Australian Broker Call

Bell Potter rates ADA as Downgrade to Hold from Buy (3) -

Bell Potter lowers its target price for Adacel Technologies to 43c from 70c and downgrades the rating to Hold from Buy following the approval of a special resolution to delist from the ASX, effective January 8, 2025.

While no changes are made to forecasts, the broker's valuation falls due to a shift in methodology, focusing solely on near-term earnings.

The analysts suggest fundamentals are no longer applicable and highlight abnormal selling pressure from shareholders unwilling to hold the stock post-delisting. This selling is expected to persist.

Target price is $0.43 Current Price is $0.39 Difference: $0.04
If ADA meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.0

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

Macquarie rates AGI as Outperform (1) -

Ainsworth Game Technology's second half guidance implies around $23m 2024 adjusted profit at the mid-point, down -44% year on year and -24% below Macquarie's forecast.

Looking through second half headwinds, the broker forecasts $29m adjusted profit in 2025, down from $34m, which assumes that gross margins normalise at similar levels to 2024, albeit subject to various assumptions.

Although the cost update is disappointing, investors should be looking through to 2025, Macquarie suggests, and whether the benefits from elevated product development spend flow through to earnings, noting the significant operating leverage of the business.

Outperform retained, target falls to 85c from 90c.

Target price is $0.85 Current Price is $0.75 Difference: $0.105
If AGI meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Macquarie upgrades Amcor to Outperform from Neutral as the Berry acquisition, with synergies, gives the broker confidence in 8% compound earnings growth to FY29.

Amcor has a good record on cost synergy delivery, but Macquarie's new forecasts do not include potential revenue synergies at this stage. The broker finds that after a period of near-term consolidation, Amcor's share price did well during the synergy realisation period for both the Bemis and Alcan acquisitions.

Target rises to $18.04 from $16.30.

Target price is $18.04 Current Price is $16.21 Difference: $1.83
If AMC meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $16.41, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.2

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

Ord Minnett rates BET as Initiation of coverage with a Speculative Buy (1) -

Ord Minnett initiates coverage on Betmakers Technology with a Speculative Buy rating, describing wagering technology providers as a "picks and shovels" play on trends in the Racing and Wagering sector. A target price of 16c is set.

The broker highlights trends such as increasing use of technology in sport, the drive by rights holders to monetise assets more efficiently, and a stronger focus on integrity across the sports and racing industries.

Rising global wagering turnover and the ongoing legalisation of sports betting in the US, with racing as a potential beneficiary, are also noted.

Ord Minnett likes Betmakers Technology's attractive risk/reward proposition, though its uncertain funding position may require resolution.

The broker notes products and services offered by the company are integral to the day-to-day operations of bookmakers and its SaaS-based revenue model helps avoid much of the volatility associated with direct-to-customer (D2C) operators.

Target price is $0.16 Current Price is $0.11 Difference: $0.05
If BET meets the Ord Minnett target it will return approximately 45% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates BHP as Buy (1) -

BHP Group’s Escondida site visit underscored the challenges of sustaining copper output amid declining ore grades, rising costs and significant capex needs, Citi reports.

Plans to expand the Laguna Seca concentrator, replace the ageing Los Colorados facility and explore leaching technologies are key to maintaining production near historical levels.

These initiatives highlight not only the operational challenges at Escondida, Citi notes, but also the broader implications for rising capital intensity across the copper industry as grades deteriorate globally.

To get close to FY25-26 Chile copper production longer term will require capex at the midpoint of -US$12.6bn on a 100% basis, Citi points out, or -US$8.6bn for BHP’s share. Buy and $46 target retained.

Target price is $46.00 Current Price is $39.78 Difference: $6.22
If BHP meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $45.46, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.8

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

Ord Minnett rates COG as Buy (1) -

First quarter profit (NPATA) for COG Financial Services missed Ord Minnett's forecast by around -$1m due to a range of margin and cost
pressures across the company's segments as margins continue to realign with pre-covid levels.

