating.

Like-for-like pro forma revenue growth of 46% on the first half (86% including acquisitions) is more impressive, taking into account the around -10-30% negative FX impact across the portfolio, explains the analyst.

Target price is $1.65 Current Price is $1.50 Difference: $0.15
If FDV meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

UBS rates FLT as Neutral (3) -

Successful vaccination roll-out across the US and UK looks set to drive a re-opening of travel industries yet Australia is lagging with another setback amid further lockdowns in NSW.

The broker favours those stocks with greater exposure to a faster-re-opening, domestic travel and/or specific tailwinds. UBS maintains a Neutral rating and lowers the target for Flight Centre to $16.10 from $17.70.

Target price is $16.10 Current Price is $14.47 Difference: $1.63
If FLT meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $16.74, suggesting upside of 15.1% (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 FMG as Outperform (1) -

Fortescue Metals Group's Q4 market update, released earlier today, surprised through both shipments and realised pricing, so no wonder Macquarie concludes it has been a strong quarter.

Upon initial assessment, Macquarie also notes the cash position is no less than 36% better than expected, but guidance for FY22 is seen as rather "mixed".

According to the fresh guidance, both capex and costs will be higher than forecast. Macquarie points out the shares are currently implying a FY22 dividend yield of 10%, which becomes 20% if spot prices hold at the present level.

Outperform maintained with price target of $27.

Target price is $27.00 Current Price is $25.81 Difference: $1.19
If FMG meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $22.52, suggesting downside of -14.2% (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

Morgans rates FMG as Reduce (5) -

Morgans makes adjustments to near-term iron ore forecasts, resulting in further upgrades to earnings estimates and dividend expectations for FY21 and FY22. However, despite strong fundamentals, it's thought current demand conditions are unsustainable.

The broker now forecasts 2021 iron ore at US$167/t (was US$160/t), 2022 at US$109/t (was US$99/t) and 2023 at US$87/t (was US$85/t).

Morgans raises its target price for Fortescue Metals Group to $20 from $18.80 and maintains its Reduce rating. It's considered the company looks overvalued, even relative to its exceptional short-term dividend profile. 

Target price is $20.00 Current Price is $25.81 Difference: minus $5.81 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.52, suggesting downside of -14.2% (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

Ord Minnett rates FMG as Buy (1) -

Fortescue Metals earlier today released its Q4 performance report and Ord Minnett, upon initial glance, sees positives and negatives. Shipments were above expectations, but the same applies to costs, in particular when taking into account guidance for FY22.

The broker does believe the high net cash balance sets the company up well to deliver a strong dividend with the August results.

Target price is $30.00 Current Price is $25.81 Difference: $4.19
If FMG meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $22.52, suggesting downside of -14.2% (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

Morgans rates GDF as Add (1) -

In a results preview for Garda Property Group, Morgans expects FY22 guidance to be provided, and further detail on the industrial pipeline rollout.

The broker notes catalysts include successful leasing outcomes at Botanicca 9, execution of the project pipeline and asset re-ratings. It's thought there is medium-term upside to net tangible assets, given the medium-term industrial pipeline which will roll-out. 

Morgans maintains its Add rating and $1.46 target price. Results are due on August 12.

Target price is $1.46 Current Price is $1.32 Difference: $0.14
If GDF meets the Morgans target it will return approximately 11% (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

Credit Suisse rates GMG as Outperform (1) -

Goodman Group rarely looks "cheap", Credit Suisse exclaims, and it certainly doesn't at present, but the broker expects continued outperformance and retains an Outperform rating. The broker revises FY22-23 estimates up by 2.9-4.8%.

The main changes reflect upward revisions to development work in progress and annual completion estimates.

The business has consistently delivered earnings growth well above the A-REIT sector average over recent years and Credit Suisse expects it to remain a leader over the next 2-3 years. Target is raised to $24.15 from $19.62.

Target price is $24.15 Current Price is $22.75 Difference: $1.4
If GMG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $22.32, suggesting downside of -0.8% (ex-dividends)

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 GOR as Outperform (1) -

Having warned the market an unplanned mill stoppage at Gruyere would impact output, Gold Road Resources' June quarter was in line with expectation. Management continues to suggest 2021 production will at the low end of guidance, with which the broker concurs.

