Australian Broker Call

Shaw and Partners rates A1M as Buy (1) -

Shaw and Partners highlights AIC Mines has achieved its FY24 production target of 12,500t of copper and 5,000oz of gold.

The broker stresses the Eloise Copper Mine has consistently delivered solid quarterly production, meeting targets three weeks ahead of schedule.

Post the Eloise acquisition, management has focused on operational reliability, which has resulted in improved outcomes for the company.

AIC Mines will report the June quarter production update in mid-July and the investor day is expected late July to early August.

There are no changes to the analyst's estimates. Buy rating with $1.20 target unchanged. High risk.

Target price is $1.20 Current Price is $0.46 Difference: $0.74
If A1M meets the Shaw and Partners target it will return approximately 161% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Ord Minnett rates ABB as Upgrade to Buy from Accumulate (1) -

Aussie Broadband updated EBITDA guidance between $116m to $121m for FY24, driven by momentum in the enterprise and government segments and integration progress of Symbio.

Ord Minnett views the update as offering more "visibility" on the FY24 earnings and has upgraded the stock to Buy from Accumulate.

Management pointed to market share growth in the NBN March quarter report, an increase to 7.0% from 6.9%.

Additionally, price rises flagged by Telstra ((TLS)) for July are expected to support further market share gains for Aussie Broadband, the broker notes.

Target price unchanged at $4.20. Rating lifted to Buy from Accumulate.

Target price is $4.20 Current Price is $3.50 Difference: $0.7
If ABB meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

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

Ord Minnett initiates coverage of Australian Clinical Labs with a Buy rating and a $3.20 target price.

The broker highlights the company's position as the third-largest private provider of pathology services in Australia with around a 20% market share.

Australian Clinical Labs offers a unified pathology system and is noted for generating sector-leading labour efficiency and return on invested capital, the analyst highlights.

The recent pullback in the share price is viewed as an attractive entry point and FY24 EBIT guidance is expected to indicate improved margins of around 10.3% and better volume growth in the 2H24, according to Ord Minnett.

Target price is $3.20 Current Price is $2.31 Difference: $0.89
If ACL meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $3.03, suggesting upside of 28.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates AGL as Neutral (3) -

Macquarie has anticipated AGL Energy's adoption of Kaluza technology since the acquisition of OVO. Investment in Kaluza company is marginal, the broker notes, albeit a successful implementation should enhance AGL's growth prospects.

With competitors such as Origin Energy ((ORG)) also implementing similar systems, Macquarie anticipates some of these gains will be competed away. The secondary risk is they are regulated away.

At this stage the broker is neutral on the Kaluza investment, but the project should enable a step-down in costs, mainly capex, as development costs are replaced with annual customer fees. Target rises to $10.86 from $10.69, Neutral retained.

Target price is $10.86 Current Price is $10.31 Difference: $0.55
If AGL meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.78, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

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

AGL Energy has announced it has moved to 100% ownership of OVO Energy Australia and will move to 20% of the Kaluza global platform via a preference share issue.

AGL will invest -$300m over FY24-27 to transfer its retail accounts to Kaluza, targeting cost savings of -$70-90m pa annually, starting in FY28.

Morgan Stanley will look to value AGL's Kaluza investment at cost, absent detailed financial disclosures, noting OVO and Kaluza are private companies with a history of strong growth.

Equal-weight and $9.50 target retained. Industry view: Cautious.

Target price is $9.50 Current Price is $10.31 Difference: minus $0.81 (current price is over target).
If AGL meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.78, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates APE as Sell (5) -

Eagers Automotive highlighted three "levers" to generate margin improvement at the pre-tax profit level, including property-related initiatives (40bps), advancements in people and technology (100bps), and increased finance and insurance penetration (50bps).

Management offered no timeline for these benefits to materialise, Citi highlights.

The analyst remains cautious in the near term due to rising inventory, falling gross profit units on new cars, new OEM entries into the Australian market, and potential oversupply from Chinese OEMs.

Sell rating and $9.55 target maintained.

