Australian Broker Call

Macquarie rates AMP as Neutral (3) -

APRA has released the monthly Authorised Deposit-taking Institution statistics for October showing AMP's General Lifetime Account-based Pension (GLAA) balance is up 0.8% from June.

Macquarie notes this outcome compares to management's expectations for 'slight growth' by December and the 1.1% forecast by consensus.

The broker leaves forecasts unchanged. Target $1.34. Neutral.

Target price is $1.34 Current Price is $1.58 Difference: minus $0.24 (current price is over target).
If AMP meets the Macquarie target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.47, suggesting downside of -8.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates ANZ as Reduce (5) -

Morgans reviews the outlook for the banks and expects the November reporting season themes to continue into 1H25.

The analyst observes net interest margins were "relatively stable." Earnings growth was underpinned by hedge portfolios, with higher swap rates being maintained. Competition for assets and deposits slowed, though pressure on deposit mix remains.

Morgans forecasts slightly declining net interest margins in the future. Cost growth is expected to remain "solid," credit loss rates remain low, and the banks retain conservative capital management.

The broker lifts ANZ Bank's target price to $26.24 from $25.29. Reduce rating retained. Morgans raises EPS forecasts by 4% for both FY25 and FY26 due to an improved outlook for the bank's net interest margin.

Target price is $26.24 Current Price is $31.37 Difference: minus $5.13 (current price is over target).
If ANZ meets the Morgans target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.88, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

UBS rates ANZ as Neutral (3) -

UBS assesses fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for ANZ Bank increases to $34 from $32, with the Neutral rating maintained.

This summary is based on research released yesterday by UBS.

Target price is $34.00 Current Price is $31.37 Difference: $2.63
If ANZ meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.88, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

UBS rates BEN as Sell (5) -

UBS assesses the fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for Bendigo & Adelaide Bank increases to $11.45 from $10. The Sell rating is unchanged.

This summary is based on research released yesterday by UBS.

Target price is $11.45 Current Price is $13.38 Difference: minus $1.93 (current price is over target).
If BEN meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.74, suggesting downside of -20.9% (ex-dividends)

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

Morgans rates BOQ as Hold (3) -

Morgans reviews the outlook for the banks and expects the November reporting season themes to continue into 1H25.

The analyst observes net interest margins were "relatively stable." Earnings growth was underpinned by hedge portfolios, with higher swap rates being maintained. Competition for assets and deposits slowed, though pressure on deposit mix remains.

Morgans forecasts slightly declining net interest margins in the future. Cost growth is expected to remain "solid," credit loss rates remain low, and the banks retain conservative capital management.

Hold rating and $6.03 target price retained for Bank of Queensland.

Target price is $6.03 Current Price is $6.90 Difference: minus $0.87 (current price is over target).
If BOQ meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.86, suggesting downside of -16.4% (ex-dividends)

The company's fiscal year ends in August.

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

UBS rates BOQ as Sell (5) -

UBS assesses the fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for Bank of Queensland increases to $6.50 from $5.75. The Sell rating is unchanged.

This summary is based on research released yesterday by UBS.

Target price is $6.50 Current Price is $6.90 Difference: minus $0.4 (current price is over target).
If BOQ meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.86, suggesting downside of -16.4% (ex-dividends)

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

Citi rates BRG as Neutral (3) -

Citi highlights the rising cost of coffee at cafes globally and believes this could be positive for Breville Group as consumers shift behaviour towards consuming more coffee at home to save money.

The analyst notes arabica coffee futures reached their highest level since 1977 last Friday, with prices rising by 71% over 2024 due to constrained supply.

Due to its premium brand positioning, Citi observes a possible delay in purchasing a Breville machine, as it is typically the third or fourth coffee machine a consumer buys.

The $36.51 target and Neutral rating are maintained.

Target price is $36.51 Current Price is $33.28 Difference: $3.23
If BRG meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $33.73, suggesting downside of -0.9% (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

Morgans rates CBA as Reduce (5) -

Morgans reviews the outlook for the banks and expects the November reporting season themes to continue into 1H25.

The analyst observes net interest margins were "relatively stable." Earnings growth was underpinned by hedge portfolios, with higher swap rates being maintained. Competition for assets and deposits slowed, though pressure on deposit mix remains.

Morgans forecasts slightly declining net interest margins in the future. Cost growth is expected to remain "solid," credit loss rates remain low, and the banks retain conservative capital management.

