Australian Broker Call

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

Morgans downgrades its rating for Aurizon Holdings to Hold from Add on valuation after recent share price appreciation. 

The target rises to $3.95 from $3.80 as high inflation is driving Coal’s quarterly CPI-linked price escalation, and Bulk earnings are rising from both growth in capital investment and organic growth.

While the company has relatively defensive earnings, the broker cautions investors around the capital-intensive nature of the business and ongoing concerns around the remaining life of the highly coal-concentrated earnings base.

Target price is $3.95 Current Price is $3.98 Difference: minus $0.03 (current price is over target).
If AZJ meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.94, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

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

Paine Schwartz Partners already had a 13.8% stake in Costa Group and yesterday launched a confidential non-binding indicative
proposal to acquire the remainder for $3.50/share in cash.

Bell Potter suspects the proposal will move to a formal offer, though feels the price is opportunistic given the higher Costa Group share price prior to 2022 citrus crop issues that are unlikely to repeat.

Moreover, the offer price only implies limited value for earnings upside over 2024/25 from biological assets, suggests the analyst.

Bell Potter raises its target to align with the $3.50 offer and moves to a Hold rating from Buy after the share price rally in reaction to the bid.

Target price is $3.50 Current Price is $3.34 Difference: $0.16
If CGC meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates CGC as Downgrade to Neutral from Outperform (3) -

Costa Group has received an indicative proposal from Paine Schwartz Partners at $3.50 cash per share. Macquarie notes this is an 18% premium to the closing price of $2.96 on July 3. As of March 2023 Paine Schwartz held a 14.8% interest in the stock.

Macquarie is sceptical that, while a potential deal would eliminate execution risk around delivering a "big 21%" earnings recovery in 2023 in line with forecasts, the offer only implies a 20% PE and 8% EV/EBITDA premium.

Rating is downgraded to Neutral from Outperform and the target is raised to $3.43 from $2.86.

Target price is $3.43 Current Price is $3.34 Difference: $0.09
If CGC meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Ord Minnett rates CGC as Hold (3) -

Ord Minnett assesses the indicative proposal from Paine Schwartz Partners for Costa Group was already well advanced, with a 14% stake acquired in 2022.

The broker increases the target to $3.40 from $3.10, to represent a 75% probability of a deal going through at the indicative price of $3.50 a share.

In the meantime, conditions are improving for the company and a strong 2023 result is expected.

The wet weather that weighed on citrus quality and avocado volumes in 2022 is waning and the broker also expects elevated input costs, such as for fertilisers and labour, will continue to ease. Hold maintained.

Target price is $3.40 Current Price is $3.34 Difference: $0.06
If CGC meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.22, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates CHC as Buy (1) -

While anticipating potential headwinds over the short term, reflecting a weaker transaction market, Citi still finds compelling value in Charter Hall as the stock has already priced in a lot of the negatives.

An improvement in the rate outlook later in the year and better outcomes for office assets could mean the shares perform well over the next 12 months, the broker adds.

Citi believes the second half of 2023 will be weak but then pick up next year once the peak in rates has, potentially, occurred, allowing buyers to have confidence in the debt cost outlook. A Buy rating is maintained and the target is lowered to $13.50 from $14.60.

Target price is $13.50 Current Price is $11.11 Difference: $2.39
If CHC meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $14.23, suggesting upside of 26.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates CSR as Buy (1) -

CSR will acquire Woven Image for -$43m, extending its commercial interiors offering. Woven Image suppllies high specification textile and acoustic finishes for interiors across the office, hospitality, education and healthcare sectors.

UBS believes the acquisition is sensible as CSR is a major supplier to Woven Image, understanding the business and end markets, and will retain the management team post acquisition.

The acquisition is in keeping with the strategy to use its net cash position and pursue bolt-on acquisitions that offer a unique customer proposition and are appropriately priced.

Buy rating and $6.50 target price retained.

Target price is $6.50 Current Price is $5.32 Difference: $1.18
If CSR meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in March.

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

Shaw and Partners rates CY5 as Buy (1) -

Ahead of a maiden field campaign at the Sakami project in the James Bay lithium district in Canada, Cygnus Metals has identified pegmatite targets with outcrops up to 140m long and 30m wide.

Shaw and Partners expects the upcoming maiden resource at the Pontax lithium project in late-July or early-August will serve as a share price catalyst.

The Buy rating and $0.46 target are maintained.

Target price is $0.46 Current Price is $0.28 Difference: $0.175
If CY5 meets the Shaw and Partners target it will return approximately 61% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Bell Potter rates DRO as Buy (1) -

Bell Potter makes no changes to its earnings forecast for DroneShield as the analyst had already allowed for a follow-up R&D contract (two years, $9.9m). The contract was from the same customer in the adjacent market of Electronic Warfare. 

The broker suggests the win demonstrates early success in this new market and will allow further exploration for the application of DroneShield's proprietary software.

The company is on track for a record quarter of cash receipts in Q2, observes the analyst, following $7m in cash receipts in Q1. The 40c target and Buy rating are unchanged.

Target price is $0.40 Current Price is $0.27 Difference: $0.135
If DRO meets the Bell Potter target it will return approximately 51% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates HUB as Neutral (3) -

Citi lowers its net flow forecasts for Hub24 in FY23 to -10% to reflect lower client activity and increased allocation to term deposits. While expecting flows will bounce back in FY24 the broker assesses the timing is uncertain and assumes flows will continue to be weak in the first half.

While retaining a Neutral rating on both, Citi continues to prefer Hub24 to Netwealth Group from a valuation perspective. Target is reduced to $29.60 from $30.15.