Target price is $9.55 Current Price is $10.27 Difference: minus $0.72 (current price is over target).
If APE meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.28, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Macquarie rates APE as Neutral (3) -

Eagers Automotive has outlined the margin levers available to expand profit margins by 1.9% over a five-plus year period. Macquarie believes Eagers' scale advantages should allow it to expand margins more than peers, but it is not alone.

Competitors have a degree of access to the same levers, the broker notes, which would mean some benefits being competed away.

The broker has further found that Chinese OEMs are more aggressive and unrealistic during JV negotiations. They're also a higher risk of ending an agreement even if their distribution partner does a good job, which Eagers highlighted as a risk.

Hence, an exclusive BYD distribution deal is not guaranteed. Neutral and $10.60 target retained.

Target price is $10.60 Current Price is $10.27 Difference: $0.33
If APE meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $12.28, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Morgan Stanley rates APE as Overweight (1) -

Eagers Automotive has reiterated its Next100 strategy, with a detailed update on key components. Morgan Stanley is more positive on the structural outlook, especially now with financial outcomes quantified, including 1.9% profit margin expansion.

The market's key structural concern is nevertheless the Retail JV with BYD. Eagers spoke of more rational behaviour after model oversupply, but the broker doesn't see this concern clearing near-term, especially noting its evolving nature.

However, there have been some constructive signposts: supply levels have rebalanced and Morgan Stanley forecasts this to remain; and profitability in May/June to date has rebounded materially with right-sized supply.

Overweight retained, target $14.10. Industry view: In-Line.

Target price is $14.10 Current Price is $10.27 Difference: $3.83
If APE meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $12.28, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Ord Minnett rates APE as Buy (1) -

Ord Minnett finds management offered a "well-articulated strategy" at the Eagers Automotive investor day.

The broker's key takeaways include potential return-on-sales (ROS) margin upside of up to 1.9%, driven by lower property costs, better leveraging of people and technology, and higher finance and insurance pricing.

The Easyauto123 (second hand cars) business continues to experience increasing profit per unit, and the Automall strategy has a good pipeline, which is expected to improve margins, highlights the analyst.

No significant updates have been made to financial forecasts. Buy rating and $12.80 target unchanged.

Target price is $12.80 Current Price is $10.27 Difference: $2.53
If APE meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $12.28, suggesting upside of 17.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Macquarie rates AUB as Outperform (1) -

AUB Group has agreed to acquire a 40% stake in Momentum Broker Solutions, a UK appointed representative network. Details have not
been disclosed.

Macquarie notes the acquisition is consistent with AUB's strategy to invest in its UK retail offering, complementing Tyser's retail segment.

The broker makes no changes to forecasts pending transaction completion and regulatory approval. Outperform and $33.84 target retained.

Target price is $33.84 Current Price is $31.50 Difference: $2.34
If AUB meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $34.85, suggesting upside of 11.7% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates BAP as Neutral (3) -

Citi is hardly surprised to see Bain Capital Private Equity bid for Bapcor and the analyst states the takeover is opportunitstic as the business is viewed as good, but noting that it comes amid suboptimal governance and management conditions.

The absence of a permanent CEO and the current chair stepping down at the AGM have not helped Bapcor, stresses the broker.

The bid is at $5.40 and given the share price traded -11% below the offer, Citi infers there is no guarantee the deal will eventuate.

Neutral rating and $4.70 target maintained.

Target price is $4.70 Current Price is $4.97 Difference: minus $0.27 (current price is over target).
If BAP meets the Citi target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.83, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates BAP as Hold (3) -

Ord Minnett points to the receipt of an unsolicited, indicative, conditional, and non-binding takeover proposal from Bain Capital Private Equity at $5.40 per share for Bapcor.

The bid comes on the back of the stock's recent underperformance driven by weaker-than-expected trading, particularly in its Retail business, cost inflation, and management uncertainty.

The broker believes the company's market position in the Asia Pacific region is seen as a strategic asset, potentially attracting interest from other industry players. 

No changes are made to the analyst's forecasts.

Target price is raised to $5.40 from $4.65. Hold rating unchanged.