CommBank's target price is lowered to $95.31 from $95.45. Reduce rating maintained.

Target price is $95.31 Current Price is $158.19 Difference: minus $62.88 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 40% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $102.89, suggesting downside of -34.8% (ex-dividends)

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 CBA as Sell (5) -

UBS assesses fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for CommBank increases to $115 from $110. The Sell rating is unchanged.

This summary is based on research released yesterday by UBS.

Target price is $115.00 Current Price is $158.19 Difference: minus $43.19 (current price is over target).
If CBA meets the UBS target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $102.89, suggesting downside of -34.8% (ex-dividends)

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 CKF as Neutral (3) -

Today, Collins Foods has released 1H results including a profit of $24.1m, beating forecasts by consensus and Citi for $22m and $20.1m respectively, due to slightly better-than-expected operating costs. Sales of $703.5m missed consensus by -2%.

Citi’s initial overall assessment is of a better-than expected result.

Management is guiding to nine new Australian KFC stores in FY25 and six in Europe, which compares to consensus forecasts for eight and six, respectively.

The company expects cost of living and margin challenges to persist in 2H25 in Australia with no improvement before FY26. FY25 EBIT margin guidance is between 6.8-7.3% (consensus).

Same store sales (SSS) for the first seven weeks of 2H25 in Australia, Europe and Taco Bell were 0.8%, -1.6% and -1.4%, with the two key segments of Australia and Europe coming in slightly below consensus estimates.

The 11 cent interim dividend was broadly in line with consensus, notes Citi.

Neutral rating. Target $7.88.

Target price is $7.88 Current Price is $8.62 Difference: minus $0.74 (current price is over target).
If CKF meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.76, suggesting upside of 17.2% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

UBS rates CNU as Neutral (3) -

At the investor day, management at Chorus detailed key initiatives to transition to a "great network operator" by FY30 including targeting 80% fibre uptake with a greater focus on penetration than ARPU, highlights UBS.

The broker explains management is also aiming for an all-fibre business and wants to leverage infrastructure with a focus on
growing adjacencies and increasing infrastructure revenue.

Neutral retained. NZ$8.50 target price unchanged.

Current Price is $8.24. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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

Macquarie rates CSL as Outperform (1) -

Macquarie's new gross margin assumptions for CSL Behring imply a return to pre-covid levels of around 57% by FY28 compared to FY27 previously.

This change is a result of the analyst adopting a more conservative stance on the ramp-up of Rika platform yield benefits.

Macquarie suggests current share price levels are an attractive entry point for investors.

Outperform rating and the broker's target for CSL rises to $334 from $330.

Target price is $334.00 Current Price is $280.63 Difference: $53.37
If CSL meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $335.79, suggesting upside of 17.6% (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: 0.9

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

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

Bell Potter downgrades De Grey Mining to Speculative Hold from Speculative Buy with a lower target price of $1.97 from $2.15.

Northern Star Resources ((NST)) and De Grey have agreed to an all-scrip transaction whereby De Grey shareholders receive 0.119 new Northern Star shares, implying a share price value of $2.08 for De Grey shares and valuing the company at $5bn.

The analyst believes the deal is positive for both companies, with De Grey shareholders receiving a premium of 37.1% at the last close while reducing development and finance risk.

Northern Star's balance sheet is robust, with $1.8bn in cash/bullion and $1.5bn in undrawn debt facilities, and in a strong position to develop the Hemi project. The broker believes a competing bid from one of the majors—Gold Fields, Barrick Gold, and Newmont Corp ((NEM))—is possible.

There is no news regarding Gold Road Resources' ((GOR)) 17% shareholding in De Grey.

Target price is $1.97 Current Price is $1.97 Difference: $0
If DEG meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.12, suggesting upside of 10.3% (ex-dividends)

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 GOR as Buy (1) -

Bell Potter lowers the valuation for Gold Road Resources following the all scrip offer by Northern Star Resources ((NST)) for De Grey Mining ((DEG)).

The analyst estimates net proceeds at the last closing prices at around $700m or 65c per share, which could be returned to shareholders or employed as investment capital for growth.

For 4Q 2024 earnings, the broker anticipates a strong result from Gold Road with gold production of circa 90koz due to a return to high-grade plant feed and selling into a gold price above $4,000/oz.

The stock has underperformed the All Ordinaries Gold Index and remains Buy rated. Target price lifts to $2.55 from $2.40.