Broker margins on net asset finance written (NAF) remain under pressure at the company from higher interest rates and the inclusion of lower-margin UFS/NFC brands acquired in August last year, explains the analyst.

The target price is reduced to $1.35 from $1.63, reflecting a more conservative outlook on loan margins, novated leasing volumes, and cost pressures. The Buy rating is maintained.

Target price is $1.35 Current Price is $0.91 Difference: $0.44
If COG meets the Ord Minnett target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $1.45, suggesting upside of 57.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates ELD as Buy (1) -

In further analysis of the Delta Agribusiness acquisition by Elders, Bell Potter considers the $12m synergy projection is conservative, given the significant potential in crop protection.

If Delta’s share of private label crop protection reaches Elders’ baseline target of 60-70%, the analysts estimate more than $20m in earnings (EBITDA) upside.

The Buy rating and $9.45 target price are maintained.

Target price is $9.45 Current Price is $7.58 Difference: $1.87
If ELD meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $9.43, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Bell Potter rates EOS as Buy (1) -

Following the sale of non-core EM Solutions, and assuming the transaction completes within three months, Bell Potter forecasts EMS to contribute approximately $18m, or 25%, of revenue for Electro Optic Systems in 2025.

As a result of the sale, the analysts' 2025 revenue forecast for Electro Optic Systems is reduced by -40% to $170.6m.

The broker notes the sale of EMS is expected to improve Electro Optic Systems’ gross margin on an annual basis and reduce operating expenses by -$6-$8m.

The Buy rating is maintained, and the target price is lowered to $2.00 from $2.20.

Target price is $2.00 Current Price is $1.18 Difference: $0.82
If EOS meets the Bell Potter target it will return approximately 69% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

UBS rates HVN as Downgrade to Neutral from Buy (3) -

UBS has downgraded Harvey Norman shares to Neutral from Buy with an unchanged target price of $5. While the performance of franchisees has improved, the broker highlights competitors have been outperforming.

Plus Retail New Zealand remains challenged.

The broker sees a subdued outlook for revenues and this triggers a more cautious stance, as the prospect for significant margin expansion has reduced.

The shares have outperformed year-to-date, UBS highlights.

Target price is $5.00 Current Price is $4.90 Difference: $0.1
If HVN meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.95, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Citi rates IAG as Buy (1) -

Today's agreement with RACQ should finally help Insurance Australia Group achieving a strong brand presence in weak spot Queensland, Citi analysts comment.

While the magin might be lower at first, the broker adds management seems confident the margin will reach the targeted 15% on a through-the-cycle basis.

IAG pays in cash for 90% of RACQ's insurance business and anticipates the purchase to be earnings accretive from year one. The remaining 10% is optional in two years. Plus there is an exclusive distribution agreement for 25 years.

Citi suggests the deal is a positive one for shareholders, at face value.  The ACCC is not expected to knock it back, turning Queensland's insurance market effectively in a two majors market (Suncorp ((SUN)) the other one).

Buy. Target $8.20.

Target price is $8.20 Current Price is $8.18 Difference: $0.02
If IAG meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $7.80, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Citi rates LNW as Initiation of coverage with Neutral (3) -

Citi initiates coverage of Light & Wonder with a Neutral rating and $156.00 target price.

The injunction on Dragon Train appeared to stunt the turnaround of Light & Wonder, the broker notes. While management has done a fine job retaining share thus far, Citi believes the pipeline looks softer into FY25 with questions also surrounding future talent acquisition.

Citi expects both Aristocrat Leisure ((ALL)) and Light & Wonder to take share in Gaming over the medium term. SciPlay stands to benefit from the slowdown of Monopoly GO! while iGaming seems well poised to grow as new markets open, the broker suggests.

Target price is $156.00 Current Price is $151.00 Difference: $5
If LNW meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $174.83, suggesting upside of 18.1% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Shaw and Partners rates MMI as Buy, High Risk (1) -

Debt and credit facilities with the Nebari Natural Resources Credit Fund have been successfully restructured by Metro Mining's management. This move removes near-term funding pressure and eliminates the costly royalty, explains Shaw and Partners.

