Australian Broker Call

Morgans rates ALL as Add (1) -

Aristocrat Leisure's proposed acquisition of Playtech has been terminated. After Morgans removes the anticipated contribution of Playtech to forecasts, the target price falls to $48 from $52.

The analyst feels market-leading growth in the years ahead can be attained sans Playtech, and the Add rating remains.

Target price is $48.00 Current Price is $40.76 Difference: $7.24
If ALL meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $47.77, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Upgrade to Outperform from Neutral (1) -

ANZ Bank has issued its first quarter trading update, showing a net interest margin compression to 1.57% from 1.65% at the end of FY21 and prompting Credit Suisse to reduce its expected net interest margin for the year down three basis points to 1.56%. 

While the bank's update did not include earnings, Credit Suisse issued a -4% decrease to earnings, earnings per share and dividends per share forecasts in FY22, and a -1% decrease to each in FY23. The expenses forecast increases $50m in FY22 given investment.

The broker finds ANZ Bank to be better positioned at this point in the cycle, although challenges remain, and notes the company trades at a -16% discount to the sector.

The rating is upgraded to Outperform from Neutral and the target price of $28.50 is retained.

Target price is $28.50 Current Price is $26.57 Difference: $1.93
If ANZ meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $29.82, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates ANZ as Outperform (1) -

ANZ Bank’s operational trends were broadly consistent with Macquarie's expectations but there were minor disappointments in NZ margins, trading income, and expenses, hence a -2% downgrade to valuation.

ANZ also announced changes to packages within its Retail & Commercial division, which are expected to reduce income in FY22 by around -$140m. The bank highlighted improved customer outcomes in its release, but the strategic rationale for the decision is unclear to the broker.

Yet trading at a -10% discount to National Bank ((NAB)) and in line with Westpac ((WBC)), relative value still exists in the broker's view. Target falls to $29.50 from $30.50, Outperform retained.

Target price is $29.50 Current Price is $26.57 Difference: $2.93
If ANZ meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $29.82, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Overweight (1) -

Morgan Stanley has been disappointed by ANZ Bank's first quarter update, with the softer than expected result driving a -3-4% downgrade to the earnings per share forecast. 

A -8 basis point decline was worse than expected but the bank has suggested some appeasement of headwinds in the second quarter, a sentiment reiterated by Morgan Stanley, supported by higher fixed rate pricing and less fixed rate lending. 

The broker also noted the implementation of lower fee options in retail and business banking looks to drive a -$140m impact to FY22 income that future growth is unlikely to offset. The bank's full year guidance is reiterated, noting a high investment spend for the year.

The Overweight rating is retained and the target price decreases to $30.00 from $31.00. Industry view: Attractive. 

Target price is $30.00 Current Price is $26.57 Difference: $3.43
If ANZ meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $29.82, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in September.

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 ANZ as Add (1) -

Following a 1Q market update by ANZ Bank, Morgans lowers cash EPS forecasts by -3-4% for FY22-24 and lowers its target to $30 from $31. This is due largely to impacts from lower forecasts for net interest margin, non-interest income and Australian home loan balances.

Management suggests rising rates, predominantly in New Zealand, and recent deposit pricing will be be supportive of the 2Q net interest margin (NIM). The Add rating is maintained.

Target price is $30.00 Current Price is $26.57 Difference: $3.43
If ANZ meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $29.82, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates ANZ as Accumulate (2) -

Ord Minnett finds ANZ Bank's market update revealed the same challenges that were visible earlier in Westpac's ((WBC)) market update; it's an industry-wide phenomenon.

But the broker also believes ANZ is looking more stable than Westpac. Though it was a disappointing update, Ord Minnett sees the top line growing from here, also because of rising interest rates.

Accumulate rating retained while the price target falls to $30.50 from $31.50.

Target price is $30.50 Current Price is $26.57 Difference: $3.93
If ANZ meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $29.82, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

UBS rates ANZ as Buy (1) -

UBS found the 1Q trading update by ANZ Bank weaker-than-expected on the net interest margin, the operational income and cost control, while credit quality proved a positive surprise.

The broker suggests market expectations cannot be met after these numbers but also that the revenue picture looks softer too.

The bank is guiding that Q2 net interest margin (NIM) pressures will moderate. 

Price target $30. Buy. UBS's estimates are below market consensus.