Target price is $2.55 Current Price is $2.04 Difference: $0.51
If GOR meets the Bell Potter target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 13.2% (ex-dividends)

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 IAG as Outperform (1) -

Insurance Australia Group has announced the acquisition of 90% of RACQ Insurance with a two-year option on the remaining 10% stake and a 25-year distribution arrangement.

The -$855m cost comprises -$522m for 90% of the business and around -$333m for the distribution agreement, explains Macquarie.

Unchanged target price of $8 and Outperform rating.

Target price is $8.00 Current Price is $8.51 Difference: minus $0.51 (current price is over target).
If IAG 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 $8.04, suggesting downside of -5.8% (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

UBS rates IGO as Upgrade to Neutral from Sell (3) -

UBS raises its 2025 and 2026 spodumene price forecasts by 7% and 17%, respectively, to US$800/t and US$850/t, supporting improved earnings and cash flow projections for lithium stocks under its coverage.

While lithium equities are no longer expensive, the broker observes they have yet to fully reflect potential adjustments to growth plans in the current lower-price environment. Despite these revisions, free cash flow generation after capex remains limited.

For IGO Ltd, UBS highlights a more attractive valuation opportunity and upgrades its rating to Neutral from Sell, with the target price unchanged at $5.50.

This summary is based on research released yesterday by UBS.

Target price is $5.50 Current Price is $5.15 Difference: $0.35
If IGO meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.78, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

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

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

UBS raises its target for Imdex to $2.60 from $2.35 and downgrades to Neutral from Buy on valuation. Significant upside remains should the exploration cycle turn, concede the analysts.

Exploration activity has at least stabilised and is potentially modestly improving, notes the broker, after reviewing the company's recent trading update showing revenues have increased by 3% on 4Q FY24, driven by a 5% increase in sensors on hire.

The above is a summary of research released yesterday by UBS.

Target price is $2.60 Current Price is $2.51 Difference: $0.09
If IMD meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting downside of -9.2% (ex-dividends)

The company's fiscal year ends in June.

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 IPH as Outperform (1) -

While noting around 70% of IPH income is recurring, Macquarie highlights the company's Australian filing volumes dropped -12.5% in November, compared to -7.8% lower market activity.

The company's market share in Australia fell slightly below management's 31-33% guided range, notes the analyst, with November at 29.9% prior to seasoning.

The Outperform rating and $7.11 target are maintained.

Target price is $7.11 Current Price is $5.05 Difference: $2.06
If IPH meets the Macquarie target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $7.21, suggesting upside of 42.5% (ex-dividends)

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

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

Morgans reviews the outlook for the banks and expects the November reporting season themes to continue into 1H25.

The analyst observes net interest margins were "relatively stable." Earnings growth was underpinned by hedge portfolios, with higher swap rates being maintained. Competition for assets and deposits slowed, though pressure on deposit mix remains.

Morgans forecasts slightly declining net interest margins in the future. Cost growth is expected to remain "solid," credit loss rates remain low, and the banks retain conservative capital management.

Judo Capital is downgraded to Hold from Add. Target price unchanged at $1.92.

Target price is $1.92 Current Price is $1.98 Difference: minus $0.055 (current price is over target).
If JDO meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.80, suggesting downside of -10.7% (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

UBS rates JDO as Buy (1) -

UBS assesses that fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for Judo Capital increases to $2.40 from $2.10, with the Buy rating maintained.

This summary is based on research released yesterday by UBS.

Target price is $2.40 Current Price is $1.98 Difference: $0.425
If JDO meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.80, suggesting downside of -10.7% (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 LIC as Neutral (3) -

Citi highlights the increase in the shareholding held by HMC Capital ((HMC)) in Lifestyle Communities by around 2% to 9.27%.

Although there is some potential interest in what HMC's stake means for the group, the broker believes concerns over the VCAT tribunal complaint will weigh on shares again.

Citi notes HMC has taken stakes in similar businesses, including Lendlease Group ((LLC)) and Ingenia Communities ((INA)), but a change in Lifestyle Communities' strategy or pricing model is unlikely until the VCAT situation is finalised.

The $9.50 target remains unchanged. Neutral.

Target price is $9.50 Current Price is $8.96 Difference: $0.54
If LIC meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.96, suggesting upside of 8.3% (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

UBS rates LTR as Sell (5) -

UBS raises its 2025 and 2026 spodumene price forecasts by 7% and 17%, respectively, to US$800/t and US$850/t, supporting improved earnings and cash flow projections for lithium stocks under its coverage.

