Australian Broker Call

Morgans rates AMP as Hold (3) -

AMP has entered into a non-binding Heads of Agreement with Ares to pursue the formation of a joint venture for AMP Capital’s Private Markets Business (real estate, infrastructure equity and debt etc).

Morgans assesses this is a positive outcome in allowing the realisation of value in the Private Markets business, whilst also retaining a sizeable stake in the operation and its improved growth prospects from here.

The broker calculates this transaction is only mildly dilutive, assuming the company completes a $1bn buyback with the transaction’s gross cash proceeds of $1.55bn. The Hold rating and $1.49 target are maintained.

Target price is $1.49 Current Price is $1.45 Difference: $0.04
If AMP meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.57, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Ord Minnett rates ANZ as Accumulate (2) -

ANZ Banking Group's update on AMMB Holdings’ (in which the bank has a 23.8% stake) settlement with the Malaysia Ministry of Finance, states the settlement will reduce the carrying value of ANZ’s stake to $850m from $1.05bn although will not have any impact on capital. 

Ord Minnett maintains an Accumulate rating with a target of $28.20.

Target price is $28.20 Current Price is $26.59 Difference: $1.61
If ANZ meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $28.34, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Citi rates APT as Neutral (3) -

Citi believes the next 12 months are pivotal for Afterpay as the company introduces new products and features that should boost gross merchandise value (GMV) growth and support gross profit margins.

In the near-term, the broker expects growth will be negatively impacted by slowing e-commerce and sees competition as a risk to medium-term margins.

While seeing a potential upside to the medium-term forecasts, Citi does not see the risk-reward as compelling and decides to remain Neutral rated.

Neutral with the target rising to $124.80 from $115.

Target price is $124.80 Current Price is $125.66 Difference: minus $0.86 (current price is over target).
If APT meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $125.73, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgans rates BKL as Hold (3) -

The first half result was better than Morgans had expected with profit (NPAT) a beat. This is considered due to tight cost control as revenue growth was slightly below forecast. Savings/efficiencies comprised -$4m in supply chain savings and -$3m of lower opex. 

On a divisional basis, ANZ was weak due to a covid-related reduction in foot traffic in the higher-margin pharmacy channel which led to increased discounting, explains the broker. The International business and China on the other hand delivered strong growth.

The target price is increased to $86 from $66.75. Morgans expects the company's efficiency program to materially increase margins which are lagging peers. The Hold rating is maintained.

Target price is $86.00 Current Price is $79.29 Difference: $6.71
If BKL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $73.95, suggesting downside of -6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

UBS rates BOQ as Neutral (3) -

UBS believes the acquisition of ME Bank makes strategic sense as scale is important in regional banking and the purchase will increase the loan book by 57%. The acquisition is also diversifying into Victoria and away from Queensland.

Given a combination of synergy benefits and more optimistic underlying assumptions, the broker materially increases forecasts for FY21-23. Neutral retained. Target rises to $8.50 from $7.50.

Target price is $8.50 Current Price is $8.91 Difference: minus $0.41 (current price is over target).
If BOQ 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 $9.15, suggesting upside of 1.9% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates CCP as Outperform (1) -

Macquarie believes the US purchased debt ledger (PDL) market can be a material source of growth for Credit Corp Group. The group has the capacity to purchase circa $200m p.a. of PDLs and in February had $72m in contracted US market PDLs.

The broker highlights competitors such as Encore and PRA US acquired PDL volumes have dropped since last year but were cheaper in all quarters in FY20 (except Q1 for PRA US).

Outperform rating with a target of $34.80.

Target price is $34.80 Current Price is $32.71 Difference: $2.09
If CCP meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $33.45, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates CRW as Buy (1) -

The highlight of Cashrewards' first-half result was growth in revenue of 31% along with a 45% jump in active member numbers versus twelve months ago, observes Ord Minnett. Also, the recent IPO gave the company the ability to ramp up its member and merchant numbers.

Going ahead, some key catalysts include strategic agreements with the major shareholder, ANZ Bank ((ANZ)), with the company working on an "exciting product development”.

Buy rating with the target dropping to $2.12 from $2.20.