Target price is $30.00 Current Price is $26.57 Difference: $3.43
If ANZ meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $29.82, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in September.

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 APA as Downgrade to Hold from Add (3) -

After APA Group's share price has climbed towards Morgans' $9.98 target price, the broker's rating is now lowered to Hold from Add.

No changes are made to the analyst's forecasts. First half results are released on 23 February.

Target price is $9.98 Current Price is $9.96 Difference: $0.02
If APA meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $10.03, suggesting upside of 0.2% (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

Morgan Stanley rates ASX as Underweight (5) -

The benefit of potential rate increases has not yet been felt by ASX revenues, but Morgan Stanley notes interest rate outlook speculation could drive an increase in trading volumes in the short- to medium-term.

Futures volumes, which represent one ASX's largest revenue streams, were down -4.4% year-on-year in January, and "well down" on pre-covid levels as described by the broker. 

The Underweight rating and target price of $72.50 are retained. Industry view: Attractive.

Target price is $72.50 Current Price is $84.24 Difference: minus $11.74 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $80.21, suggesting downside of -6.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.4

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

UBS rates BLD as Neutral (3) -

UBS updates its valuation for Boral to reflect the return of $2.72/share in surplus capital to shareholders, as was expected. This comes in the form of both a $2.65/share equal capital reduction and an $0.07/share unfranked special dividend.

Consequently, the target price falls to $3.60 from $6.25 and the Neutral rating remains unchanged.

The payment date for the dividend and return of capital is the same day as Boral presents half year results (14th of February).

Target price is $3.60 Current Price is $3.87 Difference: minus $0.27 (current price is over target).
If BLD meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.09, suggesting upside of 53.7% (ex-dividends)

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

Macquarie rates CAR as Neutral (3) -

Macquarie has increased earnings forecasts ahead of Carsales' result release but switched to a sum-of-the-parts valuation model from a prior discounted cash flow model, resulting in a target price drop to $23.90 from $25.60.

The broker suggests given the strength of the Carsales business, the upcoming result is likely to be relatively muted in terms of surprises, and valuation appears fair. Neutral retained.

Target price is $23.90 Current Price is $21.86 Difference: $2.04
If CAR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $23.87, suggesting upside of 9.8% (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

Citi rates CGF as Neutral (3) -

Challenger's appointment of a new CEO from 1 January this year creates uncertainty, believes Citi. It's thought there will potentially be ongoing conservative guidance from management.

This leaves potential upside bias to guidance, and after assessing a probability of reasonable asset growth, the broker raises its target price to $6.40 from $6.20. The Neutral rating is unchanged heading into the 1H results.

Target price is $6.40 Current Price is $6.03 Difference: $0.37
If CGF meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $6.30, suggesting upside of 1.9% (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

Ord Minnett rates COL as Hold (3) -

In a review of the Retail sector, Ord Minnett points out retailers are entering the reporting season with low sales and margin expectations for the first time during the pandemic. Solid results, cautious outlook statements and volatility are expected.

The broker maintains its Hold rating for Coles Group and raises its target price to $17.80 from $17.60.

Target price is $17.80 Current Price is $16.54 Difference: $1.26
If COL meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.42, suggesting upside of 11.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

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

Ahead of CSL's first half results release, Morgan Stanley notes volume and cost commentary from the half will be key to guiding investor sentiment. 

Plasma collection volumes in FY23 may be similar to pre-pandemic collection volumes, but the cost of collection could be more than 20% higher than it was in FY19. First half results should provide an early indicator of volume and cost outlook. 

The Equal-weight rating and target price of $280.00 are retained. Industry view: In-Line.

Target price is $280.00 Current Price is $254.61 Difference: $25.39
If CSL meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $312.94, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates CSL as Hold (3) -

Following industry feedback and peer results, Ord Minnett lowers its target price for CSL to $285 from $315.

The analyst lowers the forecast for gross margins in the plasma division, as covid has wrought a structural decline in per-centre collections and a lift in donor fees. A weaker US uptake from the Seqirus (flu) division also weighed on the forecast.

A cautious Hold rating is maintained given the protracted pandemic impacts and questions over when demand will recover, explains the broker.