While lithium equities are no longer expensive, the broker observes they have yet to fully reflect potential adjustments to growth plans in the current lower-price environment. Despite these revisions, free cash flow generation after capex remains limited.

For Liontown Resources, the optimised mine plan at Kathleen Valley makes a lot of sense to the broker in the current price environment but the lower volumes more than offset the lower costs and capex. Target falls to 50c from 80c. Sell maintained.

This summary is based on research released yesterday by UBS.

Target price is $0.50 Current Price is $0.72 Difference: minus $0.215 (current price is over target).
If LTR meets the UBS target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.80, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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

UBS rates MIN as Sell (5) -

UBS raises its 2025 and 2026 spodumene price forecasts by 7% and 17%, respectively, to US$800/t and US$850/t, supporting improved earnings and cash flow projections for lithium stocks under its coverage.

While lithium equities are no longer expensive, the broker observes they have yet to fully reflect potential adjustments to growth plans in the current lower-price environment. Despite these revisions, free cash flow generation after capex remains limited.

For Mineral Resources, the $34 target and Sell rating are unchanged.

This summary is based on research released yesterday by UBS.

Target price is $34.00 Current Price is $35.72 Difference: minus $1.72 (current price is over target).
If MIN meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $43.43, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates MPL as Neutral (3) -

Macquarie highlights recent industry announcements regarding Australian Health Insurance are becoming increasingly negative.

The broker points out circa 62% of brands are currently offering some kind of promotion, and the number of players offering discounts is on the increase.

Competitive pressures may persist, suggests the analyst, given some funds have promotions extending through February.

The Medibank Private target of $3.85 and Neutral rating are maintained.

Target price is $3.85 Current Price is $3.81 Difference: $0.04
If MPL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.03, suggesting upside of 5.6% (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

UBS rates MQG as Neutral (3) -

UBS assesses fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for Macquarie Group increases to $235 from $225. The Neutral rating is unchanged.

This summary is based on research released yesterday by UBS.

Target price is $235.00 Current Price is $230.91 Difference: $4.09
If MQG meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $224.44, suggesting downside of -4.3% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Citi rates MTS as Upgrade to Buy from Neutral (1) -

Citi upgrades Metcash to Buy from Neutral. Target price lifts to $3.70 from $3.40.

The broker observes 1H25 net profit met expectations and is upbeat about the more challenged food business showing increased earnings resilience. Hardware was weak, but an earnings recovery in FY26 is possible.

Citi explains hardware is exposed to detached housing and notes signs private sector detached housing approvals bottomed in the March quarter. The analyst forecasts around 9% hardware earnings growth in FY26.

Earnings for food are forecast to grow around 4% in FY25 and FY26, with liquor remaining challenged due to competitive pressures. The broker lowers earnings forecasts for liquor in FY25/FY26 by -5%.

Buy rated with a $3.70 target price.

Target price is $3.70 Current Price is $3.19 Difference: $0.51
If MTS meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Macquarie rates MTS as Neutral (3) -

While 1H underlying profit for Metcash came in at the upper end of management's guidance range, Macquarie observes significant margin compression in the hardware business. The update for food and liquor was more favourable, highlights the analyst.

Hardware like-for-like sales fell by -5.6% on the previous corresponding period with management noting an ongoing softening in
trading activity, particularly in 2Q25.

Sales in Food rose by 10% on the previous corresponding period supported by the acquisition of Superior Foods and the wholesale channel experiencing volume growth and price inflation, explains Macquarie.

Target falls to $3.30 from $3.45. Neutral.

Target price is $3.30 Current Price is $3.19 Difference: $0.11
If MTS meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

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

Morgan Stanley observes the food earnings margin rose 15bps to 2.3% in Metcash's 1H25 results, with a reduced tobacco contribution and five months of consolidation from Superior Foods.

Trade activity for hardware continued to decline, but there is rising demand in the frame and truss business, suggesting a "lengthening of the pipeline."

Management expects a stronger result for tools in 2H25 as price discounting and promotions are cycled in the comparisons.

Independents continue to gain market share in the liquor segment, the analyst notes, due to their convenience offering, customer service, and localised range.

Equal-weight rating and $3.45 target price retained. Industry View: In-Line.

Target price is $3.45 Current Price is $3.19 Difference: $0.26
If MTS meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Ord Minnett rates MTS as Buy (1) -

Metcash's 1H25 earnings met guidance and market expectations, according to Ord Minnett, with a higher-than-anticipated dividend.