Delivery on mining and process plant optimisation programs at Gruyere is key to the miner's outlook, the broker suggests. Outperform and $1.50 target retained.

Target price is $1.50 Current Price is $1.27 Difference: $0.23
If GOR meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 HDN as Add (1) -

HomeCo Daily Needs REIT is one of Morgans key picks leading into reporting season. It's expected FY22 funds from operations (FFO) guidance will be reiterated, as well as an update on the brownfield development pipeline.

The broker believes key catalysts relate to the inclusion into the ASX300/200 indices, accretive acquisitions and developments, leasing successes and asset re-ratings. Morgans retains its Add rating and $1.56 target price. Results are due on August 18.

Target price is $1.56 Current Price is $1.48 Difference: $0.08
If HDN meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.56, suggesting upside of 7.6% (ex-dividends)

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 HMC as Add (1) -

In a results preview for Home Consortium, Morgans expects funds from operations (FFO) guidance to be no less than $35m or 12.9 cents. Further detail on the HealthCo transaction and FY22 guidance is expected to be provided.

The broker notes the key swing factors to forecasts will relate to the timing and quantum of acquisitions/divestments, and the timing/roll-out of new funds.

Morgans maintains its Add rating and $5.01 target price. Results are due on August 25.

Target price is $5.01 Current Price is $5.55 Difference: minus $0.54 (current price is over target).
If HMC meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.64, suggesting downside of -21.2% (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

Morgans rates HPI as Add (1) -

Hotel Property Investments is one of Morgans key picks leading into reporting season. It's expected FY22 guidance will be provided, as well as revaluations as at June 2021.

The broker also expects FY22 DPS guidance to be provided (Morgans forecasts 20.7c). Morgans retains its Add rating and $3.52 target price. Results are due on August 17.

Target price is $3.52 Current Price is $3.28 Difference: $0.24
If HPI meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

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

Macquarie rates HVN as Outperform (1) -

Ahead of Harvey Norman's FY21 result, the broker has raised its target price to $6.40 from $6.00. The broker is expecting a boom in home-related spending in the second half 2021.

Temple & Webster's ((TPW)) strong FY21 result provides a positive read-through. The broker expects a solid dividend to be announced, as management rewards shareholders with the taxpayer-funded JobKeeper subsidies it refused to return.

Outperform retained.

Target price is $6.40 Current Price is $5.65 Difference: $0.75
If HVN meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.93, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates IAG as Outperform (1) -

As the New South Wales Premier has extended the lockdown to August 28, this could have a material impact on earnings with regards to motor claims and business interruption provisions.

As lockdowns restricted movement in 2020 the company's motor book benefited from claim savings and less driving, Credit Suisse observes.

There are $1.2bn in provisions for potential business interruption claims but Insurance Australia is confident no further provisions will be necessary for the current lockdowns.

Credit Suisse upgrades FY22 cash net profit estimates by 5% and raises the target to $5.60 from $5.40. Outperform maintained.

Target price is $5.60 Current Price is $4.90 Difference: $0.7
If IAG meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.27, suggesting upside of 7.4% (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

Citi rates IFL as Buy (1) -

June quarter cash flow was better than Citi expected with positive flows for platforms and investment management.

The broker continues to believe IOOF offers value, although expects further information at the August 26 result will be more relevant for future stock performance.

Net outflows from financial advice were large but not as large as Citi had feared. The broker retains a Buy rating and target of $4.95.

Target price is $4.95 Current Price is $4.26 Difference: $0.69
If IFL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting upside of 16.0% (ex-dividends)

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

Credit Suisse rates IFL as Outperform (1) -

IOOF Holdings has noted expense synergies will be delayed and run rate expense synergies of $65-80m will be realised in FY22 from the ANZ Bank and MLC acquisitions.

Funds under administration from MLC are tracking ahead of Credit Suisse estimates while the remainder (IOOF, ANZ) are marginally behind.

The broker reiterates an Outperform rating, noting value in the stock, and lowers the target to $5.20 from $5.30.

Target price is $5.20 Current Price is $4.26 Difference: $0.94
If IFL meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting upside of 16.0% (ex-dividends)

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

Morgan Stanley rates IFL as No Rating (-1) -

On balance, Morgan Stanley believes IOOF Holdings' update, which included a mixed-bag inflows and outflows, saw core parts of the company performing well.