Target price is $2.12 Current Price is $1.67 Difference: $0.45
If CRW meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates CTP as Hold (3) -

First half revenue was ahead of Morgans estimates and there was a smaller-than-expected decline in earnings (EBITDAX). A small earnings margin decline, despite lower sales volumes, was considered to demonstrate good cost control.

Management commented rising spot gas prices on the east coast have translated into improving demand levels from its as-available customers during the first half. The broker feels this is likely to continue into the 2H21.

The Hold rating is retained and the target increases to $0.15 from $0.133 as Morgans now has increased overall confidence in the potential for a turnaround in earnings.

Target price is $0.15 Current Price is $0.14 Difference: $0.01
If CTP meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates CVN as Hold (3) -

Ord Minnett has incorporated Carnarvon Petroleum’s interim financial result into its model with no impact on forecasts.

Hold rating is maintained with the price target rising to $0.28 from $0.25.

Target price is $0.28 Current Price is $0.28 Difference: $0
If CVN meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates DTC as Downgrade to Equal-weight from Overweight (3) -

While Damstra Holdings' revenue at $12m missed Morgan Stanley's forecast by -10%, the operating income beat the broker's estimated $1.3m. Also, the broker expected a net loss of -$1.5m but the company surprised with a net profit of $0.9m.

The broker finds the strategic vision of Damstra platform play to be compelling. Even then, there is a near-term lack of visibility that makes the broker think the earnings will be skewed to the downside versus Damstra's August guidance.

Morgan Stanley lowers its revenue forecasts by -8% in FY21 and -11% in FY22.

The rating is downgraded to Equal-weight from Overweight with the target dropping to $1.25 from $2. Industry view: In-line.

Target price is $1.25 Current Price is $1.09 Difference: $0.16
If DTC meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Citi believes nominal gold prices have peaked this cycle and downgrades gold price forecasts by -5% in 2021 to US$1,800/oz while the long term gold price remains unchanged at US$1,400/oz.

With the Fed tightening being priced-in, Citi thinks the opportunity cost of holding gold will increase. The broker's key picks are stocks positioned to generate cash through the cycle and expect upcoming news flow. 

Evolution Mining is upgraded to Buy from Neutral with a target price of $4.80.

Target price is $4.80 Current Price is $4.09 Difference: $0.71
If EVN meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.66, suggesting upside of 17.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates FMG as Outperform (1) -

Year to date spot iron-ore prices have averaged at US$167/t with Fortescue Metal Group's basket price averaging at circa US$150/t. This is 30% higher than the first half of FY21.

Macquarie believes the group's second-half earnings could exceed US$6bn with a final dividend of more than $2 per share, translating to a yield of 15%.

But that's not all. The broker is of the view if the elevated spot price persists, Fortescue Metals Group may have the capacity to deliver dividend yields of circa 19% for both FY22-23. 

Outperform rating with the target dropping to $25.50 from $26.50.

Target price is $25.50 Current Price is $22.68 Difference: $2.82
If FMG meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $23.24, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.4

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

Credit Suisse rates HUO as Neutral (3) -

Huon Aquaculture Group delivered a very weak first half, observes Credit Suisse, in line with the group's latest update and consistent with industry pricing trends hit by covid.

While expecting pricing to normalise with time, the broker notes Huon's main issue in the short-term is the balance sheet with net debt expected to be six times the group's operating income in FY21.

While the stock has valuation appeal, Credit Suisse believes Huon Aquaculture has a few hurdles to jump before this is likely to be realised.

Neutral rating retained with the target dropping to $2.70 from $2.90.

Target price is $2.70 Current Price is $2.47 Difference: $0.23
If HUO meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates IPL as Overweight (1) -

The March benchmark Yara/Mosaic contract price for tampa ammonia has risen 35% and is now 27% above Morgan Stanley's second-half forecast of US$350/t.

The broker highlights for every US$10/t rise in the tampa ammonia price, Incitec Pivot's FY21 operating income sensitivity is US$6.1m.

Morgan Stanley sees prices for both DAP and ammonia higher than consensus forecasts and expects this momentum to drive consensus upgrades.

Overweight reiterated with a target of $3.25. Industry view: In-Line.