Target price is $285.00 Current Price is $254.61 Difference: $30.39
If CSL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $312.94, suggesting upside of 21.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Morgan Stanley rates EBO as Overweight (1) -

Ahead of Ebos Group's first half results release, Morgan Stanley reiterates the company's previous guidance for double-digit growth and notes it will look to the update for progress on full year targets. 

The broker is also interested in progress on the LifeHealthcare acquisition, expected to complete before the end of FY22, which the company has suggested will provide low double-digit earnings per share accretion. 

Elsewhere, the company has guided to elevated capital expenditure in FY22 as a new pet care manufacturing facility is completed. 

The Overweight rating and target price of $42.00 are retained.

Target price is $42.00 Current Price is $37.85 Difference: $4.15
If EBO meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $38.56, suggesting downside of -0.6% (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

Credit Suisse rates GNC as Neutral (3) -

GrainCorp has issued a sizeable upgrade to FY22 guidance, now expecting earnings of $480-540m compared to Credit Suisse's prior forecast of $405m and after-tax profit of $235-280m compared to the broker's prior $189m. 

The broker notes poorer northern hemisphere production is benefiting Australian grain exports, while potential export disruption driven by the Russia-Ukraine tensions could result in elevated grain marketing profitability. 

Credit Suisse adjusts its forecasts accordingly, and expects GrainCorp to finish FY22 with a cash balance of $207m, which could support a $1.00 per share special dividend.

The Neutral rating is retained and the target price increases to $7.17 from $6.78.

Target price is $7.17 Current Price is $8.10 Difference: minus $0.93 (current price is over target).
If GNC meets the Credit Suisse target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.25, suggesting upside of 0.3% (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

Macquarie rates GNC as Outperform (1) -

One might say GrainCorp's trading update was a positive surprise, given a new FY22 earnings guidance range of $480-540m compares to the broker's prior $372m forecast. A second consecutive bumper crop led the way.

But supply shortages and adverse weather conditions in the northern hemisphere helped drive excellent global demand for Australian grain and oilseeds and strong supply chain margins for grain exports, the broker notes.

Both the controllable factors and uncontrollable factors are lining up the right way for GrainCorp. Target rises to $9.48 from $8.04, Outperform retained.

Target price is $9.48 Current Price is $8.10 Difference: $1.38
If GNC meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $8.25, suggesting upside of 0.3% (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

Morgans rates GNC as Downgrade to Hold from Add (3) -

Morgans is wary of near perfect trading conditions across both grain Marketing and Processing and lowers its rating for GrainCorp to Hold from Add on valuation. This comes despite FY22 earnings guidance which was materially higher than the consensus estimate.

The broker upgrades its FY22-24 earnings (EBITDA) forecasts by 33.3%,15.8% and 3.9%, respectively, on the upgraded guidance, and because high carry-over grain will assist future earnings. The target price rises to $8.06 from $7.90.

Target price is $8.06 Current Price is $8.10 Difference: minus $0.04 (current price is over target).
If GNC meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.25, suggesting upside of 0.3% (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

UBS rates GNC as Neutral (3) -

GrainCorp has provided FY22 earnings (EBITDA) and profit guidance ranges that were beats of 28-44% and 40-67%, respectively, versus the UBS forecast ranges. The size of the beats were similar versus the consensus forecasts.

The broker attributes the outperformance to very strong supply chain margins, (underpinned by increasing pricing and demand for Australian grain), during a period of supply challenges in the Northern Hemisphere.

While the company's valuation appears cheap, the analyst believes the period probabaly represents peak-cycle earnings.The Neutral rating is unchanged while the target price climbs 4% to $8.30.

Target price is $8.30 Current Price is $8.10 Difference: $0.2
If GNC meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.25, suggesting upside of 0.3% (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

Morgans rates HLO as Add (1) -

Morgans feels Helloworld Travel's recent sale of its Corporate and Entertainment travel business is a positive, as the higher margin Retail and Leisure travel is the core business.

The broker estimates the company is materially undervalued. After removing Corporate from forecasts and delaying the travel recovery due to the omicron variant, the analyst estimates earnings will recover back to pro forma FY19 levels in FY24.

The Add rating is unchanged while the target price falls to $2.87 from $3.03.

Target price is $2.87 Current Price is $2.56 Difference: $0.31
If HLO meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates HLS as Outperform (1) -

Ahead of Healius' first half result release later in February Credit Suisse is expecting the company to deliver a 42% revenue increase on the previous comparable period to $1,383m and a 208% profit after tax increase to $226m. 