Ex advice, total flows with pension payments were negative at -$650m, while positive flows from flagship platforms and workplace products, and investment management were $390m, and $90m respectively.

Funds under management were in line with the broker's forecasts at $206.5bn, ex the +$6.6bn index fund reclassification.

Morgan Stanley is currently restricted on rating and target. Industry view: In-Line.

Current Price is $4.26. Target price not assessed.

Current consensus price target is $4.92, suggesting upside of 16.0% (ex-dividends)

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

Ord Minnett rates IFL as Buy (1) -

Ord Minnett maintains its Buy rating on IOOF Holdings, and raises its target price to $4.60 from $4.10, due to an undemanding valuation. This follows an update on the company's funds under management and administration (FUMA) and fund flows for the June quarter. 

Outflows were -$1.8bn, broadly in-line with the analyst's estimate, reflecting the exit of some 33 advisers and circa -$2.2bn of FUM. Management says the latter were not suited to the economic and governance requirements of a professional advice model.

Meanwhile, Platforms inflows of $606m were well ahead of the broker's forecast, and Investment management inflows of $90m were ahead of an estimated outflow of -$218m.

Target price is $4.60 Current Price is $4.26 Difference: $0.34
If IFL meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.92, suggesting upside of 16.0% (ex-dividends)

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

Citi rates IGO as Neutral (3) -

June quarter production was strong with Citi noting nickel cash costs dropped as low as $1.28/lb. FY22 nickel production guidance is higher than the broker expected although costs are also higher.

The broker raises FY22 operating earnings estimates by 9% and net profit estimates by 16%. Target is raised to $9.00 from $7.80. Neutral maintained.

Target price is $9.00 Current Price is $8.92 Difference: $0.08
If IGO meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting downside of -13.7% (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 IGO as Neutral (3) -

Credit Suisse notes a strong finish to production in FY21. The main focus is on the recently-acquired Silver Knight deposit which has a 2018 mineral resource estimate of 4.2mt at 0.8% nickel/0.6% copper.

The broker points out this is weathered material and not amenable to processing at Nova.

Credit Suisse notes no further news was delivered on lithium as the company is still in negotiations. Neutral maintained, with the lithium price considered the main risk to valuation. Target is raised to $8.65 from $8.30.

Target price is $8.65 Current Price is $8.92 Difference: minus $0.27 (current price is over target).
If IGO meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.73, suggesting downside of -13.7% (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 IGO as Outperform (1) -

IGO posted a strong quarter, with both Nova and Tropicana solidly beating on production and costs. FY22 guidance for Nova is broadly in line with expectation.

IGO has not yet provided guidance for the Greenbushes lithium project still in the ramp-up phase. This, and the commissioning of Kwinana Hydroxide, which should have Train 1 up and running late this year, are key to the broker's outlook.

Outperform retained, target rises to $10.00 from $9.60.

Target price is $10.00 Current Price is $8.92 Difference: $1.08
If IGO meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.73, suggesting downside of -13.7% (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 IGO as Underweight (5) -

IGO's FY22 guidance is -9% weaker on nickel and 4% higher on costs.

Nova had a strong finish to the year with fourth-quarter production 6% and 14% higher for nickel and copper versus Morgan Stanley, driven by higher grades being mined.

The broker notes costs for FY22 are around 36% higher than consensus forecasts. Underweight rating retained. The target price remains at $6.40. Industry view: Attractive.

Target price is $6.40 Current Price is $8.92 Difference: minus $2.52 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.73, suggesting downside of -13.7% (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

Morgans rates JHC as Hold (3) -

Morgans maintains its Hold rating and raises its target price to $1.40 from $1.20, after the company announced a higher bid of $1.40 from Little Company of Mary Health Care Ltd (Calvary), which has been recommended by the board.

Given the share price has rallied close to the bid price, the analyst suggests more aggressive investors may be interested to consider selling. It's thought funds may be redirected to the other listed aged care operators Regis Healthcare ((REG)) or Estia Health ((EHE)). 

Target price is $1.40 Current Price is $1.38 Difference: $0.02
If JHC meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.06, suggesting downside of -22.9% (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

Morgans rates KLL as Add (1) -

In the wake of a fourth quarter activities report, Morgans maintains its current production forecasts, awaiting further detail on expansion plans and associated costs. The broker maintains its Add rating and $0.29 target price.