Target price is $5.40 Current Price is $4.97 Difference: $0.43
If BAP meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates BAP as Neutral (3) -

Bapcor has received a conditional non-binding cash takeover bid at $5.40 per share from Bain Capital, following several profit downgrades and a -20% decline in share price over the past six months, UBS recalls.

On UBS's numbers, this bid implies a 17.4x valuation multiple on consensus FY25 EPS of $0.31.

The broker believes there are potential cost reductions, particularly in corporate costs, and highlights the need for a strong senior leadership team to turn around earnings momentum and address market share losses and employee attrition.

UBS makes no changes to earnings forecasts. Neutral rating and $4.70 target unchanged.

Target price is $4.70 Current Price is $4.97 Difference: minus $0.27 (current price is over target).
If BAP 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 $4.83, suggesting downside of -4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates BPT as Outperform (1) -

Beach Energy has announced another -$365-400m of impairments, this time related to Kupe & BassGas, taking the FY24 total to some -$1.1bn, or more than 30% of market cap, Macquarie notes.

The broker suggests new management is clearly taking decisive action on sub-economic projects and strengthening the investment criteria for exploration.

Macquarie's focus remains on sector leading earnings growth and corporate improvement. The broker sees strong value and dividend support at current levels. Outperform retained, target falls to $1.95 from $2.00.

Target price is $1.95 Current Price is $1.60 Difference: $0.355
If BPT meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $1.92, suggesting upside of 19.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Ord Minnett rates BRE as Speculative Buy (1) -

Ord Minnett believes Brazilian Rare Earths reported encouraging Initial exploration results across the Pele target, but the results are not yet sufficiently detailed to impact on the asset valuation, the analyst stresses.

Other targets are less mature, requiring further exploration through drilling and surveys. The broker makes no changes to earnings forecasts.

Speculative Buy rating and $6.10 target unchanged.

Target price is $6.10 Current Price is $3.65 Difference: $2.45
If BRE meets the Ord Minnett target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates CIA as Neutral (3) -

The Canadian government has classified high purity iron as a critical mineral, which includes DRI grade iron and its upstream and downstream value chain.

This classification change enables access for companies such as Champion Iron to grants, tax breaks and funding for exploration, capital projects and innovation, which is a key positive in Macquarie's view.

Champion Iron recently outlined it may be able to receive CA$700m in infrastructure funding to support the Kami build, as well as potential further tax incentives on fixed capital investment, improving the risk and return equation.

The broker has included Kami in its base case forecast (50% risk-adjusted) for the first time as it believes critical minerals policy could significantly reduce the project's funding risk. Target rises to $7.90 from $7.50, Outperform retained.

Target price is $7.90 Current Price is $6.60 Difference: $1.3
If CIA meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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: 0.5

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

Ord Minnett rates CKF as Accumulate (2) -

Ord Minnett prefers Domino's Pizza Enterprises ((DMP)) and Collins Food over no-moat rated Guzman y Gomez ((GYG)).

The broker believes Collins Foods has achieved a solid performance despite a challenging environment, driven by strategic expansion and strong same-store sales growth.

EBITDA margins have been resilient, benefiting from operational efficiencies and cost management initiatives.

The analyst is optimistic about the company's  growth prospects in international markets, particularly in Germany and the Netherlands, where it is expanding its KFC franchise operations.

The Accumulate rating and $14.40 target are unchanged.

Target price is $14.40 Current Price is $9.28 Difference: $5.12
If CKF meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $12.13, suggesting upside of 32.8% (ex-dividends)

The company's fiscal year ends in May.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgan Stanley rates CSL as Overweight (1) -

Moderna has reported positive data for its covid-flu combination vaccine. Morgan Stanley sees some risk to CSL's flu vaccine division, Seqirus.

The broker anticpates the seasonal influenza market evolving from three main players, being CSL, GlaxoSmithKline and Sanofi, towards five, including Moderna and Pfizer.

Moderna plans to present the Phase 3 data at an upcoming medical conference as well as submit it for publication. The company will also engage with regulators on next steps and has previously guided to a 2025 launch of the combo vaccine.

Morgan Stanley makes no changes at this stage. Overweight and $310 target retained. Industry view: Attractive.