Nebari has agreed to convert the royalty into a senior debt tranche, reduce the interest rate by -2%, and extend the first amortisation date to July 2025.

The analysts "expect the stock to soar" given bauxite prices are also hitting new record highs due to supply constraints from Guinea and China.

The Buy, High Risk rating and 14c target are unchanged.

Target price is $0.14 Current Price is $0.06 Difference: $0.083
If MMI meets the Shaw and Partners target it will return approximately 146% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates MTO as Add (1) -

Motorcycle Holdings announced a positive trading update for the four months to October at the AGM. Morgans notes higher-than-expected sales growth of 8% compared to the previous corresponding period, including Mojo sales up 6%, services and repairs up 8%, and finance and insurance up 5%.

Wholesale parts and accessories grew 5%, while retail increased 6%. Management highlighted the cost of doing business remained challenging, with operating expenses advancing 5% over the period. Despite this, the company improved its earnings margin.

Morgans upgrades EPS forecasts by 9.7% for FY25 and 9.1% for FY26.

The target price increases to $2.25 from $1.90 with an unchanged Add rating.

Target price is $2.25 Current Price is $1.82 Difference: $0.435
If MTO meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

UBS rates MTS as Buy (1) -

Metcash is scheduled to report interim financials on Dec 2 next week and UBS, in a preview, expects to see sales growth of 6% to $9.56bn (0.1% growth ex Superior Foods) and notes consensus is expecting to see 8% growth.

Underlying net profit is expected to see a decline of -7.3%, at the lower end of management's guidance. EBIT forecast is for $249.5m, higher than the $245.8m anticipated by consensus.

Food sales should have slowed due to tobacco and shrinking volumes, while hardware sales are expected to be weighed down by both the external environment and a negative product mix.

Target $3.60. Buy.

Target price is $3.60 Current Price is $3.14 Difference: $0.46
If MTS meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.60, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Bell Potter rates MVF as Buy (1) -

Despite the inclusion of the Fertility North acquisition, slower growth year-to-date was evident at Monash IVF's AGM, driven by a decline in stimulated cycles compared to the industry, explains Bell Potter.

The analysts note market share for Monash IVF remained flat, and new patient registrations were consistent with the prior corresponding period.

The broker observes a solid performance in the International business, though it was temporarily affected by construction at the Singapore clinic, which has now been completed.

Management guides to 1H25 underlying profit growth of 3.3% to 6.6%, below Bell Potter's previous forecast of approximately 10%.

The target price is reduced to $1.56 from $1.85. The Buy rating is maintained.

Target price is $1.56 Current Price is $1.22 Difference: $0.345
If MVF meets the Bell Potter target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.45, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

Macquarie rates MVF as Outperform (1) -

Monash IVF's first half profit is guided to be $15.5-16m, -5.5% below Macquarie at the mid-point. The broker reduces forecasts to $15.7m, close to the mid-point of guidance.

On a full-year basis, Monash expects both revenue and profit to grow year on year. Macquarie makes minor operational adjustments in FY25 leading to a profit reduction of -2.5%. This is largely driven by higher D&A, as indicated by management.

Macquarie expects Monash to be well placed to return to market share gains, with potential upside in the medium term from carrier screen testing converting to IVF cycles.

Outperform and $1.50 target retained.

Target price is $1.50 Current Price is $1.22 Difference: $0.285
If MVF meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.45, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

Morgans rates MVF as Add (1) -

Morgans notes Monash IVF announced a trading update at the AGM for the year-to-date, with stimulated cycles up 2.6%, slightly below the industry average of 2.9% due to a weak period in July and August.

Management guided to 1H25 net profit after tax of $15.5m-$16m, with expectations of ongoing growth in revenue and after-tax profits in FY25.

The broker highlights strong growth from the international business, with stimulated cycles up 19.9% year-to-date, driven by a robust performance in Singapore.

A rise in assumed operating and interest costs has led Morgans to lower net profit after tax estimates by -2% for FY25 and FY26.