Management announced the Beyondie project is 90% complete. With 60kt of salt stockpiled in preparation for production, the company appears well placed for commissioning, suggests the analyst.

The broker wants to see further detail on the 120ktpa expansion study, and any financing associated with it, before adjusting any base case assumptions.

Target price is $0.29 Current Price is $0.21 Difference: $0.08
If KLL meets the Morgans target it will return approximately 38% (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

Citi rates LVT as Neutral (3) -

The quarterly result was more positive, Citi observes, compared with recent quarters. Cash burn has reduced to -$1.2m, driven by strong cash receipts.

The recent increase in large client wins is encouraging and validates the product suite, in the broker's view, yet a Neutral/High Risk rating is maintained ahead of more consistent execution. Target is reduced to $0.18 from $0.19.

Target price is $0.18 Current Price is $0.15 Difference: $0.03
If LVT meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

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

Citi rates MGX as Buy (1) -

Shipments for June quarter were largely in line with Citi's estimates. The cash balance at the end of the quarter was reduced to $365m, largely on account of pre-stripping at Koolan Island, capital projects and the Shine development.

Citi maintains a Buy/High Risk rating and reduces the target to $1.15 from $1.25.

Target price is $1.15 Current Price is $0.91 Difference: $0.24
If MGX meets the Citi target it will return approximately 26% (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 MGX as Outperform (1) -

Advanced stipping continued in the June quarter and is expected to continue through the first half FY22, dragging down grades and sales for Mt Gibson Iron. Reaslised iron ore prices were weak in the quarter, some -64% below benchmark, the broker notes.

While weak pricing is expected to linger, iron prices in general continue to support earnings momentum, with significant earnings upside at current spot prices compared to the broker's forecast prices.

Outperform retained, target falls to $1.10 fom $1.20.

Target price is $1.10 Current Price is $0.91 Difference: $0.19
If MGX meets the Macquarie target it will return approximately 21% (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 MX1 as Add (1) -

After the company's fourth quarter cash flow report, Morgans notes lower-than-expected sales, and a higher cost base as US operations build. It's believed the business structures are now in place to drive revenue and profits higher.   

The analyst lowers the FY21 forecasts to reflect the higher cost base and lower sales, and after rolling the financial model forward, the target price has moved to $0.60 from $0.61. The Add rating is maintained.

Target price is $0.60 Current Price is $0.30 Difference: $0.3
If MX1 meets the Morgans target it will return approximately 100% (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 MYD as Add (1) -

After a fourth quarter update, Morgans notes solid momentum into year-end, despite the company cycling a highly-elevated base, boosted by covid. Quarterly cash burn improved to just -$1.4m, while key operating metrics are estimated to be to trending in the right direction.

While the company will continue to cycle strong growth over the balance of 2021, positive growth in the fourth quarter provides some comfort to the analyst. 

Morgans thinks the risk/reward proposition at current levels is attractive and maintains its Add rating. The broker's target price falls to $1.10 from $1.24, due to lower operating cash flow assumptions.

Target price is $1.10 Current Price is $0.66 Difference: $0.44
If MYD meets the Morgans target it will return approximately 67% (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 MYX as Upgrade to Neutral from Underperform (3) -

Prescription data highlight weaker second half FY21 trends for Mayne Pharma's generic and specialised products. But in the medium term, Macquarie's forecasts assume strong contributions from key pipeline products, mainly Nexstellis.

This, and recent stock underpformance, lead the broker to upgrade to Neutral from Underperform. Target falls to 33c from 38c.

Target price is $0.33 Current Price is $0.32 Difference: $0.01
If MYX meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $0.36, suggesting upside of 13.3% (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 NEC as Buy (1) -

Ord Minnett sees continued strength in free-to-air media spending levels, and the transition to digital formats such as broadcaster (BVOD) and subscription (SVOD) video on demand. The broker maintains its Buy rating and $3.50 target price. 

In the first half, the company maintained its prime-time leading position, with a ratings share of 38% versus 38.6% in the first half. The analyst increases Stan sports costs in FY21 and FY22, due to new additional rights.

Target price is $3.50 Current Price is $2.80 Difference: $0.7
If NEC meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.35, suggesting upside of 18.8% (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 NIC as Buy (1) -

The June quarter production result was weaker than Citi expected. Realised pricing was also lower at 81.5% of LME levels. This is expected to improve going forward while costs should move lower as coal prices (input cost) retrace.