Earnings margin at food and grocery was 12bps better than expected, which the broker believes is a good result. Hardware was impacted by a decline in activity but remains well-positioned for a recovery when the RBA cuts interest rates.

The broker notes contributions from recent acquisitions were disappointing, which is considered a symptom of the economic cycle rather than a poor strategic decision.

The Buy rating and $4.10 target are retained. Ord Minnett believes the stock is "cheap" given the stage in the cycle.

Target price is $4.10 Current Price is $3.19 Difference: $0.91
If MTS meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 5.2% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

UBS rates MTS as Buy (1) -

Following initial research yesterday, UBS lowers its target for Metcash to $3.50 from $3.60 due to slightly lower EPS estimates moderated by a slightly higher FY25 valuation multiple. The Buy rating is maintained.

FNArena's summary yesterday: UBS notes Metcash reported 1H25 profit after tax at the upper end of guidance. Sales growth of 6.3% met expectations, with underlying earnings below the broker's forecast by -1.4% and -0.8% below consensus.

Underlying net profit, down -5.5% at $134.6m, was at the top end of guidance, with a dividend per share at 8.5c, above UBS's estimate but below the market's.

Sales for the first four weeks of 2H25 grew 8%, boosted by acquisitions. Trading for 2H25 is expected to be better than 2H24. Management has lowered capex guidance to -$205m from -$235m.

On balance, the broker observes food performed better, hardware and liquor were below expectations, and cash realisation remained subdued at 66% compared to the three-year average of 85.5%. Hardware remains challenged, the broker highlights.

Target price is $3.50 Current Price is $3.19 Difference: $0.31
If MTS meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $3.61, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgans rates NAB as Reduce (5) -

Morgans reviews the outlook for the banks and expects the November reporting season themes to continue into 1H25.

The analyst observes net interest margins were "relatively stable." Earnings growth was underpinned by hedge portfolios, with higher swap rates being maintained. Competition for assets and deposits slowed, though pressure on deposit mix remains.

Morgans forecasts slightly declining net interest margins in the future. Cost growth is expected to remain "solid," credit loss rates remain low, and the banks retain conservative capital management.

National Australia Bank's target price is lowered to $29.29 from $29.45. Reduce rating maintained. No change to earnings forecasts.

Target price is $29.29 Current Price is $39.30 Difference: minus $10.01 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.87, suggesting downside of -17.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

UBS rates NAB as Sell (5) -

UBS assesses fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for National Australia Bank increases to $37.50 from $35. The Sell rating is unchanged.

This summary is based on research released yesterday by UBS.

Target price is $37.50 Current Price is $39.30 Difference: minus $1.8 (current price is over target).
If NAB meets the UBS target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.87, suggesting downside of -17.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Macquarie rates NHF as Underperform (5) -

Macquarie highlights recent industry announcements regarding Australian Health Insurance are becoming increasingly negative.

The broker points out circa 62% of brands are currently offering some kind of promotion, and the number of players offering discounts is on the increase.

Competitive pressures may persist, suggests the analyst, given some funds have promotions extending through February.

The nib Holdings' target of $5.45 and Underperform rating are maintained.

Target price is $5.45 Current Price is $5.60 Difference: minus $0.15 (current price is over target).
If NHF meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.84, suggesting upside of 20.8% (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

Bell Potter rates NST as Buy (1) -

Bell Potter believes the all-scrip offer by Northern Star Resources for De Grey Mining ((DEG)) of 0.119 new Northern Star shares for each De Grey share is "value accretive," as De Grey had last reported cash of $828m versus the capital cost of developing the Hemi project.

Northern Star's balance sheet is significantly strong with $1bn in cash and $1.5bn in undrawn facilities to fund the development and grow earnings.

Bell Potter acknowledges some short-term risks around the development of Hemi but views the longer-term outlook as positive and beneficial.

The broker maintains a Buy rating for Northern Star Resources with a $19.55 target price.

Target price is $19.55 Current Price is $16.59 Difference: $2.96
If NST meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.44, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgan Stanley rates NST as Underweight (5) -

Morgan Stanley questions the size of the premium being paid for Northern Star Resources' full-scrip offer for De Grey Mining ((DEG)), as no earnings accretion is expected until FY29.

The analyst notes Northern Star already has "significant" gold production in place, and the development of De Grey's project will overlap with the expansion of Kalgoorlie Consolidated Gold Mines, but offer longer term growth.