No change to the Add rating. The target price decreases to $1.50 from $1.54.

Target price is $1.50 Current Price is $1.22 Difference: $0.285
If MVF meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.45, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.9

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

Citi rates PME as Sell (5) -

Pro Medicus announced a $24m five-year contract upgrade with NY University Langone Health. The new contract is for the Archive and Worklist modules and will be additive to the existing contract for Viewer originally signed for 7 years in Sept-2020.

That contract was also extended by a year, so both contracts expire in 2029. This new contract shows customers' willingness to not only extend their existing contract, Citi notes, but to also take on the other two major modules, Archive and Worklist.

This is the first new contract for Pro Medicus in FY25. Citi forecasts $30m in new business to be won in FY25 and significant market share gains to the end of the decade, but valuation is keeping the broker on Sell, with an unchanged $100 target.

Target price is $100.00 Current Price is $228.41 Difference: minus $128.41 (current price is over target).
If PME meets the Citi target it will return approximately minus 56% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $134.10, suggesting downside of -46.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.4

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

Bell Potter rates PYC as Speculative Buy (1) -

Bell Potter highlights strong preclinical data for PYC-003, a treatment for autosomal dominant polycystic kidney disease (ADPKD), ahead of its first clinical trials in 2025.

This update provides further conviction to the broker in PYC Therapeutics' asset targeting the most compelling commercial opportunity of all the company's programs.

The Speculative Buy rating and $2.70 target are maintained.

Target price is $2.70 Current Price is $2.00 Difference: $0.7
If PYC meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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) -

QBE Insurance has released a Sep Q trading update, and impressions are in line with Macquarie's expectations. The US Middle Market portfolio is rolling off faster than anticipated which was a positive through the North American hurricane season.

The trajectory on catastrophes through ten months and reiteration of guidance are both positive, the broker suggests.

Given additional confidence in the North American turnaround story and flattening forward curves, Macquarie maintains an Outperform rating with QBE its preference among Australian General Insurers. Target rises to $21.30 from $20.80.

Target price is $21.30 Current Price is $19.76 Difference: $1.54
If QBE meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $20.57, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Morgan Stanley rates QBE as Overweight (1) -

QBE Insurance has delivered a "solid" Sep Q update that met Morgan Stanley's expectations and showed pleasing progress on de-risking the US portfolio with catastrophe costs running below budget.

QBE reiterated FY24 guidance of constant currency gross written premium growth of 3% and a combined operating ratio of 93.5%. The broker thinks this justifies the recent re-rating, yet the stock remains on a 10.5x FY25 PE, below its 12x average.

QBE needs consistent delivery to re-rate further, Morgan Stanley suggests. Overweight and $21.25 target retained. Industry View: In-Line.

Target price is $21.25 Current Price is $19.76 Difference: $1.49
If QBE meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $20.57, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Morgans rates QBE as Add (1) -

QBE Insurance's 3Q2024 trading update was "solid," according to Morgans, with the insurer reiterating 2024 guidance with a 93.5% combined operating ratio and 3% growth in gross written premium.

The broker observes gross written premium has risen 5% excluding portfolio exits, and 9% excluding crop insurance, year-to-date. Catastrophe claims are tracking within the 2024 allowance, a positive outcome given insurance industry losses exceeding -US$100bn.

Morgans highlights the run-off of non-core lines is proceeding as expected and won't negatively impact earnings by 2026. The broker raises EPS forecasts by around 2% for 2024 and 2025.

The Add rating is maintained, and the target increases to $21.37.

Target price is $21.37 Current Price is $19.76 Difference: $1.61
If QBE meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $20.57, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Ord Minnett rates QBE as Hold (3) -

Management disclosed in the QBE Insurance 3Q trading update group-wide increases in renewable premiums in the current year of 4.9% have slowed from the 8-10% experienced in recent years.

Premiums remain high enough to cover current levels of claims inflation, highlights the broker, with management noting catastrophe claims are broadly in line with budget in the 2H.

Management reaffirmed guidance for a combined operating ratio of 93.5%.