Target price is $310.00 Current Price is $286.30 Difference: $23.7
If CSL meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $316.73, suggesting upside of 12.2% (ex-dividends)

The company's fiscal year ends in June.

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: 0.8

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

Shaw and Partners rates CXL as Buy (1) -

Calix is benefiting from ESG tailwinds, with the company announcing a joint venture (jv) between Leilac and Heidelberg Materials and offering further insights into its Zero Emissions Steel Technology (ZESTY) at an investor briefing, Shaw and Partners highlights.

The broker states the JV aims to construct and operate the Leilac-2 demonstration plant, with future ownership potentially transferring to Heidelberg Materials upon successful testing.

Shaw and Partners point to the ZESTY application, which uses green hydrogen to produce green steel, representing a significant decarbonisation opportunity and market potential of US$5.9bn by 2050.

$4.50 target and Buy rating retained.High risk.

Target price is $4.50 Current Price is $1.22 Difference: $3.285
If CXL meets the Shaw and Partners target it will return approximately 270% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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

Ord Minnett rates DMP as Accumulate (2) -

Ord Minnett prefers Domino's Pizza Enterprises and Collins Food ((CKF)) over no-moat rated Guzman y Gomez ((GYG)).

The broker highlights solid sales growth driven by increased store counts and robust online sales performance.

Management continues to focus on expanding its digital capabilities which the analyst assesses should result in higher customer engagement and repeat orders.

The company is also benefiting from operational efficiencies and cost management initiatives, which are expected to sustain its profit margins, the broker notes.

No changes to the analyst's earnings forecasts. Accumulate rating and $61 target price unchanged.

Target price is $61.00 Current Price is $38.69 Difference: $22.31
If DMP meets the Ord Minnett target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $47.08, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates DMP as Neutral (3) -

UBS reviewed the earnings outlook for Domino's Pizza Enterprises post the European Investor Days.

The broker adjusts EPS estimates for FY24 and FY25 by -3% and -6%, respectively due to improved performance in Europe, but with challenges in Asia and foreign exchange headwinds.

Despite slower rates of store growth and same store sales growth in key markets, the analyst considers there is significant long-term store growth potential.

UBS highlights France is trading more positively, but the outlook in Asia remains cautious with low margins in Japan and weak sales in Malaysia.

There is no change to the Neutral rating, the price target has been lowered to $39 from $40.

Target price is $39.00 Current Price is $38.69 Difference: $0.31
If DMP meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $47.08, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates EOS as Buy (1) -

Electro Optic Systems is trading at an unwarranted discount to the company's intrinsic value, according to the analyst at Bell Potter.

The broker points to the recent $202m, seven-year contract with the Royal Australian Navy as a key driver of future earnings growth.

Bell Potter believes the market is overlooking the value of the EOS Defence Systems where it is a leader and will benefit from industry tailwinds.

Buy rating and the target price is lowered -5% to $2.10.

Target price is $2.10 Current Price is $1.27 Difference: $0.83
If EOS meets the Bell Potter target it will return approximately 65% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates GYG as No Rating (-1) -

Ord Minnett initiates coverage of Guzman y Gomez with no rating and a $15 target price, compared to the IPO price of $22.

The shares are expected to list on June 20.

The broker views the company as a relatively small operator in a highly fragmented market and forecasts the company can grow the store network three-fold over the next ten years.

Despite impressive growth to date, Ord Minnett point to returns on investment below the cost of capital.

The analyst sees more value in Collins Food ((CKF)) and Domino's Pizza ((DMP)).

Target price is $15.00

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

Morgans rates KAR as Add (1) -

Morgans observes Karoon Energy has announced positive early results from the Who Dat East exploration well.

The logging of the well has confirmed high-quality hydrocarbon-bearing sands which boosts the potential for Who Dat East's commercialisation, highlights the analyst.

The broker stresses management needs to resolve operational problems and reveal an updated capital management plan.

The Add raring is retained and the target price adjusted for mark-to-market oil and gas prices to $2.60 from $2.80. No changes to earnings forecasts.