The price paid per ounce of gold in the development phase appears "fair" at US$305/oz for reserves and US$135/oz for resources.

The Underweight rating remains unchanged, with a $15.60 target price. Industry View: Attractive.

Target price is $15.60 Current Price is $16.59 Difference: minus $0.99 (current price is over target).
If NST meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.44, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Ord Minnett rates NST as Hold (3) -

Northern Star Resources has agreed on an all-scrip offer for De Grey Mining ((DEG)) valued at $5bn, which has the potential to increase production growth by 25% in FY29, according to Ord Minnett.

The analyst highlights a change in Northern Star's risk profile due to the development process for De Grey's Hemi project, which will also impact near-term free cash flow yield.

Ord Minnett notes the price being paid does not appear "unreasonable" and will position Northern Star as having one of the best growth profiles among major gold producers in the medium term.

No change to the Hold rating and $16.50 target price. No change to the broker's earnings forecasts.

Target price is $16.50 Current Price is $16.59 Difference: minus $0.09 (current price is over target).
If NST meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.44, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

UBS rates NST as Buy (1) -

Northern Star Resources' offer of 0.119 shares for each De Grey Mining ((DEG)) share implies a $2.08/share bid for De Grey via a binding Scheme of Arrangement.

De Grey's Hemi deposit, with an around 530kozpa production profile, will increase Northern Star's production to more than 2.5mozpa, highlights the broker.

Overall, the analysts approve of management's strategy for a large, long life and new asset near current operations which should help optimise the existing portfolio.

The Buy rating and $18.95 target are unchanged.

Target price is $18.95 Current Price is $16.59 Difference: $2.36
If NST meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $18.44, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Citi rates NWL as Neutral (3) -

Netwealth Group reported a flow update of $6.6bn through to November 28, which Citi highlights as a moderately softer monthly net flow of $1.3bn in 2Q25 compared to $1.33bn in 1Q25.

The broker notes the December quarter is typically weaker with one less trading week, but Netwealth looks set to achieve net inflows of $3.7bn in 2Q25, which is in line with consensus but below the analyst's estimate of $3.9bn.

Citi sees transitions as key, with management pointing to several large transitions in progress. Funds under administration of $100bn would exceed consensus forecasts of $99.8bn for 1H25.

Neutral. Target $27.

Target price is $27.00 Current Price is $29.25 Difference: minus $2.25 (current price is over target).
If NWL meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $25.76, suggesting downside of -14.9% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

UBS rates NXT as Buy (1) -

UBS raises its target for NextDC to $20.00 from $19.40 after NSW Deptartment of Planning released a final rezoning report helping to partially de-risk (in the view of UBS) the company's S5 data centre.

The analysts stress this does not mean development approval has been achieved, just that it appears not to have been blocked.

Until final development approval is received, the broker is not incorporating either S5 or S4 into its forecasts.

Target price is $20.00 Current Price is $16.55 Difference: $3.45
If NXT meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $20.20, suggesting upside of 23.5% (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

UBS rates PLS as Sell (5) -

UBS raises its 2025 and 2026 spodumene price forecasts by 7% and 17%, respectively, to US$800/t and US$850/t, supporting improved earnings and cash flow projections for lithium stocks under its coverage.

While lithium equities are no longer expensive, the broker observes they have yet to fully reflect potential adjustments to growth plans in the current lower-price environment. Despite these revisions, free cash flow generation after capex remains limited.

For Pilbara Minerals, the price target rises to $2.40 from $2.35 on the higher lithium price forecast and the inclusion of Latin Resources ((LRS)) in forecasts following the takeover.

This summary is based on research released yesterday by UBS.

Target price is $2.40 Current Price is $2.43 Difference: minus $0.03 (current price is over target).
If PLS meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.90, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates PMT as Buy (1) -

UBS raises its 2025 and 2026 spodumene price forecasts by 7% and 17%, respectively, to US$800/t and US$850/t, supporting improved earnings and cash flow projections for lithium stocks under its coverage.

While lithium equities are no longer expensive, the broker observes they have yet to fully reflect potential adjustments to growth plans in the current lower-price environment. Despite these revisions, free cash flow generation after capex remains limited.

For Patriot Battery Metals, UBS lowers its target to 60c from 85c partly due to more dilutive funding assumptions and reduced exploration. Buy.

This summary is based on research released yesterday by UBS.

Target price is $0.60 Current Price is $0.28 Difference: $0.32
If PMT meets the UBS target it will return approximately 114% (excluding dividends, fees and charges).

