Australian Broker Call

Ord Minnett rates ABC as Hold (3) -

Looking forward to the August reporting season, Ord Minnett anticipates the building materials sector is likely to have a mixed performance on the back of industry constraints and wet weather, but with competition overall remaining rational.

Share prices have retreated noticeably and Ord Minnett believes investors will likely look through any short-term outperformance, instead focusing on the potential moderation in demand ahead.

The broker sees potential earnings upside for James Hardie and Adbri, because expectations are lowest for both. James Hardie remains Ord Minnett's number one pick for the sector.

Adbri retains its Hold rating with a new price target of $2.65, down from $2.75 prior.

Target price is $2.65 Current Price is $2.40 Difference: $0.25
If ABC meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.36, suggesting upside of 43.5% (ex-dividends)

The company's fiscal year ends in December.

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 ADH as Downgrade to Hold from Add (3) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

The analyst holds concerns for the trajectory of like-for-like sales growth at Adairs in FY23 and reduces its rating to Hold from Add.

The target falls to $2.50 from $3.50 on earnings downgrades.

Target price is $2.50 Current Price is $2.17 Difference: $0.33
If ADH meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.17, suggesting upside of 52.2% (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

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

As loan losses increase from near-zero levels, Morgan Stanley forecasts FY23 cash payout ratios for the major banks will be closer to
'normalised' payout ratios and within the banks' target ranges. The risk of dividend cuts next year is thought to remain low.

The FY24 dividend for ANZ Bank is estimated to be around -7% lower than the pre-covid dividend. 

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

Target price is $24.30 Current Price is $22.59 Difference: $1.71
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 21.9% (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

Macquarie rates AUB as No Rating (-1) -

AUB Group has achieved a premium rate increase of 7.3% in the fourth quarter according to the Macquarie AUB Commercial Premium Rate Index, the fifth consecutive quarter that the company has maintained rate growth above 5% according to the broker.

The broker expects the company will be able to maintain premium rate increases of at least 5% over the coming year, supported by cost inflation and claim frequency. The outlook saw AUB Group confirm full year net profit guidance, reflecting 19.0-22.3% growth on FY21.

Due to research restrictions Macquarie is unable to advise its rating and target price for AUB Group.

Current Price is $18.38. Target price not assessed.

Current consensus price target is $25.92, suggesting upside of 42.9% (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

Morgans rates AX1 as Hold (3) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

While the analyst likes the network growth strategy for Accent Group, concerns relate to gearing levels compared to peers and the over-diversity of the brand portfolio.

The Hold rating is retained, while the target falls to $1.40, down from $1.60, on lower earnings estimates.

Target price is $1.40 Current Price is $1.34 Difference: $0.06
If AX1 meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.38, suggesting upside of 3.0% (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

Morgans rates BBN as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Morgans lowers its target price for Baby Bunting  to $5.00 from $6.00 due to lower peer company multiples and slightly lower FY23 forecasts. As demand for baby goods is defensive in nature and increased market share is expected, the Add rating is unchanged.

Target price is $5.00 Current Price is $4.32 Difference: $0.68
If BBN meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.19, suggesting upside of 40.9% (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

Ord Minnett rates BLD as Hold (3) -

Looking forward to the August reporting season, Ord Minnett anticipates the building materials sector is likely to have a mixed performance on the back of industry constraints and wet weather, but with competition overall remaining rational.

Share prices have retreated noticeably and Ord Minnett believes investors will likely look through any short-term outperformance, instead focusing on the potential moderation in demand ahead.

The broker sees potential earnings upside for James Hardie and Adbri, because expectations are lowest for both. James Hardie remains Ord Minnett's number one pick for the sector.

Wet weather in particular is seen as additional risk for Boral, in combination with elevated energy costs. Rating remains Hold, target price $2.95.

Target price is $2.95 Current Price is $2.61 Difference: $0.34
If BLD meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.02, suggesting upside of 19.4% (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

Morgans rates BLX as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Morgans lowers its target for Beacon Lighting to $2.50 from $3.50 on lower earnings forecasts though retains its Add rating due to prospects from multiple growth levers, including an expansion of the Trade business.