Credit Suisse expects covid testing peaked in the first half, forecasting a $575m revenue revenue contribution and $300m earnings contribution, accounting for 62% of total earnings.

The broker predicts covid earnings contribution to decline to 32% of group earnings in the second half but expects the company will provide further detail on outlook with the forthcoming update, as well as strategy execution. 

The Outperform rating is retained and the target price decreases to $5.50 from $5.60.

Target price is $5.50 Current Price is $4.48 Difference: $1.02
If HLS meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $5.49, suggesting upside of 21.5% (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 IMD as Outperform (1) -

Imdex' first half revenue and earnings beat Macquarie by 13%, with revenue up a record 35%. The second half has also started well, the broker notes, with strong underlying demand in all regions. Higher capex underpins further fleet growth.

The outlook remains strong, the broker reports, underpinned by favourable industry conditions and the company’s ongoing investment across the business and its core growth pillars. Target rises to $3.30 from $2.90, Outperform retained.

Target price is $3.30 Current Price is $2.89 Difference: $0.41
If IMD meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates IMD as Neutral (3) -

Imdex's 1H result was broadly in-line with UBS forecasts, as higher-than-expected capex was offset by lower cash tax paid. The Neutral rating and $3.10 target price are maintained.

The analyst points out an uplift in costs was reflective of a pull-forward of investment (largely headcount) to support the growing revenue base, rather than general cost inflation.

The company is expected to maintain more than 30% earnings (EBITDA) margins, estimates the broker.

Target price is $3.10 Current Price is $2.89 Difference: $0.21
If IMD meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates JHX as Buy (1) -

James Hardie produced a broadly in-line 3Q result, assesses Citi, with a strong outlook provided. However, it's thought interest rate hikes, higher input costs and a potential softening of the US housing market will weigh.

Volumes in both the US and APAC were weaker than the broker's expectation, though price/mix was thought to have improved.

The analyst increases the earnings forecast though reduces the target price to $59.30 from $61.80 as market and peer multiples have contracted. The Buy rating remains.

Target price is $59.30 Current Price is $48.60 Difference: $10.7
If JHX meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $56.95, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Credit Suisse rates JHX as Neutral (3) -

James Hardie Industries' third quarter update saw earnings miss consensus forecast by -1% while revenue was in line, but all eyes were on the company's first after-tax profit guidance for FY23 of US$740-820m, which beat consensus by 3%. 

Credit Suisse notes earnings upgrades are supported by expected price/mix growth in North America of 9.8% and volume growth of 10.2%, offering a 1.2% boost to FY23 earnings margins. 

Further, the broker reduces its assumed impact of European energy inflation by -50%, driving a margin increase to 14% from 9.6%. 

The Neutral rating is retained and the target price increases to $51.20 from $51.10.

Target price is $51.20 Current Price is $48.60 Difference: $2.6
If JHX meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $56.95, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in March.

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 JHX as Outperform (1) -

A solid December quarter for James Hardie was in line with Macquarie's expectations. The standout for the broker was nevertheless FY23 guidance, featuring a sales growth forecast of 16-20%. Guidance this early underlines management's confidence.

Management also guided to a big expansion capex bill through to FY26, accounitng for three new greenfield plants in each operating region. New products were launched, adding to the non-wood look portfolio.

Target rises to $61.70 from $61.20, Outperform retained.

Target price is $61.70 Current Price is $48.60 Difference: $13.1
If JHX meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $56.95, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in March.

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

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

Morgan Stanley spotted a solid result accompanied by an increase to guidance, plus a favourable FY23 guidance. The broker concludes James Hardie is performing well - despite recent changes in management.

The broker sees uncertainty around the possible impact on housing activity from higher interest rates while we yet have to find out who will be the new MD.

Equal-weight rating retained. Industry view is In-Line. Price target $57 (was $58).

Target price is $57.00 Current Price is $48.60 Difference: $8.4
If JHX meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $56.95, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Ord Minnett rates JHX as Accumulate (2) -

Ord Minnett labels the Q3 update as in-line, though James Hardie's European operations underperformed on higher energy costs. Company management's upgraded guidance has triggered an increase in estimates.

The broker also points out FY23 forecasts factor in a minimal contribution from new product innovation; potential upside opens up should the consumer market strategy begin to gain traction earlier than expected.