Citi reduces 2021 net profit estimates by -15%. A Buy/High Risk rating is maintained with the broker looking to FY23 for production increases. Target is $1.30.

Target price is $1.30 Current Price is $1.05 Difference: $0.25
If NIC meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Credit Suisse rates NIC as Outperform (1) -

The company maintained solid earnings over the June quarter with US$51m in EBITDA. June quarter production was 10,100t of nickel in nickel pig iron. Costs rose 5%, primarily because of the price of coal.

The price of nickel and nickel pig iron are the primary catalysts, Credit Suisse asserts, although, while construction is progressing at Angel any delays resulting from the pandemic may be significant. Outperform retained. Target is $1.40.

Target price is $1.40 Current Price is $1.05 Difference: $0.35
If NIC meets the Credit Suisse target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

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

Nickel Mines' June quarter featured lower than expected production and higher than expected costs, leading Macquarie to cut earnings forecasts by -6-10%. While the nickel price is enjoying a run, so is the price of smelter input coal.

That pressure is not expected to abate, and the broker notes its FY22 earnings forecast is now -28% below consensus.

Downgrade to Neutral from Outperform, target falls to $1.10 from $1.25.

Target price is $1.10 Current Price is $1.05 Difference: $0.05
If NIC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.27, suggesting upside of 14.1% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Morgans rates NSR as Hold (3) -

In a results preview for National Storage REIT, Morgans expects, based on the strong trading update as at April, occupancy and pricing to have been maintained in the fourth quarter.

It's thought there may be news on potential acquisitions and development/value add opportunities, given current balance sheet capacity.

Morgans maintains its Hold rating and $2.04 target price. Results are due on August 25.

Target price is $2.04 Current Price is $2.16 Difference: minus $0.12 (current price is over target).
If NSR meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.04, suggesting downside of -3.7% (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 NTO as Overweight (1) -

Nitro Software has re-affirmed FY21 US$39-42m annual recurring revenue (ARR) guidance in its second-quarter FY21 update, but
upgraded revenue to US$47-50m, up 3% from US$45-49m, and earnings loss to –US$9-11m, from -US$11-13m.

Commenting on the update, Morgan Stanley wants to better understand the updated ARR calculation and guidance implications – and notes the new ARR definition lifts FY20 ARR base to US$28.5m from US$27.7m, but FY21 guidance range was unchanged.

Morgan Stanley retains an Overweight rating. Target is $3.70. Industry view: In-line.

Target price is $3.70 Current Price is $3.27 Difference: $0.43
If NTO meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 1.0

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

Ord Minnett rates NXT as Buy (1) -

NextDC announced the acquisition of a new data centre site in Western Sydney (S4). Ord Minnett believes it make sense to play a more active role in the hyperscale data centre market, and leverage existing customer relationships with hyperscale cloud providers.

The broker notes a long lead time until S4 begins construction, and expects investor attention will be predominantly focused on the current building pipeline at S2/S3 and M2/M3. Ord Minnett maintains its Buy rating and $14.50 target price.

Target price is $14.50 Current Price is $12.43 Difference: $2.07
If NXT meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $14.09, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

UBS rates NXT as Buy (1) -

NextDC will enter the wholesale market with a 300MW campus to be built in western Sydney which will have potential capacity almost as large as that of the entire current portfolio.

The company has purchased a $124m site in Horsley Park for the new S4 data centre. Pending further details, UBS does not incorporate this development into forecasts as yet and maintains a Buy rating with an unchanged $15.40 target.

Target price is $15.40 Current Price is $12.43 Difference: $2.97
If NXT meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $14.09, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

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

Underground mining activities have commenced at Savannah ahead of schedule, and the company reaffirms ore processing is scheduled to commence in November. The first concentrate shipment is forecast for December.

Morgans upgrades its rating to Add from Hold, and increases its target price to $0.19 from $0.18 as the project continues to de-risk. 

Management has flagged the potential for Savannah to exceed a number of the cost and production estimates used in the feasibility study, though the analyst maintains them as the base case, until performance is demonstrated.

Target price is $0.19 Current Price is $0.17 Difference: $0.02
If PAN meets the Morgans target it will return approximately 12% (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

Credit Suisse rates REA as Neutral (3) -

Credit Suisse upgrades volume growth estimates to factor in the strength in new listings and is now looking for 30% volume growth in the second half. The broker expects some dilution in the growth rate from lower rental, developer and commercial volumes.