The Hold rating and $21 target are retained.

Target price is $21.00 Current Price is $19.76 Difference: $1.24
If QBE meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $20.57, suggesting upside of 2.9% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Morgan Stanley rates RIO as Overweight (1) -

Ahead of Rio Tinto's investor seminar, Morgan Stanley sees minimal risks to 2025 consensus iron ore shipments, while its estimate is slightly above consensus on unit costs. Operating challenges at Kennecott have been well-flagged and should factor in copper guidance.

A capex budget of -US$10bn per annum appears the 'normal' for Rio Tinto, the broker suggests, with likely few surprises in 2025-27. Following the proposed acquisition of Arcadium Lithium ((LTM)), Morgan Stanley expects concerns of further M&A to subside near-term.

Overweight and $135 target retained.

Target price is $135.00 Current Price is $117.18 Difference: $17.82
If RIO meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $126.83, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.5

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

Ord Minnett rates RTH as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage on RAS Technology with a Buy rating, describing wagering technology providers as a "picks and shovels" play on trends in the Racing and Wagering sector. A target price of $1.66 is set.

The broker highlights trends such as increasing use of technology in sport, the drive by rights holders to monetise assets more efficiently, and a stronger focus on integrity across the sports and racing industries.

Rising global wagering turnover and the ongoing legalisation of sports betting in the US, with racing as a potential beneficiary, are also noted.

Ord Minnett praises RAS Technology's operational delivery, founder-led management team, strong growth outlook, profitability, and attractive valuation.

The broker notes products and services offered by the company are integral to the day-to-day operations of bookmakers and its SaaS-based revenue model helps avoid much of the volatility associated with direct-to-customer (D2C) operators.

Target price is $1.66 Current Price is $1.06 Difference: $0.6
If RTH meets the Ord Minnett target it will return approximately 57% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates SCG as Accumulate (2) -

Management at Scentre Group has swapped $950m of fixed-rate notes into floating-rate liabilities at a weighted average margin of 130bps across three tranches, which is approximately -40bps narrower than Ord Minnett's expectations.

The tighter spread leads the broker to increase funds from operations (FFO) forecasts by 1% for 2025 and 2026, and by 2% for 2027, reflecting the potential to reset $10bn in debt through to 2027.

The target price is reduced to $3.85 from $3.90. The Accumulate rating is maintained.

Target price is $3.85 Current Price is $3.71 Difference: $0.14
If SCG meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.79, suggesting upside of 1.0% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates SNL as Buy (1) -

Management at Supply Network guided at the AGM to 1H25 profit in the range of $19.5-20m, representing a 32% increase on the prior corresponding period and 8% above Ord Minnett's forecast.

The broker highlights robust demand from commercial vehicle customers, supported by industry tailwinds including an ageing vehicle fleet, rising freight activity, and growing vehicle complexity.

The target price is raised to $33 from $30.50. The Buy rating is maintained.

Target price is $33.00 Current Price is $30.84 Difference: $2.16
If SNL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Ord Minnett rates STG as Hold (3) -

Ord Minnett describes Straker's 1H results as "mixed," with declining revenues largely offset by a better-than-expected gross margin as the business pivots towards higher-margin AI product opportunities.

These AI products are still in early stages, according to the broker, though management feedback has been positive. Delivery risks elsewhere are seen as a potential challenge during the transition.

Straker's AI tools include Verify.ai, which ensures accuracy and quality in AI-generated translations, and Swiftbridge, developed for the Tokyo Stock Exchange to help listed companies meet upcoming compliance requirements, explains the broker.

The target price is reduced to 37c from 38c. The Hold rating is maintained.

Target price is $0.37 Current Price is $0.39 Difference: minus $0.02 (current price is over target).
If STG meets the Ord Minnett 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 March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Macquarie rates WEB as Neutral (3) -

Web Travel Group's underlying earnings of $70m was an 11% beat to Macquarie's expectations. Lower-than-anticipated corporate
costs supported the result, with WebBeds beating expectations by 5%.