Accumulate rating has been retained while increased forecasts have pushed up the price target to $54.50 from $54.

Target price is $54.50 Current Price is $48.60 Difference: $5.9
If JHX meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $56.95, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

UBS rates JHX as Buy (1) -

UBS raises its target price for James Hardie by 5% to $58 following a "good" 3Q result and "solid" FY23 guidance. Strong volumes ex Europe, the Middle East & Africa (EMEA) were partially offset by cost inflation, explains the broker.

The analyst retains conservative market growth assumptions and acknowledges the risk from rising mortgage rates. However, pent-up demand and structural covid tailwinds are expected to be supportive. The Buy rating is unchanged.

Target price is $58.00 Current Price is $48.60 Difference: $9.4
If JHX meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $56.95, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Credit Suisse rates MFG as Neutral (3) -

Credit Suisse expects Portfolio Management changes will drive larger outflows for Magellan Financial Group following the company's announcement that global equities strategy portfolio manager Hamish Douglass will take a leave of absence.

He is replaced by Hamish McLennan as Chairman and Chris Mackay as portfolio manager, with Credit Suisse noting the latter appears to have little offshore institutional client exposure. The broker increases net outflow forecasts to -$13bn from -$10bn through to FY24.

Further, Credit Suisse warns news flow from Magellan Financial is likely to remain negative over the next six months given a lack of positive catalysts. Earnings per share forecasts decrease -1-7% through to FY24.

The Neutral rating is retained and the target price decreases to $16.50 from $21.00.

Target price is $16.50 Current Price is $16.43 Difference: $0.07
If MFG meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 5.9% (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 MFG as Underweight (5) -

Morgan Stanley doesn't seem too fussed about Magellan Financial's funds flow update for January, zooming in on the negative news flow which now has continued with the announcement CIO Hamish Douglass is taking medical leave.

The broker does make the point nearly 70% of funds under management is from insto clients, and this portion is at risk from further lumpy outflows.

Magellan's investment performance remains soft and Morgan Stanley considers potential margin pressure for the retail channels.

The Underweight rating and $17.20 target price are unchanged. Industry view is In-Line.

Target price is $17.20 Current Price is $16.43 Difference: $0.77
If MFG meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 5.9% (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 MFG as Hold (3) -

Ord Minnett lowers its target price to $16.50 from $19.50 to reflect uncertainty from the leave of absence taken by chief investment officer and chairman Hamish Douglass.

Retail and institutional flows may be impacted, explains the analyst, by turnover in the investment team and implications for product ratings. The Hold rating is maintained.

Target price is $16.50 Current Price is $16.43 Difference: $0.07
If MFG meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

UBS rates MFG as Sell (5) -

More questions than answers arise for UBS following Magellan Financial Group's monthly funds under management (FUM) update.

A medical leave of absence has been taken by CIO Hamish Douglas and co-founder Chris Mackay will now oversee portfolio management of the global equity funds.

Retail outflows appear to be continuing as the analyst expected, though institutional global equities are showing reslience following the large client loss in December, explains the broker. The Sell rating and $17 target price are maintained.

Target price is $17.00 Current Price is $16.43 Difference: $0.57
If MFG meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $18.66, suggesting upside of 5.9% (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

Citi rates MQG as Buy (1) -

Macquarie released a quarterly update, today, and Citi, upon initial glance, suggests the labeling of a record quarter by management translates to a profit greater than $1.3bn.

Markets facing operations were the key driver for Macquarie during the quarter. Also, the analysts find base fee commentary rather soft for the annuity businesses.

Going forward, Citi expects market volatility, and thus also Macquarie's earnings leverage, to decline. Earnings estimates have been slightly increased.

Buy rating and target price of $226.00 are retained.

Target price is $226.00 Current Price is $194.02 Difference: $31.98
If MQG meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $214.00, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in March.

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 NEA as Downgrade to Underperform from Neutral (5) -

Macquarie forecasts the aerial imagery market to see 13-14% growth over both A&NZ as well as North America over the coming
few years. Major industries already using aerial mapping include government, insurance, engineering, and solar companies amongst other users.

Nearmap enjoys some 80% of the A&NZ market, but the broker sees competition building from Aerometrex ((AMX)). In the 15x larger but more fragmented North American market, the broker sees opportunity for Nearmap to increase its current 3% share.