While positive, the broker notes volume growth largely reflects a pulling forward and volumes are likely to be up by a more moderate 4% in FY22. Neutral maintained. Target rises to $152 from $148.

Target price is $152.00 Current Price is $159.18 Difference: minus $7.18 (current price is over target).
If REA meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $160.08, suggesting downside of -1.8% (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 RHC as Outperform (1) -

The broker has trimmed its near term forecasts for Ramsay Health Care to account for the impact of lockdowns. Medium term, prior lockdowns extended non-urgent public waiting lists and Ramsay is well placed to alleviate the strain, the broker notes.

Longer term, an ageing population and above-industry growth driven by brownfield investment underpin.

Target falls to $73.35 from $74.75, Outperform retained.

Target price is $73.35 Current Price is $63.69 Difference: $9.66
If RHC meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $68.18, suggesting upside of 6.4% (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 RIO as Buy (1) -

First half underlying earnings were in line with Citi's expectations. The broker notes the company's reluctance to be pinned down on Pilbara system capacity post Koodaideri. Citi assumes lower Pilbara tonnage in 2021-24 of 325-348mt.

Construction at Jadar will start in 2022 so the broker assumes the company must be confident of getting necessary approvals in place quickly.

If there is no resolution to the current difficulties at Richards Bay, Rio Tinto will now need to shut in all furnaces by the end of August. Buy rating and $135 target maintained.

Target price is $135.00 Current Price is $132.22 Difference: $2.78
If RIO meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $135.00, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates RIO as Outperform (1) -

A strong result from Rio Tinto was in line with expectation, with solid iron ore prices leading that division to post 80% of group earnings, the broker notes. The highlight, of course, was a combined ordinary/special dividend equating to a 75% payout of earnings.

Momentum is ongoing and the broker makes only modest changes to forecasts. Outperform and $162 target retained.

Target price is $162.00 Current Price is $132.22 Difference: $29.78
If RIO meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $135.00, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

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

Morgan Stanley estimates Rio Tinto's first half total dividend of US$5.61 was 6% above consensus and 19% ahead of the broker's estimate. Net cash was higher than expected, while earnings (EBITDA) were considered in-line with consensus and just under the broker.

At the divisional level, Energy & Minerals and Aluminium earnings were -US$0.1-0.3bn below the analyst's estimates, on higher costs. Meanwhile, FY22 and FY23 capex guidance was unchanged.

This guidance already includes projected spending on the Jadar lithium-borates project in Serbia, which management recently committed to spending -US2.4bn to develop.

In spite of the positive results, Morgan Stanley remains Equal-weight with a target price of $127. Industry view is In-Line. 

Target price is $127.00 Current Price is $132.22 Difference: minus $5.22 (current price is over target).
If RIO meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $135.00, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates RIO as Hold (3) -

Morgans assesses a solid first half financial result, slightly ahead of consensus, with strong metal prices helping to overcome a weak half in operational terms. The broker upgrades short term iron ore prices on current spot strength, and raises its target price to $123 from $120.

The bumper interim ordinary dividend of US$3.76 and the special dividend of US$1.85 were a highlight for the analyst, who had estimated US$4 in total.

Separately, Morgans makes adjustments to near-term iron ore forecasts, resulting in further upgrades to earnings estimates and dividend expectations for FY21/22. However, despite strong fundamentals, it's thought current demand conditions are unsustainable.

The broker now forecasts 2021 iron ore at US$167/t (was US$160/t), 2022 at US$109/t (was US$99/t) and 2023 at US$87/t (was US$85/t).

Target price is $123.00 Current Price is $132.22 Difference: minus $9.22 (current price is over target).
If RIO meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $135.00, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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 RIO as Buy (1) -

First half 2021 underlying earnings of US$12.2bn, were in-line with Ord Minnett’s forecast. The US$5.61 dividend was also estimated in-line, and represented a payout ratio of 75% of EPS.

The broker notes the Jadar lithium development has been approved for -US$2.4bn. In the longer term, it's expected the current wave of investment will to lead to a more sustainable performance.

Morgans reduces its EPS forecasts by -5% in 2021 and -7% in 2022, on more conservative production and cost assumptions. The broker lowers its target price to $161 from $165 and maintains its Buy rating.