Target price is $2.60 Current Price is $1.69 Difference: $0.91
If KAR meets the Morgans target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $2.62, suggesting upside of 55.0% (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: 0.8

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

Citi rates MP1 as Buy (1) -

Citi concludes three themes came out of the Microsoft, Alphabet and Meta quarterly results which offer positive tailwinds for NextDC ((NXT)) and Megaport.

The analyst points to an acceleration in cloud growth and cloud migrations; strong demand for artificial intelligence services with Microsoft noting capacity constraints on the inference segment and growth in the Ai infrastructure spend.

Citi believe there is a "multi-year" spend on cloud infrastructure and Microsoft taking a larger share of the public cloud is a driver of multi-cloud adoption and underpins structural growth for Megaport.

Buy Rating. $16.05 target.

Target price is $16.05 Current Price is $12.64 Difference: $3.41
If MP1 meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $15.03, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates MQG as Sell (5) -

To glean further insights into Macquarie Group's Green Investment Group, the Citi analyst hosted an investor call with Orsted IR, a direct competitor in the development of wind assets globally.

The broker highlighted management at Orsted pointed to challenges in the economics of building and operating offshore wind assets due to higher rates and construction inflation, and the mixed near-term outlook for green wind asset prices.

Despite some headwinds, including slower government responses on subsidies, Citi states the long-term appetite for government decarbonisation remains strong.

The stock is rated a Sell and the target price is unchanged at $176.

Target price is $176.00 Current Price is $193.84 Difference: minus $17.84 (current price is over target).
If MQG 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 $193.08, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Ord Minnett rates NEC as Upgrade to Buy from Accumulate (1) -

Ord Minnett nominates Nine Entertainment as a prime takeover target with the shares going nowhere since mid-2022.

At current share price levels, the analyst highlights half of the value of the company equates to the 60% holding in Domain Australia Holdings ((DHG)).

Excluding Domain values the rest of the business at only 3x forward FY24 EBITDA forecasts, the broker highlights. Buy rating and $2.70 target.

Target price is $2.70 Current Price is $1.38 Difference: $1.32
If NEC meets the Ord Minnett target it will return approximately 96% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 60.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates NXT as Buy (1) -

Citi concludes three themes came out of the Microsoft, Alphabet and Meta quarterly results which offer positive tailwinds for NextDC and Megaport.

The analyst points to an acceleration in cloud growth and cloud migrations; strong demand for artificial intelligence services with Microsoft noting capacity constraints on the inference segment and growth in the Ai infrastructure spend.

Citi believe there is a "multi-year" spend on cloud infrastructure that will benefit NextDC. Target $19.75. Buy.

Target price is $19.75 Current Price is $17.92 Difference: $1.83
If NXT meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $18.81, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgan Stanley rates RIO as Overweight (1) -

It has been reported that Rio Tinto has agreed to acquire Mitsubishi Corp's 11.65% interest in the Boyne aluminium smelter in Gladstone. The announcement follows Rio's recent acquisition of Sumitomo Chemical Company's 2.46% interest.

The announcement has little impact on Morgan Stanley's investment thesis, but the broker suggests it shows Rio's continued commitment to the aluminium business.

The broker sees Rio as a key long term player that could benefit from long term aluminium demand, especially through its low-cost and low-carbon Canadian operations.

Overweight retained, target $137.50. Industry view is Attractive.

Target price is $137.50 Current Price is $122.91 Difference: $14.59
If RIO meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $128.08, suggesting upside of 5.7% (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: 0.0

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

Morgans rates RPL as Initiation of coverage with Add (1) -

Morgans initiates coverage of Regal Partners with an Add rating and $4.70 target price.

The broker empahsises the impressive organic growth rate of new funds under management (FUM) of  36% p.a., delivering an additional $2.4bn since June 2022.

Morgans views the company's diverse investment strategies which span long/short equities, private markets, real and natural assets, and credit & royalties as undervalued and highlights the stock trades on an equity managers rating which is below alternative managers.

The growth in FUM is forecast by the analyst to drive a "step change" in fee income. Add rating. $4.70 target.