But this will require greater operating expenditure, and litigation risk remains. The broker thus downgrades Nearmap to Underperform from Neutral, target falls to $1.30 from $2.20.

Target price is $1.30 Current Price is $1.39 Difference: minus $0.09 (current price is over target).
If NEA meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.20, suggesting upside of 67.9% (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 NST as Outperform (1) -

Credit Suisse has adjusted its modeling on Northern Star Resources to account for pre-production ounces at both Thunderbox and the Kalgoorlie Consolidated Gold Mine previously captured in December half revenue. 

The result is a -6% decrease to FY22 earnings. Credit Suisse reiterated that Northern Star Resources is one of its preferred gold picks.

The Outperform rating is retained and the target price decreases to $10.50 from $10.80.

Target price is $10.50 Current Price is $8.39 Difference: $2.11
If NST meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $11.96, suggesting upside of 41.0% (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

Macquarie rates NWS as Outperform (1) -

News Corp's December quarter result exceeded Macquarie's expectations, but largely due to cost controls the broker sees as one-off. The company nevertheless continues to exercise good cost discipline and growth execution in its digital businesses, the broker suggests.

The broker's longer-term value-release thesis remains unchanged. Earnings upside also exists from continued execution of the Dow Jones’ Professional Information Business and Risk & Compliance in particular. Valuation support also looks attractive.

Outperform retained, target rises to $50 from $43.

Target price is $50.00 Current Price is $32.39 Difference: $17.61
If NWS meets the Macquarie target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $41.63, suggesting upside of 28.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Credit Suisse rates SBM as Outperform (1) -

Correcting its calculation of St. Barbara's hedge book has driven an upgrade to Credit Suisse's forecasts. Profit after tax increases to $46m from -$24m in FY22 and to $62m from $17m in FY23.

The broker warns not to expect an interim dividend as the company will likely conserve capital ahead of increased capital spend in the coming financial year. 

The Outperform rating is retained and the target price increases to $1.70 from $1.50.

Target price is $1.70 Current Price is $1.33 Difference: $0.37
If SBM meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.79, suggesting upside of 31.4% (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 SGR as Outperform (1) -

A pre-release of Star Entertainment's fisrt half result has Macquarie cutting its FY22 earnings forecast by -15%, but leaving FY23 unchanged. The broker believes the market will look through FY22 covid disruptions.

Attention then turns to a more normal FY23, and the opening of the Queensland casino. While the market may have concerns on Crown
Sydney competition risks and the outcomes from AUSTRAC and the regular licence review of The Star Sydney, the broker sees this as an opportunity.

There are plenty of catalysts ahead and valuation is undemanding, suggests Macquarie. Outperform and $4.25 target retained.

Target price is $4.25 Current Price is $3.58 Difference: $0.67
If SGR meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.24, suggesting upside of 14.3% (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

Ord Minnett rates SGR as Accumulate (2) -

In the name of observation, Ord Minnett rationalises the resumption of regular Monday night sojourns to Star Entertainment Group's Sydney operations, where it has recently found business as usual for slot machines.

The broker was pleased by the group's trading update which revealed 29% revenue growth from the reopening on 11 October to
31 December, despite mask mandates and patron restrictions.

The group is considered to be a strong recovery play, and Ord Minnett maintains its Accumulate rating and $4.40 target price.

Target price is $4.40 Current Price is $3.58 Difference: $0.82
If SGR meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.24, suggesting upside of 14.3% (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 SGR as Buy (1) -

Star Entertainment Group has provided updated 1H guidance for normalised earnings (EBITDA) of $28-30m and a net loss of - $73-75m.

UBS leaves its Buy rating and $4.40 price target unchanged and expects detail around earnings composition and early trading performance at results day on 17 February.

Target price is $4.40 Current Price is $3.58 Difference: $0.82
If SGR meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.24, suggesting upside of 14.3% (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 SLR as Outperform (1) -

Silver Lake Resources has announced that the board has approved an on-market buyback of up to 10% of ordinary shares over the next year.

A buyback is a prudent capital management option compared to dividends, in the broker's view, given the company’s lack of franking credits.

An investment at Sugar Zone could be a key determinant of the ultimate buyback over the next year, but the broker believes the miner's strong balance sheet and stockpile position will provide Silver Lake with further flexibility.