Target price is $2.50 Current Price is $1.94 Difference: $0.56
If BLX meets the Morgans 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: 1.0

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

Morgans rates BRG as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Lovisa Holdings, Breville Group and Universal Store are the broker's key picks based on network growth opportunities.

The Add rating for Breville Group is unchanged and the target falls to $25 from $32 due to lower earnings estimates and lower peer company multiples.

Target price is $25.00 Current Price is $19.45 Difference: $5.55
If BRG meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $26.20, suggesting upside of 36.7% (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 CBA as Underweight (5) -

As loan losses increase from near-zero levels, Morgan Stanley forecasts FY23 cash payout ratios for the major banks will be closer to
'normalised' payout ratios and within the banks' target ranges. The risk of dividend cuts next year is thought to remain low.

The FY24 dividend for CommBank is estimated to be around -1% lower than the pre-covid dividend. 

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

Target price is $79.00 Current Price is $92.55 Difference: minus $13.55 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $88.05, suggesting downside of -5.6% (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

Macquarie rates CGC as Outperform (1) -

Wth first half outcomes historically equating to 59% of Costa Group's full year result, the company has confirmed operations performed well and Macquarie expects results will be in line with previous guidance, anticipating earnings and net profit in the half to be a 21% and 10% increase to the previous comparable period. 

With some quality issues across Costa Group's citrus portfolio, the broker notes the full impact can't be determined until the season is further progressed, but with demand and pricing strong does expect citrus will account for 27% of earnings in FY22.

The Outperform rating is retained and the target price decreases to $3.42 from $3.80.

Target price is $3.42 Current Price is $2.65 Difference: $0.77
If CGC meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.31, suggesting upside of 27.3% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates CNU as Neutral (3) -

A continuation of recent trends for Chorus in the fourth quarter, with the company reporting growth in fibre connections largely offset reductions in copper connections. Macquarie notes fibre connections increased by 20,000 in the quarter, now accounting for 74% of total connections. 

The company also released planned tiered pricing changes, set to come into effect in October, which will see a 5.49% increase applied to all fibre services, as well as a 3.6% increase to its 1 gigabit per second tier.

The Neutral rating and target price of NZ$7.61 are retained.

Current Price is $6.56. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Ord Minnett rates CQR as Accumulate (2) -

Ord Minnett has reviewed the A-REITs sector in light of 2022's changes that have impacted on the sector, including higher bond yields and consumer sentiment deteriorating to pandemic levels.

Target prices, on average, have fallen by -10%, but with an average FY23 prospective distribution yield of 6.8%, the broker believes the sector looks attractive.

Sector Top Picks are Waypoint REIT and Charter Hall Retail REIT, but RAM Essential Services Property Fund is most preferred from a (cheap) valuation perspective.

Ord Minnett retains an Accumulate rating for Charter Hall Retail REIT and decreases the target to $4.14 from $4.37.

Target price is $4.14 Current Price is $3.91 Difference: $0.23
If CQR meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.12, suggesting upside of 5.3% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Ord Minnett rates CSR as Hold (3) -

Looking forward to the August reporting season, Ord Minnett anticipates the building materials sector is likely to have a mixed performance on the back of industry constraints and wet weather, but with competition overall remaining rational.

Share prices have retreated noticeably and Ord Minnett believes investors will likely look through any short-term outperformance, instead focusing on the potential moderation in demand ahead.

The broker sees potential earnings upside for James Hardie and Adbri, because expectations are lowest for both. James Hardie remains Ord Minnett's number one pick for the sector.

Ord Minnett's target price for CSR has been retained at $4.65. Rating is Hold.

Target price is $4.65 Current Price is $4.20 Difference: $0.45
If CSR meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.92, suggesting upside of 42.6% (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

Macquarie rates CTM as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on Centaurus Metals, owner of the Jaguar nickel sulphide deposit in Brazil, a top-20 global nickel sulphide resource with a current resource of 734,000 tonnes of nickel.