Target price is $161.00 Current Price is $132.22 Difference: $28.78
If RIO meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $135.00, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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 RIO as Sell (5) -

Interim underlying operating earnings (EBITDA) were up 118% yet slightly lower than UBS anticipated. The broker believes iron ore is the main driver of the stock and the risk/reward is skewed to the downside despite the short-term cash returns.

The company has announced $2.4bn in funding for the Jadar project and noted, at Richards Bay Minerals, one furnace has been shut because of limited feedstock. If there is no improvement by August, Rio Tinto will need to shut the remaining three.

There was no further information on the Oyu Tolgoi undercut or Simandou. Sell rating and $104 target unchanged.

Target price is $104.00 Current Price is $132.22 Difference: minus $28.22 (current price is over target).
If RIO meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $135.00, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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 SBM as Downgrade to Neutral from Buy (3) -

Gwalia is showing signs of improvement, Citi observes, while production at Simberi and Atlantic will drop over FY22/23.

FY22 production guidance relies heavily on replicating the June quarter performance at Gwalia which Citi believes will raise concerns, given the poor performance in the past.

The broker believes gold prices have peaked and trims the target to $1.75 from $2.30 while downgrading to Neutral/High Risk from Buy/High Risk.

Target price is $1.75 Current Price is $1.75 Difference: $0
If SBM meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 27.2% (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 SBM as Underperform (5) -

On further review the broker found St Barbara's June quarter mixed, with production missing but costs beating expectation. FY22 guidance was weaker than expected, and a plan to process stockpiles at Atlantic in FY23 also reduces the broker's outlook.

The broker retains Underperform and cuts its target to $1.60 from $1.70, while noting upside risk from spot gold prices being above the broker's forecasts.

Target price is $1.60 Current Price is $1.75 Difference: minus $0.15 (current price is over target).
If SBM meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.20, suggesting upside of 27.2% (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 SBM as Overweight (1) -

Largely due to delays to the Simberi mill restart and weaker grades at short life Atlantic Gold mine Touquoy, St Barbara's FY22 guidance is -12% below Morgan Stanley estimates, however all-in costs were 11% better.

The broker notes while delays are a blow to FY22 earnings, this gold has not been lost and will be deferred to future year production.

Processing at the Simberi mill is expected to restart by late second quarter with the commissioning of the new deep-sea tailings placement pipeline.

Overweight rating. Target is $2.70. Industry view is Attractive.

Target price is $2.70 Current Price is $1.75 Difference: $0.95
If SBM meets the Morgan Stanley target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 27.2% (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 SHV as Buy (1) -

FY21 crop pricing has benefited from higher almond market prices. Citi assumes average almond prices of $6.30/kg for Select Harvests but acknowledges current market pricing could present further upside.

The broker remains constructive on FY22 pricing, noting potential downside risk to the US 2021 crop forecast with the prospect of a multi-year drought affecting yields. Buy rating and $8.10 target maintained.

Target price is $8.10 Current Price is $7.66 Difference: $0.44
If SHV meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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

UBS rates SHV as Buy (1) -

Select Harvests has noted current market prices have increased to $6.75-7.25/kg while 65% of its FY21 crop is committed at a range of $6.15-6.45/kg.

UBS believes the improving price trajectory reflects the continuing severity of the Californian drought along with strong recovery in demand.

The company has also noted increased inshell demand from China/India and improved quality. UBS lifts earnings estimates for FY21 to reflect the higher prices but leaves FY22 unchanged. Buy rating and $8.70 target retained.

Target price is $8.70 Current Price is $7.66 Difference: $1.04
If SHV meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 SKI as Hold (3) -

Spark Infrastructure Group has received a revised, indicative, non-binding, and conditional bid from the OTPP/KKR consortium. The bid is all-cash at $2.95, less the first half DPS already declared of 6.25 cents, hence the implied consideration of $2.8875, explains the analyst.

It appears to the broker that the company is edging towards a takeover. It's estimated the current share price implies a close to 100% probability that the deal proceeds at the current price. Morgans lifts its target price to $2.89 from $2.80 and maintains the Hold rating.

Target price is $2.89 Current Price is $2.74 Difference: $0.15
If SKI meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $2.58, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in December.