Target price is $3.25 Current Price is $2.65 Difference: $0.6
If IPL meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates MCA as Buy (1) -

Ord Minnett notes Murray Cod Australia's first-half result provided clarity over revenue and costs. Where fish sales were in line with expectations, the total income was driven by a higher hatchery capacity and live fish sales contribution.

The broker takes a short-term view on these benefits and expects the average weight per fish to revert to pre-covid levels. Ord Minnett is also positive on the domestic retail and restaurant sales approach in the medium-term.

Buy rating retained. Target rises to $0.33 from $0.32.

Target price is $0.33 Current Price is $0.21 Difference: $0.12
If MCA meets the Ord Minnett target it will return approximately 57% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates MDC as Add (1) -

In what Morgans considers a major de-risking for Medlab Clinical, the company announced it has received FDA  investigational new drug (IND) status for the NanaBis product. The broker had expected the announcement.

Approval allows commencement of a Phase 3 trial in the US for its metastatic cancer-induced bone pain (CIBP) trial.  

The company also plans to submit a further IND application for an Expanded Access (EA) use authorisation which, if approved, would allow compassionate use sales in the US prior to formal regulatory approval. Speculative Buy. Target is increased to $0.39 from $0.32.

Target price is $0.39 Current Price is $0.33 Difference: $0.06
If MDC meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates MOZ as Hold (3) -

Mosaic Brands' first half result was in-line with the recent trading update. The company expects to generate same store sales growth in FY22 amid further store optimisation (sales/profitability) in the 2H. 

Morgans explains the store network closure program remains ongoing, with 41 stores closed early in 2H21 and with 54% of leases expiring by December 2021 and 90% by June 2023.

The Hold rating is maintained as the broker awaits further evidence of the turnaround initiatives underway before becoming more positive on the stock. The target falls to $0.99 from $1.19.

Target price is $0.99 Current Price is $0.83 Difference: $0.16
If MOZ meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates MWY as Hold (3) -

Despite lower US dollar wood chip prices, Morgans assesses Midway reported solid earnings growth in the 1H21 (off a low base). Key drivers were considered increased sales volumes, lower wood fibre supply costs, favourable FX and increased wood fibre content. 

These positives were partially offset by the lower US dollar woodchip prices and the temporary shutdown of the SWF Myamyn Mill (now restarted). Management noted global export market conditions started to improve towards the end of 1H21. 

The Hold rating is maintained and the target price is decreased to $1.07 from $1.12 after balancing a recovery in woodchip prices versus the strengthening Australian dollar.

Target price is $1.07 Current Price is $0.90 Difference: $0.17
If MWY meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates MX1 as Add (1) -

Micro-X, as part of the Australian Stroke Alliance, has been successful in securing $8.0m of grant funding over three years for early stroke detection. Morgans feels this is a strong endorsement of the company’s technology offering.

The Speculative Buy rating is maintained and the target price is unchanged at $0.61 as the broker makes no changes to forecasts.

Target price is $0.61 Current Price is $0.40 Difference: $0.21
If MX1 meets the Morgans target it will return approximately 52% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates NAN as Sell (5) -

Citi has lowered its FY21 earnings by -38% on slower adoption of Trophon due to covid.

While the broker remains cautiously optimistic that a new product will be launched, the current share price implies an accelerated launch in a significantly sized market. The broker considers this overly optimistic and will review the situation when more details are available.

The launch of new products is planned for FY22 but the exact nature of product and the addressable market size are unknown variables.

Sell rating retained with the target price rising to $4.30 from $4.15.

Target price is $4.30 Current Price is $6.21 Difference: minus $1.91 (current price is over target).
If NAN meets the Citi target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.82, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Citi rates NST as Buy (1) -

Citi believes nominal gold prices have peaked this cycle and downgrades gold price forecasts by -5% in 2021 to US$1,800/oz while the long term gold price remains unchanged at US$1,400/oz.

With the Fed tightening being priced-in, Citi thinks the opportunity cost of holding gold will increase. The broker's key picks are stocks positioned to generate cash through the cycle and expect upcoming news flow. 

Cit retains its Buy rating on Northern Star Resources with the target dropping to $13.50 from $14.50.