Current consensus price target is $0.86, suggesting upside of 177.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

This company reports in CAD. 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

Morgans rates RIO as Add (1) -

Morgans previews Rio Tinto's investor day on December 4, where management is expected to provide 2025 guidance and outline strategic goals for the next year.

The broker views a "steady outlook" as likely, with copper offering potential upside as Oyu Tolgoi could continue to exceed expectations in 2025, alongside a recovery at Kennecott.

Iron ore and aluminium are expected to be neutral. The analyst will focus on commentary regarding Simandou, uncertainty around Pilbara mine replacement, the outlook for lithium, and progress on decarbonisation.

Target price lifts to $129 from $127. Add rating unchanged.

Target price is $129.00 Current Price is $119.28 Difference: $9.72
If RIO meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $127.17, suggesting upside of 6.5% (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

Bell Potter rates RMC as Buy (1) -

Bell Potter observes Resimac Group has appointed Pete Lirantzis as CEO, transitioning from his current position as Chief Strategy, Products and Operating Officer. He has been with the company since February 2024.

The broker believes the appointment is good news for the company, which has experienced a weakening in sales of mortgage products. Mr Lirantzis is viewed by the analyst as a strong candidate to advance the asset finance business.

The broker maintains a Buy rating and a $1.30 target price. No change in earnings forecasts from Bell Potter.

Target price is $1.30 Current Price is $0.96 Difference: $0.34
If RMC meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.10, suggesting upside of 13.4% (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

Morgan Stanley rates SDF as Upgrade to Overweight from Equal-weight (1) -

Morgan Stanley upgrades Steadfast Group to Overweight from Equal-weight and raises the target price to $6.98 from $6.64. Industry View: In-Line.

The broker continues to rate concerns around the stock as overdone and believes the company offers a quality business with structural and cyclical earnings "drivers."

Steadfast reported a robust 1Q25 trading update, with net profit up 23%. Growth in A&NZ is likely to transfer to the US and global operations, the analyst states. The recent H.W. Wood acquisition is viewed as a positive strategic step, offering more client products in Australia and US markets.

At 16x FY25 earnings, the valuation is appealing relative to many insurers and financials.

Morgan Stanley lifts net profit forecasts by 4% for FY25 and 5% for FY26, driven by premium growth and a margin lift.

Target price is $6.98 Current Price is $5.87 Difference: $1.11
If SDF meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.91, suggesting upside of 14.2% (ex-dividends)

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 SDR as Buy (1) -

Citi previews 1H25 results for SiteMinder and expects revenue growth to weaken to around 19% year-on-year compared to 21% in 2H24, with some downside risk to consensus earnings forecasts.

Growth is anticipated to improve in 2H25 as new products positively impact performance. The broker notes an increase in price discounting, with the company offering 75% off for the first three months and 50% off for the next three months to new customers.

The analyst has lowered subscriber growth by -1% and forecasts net adds of 2.8k in 1H25, compared to consensus at 2.7k.

Management remains focused on larger properties as the company transitions to a revenue platform rather than distribution, which may necessitate increased investment as Little Hotelier faces rising competition.

Citi reiterates the Buy rating, with a 6% lift in the target price to $7.65. 

Target price is $7.65 Current Price is $6.58 Difference: $1.07
If SDR meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $6.94, suggesting upside of 9.3% (ex-dividends)

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 SHV as Upgrade to Buy from Neutral (1) -

Even though FY24 results were broadly in line with guidance, UBS raises its target for Select Harvests to $4.40 from $4.00 and upgrades to Buy from Neutral.

The broker has greater confidence in the almond price outlook, a stable cost base, and ramp in sustainable processing volumes in FY26.

The analysts' almond price forecast is increased to $8.50/kg from $8.10/kg and $8.20/kg for FY25 and FY26, respectively.

Recent industry discussions regarding the Californian almond sector have been the most positive for Select Harvests in years, suggests the broker.

The above is a summary of research released yesterday by UBS.

Target price is $4.40 Current Price is $4.05 Difference: $0.35
If SHV meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.78, suggesting upside of 14.7% (ex-dividends)

The company's fiscal year ends in September.

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 SKO as Buy (1) -

Ord Minnett observes the 1H25 result from Serko was dominated by the acquisition of Sabre's GetThere Online Booking Tool for -US$12m, including performance payments.

The analyst notes GetThere is the second-largest booking tool in the North American market, with revenues of around US$20m per annum.