Aggressive drilling has Centaurus Metals hoping to upgrade the resource above 1m tonnes by the end of 2023, but Macquarie expects this may be achieved before the end of 2022, with the resource already growing 40% over the eighteen months to December 2021.

Macquarie notes the project has potential to deliver 20,000 tonnes per annum over an initial thirteen year mine life, and is guiding to base case first production in 2025.

For investors, Macquarie notes Centaurus Metals offers opportunity in a pure play nickel company that it currently finds attractively priced. The broker initiates with an Outperform rating and a target price of $1.30.

Target price is $1.30 Current Price is $0.89 Difference: $0.41
If CTM meets the Macquarie target it will return approximately 46% (excluding dividends, fees and charges).

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

Morgans rates DMP as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Morgans sees meaningful upside to the Domino's Pizza Enterprises share price over the next 12 months and retains its Add rating and $93 target price. Management's recent reiteration of the 2033 outlook has provided comfort.

Target price is $93.00 Current Price is $70.78 Difference: $22.22
If DMP meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $90.76, suggesting upside of 32.0% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates EML as Buy (1) -

Now that the CEO has (suddenly, unexpectedly) left, EML Payments internally appointed Emma Shand MD and CEO effective immediately.

UBS recognises the elevated risk profile, but also believes the increased risk is now priced in. Buy rating retained, with the added caveat that investors will need to get comfortable again, given the leadership change.

The target price had been cut to $2.10 from $2.30 only five days ago. EML Payments is scheduled to report FY22 financials on August 22. UBS is keen to receive further clarification from the company.

Target price is $2.10 Current Price is $0.97 Difference: $1.13
If EML meets the UBS target it will return approximately 116% (excluding dividends, fees and charges).

Current consensus price target is $2.83, suggesting upside of 195.1% (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

Morgans rates GQG as Add (1) -

Morgans marks-to-market stocks within its Financial Services coverage. The preferred pick is GQG Partners for its combination of performance, flows strength and valuation.

The Add rating is maintained, while the target slips to $2.05 from $2.15 after the broker downgrades EPS forecasts by-6-10% on lower June funds under management (FUM). 

Target price is $2.05 Current Price is $1.25 Difference: $0.8
If GQG meets the Morgans target it will return approximately 64% (excluding dividends, fees and charges).

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 IAG as Outperform (1) -

Credit Suisse marks-to-market its earnings forecasts for the Insurance sector following negative investment markets in the fourth quarter of the financial year. For the General Insurers, higher fixed income yields from higher market interest rates are expected.

While taking into account natural perils/reinsurance and claims inflation risk for Insurance Australia Group, the broker sees strong net earnings upside from increased premium rates and bond yields.

The target falls to $5.76 from $5.95 in-line with lower market multiples. Credit Suisse  retains its Outperform rating as the current discount to the market of -8% compares to the five-year average discount of  around -1%.

Target price is $5.76 Current Price is $4.41 Difference: $1.35
If IAG meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting upside of 13.3% (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

Morgans rates JBH as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

JB Hi-Fi rates as cheap on valuation measures applied by Morgans and has an attractive dividend yield. The target falls to $48 from $58 on lower earnings estimates and lower peer multiples. Add retained.

Target price is $48.00 Current Price is $40.02 Difference: $7.98
If JBH meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $47.00, suggesting upside of 19.5% (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

Ord Minnett rates JHX as Buy (1) -

Looking forward to the August reporting season, Ord Minnett anticipates the building materials sector is likely to have a mixed performance on the back of industry constraints and wet weather, but with competition overall remaining rational.

Share prices have retreated noticeably and Ord Minnett believes investors will likely look through any short-term outperformance, instead focusing on the potential moderation in demand ahead.

The broker sees potential earnings upside for James Hardie and Adbri, because expectations are lowest for both. James Hardie remains Ord Minnett's number one pick for the sector.