Target price is $13.50 Current Price is $9.95 Difference: $3.55
If NST meets the Citi target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $13.98, suggesting upside of 46.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates NUF as Buy (1) -

Nufarm has provided a strong trading update for the four months to January 31. UBS points out this is the third consecutive positive trading update from the company.

The business is benefitting from a recovery in agricultural markets amid favourable weather and crop prices. The broker lifts forecasts by 7%, largely from upgrades in the European region.

Buy retained. Target is raised to $5.70 from $5.50.

Target price is $5.70 Current Price is $4.89 Difference: $0.81
If NUF meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgan Stanley rates NXL as Overweight (1) -

For Morgan Stanley's early assessment of Nuix's interim report, which turned out to be disappointing, see yesterday's Report.

The broker did state it remains confident due to an opportunity to expand into new verticals, shift to SaaS and accretive M&A opportunities and therefore, on second consideration, has only made minor changes to forecasts while advocating investors should treat share price weakness as an opportunity to get on board.

Morgan Stanley believes a considerably stronger second half is achievable. Overweight rating retained while the price target drops to $10.75 from $11. Industry view is Attractive.

Target price is $10.75 Current Price is $6.30 Difference: $4.45
If NXL meets the Morgan Stanley target it will return approximately 71% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates NXT as Overweight (1) -

NextDC's first-half revenue at $125m beat Morgan Stanley's estimate by 4%, with operating income ahead of the broker's estimate by 11%. The company added 1mw of enterprise contracts in the first half, in line with historical run-rates.

On a pleasant note, NextDC received more business in January and February 2021 than the entire first half combined and the broker sees the execution as tracking to plan.

Guidance for FY21 has been upgraded and the broker recalibrates its numbers to reflect a one-off -$14m refinancing fee and a much lower power price.

Overweight retained. Target is $14.60. Industry view is In-Line.

Target price is $14.60 Current Price is $11.15 Difference: $3.45
If NXT meets the Morgan Stanley target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $14.12, suggesting upside of 26.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates ORI as Hold (3) -

Ord Minnett believes Orica's management was too optimistic when guiding the market for FY21 back in November and instead, should have taken a more cautious view regarding SAP integration, currency and Burrup arbitration costs.

The broker reduces its FY21 operating income forecast to $450m from $625m.

Hold rating with the target lowered to $13.75 from $16.50.

Target price is $13.75 Current Price is $12.68 Difference: $1.07
If ORI meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $14.91, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

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

UBS is disappointed with the trading update, noting there are several factors that drove a reduction to the first half earnings outlook. Orica has indicated a 180,000t reduction in global ammonium nitrate volumes is likely in the first half, given the slump in thermal coal demand.

UBS reduces FY21-23 estimates sharply. Rating is downgraded to Neutral from Buy.

The broker still believes Orica will provide leverage to a global recovery and the normalisation of mine production, but increasing coal trade dislocation, increased investor concerns and the risk of a re-set under the new CEO will weigh on the short-term performance, the broker predicts.

Target is reduced to $13.50 from $19.40.

Target price is $13.50 Current Price is $12.68 Difference: $0.82
If ORI meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.91, suggesting upside of 19.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates PPC as Outperform (1) -

Peet & Company's first-half operating earnings per share at 2.1c were less than Macquarie expected (2.7c).

Sales rose significantly over the first half, observes Macquarie, with group sales 50% above last year. Peet currently has 2,054 contracts on hand versus 1,786 contracts in June 2020.

The broker notes Peet's operating income margin is being impacted by project timing and settlement of higher price, but lower margin town homes. Macquarie expects the margin to rebound in FY22 and FY23 with higher-margin projects back online.

No FY21 guidance was provided (as anticipated). Macquarie maintains its Outperform rating with the target dropping to $1.24 from $1.31.

Target price is $1.24 Current Price is $1.16 Difference: $0.08
If PPC meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates PRU as Buy (1) -

Citi believes nominal gold prices have peaked this cycle and downgrades gold price forecasts by -5% in 2021 to US$1,800/oz while the long term gold price remains unchanged at US$1,400/oz.

With the Fed tightening being priced-in, Citi thinks the opportunity cost of holding gold will increase. The broker's key picks are stocks positioned to generate cash through the cycle and expect upcoming news flow. 