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 SSM as Buy (1) -

In what Ord Minnett considers a landmark event for Service Stream, the company has acquired the Lendlease ((LLC)) Services business for -$310m. It's thought this will add scale, greater customer diversity and a multi-year pipeline of work to the group.

The broker notes this will add greenfield segments in transport infrastructure and energy utilities, as well as deepening the existing market position in telco and water infrastructure services.

The analyst believes that $17m of cost synergies are achievable within 18-24 months, and the acquisition is 17% accretive to the broker's FY22 pro-forma forecasts, or 30% assuming full synergy capture.

Ord Minnett retains its Buy rating and raises the target to $1.42 from $1.41.

Target price is $1.42 Current Price is $0.93 Difference: $0.49
If SSM meets the Ord Minnett target it will return approximately 53% (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

Credit Suisse rates SUN as Neutral (3) -

As the New South Wales Premier has extended the lockdown to August 28, this could have a material impact on earnings with regards to motor claims and business interruption provisions.

As lockdowns restricted movement in 2020 the company's motor book benefited from claim savings and less driving, Credit Suisse observes.

There are $214m in provisions for potential business interruption claims and the broker expects limited exposure from the current lockdown. Credit Suisse upgrades FY22 cash net profit estimates by 4% and raises the target to $12.20 from $11.95. Neutral maintained.

Target price is $12.20 Current Price is $11.56 Difference: $0.64
If SUN meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $12.12, suggesting upside of 4.8% (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 SWM as Upgrade to Buy from Accumulate (1) -

Ord Minnett raises its rating for Seven West Media to Buy from Accumulate, on continued strength in free-to-air media spending levels, and the transition to digital formats such as broadcaster (BVOD) and subscription (SVOD) video on demand. The $0.65 target is retained.

The broker reduces forecast revenue from Google and Facebook in FY22, and lowers its FY21 earnings (EBITDA) estimate to
$252.5m (the mid-point of guidance).

Target price is $0.65 Current Price is $0.46 Difference: $0.19
If SWM meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $0.68, suggesting upside of 48.4% (ex-dividends)

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

Citi rates VUK as Neutral (3) -

Virgin Money UK's Q3 market update revealed a better-than-expected net interest margin (NIM), comment analysts at Citi, on top of a better-than-expected CET1 ratio, and guidance for FY22.

Not everything was honky dory, but Citi treats the update as an "upbeat" one and expects market consensus forecasts to make a swing to the upside post event.

There is less enthusiasm about the perceived further upside from the present share price, hence Citi's Neutral rating remains unchanged. The broker sees better value elsewhere in the sector in the UK. Price target GBP2.00.

Current Price is $3.75. Target price not assessed.

Current consensus price target is $4.02, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Morgans rates VUK as Hold (3) -

The third quarter trading update revealed to Morgans a modest upgrade to FY21 net interest margin (NIM) guidance, no change to cost guidance and subdued non-interest income. Loan growth was also considered unexciting.

Morgans raises its underlying EPS forecasts for FY21-23  by 47%,16% and 6%, respectively, largely due to higher NIM forecasts and lower effective tax rate forecasts. The higher NIM is estimated largely due to a reduction in deposit pricing and a favourable change in deposit mix.

The broker raises its target price to $3.73 from $3.45 and maintains its Hold rating.

Target price is $3.73 Current Price is $3.75 Difference: minus $0.02 (current price is over target).
If VUK meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.02, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

UBS rates WEB as Buy (1) -

Successful vaccination roll-out across the US and UK looks set to drive a re-opening of travel industries yet Australia is lagging with another setback amid further lockdowns in NSW.

The broker favours those stocks with greater exposure to a faster-re-opening, domestic travel and/or specific tailwinds. UBS reiterates a Buy rating and raises the Webjet target to $5.90 from $5.45.

Target price is $5.90 Current Price is $4.85 Difference: $1.05
If WEB meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.59, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in March.

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 WPR as Add (1) -

Waypoint REIT is one of Morgans key picks leading into reporting season. It's expected 2021 guidance will be reiterated. This comprises distributable EPS of 15.72 cents. Guidance assumes $20-30m in asset sales ($8.1m year-to-date), but no acquisitions, explains the broker.

Morgans retains its Add rating and $2.92 target price. Results are due on August 27.

Target price is $2.92 Current Price is $2.56 Difference: $0.36
If WPR meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.79, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in December.

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