Buy rating retained. Price target remains $52.

Target price is $52.00 Current Price is $34.25 Difference: $17.75
If JHX meets the Ord Minnett target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $50.49, suggesting upside of 48.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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 JRV as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on cobalt refining company Jervois Global as it moves toward becoming a vertically integrated cobalt producer with the commissioning of its Idaho Cobalt Operations (ICO) mine. 

The broker notes being one of only a few cobalt producers outside China offers Jervois Global strategic advantage, while the company has a strong production growth profile across its key assets with its ICO mine set to add 1,500 tonnes per annum to production. 

The company is also looking to increase production at its Jervois Finland operations, while its Sao Miguel Paulista refinery has potential to add a further 10,000 tonnes of refined nickel per annum to output by 2024.

Macquarie is anticipating the company's earnings should triple over the two years to 2024. The broker initiates with an Outperform rating and a target price of $0.70.

Target price is $0.70 Current Price is $0.49 Difference: $0.21
If JRV meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

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

Citi rates LNK as Neutral (3) -

While Link Administration's preliminary FY22 results were marginally ahead of the consensus forecast, they were largely in-line with Citi's estimates. New guidance for revenue and earnings (EBITDA) are estimated to be ahead of consensus, but in-line with the broker. 

At a time when the company is rejected the bid by Dye & Durham, the analyst suggests these new announcements should lend confidence to the market's assessment of the business.

After the analyst makes earnings adjustments and includes higher bond yield assumptions within the financial model, the target falls to $4.40 from $5.60. The Neutral rating is unchanged due to the uncertainty of a revised bid.

Target price is $4.40 Current Price is $4.03 Difference: $0.37
If LNK meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 19.2% (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 LNK as Neutral (3) -

Credit Suisse upgrades its earnings (EBITDA) forecasts for above-consensus new FY23 guidance from Link Administration, but also factors in lower Pexa Group ((PXA)) earnings and higher interest expenses.

Hence, the broker's EPS forecasts for FY22-24 fall by -3%, -10% and -3%, respectively, and the target price falls to $4.50 from $5.65. A FY22 earnings update was considered to be in-line for earnings.

Separately, the board will not recommend the $4.57/share offer from Dye & Durham.

While a Neutral rating is retained on the takeover uncertainty, Credit Suisse is becoming more constructive on the outlook for the company as earnings are growing again after four years of decline.

Target price is $4.50 Current Price is $4.03 Difference: $0.47
If LNK meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 19.2% (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

Macquarie rates LNK as No Rating (-1) -

While Link Administration continues to engage with Dye and Durham in relation to its acquisition bid, the Link Administration board has announced it is unable to endorse $4.57 per share offer. Macquarie notes the prices comes off the back of a previous $4.30 per share offer.

Should the bid not proceed the company intends to assess alternatives. Elsewhere, following an early look at full year results the broker lifted its earnings per share forecast 2.4% in FY22, but downgraded forecasts -21% in FY23 and between -31% and -37% in the following years.

Due to research restrictions Macquarie is unable to advise its rating and target price for Link Administration.

Current Price is $4.03. Target price not assessed.

Current consensus price target is $4.60, suggesting upside of 19.2% (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

Morgan Stanley rates LNK as Overweight (1) -

Morgan Stanley increases its FY23 and FY24 operating earnings (EBITDA) estimates for Link Administration by 5% and 2%, respectively, on stronger management guidance and better cost-out. The target price rises to $4.90 from $4.40.

The broker feels operating earnings are starting to stabilise and initial guidance for FY23 growth of around 10% suggests a
stronger recovery than the consensus estimate.

Separately, the company is still engaging with Dye & Durham but the board hasn't recommended the current takeover offer to shareholders. Overweight. Industry view: Attractive.

Target price is $4.90 Current Price is $4.03 Difference: $0.87
If LNK meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 19.2% (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

Morgans rates LNK as Hold (3) -

Because of a lack of adequate control premium for Link Administration, Morgans was not surprised the revised $4.57 offer by Dye & Durham to acquire the company was rejected.