Buy rating with the target dropping to $1.50 from $1.55. 

Target price is $1.50 Current Price is $1.13 Difference: $0.37
If PRU meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $1.48, suggesting upside of 36.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates RED as Add (1) -

While assigning little value to the Darlot project, Morgans believes its operational underperformance has tarnished both the company’s reputation and valuation, which in turn significantly undervalues the KOTH project.

Management downgraded annual guidance to 80-85koz from 90-98koz at a cost of $2,150-$2,280/oz. The Add rating is maintained and the target is decreased to $0.33 from $0.41 as costs at Darlot remain a concern to Morgans as gold softens.

Target price is $0.33 Current Price is $0.19 Difference: $0.14
If RED meets the Morgans target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates RRL as Neutral (3) -

Citi believes nominal gold prices have peaked this cycle and downgrades gold price forecasts by -5% in 2021 to US$1,800/oz while the long term gold price remains unchanged at US$1,400/oz.

With the Fed tightening being priced-in, Citi thinks the opportunity cost of holding gold will increase. The broker's key picks are stocks positioned to generate cash through the cycle and expect upcoming news flow. 

Citi retains a Neutral rating for Regis Resources and reduces the target to $3.85 from $4.40.

Target price is $3.85 Current Price is $3.14 Difference: $0.71
If RRL meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $4.32, suggesting upside of 41.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates RSG as Buy (1) -

Citi believes nominal gold prices have peaked this cycle and downgrades gold price forecasts by -5% in 2021 to US$1,800/oz while the long term gold price remains unchanged at US$1,400/oz.

With the Fed tightening being priced-in, Citi thinks the opportunity cost of holding gold will increase. The broker's key picks are stocks positioned to generate cash through the cycle and expect upcoming news flow. 

Buy/High Risk retained for Resolute Mining with the target reduced to $0.90 from $1.

Target price is $0.90 Current Price is $0.63 Difference: $0.27
If RSG meets the Citi target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates RSG as Outperform (1) -

Resolute Mining's 2020 preliminary results show the operating income was 16% higher than expected led by strong cost performance. On the flip side, the net profit was US$45m lower than expected following the receipt of demands for payment from the Mali Tax authorities.

Macquarie finds the result a mixed bag with a better than expected free cash flow. The company continues to dispute the Mali government’s tax demand.

Expecting 2021 to be a key deleveraging year for Resolute Mining, the broker believes performance at the company's Syama operations remains key.

Outperform and $1.00 target retained.

Target price is $1.00 Current Price is $0.63 Difference: $0.37
If RSG meets the Macquarie target it will return approximately 59% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates SBM as Neutral (3) -

Citi believes nominal gold prices have peaked this cycle and downgrades gold price forecasts by -5% in 2021 to US$1,800/oz while the long term gold price remains unchanged at US$1,400/oz.

With the Fed tightening being priced-in, Citi thinks the opportunity cost of holding gold will increase. The broker's key picks are stocks positioned to generate cash through the cycle and expect upcoming news flow. 

The broker retains a Neutral rating on St Barbara and lowers the target to $2.30 from $2.70.

Target price is $2.30 Current Price is $2.03 Difference: $0.27
If SBM meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.94, suggesting upside of 48.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates SKI as Neutral (3) -

Post the 2020 result, Citi has downgraded its 2021 earnings forecast for Spark Infrastructure Group. 

Neutral rating is retained with the target price falling to $2.22 from $2.28.

Target price is $2.22 Current Price is $2.08 Difference: $0.14
If SKI meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.28, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates VOL as Downgrade to Hold from Buy (3) -

Victory Offices reported a net loss of -$14.2m on the back of weaker than expected revenue of $6.6m (Ord Minnett expected $7.2m). This along with an impairment of receivables led to the first half cash burn exceeding guidance, notes the broker, implying a limited funding runway.

In the long term, Ord Minnett believes covid will offer positive tailwinds as the industry demands a high level of workplace flexibility. For now, the broker expects the negative impacts to prevail.

Ord Minnett downgrades to Hold from Buy with the target dropping to $0.33 from $0.71.

Target price is $0.33 Current Price is $0.26 Difference: $0.07
If VOL meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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