Target price is $4.70 Current Price is $3.66 Difference: $1.04
If RPL meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.38, suggesting upside of 22.1% (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 SDF as Outperform (1) -

As the insurance premium rate cycle peaks, investors are beginning to discuss cost-outs across the sector, Macquarie reports. Analysis shows this should not be a key lever for insurance brokers, particularly for Steadfast Group, given a lack of control over the cost base.

Macquarie suggests the ability to maximise returns on a US roll-out is key to the long-term value of Steadfast, and the broker believes management can "thread the needle".

Outperform and $6.70 target retained.

Target price is $6.70 Current Price is $5.49 Difference: $1.21
If SDF meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $6.45, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgans rates SVR as Add (1) -

Morgans initiate coverage of Solvar with an Add rating and a target price of $1.40.

The broker believes management is focused on overcoming near-term headwinds and expects to return to double-digit underlying earnings growth in FY25-26.

The company is currently trading on a prospective FY25 multiple of approximately 7.0x and a discount to book value with a forecast yield of around 10%, states the analyst.

Morgans views the strategy to refocus on improving lending quality and practices while scaling back New Zealand operations as a positive.

Target price is $1.40 Current Price is $1.01 Difference: $0.39
If SVR meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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) -

Southern Cross Gold has announced a dual listing on the ASX and TSXV (an emerging companies market place in Calgary, Canada) through its merger with Mawsons Gold, which currently holds 50% of the company, Shaw and Partners notes.

The broker views this as a strategic move designed to enhance liquidity and access to capital, supporting the company's exploration and development projects.

No new shares will be issued, the same board and management will be retained and the ownership of Sunday Creek will be under one company, with Australian shareholders benefiting from tax rollover relief rules, states the analyst.

Unchanged Buy rating and $3.26 target. High risk.

Target price is $3.26 Current Price is $2.82 Difference: $0.44
If SXG meets the Shaw and Partners target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates VVA as Buy (1) -

Citi highlights there is upside potential to the EBITDA margins for Viva Leisure, with a range between 30% and 34% pre-covid as a benchmark for potential improvements.

The company reported an EBITDA margin of circa 21% for both FY23 and 1H24 and the broker anticipates margin benefits as Viva Leisure acquires more margin accretive clubs, and as its existing network matures.

Management upgraded FY25 earnings before interest and tax by 7.5%, post the acquisition of eight new health clubs in Western Australia, now reflected in forecasts.

The analyst reduces EPS forecasts by -3.6% for FY24 and -23.8% for FY25. Buy rating and $2.50 target unchanged.

Target price is $2.50 Current Price is $1.50 Difference: $1
If VVA meets the Citi target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

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 WDS as Upgrade to Outperform from Neutral (1) -

Macquarie now sees Woodside Energy shares implying an oil price into perpetuity of around US$56/bbl on a risked base case, and trading on a material -27% enterprise value discount to US peers.

This has opened a meaningful gap to the intrinsic value on the broker's below-consensus US$65/bbl long term Brent forecast.

The market is excessively pricing commodity, project and climate risks, in Macquarie's view. The Sangomar start-up represented a de-risking of Woodside's growth strategy, the broker argues, and LNG competencies are strategic given the LNG demand growth outlook.

Upgrade to Outperform from Neutral. Target unchanged at $32.

Target price is $32.00 Current Price is $27.09 Difference: $4.91
If WDS meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $33.80, suggesting upside of 21.5% (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

Morgans rates WDS as Add (1) -

Woodside Energy has successfully delivered first oil at the Sangomar field, Senegal's first offshore oil project.

Morgans point to the successful delivery of the project within the guided -US$4.9-US$5.2bn development budget.

Sangomar Phase 1 utilises a floating production storage and offloading (FPSO) facility with a capacity of 100kbpd oil. The broker adds Phase 2 development is expected to be supported by the S400 sands.

The brokers stresses the company's strong execution despite complex geology, increasing confidence in exploiting larger reservoirs.

Woodside Energy is expected to report 2Q production and sales in July and 1H24 earnings in August, notes Morgans.

Add rating and $36 target price retained.

Target price is $36.00 Current Price is $27.09 Difference: $8.91
If WDS meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $33.80, suggesting upside of 21.5% (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