Separately, the broker believes earnings have hit a nadir and will now improve after management issued FY23 guidance for 10%-12% earnings (EBIT) growth on the previous corresponding period.

The Hold is unchanged, while the target rises to $4.40 from $4.33.

Target price is $4.40 Current Price is $4.03 Difference: $0.37
If LNK meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 19.2% (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 LNK as Accumulate (2) -

It appears Link Administration is trying to squeeze a better deal out of Dye & Durham, but the scheme has as yet not been formally rejected, so the Link board cannot engage just yet with other interested parties.

Ord Minnett sees the positive in that earnings guidance for FY22 and FY23 has been provided that reflected no concerns around organic options plus, of course, there remains the potential from alternative suitors.

Accumulate rating retained, alongside a $4.80 price target (unchanged) with the broker slightly upgrading forecasts.

Target price is $4.80 Current Price is $4.03 Difference: $0.77
If LNK meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.60, suggesting upside of 19.2% (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

Morgans rates LOV as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Lovisa Holdings, Breville Group and Universal Store are the broker's key picks based on network growth opportunities.

Add-rated Lovisa Holdings may yet become one of the biggest success stories in Australian retail, according to the analyst. The target falls to $21.50 from $24.00 on lower peer multiples.

Target price is $21.50 Current Price is $15.93 Difference: $5.57
If LOV meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $20.17, suggesting upside of 31.1% (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 MCR as Outperform (1) -

With maiden resource for Mincor Resources' LN04a to be announced in July, Macquarie has lifted its anticipated mining inventory for the resource to 600,000 tonnes at 3.0% nickel, up from 300,000 tonnes at 2.5% nickel. 

The broker notes the LN04a resource is located just 90 metres from existing infrastructure, and should be easily accessed. The broker lifts its net present value for the company to $1,055m, from $983m, while earnings per share forecasts increase 2-24% through to FY27.

The Outperform rating is retained and the target price increases to $2.30 from $2.20.

Target price is $2.30 Current Price is $1.65 Difference: $0.65
If MCR meets the Macquarie target it will return approximately 39% (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

Morgans rates MFG as Hold (3) -

Morgans marks-to-market stocks within its Financial Services coverage. Magellan Financial is the least preferred due to the risk of accelerated retail outflows and retail fee cuts.

The Hold rating is unchanged and the target falls to $13.43 from $13.84, driven by lower June funds under management (FUM), explains the analyst.

Target price is $13.43 Current Price is $11.99 Difference: $1.44
If MFG meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $11.62, suggesting downside of -2.3% (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

Credit Suisse rates MPL as Outperform (1) -

Credit Suisse marks-to-market its earnings forecasts for the Insurance sector following negative investment markets in the fourth quarter of the financial year.

For the Private Health Insurers, the broker notes the benefit from rising interest rates and is positive around ongoing tailwinds for the industry.

The analyst rates Medibank Private as a defensive exposure in the current environment (rising interest rates and some inflation protection), and retains its Outperform rating and $3.52 target price.

Target price is $3.52 Current Price is $3.27 Difference: $0.25
If MPL meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.48, suggesting upside of 5.1% (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

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

As loan losses increase from near-zero levels, Morgan Stanley forecasts FY23 cash payout ratios for the major banks will be closer to
'normalised' payout ratios and within the banks' target ranges. The risk of dividend cuts next year is thought to remain low.

The FY24 dividend for National Australia Bank is estimated to be around -6% lower than the pre-covid dividend. 

The Equal-weight rating and $26.60 target are unchanged. Industry view: Attractive.

Target price is $26.60 Current Price is $27.77 Difference: minus $1.17 (current price is over target).
If NAB 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 $31.18, suggesting upside of 10.7% (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

Credit Suisse rates NHF as Neutral (3) -

Credit Suisse marks-to-market its earnings forecasts for the Insurance sector following negative investment markets in the fourth quarter of the financial year.