Under a five-year partnership agreement , Sabre will co-sell and co-market Serko's solutions in North America. Management has guided for revenue of $250m in FY30 and additional investment of -$40m for the Sabre deal.

The broker expects group cash flow to turn negative in FY25/FY26, with a turnaround in FY28.

Adjusting for the acquisition, Ord Minnett downgrades earnings forecasts "materially" and anticipates the new business will take four years to become EPS accretive. Buy rated with a $5.91 target price, up from $4.25 due to the long-date cash flow impact.

Target price is $5.91 Current Price is $3.25 Difference: $2.66
If SKO meets the Ord Minnett target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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

Bell Potter rates SNT as Speculative Buy (1) -

Bell Potter transfers coverage of Syntara with a Speculative Buy rating and an unchanged target price of 10c.

The company has "world-leading" drug development capabilities, according to the broker, notably for SNT-5505, which is nearing a Phase 2a readout on December 10 at the American Society of Hematology.

The analyst views the outcome as a de-risking event for the company and a step toward registrational trials in myelofibrosis, a market where existing treatments generate over US$2bn in sales per annum.

Target price is $0.10 Current Price is $0.06 Difference: $0.04
If SNT meets the Bell Potter target it will return approximately 67% (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

Shaw and Partners rates SXG as Buy (1) -

Shaw and Partners maintains a Buy rating (High risk) with a $3.69 target price on Southern Cross Gold post the recent drill results from the Golden Dyke prospect at the 100%-owned Sunday Creek Gold-Antimony

The project has extended high-grade mineralisation -200m below previous drilling, with notable intercepts such as 5.5m at 26.1g/t gold equivalent and 4.1m at 9.0g/t gold equivalent.

The analyst notes the project remains a significant exploration opportunity, with ambitions to double the exploration target to 3Moz.

Southern Cross Gold is well-funded with an estimated $25m cash, supporting ongoing and future drilling campaigns across its targets, the broker highlights.

Target price is $3.69 Current Price is $3.23 Difference: $0.46
If SXG meets the Shaw and Partners target it will return approximately 14% (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

Morgans rates WBC as Downgrade to Reduce from Hold (5) -

Morgans reviews the outlook for the banks and expects the November reporting season themes to continue into 1H25.

The analyst observes net interest margins were "relatively stable." Earnings growth was underpinned by hedge portfolios, with higher swap rates being maintained. Competition for assets and deposits slowed, though pressure on deposit mix remains.

Morgans forecasts slightly declining net interest margins in the future. Cost growth is expected to remain "solid," credit loss rates remain low, and the banks retain conservative capital management.

Westpac is downgraded to Reduce from Hold. Target price lifts to $27.77 from $27.66.

Target price is $27.77 Current Price is $33.27 Difference: minus $5.5 (current price is over target).
If WBC meets the Morgans target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.09, suggesting downside of -13.4% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Upgrade to Buy from Neutral (1) -

UBS assesses fair value for Australian banks is approximately -10.2% below current prices but acknowledges their reputation for predictability and stability, particularly regarding capital returns, remains intact.

The broker attributes the strong share price outperformance of banks to factors such as flows, relative positioning, and momentum rather than earnings-driven fundamentals.

UBS expresses a preference for exposure through Westpac, Judo Capital, Macquarie Bank, and ANZ Bank.

The target price for Westpac increases to $37 from $33. The rating is upgraded to Buy from Neutral as it is the most likely to benefit from cost-out initiatives and has the lowest balance sheet leverage among the big four, explains UBS.

This summary is based on research released yesterday by UBS.

Target price is $37.00 Current Price is $33.27 Difference: $3.73
If WBC meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $29.09, suggesting downside of -13.4% (ex-dividends)

The company's fiscal year ends in September.

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

Macquarie rates WOW as Neutral (3) -

Woolworths Group has updated the market on the United Workers Union (UWU) having commenced indefinite strike action at four sites on 21-Nov (three in VIC; one in NSW). The strike action has now extended to 12 days, with timing of a conclusion on action unclear.

The union is seeking pay increases of more than 25% over three years, with each site negotiating its own enterprise agreement. 

While management at the supermarket owner has taken measurements to reduce impact, there has to date been an impact of -$50m in lost sales.

This impact is not yet reflected in guidance provided previously for FY25.

Macquarie (Neutral, target $32.50) hasn't made any changes.

Target price is $32.50 Current Price is $30.32 Difference: $2.18
If WOW meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $33.01, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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