Outperform and $2.20 target retained.

Target price is $2.20 Current Price is $1.54 Difference: $0.66
If SLR meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 24.0% (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

Ord Minnett rates SUL as Upgrade to Accumulate from Hold (2) -

In a review of the Retail sector, Ord Minnett points out retailers are entering the reporting season with low sales and margin expectations for the first time during the pandemic. Solid results, cautious outlook statements and volatility are expected.

The broker upgrades its rating for Super Retail Group to Accumulate from Hold following a share price fall leading into results. The target rises to $14.50 from $14.20.

A strong online offering, and the trend towards driving and camping holidays are a few factors that should provide upside potential for earnings, explains the analyst.

Target price is $14.50 Current Price is $12.17 Difference: $2.33
If SUL meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $14.25, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates SUN as Buy (1) -

Suncorp's interim performance, released earlier today, proved no less than 35% ahead of Citi's forecast and circa 26% ahead of market consensus, reports the broker after an initial glance over the result.

The good news continues with a larger-than-expected interim dividend of 23c.

Buy rating and target of $12.80 retained as Citi suspects the market might question the quality of some of the sources responsible for today's surprise, but the broker counters the underlying margin and growth in gross written premiums are both better than forecast, while the dividend is well ahead of expectations.

Target price is $12.80 Current Price is $11.40 Difference: $1.4
If SUN meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.24, suggesting upside of 9.6% (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

Ord Minnett rates SUN as Hold (3) -

Upon initial analysis, it appears Suncorp's interim result is well above forecasts, indicates Ord Minnett.

Divisionally, Australian General Insurance showed a strong result underpinned by improvement in underlying Insurance Trading Ratio, explains the broker.

Plus there were large covid benefits, albeit offset by adverse catastrophe activity, which was pre flagged.

The bankinsurer also flagged some underlying margin uplift but softening in premium rates, points out the broker, suggesting this bodes favourably for Insurance Australia Group ((IAG)) too.

Target price is $13.50 Current Price is $11.40 Difference: $2.1
If SUN meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $13.24, suggesting upside of 9.6% (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 SWM as Outperform (1) -

Very solid market data from ThinkTV for the December quarter lead Macquarie to expect Seven West Media's market share could hit 41%. The broker awaits a big FY guidance upgrade with the upcoming result.

The company's TV business has enjoyed a strong 12 months on the back of the (Tokyo) Olympics, a popular content slate and favourable viewing conditions thanks to lockdowns, the broker notes.

Significant earnings forecasts upgrades take the broker's target to 91c from 77c. Outperform retained.

Target price is $0.91 Current Price is $0.73 Difference: $0.18
If SWM meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.87, suggesting upside of 16.9% (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

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

Syrah Resources has approved the Vidalia project and announced an equity raise for $250m (US$178m), as expected says Morgan Stanley as the company is not flush with cash.

The broker is quick with pointing out a rapid downstream expansion may still require further equity capital even if all current US
govt debt applied for is approved and raised.

Equal-weight rating maintained. Target sits at $1.35. Industry view: In-Line.

Target price is $1.35 Current Price is $1.65 Difference: minus $0.3 (current price is over target).
If SYR meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.0

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

Ord Minnett rates WES as Downgrade to Hold from Accumulate (3) -

In a review of the Retail sector, Ord Minnett points out retailers are entering the reporting season with low sales and margin expectations for the first time during the pandemic. Solid results, cautious outlook statements and volatility are expected.

The broker lowers its rating for Wesfarmers to Hold from Accumulate largely due to market and peer deratings. Exposure to housing will be a likely headwind in a rising interest rate environment, notes the analyst.

The target price falls to $57 from $60.60.

Target price is $57.00 Current Price is $53.00 Difference: $4
If WES meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $56.70, suggesting upside of 7.8% (ex-dividends)

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

Ord Minnett rates WOW as Accumulate (2) -

In a review of the Retail sector, Ord Minnett points out retailers are entering the reporting season with low sales and margin expectations for the first time during the pandemic. Solid results, cautious outlook statements and volatility are expected.

The broker maintains its Accumulate rating for Woolworths Group and lowers its target price to $39.60 from $41.

Target price is $39.60 Current Price is $34.36 Difference: $5.24
If WOW meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $37.02, suggesting upside of 9.3% (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