For the Private Health Insurers, the broker notes the benefit from rising interest rates and is positive around ongoing tailwinds for the industry.

While the analyst assesses nib Holdings is fairly valued at current levels and retains a Neutral rating, upside is envisaged on a number of fronts, including higher investment earnings and upside from travel insurance. The $6.86 target is unchanged.

Target price is $6.86 Current Price is $7.45 Difference: minus $0.59 (current price is over target).
If NHF meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.96, suggesting downside of -9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates NIC as Outperform (1) -

Ahead of Nickel Industries' second quarter results release later in July, Macquarie notes nickel pig iron price discounts to the London Metal Exchange of 76% are a positive for the company's realised pricing.

The broker highlights Nickel Industries's nickel pig iron production looks to grow to 75,000 tonnes in 2023, from 43,000 tonnes in 2022, driven by a production ramp up at the company's Angel project and commissioning of the Oracle project in 2023.

Macquarie notes Nickel Industries is one of only a few nickel companies offering 74% annual production growth, 27% annual earnings growth and a potential 5% dividend yield. The Outperform rating and target price of $1.30 are retained.

Target price is $1.30 Current Price is $0.94 Difference: $0.36
If NIC meets the Macquarie target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 69.4% (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: 0.8

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

Citi rates NWL as Neutral (3) -

Citi lowers its net flow forecasts for Netwealth Group. It's felt conditions have deteriorated further towards the end of June from when management lowered guidance early in the quarter.

The target price falls to $13.20 from $14.00 to reflects a higher weighted average cost of capital (WACC) - due to the broker adopting a a higher risk free rate - and earnings downgrades. The Neutral rating is unchanged.

Target price is $13.20 Current Price is $12.30 Difference: $0.9
If NWL meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $15.27, suggesting upside of 24.3% (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

Macquarie rates PAN as Outperform (1) -

Having visited Panoramic Resources's Savannah operations, Macquarie is optimistic in the company's ability to increase production to 7,700 tonnes of nickel in FY23, with the company set to release its own guidance in July.

Labour constraints impacting earlier in the year have been rectified and the site is now operating at full manning levels, but training remains key to operations efficiency according to Macquarie.

The broker also highlight's IGO's ((IGO)) recent acquisition of Western Areas ((WSA)) has seen its stake in Panoramic Resources increase to 21.02%.

The Outperform rating and target price of $0.30 are retained.

Target price is $0.30 Current Price is $0.19 Difference: $0.11
If PAN meets the Macquarie target it will return approximately 58% (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

Morgans rates PDL as Hold (3) -

Morgans marks-to-market stocks within its Financial Services coverage. For Pendal Group, ongoing outflows and accelerated outflows in key retail/higher margin US pooled funds are expected.

The Hold rating is unchanged and the target falls to $5.76 from $5.95, driven by lower June funds under management (FUM), explains the analyst.

Target price is $5.76 Current Price is $4.26 Difference: $1.5
If PDL meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $5.38, suggesting upside of 28.1% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates PNI as Add (1) -

Morgans marks-to-market stocks within its Financial Services coverage. For Pinnacle Investment Management, there's considered to be structural growth offset by a premium valuation.

The Add rating is unchanged and the target falls to $10.05 from $10.25, driven by lower June funds under management (FUM) and after including a -$3.8m investment loss in FY22 forecasts, explains the analyst.

Target price is $10.05 Current Price is $8.10 Difference: $1.95
If PNI meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $10.36, suggesting upside of 28.9% (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

Macquarie rates PXA as No Rating (-1) -

While the current tightening cycle has seen volumes decline -23% for PEXA Group, Macquarie highlights previous tightening cycles have seen a peak-to-trough volume decline of as much as -40%.

For PEXA Group, the broker notes a -40% decline  would drive average trough volumes of 33,700 transactions over a three-month period. Accounting for lower volumes, offset by inflation in the outer years, Macquarie updates its earnings per share forecasts by 1.6%, -11.6% and 10.0% through to FY24.

Due to research restrictions Macquarie is unable to advise its rating and target price for PEXA Group.