Web Travel's first half revenue margin of 6.6% was down -150bps year on year due to weak European summer trading, higher than expected overrides and a mix-shift to lower-margin regions.

Management expects the revenue margin to stabilise at a structurally lower level of 6.5% medium term. Longer term, Macquarie expects WEB Travel will successfully grow total transaction value but remains cautious on its ability to drive operating leverage as it scales.

Target rises to $4.83 from $4.48, Neutral retained.

Target price is $4.83 Current Price is $4.80 Difference: $0.03
If WEB meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Morgan Stanley rates WEB as Underweight (5) -

Web Travel rallied on the relief of stabilising take-rate in the first seven weeks and clear earnings guidance. Morgan Stanley's core concern, namely that take-rates could come under further pressure, remains.

Web Travel's offer is substitutable and lacks relative scale, the broker states.

Management has reset expectations on take-rate several times, the broker notes, always to the downside. Despite the promise of near-term stability, Morgan Stanley sees long term risk to the downside.

A lack of franking credits limits the attraction of dividends, so the broker understands this week's announced buyback of $150m. Underweight and $3.70 target retained. Industry view: In-Line.

Target price is $3.70 Current Price is $4.80 Difference: minus $1.1 (current price is over target).
If WEB meets the Morgan Stanley target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.52, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Morgans rates WEB as Hold (3) -

Morgans considers the run of disappointing updates from Web Travel continued with a "weak" 1H25 result, complicated by the demerger and changes in accounting standards.

Growth in total transaction values rose 25%, but discounting to achieve the growth resulted in a decline in the earnings margin to 41.1% from 45%. Underlying earnings fell -11% over the period.

Due to the change in accounting standards, the result beat expectations alongside lower corporate costs, reduced depreciation/amortisation, net interest, and tax. FY25 earnings guidance implies a decline of -12% to -16% compared to FY24 earnings.

The rating remains at Hold. The target price falls to $5.05 from $5.25.

Target price is $5.05 Current Price is $4.80 Difference: $0.25
If WEB meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates WEB as Buy (1) -

In a surprising turnaround following recent guidance downgrades, Web Travel's 1H normalised profit of $52.5m exceeded Ord Minnett's forecast of $43.1m. The broker raises its target price to $6.79 from $6.14.

Management attributed the improvement to factors including customer overrides, management changes, lower pricing to boost volumes, and shifts in geographic and customer mix.

Ord Minnett believes this explanation should also address company-specific factors behind prior underperformance and sees risk skewed to the upside over the next 12-18 months.

A planned $150m buyback, effective December 2024, is expected to provide support for the share price. Buy.

Target price is $6.79 Current Price is $4.80 Difference: $1.99
If WEB meets the Ord Minnett target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Shaw and Partners rates WEB as Buy (1) -

As part of Web Travel's 1H results, management reiterated medium-term expectation of a circa 50% earnings EBITDA margin (ex-corporate) and the FY30 total transaction value (TTV) target of $10bn.

Shaw and Partners now believes the -150bps year-on-year decline in revenue margins to 6.6% is permanent due to overrides, pricing pressure, geographic mix, and supply mix.

Overrides are payments made to WebBeds customers, such as online travel agents and travel agents, once they hit certain volume/TTV thresholds.

The target price rises to $6.60 from $6.10 (pre demerger). Buy.

Target price is $6.60 Current Price is $4.80 Difference: $1.8
If WEB meets the Shaw and Partners target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

UBS rates WEB as Buy (1) -

UBS's target price has lifted to $6.15 from $5.60 following the release of a "messy" but better-than-anticipated interim result by Web Travel.

Total transaction value (TTV) margins have stabilised, the broker notes. The analysts concede not all questions have been answered, but they also believe updated forecasts do account for future margin pressure.

In light of ongoing questions about shifting competition dynamics, the broker takes the view the shares have been sold off too deeply on market concerns.

Forecasts incorporate $100m of the $150m buyback. Buy rating retained.

Target price is $6.15 Current Price is $4.80 Difference: $1.35
If WEB meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 12.7% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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