Current Price is $14.59. Target price not assessed.

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

Credit Suisse rates QBE as Outperform (1) -

Credit Suisse marks-to-market its earnings forecasts for the Insurance sector following negative investment markets in the fourth quarter of the financial year. For the General Insurers, higher fixed income yields from higher market interest rates are expected.

QBE Insurance remains the broker's top pick of the General Insurer's due to the greatest earnings momentum and most exposure to the interest rate cycle. The Outperform rating is unchanged and the target falls to $16.57 from $16.75, in-line with lower peer multiples.

Target price is $16.57 Current Price is $11.92 Difference: $4.65
If QBE meets the Credit Suisse target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $15.42, suggesting upside of 31.9% (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: 1.0

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

Macquarie rates QBE as Outperform (1) -

Making mark to market adjustments on its outlook for QBE Insurance, Macquarie updates it earnings per share forecasts -23%, and -28% for FY22 and FY23, and between -22% and -26% in the following years. 

Macquarie notes continued volatility in fixed income running yields, ranging from 1.77% to 2.72% in the second quarter. 

The broker notes QBE Insurance is trading at a -19% discount to international peers, compared to its three average discount of -9%, and Macquarie expects the company's long-term discount will decline as underperforming portfolios improve.

The Outperform rating is retained and the target price decreases to $14.00 from $15.00.

Target price is $14.00 Current Price is $11.92 Difference: $2.08
If QBE meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $15.42, suggesting upside of 31.9% (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: 1.0

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

Ord Minnett rates REP as Buy (1) -

Ord Minnett has reviewed the A-REITs sector in light of 2022's changes that have impacted on the sector, including higher bond yields and consumer sentiment deteriorating to pandemic levels.

Target prices, on average, have fallen by -10%, but with an average FY23 prospective distribution yield of 6.8%, the broker believes the sector looks attractive.

Sector Top Picks are Waypoint REIT and Charter Hall Retail REIT, but RAM Essential Services Property Fund is most preferred from a (cheap) valuation perspective.

RAM Essential Services Property Fund remains Buy-rated at Ord Minnett while the broker's price target falls to $0.97 from $1.14.

Target price is $0.97 Current Price is $0.81 Difference: $0.16
If REP meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $0.97, suggesting upside of 20.2% (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

Morgan Stanley rates RIO as Overweight (1) -

Following material falls for global copper equities, Morgan Stanley suggests the power now rests with Rio Tinto following its 14 March offer to purchase the 49% minority stake in Turquoise Hill that it does not own.

Since an initial rally in the Turquoise Hill share price following the bid, the shares have now fallen close to the offer price, though 
remain at a premium to copper mining peers, points out the analyst.

The Overweight rating and $119.50 target are retained. Industry View: Attractive.

Target price is $119.50 Current Price is $95.36 Difference: $24.14
If RIO meets the Morgan Stanley target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $115.50, suggesting upside of 21.0% (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

Macquarie rates SRL as Neutral (3) -

While Sunrise Energy Metals is development ready, Macquarie notes securing an offtake partner to guarantee funding remains a key catalyst for the company in 2022, but expects the project's ESG credentials will appeal to offtake partners. 

Accounting for increasing costs, Macquarie expects capital costs for the Sunrise project are now US$2.4bn, up 31% from expected capital requirements from the company in September 2020. 

The broker anticipates first construction in 2025, for first production in 2028 and production of 21,300 tonnes of nickle and 4,300 tonnes of cobalt per annum in its first ten years. The Neutral rating is retained and the target price decreases to $2.10 from $2.60.

Target price is $2.10 Current Price is $2.20 Difference: minus $0.1 (current price is over target).
If SRL meets the Macquarie target it will return approximately minus 5% (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: 0.0

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

Morgans rates STP as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Given good execution by Step One Clothing, Morgans sees good upside to the current share price and retains its Add rating and $0.60 target price.

Target price is $0.60 Current Price is $0.24 Difference: $0.36
If STP meets the Morgans target it will return approximately 150% (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

Morgans rates SUL as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Morgans lifts its FY22 earnings estimates for Super Retail on recently announced positive sales trends though lowers FY23 sales growth forecasts for all four divisions (becoming negative like-for-like). The target falls to $12.00 from $13.60.

The Add rating is retained as investors are being paid an attractive dividend yield while awaiting a share price recovery, according to the analyst.

Target price is $12.00 Current Price is $9.14 Difference: $2.86
If SUL meets the Morgans target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $11.70, suggesting upside of 27.3% (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

Credit Suisse rates SUN as Outperform (1) -

Credit Suisse marks-to-market its earnings forecasts for the Insurance sector following negative investment markets in the fourth quarter of the financial year. For the General Insurers, higher fixed income yields from higher market interest rates are expected.

While taking into account natural perils/reinsurance and claims inflation risk for Suncorp Group, the broker sees strong net earnings
upside from increased premium rates and bond yields.

The target rises to $14.09 from $14.04 and the Outperform rating is retained.

Target price is $14.09 Current Price is $11.25 Difference: $2.84
If SUN meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $13.54, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates TPG as Outperform (1) -

Macquarie decided to review its investment thesis for TPG Telecom and subsequently re-affirmed its Outperform rating. Estimates have been culled, though, and this has pulled back the price target to $6.80 from $7.50 prior.

Macquarie believes this stock offers a "compelling growth angle" with its forecasts implying a 4-year EPS CAGR of 24%, while earnings upside to consensus forecasts is seen in mobile and fixed wireless.

Target price is $6.80 Current Price is $5.99 Difference: $0.81
If TPG meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates TRS as Hold (3) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Morgans changes its valuation method for The Reject Shop and lowers its multiples to align with peers and arrives at a $4.00 target price, down from $6.70, after also reducing earnings estimates.

The Hold rating is unchanged and will be reassessed once input cost inflation stabilises.

Target price is $4.00 Current Price is $3.63 Difference: $0.37
If TRS meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.27, suggesting upside of 21.6% (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

Morgans rates UNI as Add (1) -

Morgans expects the trading environment for retailers to deteriorate in FY23 due to inflationary impacts on household budgets. It's noted retailers are also experiencing significantly higher costs from labour, energy and many key inputs.

As a result, the broker lowers its FY23 earnings (EBIT) estimates (but still expects growth) across its coverage of the Retail sector by -5.6%, while FY22 estimates are unchanged.

Lovisa Holdings, Breville Group and Universal Store are the broker's key picks based on network growth opportunities.

The Add rating and $5.60 price target for Universal Store are unchanged.

Target price is $5.60 Current Price is $3.90 Difference: $1.7
If UNI meets the Morgans target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $4.65, suggesting upside of 12.6% (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) -

As loan losses increase from near-zero levels, Morgan Stanley forecasts FY23 cash payout ratios for the major banks will be closer to
'normalised' payout ratios and within the banks' target ranges. The risk of dividend cuts next year is thought to remain low.

The FY24 dividend for Westpac is estimated to be around -16% lower than the pre-covid dividend. 

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

Target price is $22.30 Current Price is $19.94 Difference: $2.36
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 22.3% (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

Ord Minnett rates WPR as Accumulate (2) -

Ord Minnett has reviewed the A-REITs sector in light of 2022's changes that have impacted on the sector, including higher bond yields and consumer sentiment deteriorating to pandemic levels.

Target prices, on average, have fallen by -10%, but with an average FY23 prospective distribution yield of 6.8%, the broker believes the sector looks attractive.

Sector Top Picks are Waypoint REIT and Charter Hall Retail REIT, but RAM Essential Services Property Fund is most preferred from a (cheap) valuation perspective.

Accumulate rating maintained for Waypoint REIT. Target falls to $2.80 from $3.

Target price is $2.80 Current Price is $2.48 Difference: $0.32
If WPR meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.64, suggesting upside of 5.2% (ex-dividends)

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