Target price is $29.60 Current Price is $26.21 Difference: $3.39
If HUB meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $32.63, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates INA as Buy (1) -

Ingenia Communities posted FY23 settlements that were in line with Citi's expectations and at the lower end of the 370-420 guidance range. Going forward the broker envisages scope for weaker settlements in the first half but then a strong ramp up beyond that.

Estimates are cut to reflect delayed settlements and higher debt costs but with 20% growth in EPS expected from FY23-25 there is potential upside and Citi reiterates a Buy rating. Target is reduced to $4.64 from $4.70.

Target price is $4.64 Current Price is $4.04 Difference: $0.6
If INA meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.44, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgans rates LAU as Add (1) -

Morgans upgrades FY24-FY25 EPS forecasts for Lindsay Australia by around 6% in line with management’s single digit EPS accretion guidance following the acquisition of Victorian-based rural merchandising business WB Hunter. 

The EPS upgrades are partially offset in FY25 as the analyst allows for modestly higher lease related D&A expenses and interest costs. 

The -$34.6m transaction will increase the Rural division’s existing footprint of 21 rural supplies and agricultural services stores by seven sites in Victoria and one site in NSW. 

The target rises to $1.55 from $1.40. The broker likes the increased scale of the Rural business and geographic diversification away from the company’s core QLD market.

Target price is $1.55 Current Price is $1.12 Difference: $0.43
If LAU meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $1.55, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates LAU as Buy (1) -

Lindsay Australia has acquired the WB Hunter rural brand in Victoria for -$34.6m, extending its rural footprint to 29 stores nationally and adding three established high-growth areas for irrigated horticulture.

Ord Minnett calculates the acquisition is 6% accretive to EPS estimates in FY24 and expects this will provide a platform for future organic growth in servicing new regions with a combined production value of $2.2bn annually.

Buy rating maintained. Target is raised to $1.51 from $1.40.

Target price is $1.51 Current Price is $1.12 Difference: $0.39
If LAU meets the Ord Minnett target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.55, suggesting upside of 25.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Bell Potter rates NAN as Sell (5) -

After returning from a site visit at Nanosonics' US headquarters in Indianapolis, Bell Potter suggests Trophon 2 remains underpenetrated, particulary among former GE clients.

The broker expects the company's FY23 result will come in at the top end of guidance for growth in the range of 36-41% and a gross margin of 77-79%.

Despite holding this view, the analyst feels the stock is fully valued and maintains a Sell rating. The target rises to $4.15 from $3.90.

Target price is $4.15 Current Price is $4.81 Difference: minus $0.66 (current price is over target).
If NAN meets the Bell Potter target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.56, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Citi rates NWL as Neutral (3) -

Citi lowers its net flow forecasts for Netwealth Group in FY23 to -6% to reflect lower client activity and increased allocation to term deposits. While expecting flows will bounce back in FY24 the broker assesses the timing is uncertain and assumes flows will continue to be weak in the first half.

While retaining a Neutral rating on both, Citi continues to prefer Hub24 to Netwealth from a valuation perspective. Target is raised to $14.00 from $13.95.

Target price is $14.00 Current Price is $14.25 Difference: minus $0.25 (current price is over target).
If NWL meets the Citi target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.73, suggesting upside of 7.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates PLL as Outperform (1) -

Piedmont Lithium's partner Sayona Mining has updated on the Quebec production ramp up.

At the end of June the project produced 30,000t of spodumene concentrate with an average grade of 5.5% with confirmation that producing at a lower grade of 5.5% results in higher recovery and greater production.

The ramp up is faster than Macquarie previously estimated while first shipment slated for the third quarter remains in line with estimates. Outperform maintained. Target is $1.80.

Target price is $1.80 Current Price is $0.89 Difference: $0.91
If PLL meets the Macquarie target it will return approximately 102% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Morgan Stanley rates RIO as Overweight (1) -

Morgan Stanley believes an upcoming Oyu Tolgoi site visit hosted by Rio Tinto will serve as a catalyst for the market to more greatly appreciate copper's contribution to group earnings.

While iron ore currently provides around 58% of 2023 revenues, the analysts point out copper earnings (EBITDA) from a number of sources will rise to circa 27% by FY25 from 9% in FY22.

The broker anticipates Oyu Tolgoi will drive more than 90% of copper volume growth over the next five years. The expected organic growth optionality for Rio Tinto will likely reduce the need for M&A.

The Overweight rating is unchanged, while the target is reduced to $124 from $126.50. Sector view is Attractive.

Target price is $124.00 Current Price is $114.15 Difference: $9.85
If RIO meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $113.33, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.2

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

Macquarie rates RMS as Outperform (1) -

Ramelius Resources has met FY23 production guidance, although the 68,800 ounces produced in the fourth quarter were -12% below Macquarie's estimates.

Costs are expected to remain within the upper end of the original AISC guidance of $1750-1950/oz.

Meanwhile, the company's takeover offer consideration for Musgrave Minerals ((MGV)) implies a 19% premium over the prior close and a 27% premium to the latest bid from Westgold Resources ((WGX)), which has indicated it does not intend to improve its offer.

Macquarie assumes Ramelius Resources is successful and expects the acquisition should bring regional synergies.

Outperform rating maintained and the target is lowered to $1.60 from $1.65.

Target price is $1.60 Current Price is $1.33 Difference: $0.27
If RMS meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates S32 as Buy (1) -

South32 shares are down -12% over the past three months and Citi downgrades estimates for earnings because of lower metal and coal prices.

The broker has reduced its 2023 copper and nickel price forecast to US$8385/t and US$22,260/t, respectively, and 2024 copper to US$9125/t. Hard coking coal price forecasts for 2023 and 2024 are reduced to US$255/t and US$225/t, respectively.

Citi concludes there are plenty of "stale bulls" in South32 but finds it hard to argue against a value case and retains a Buy rating. Target is reduced to $4.35 from $4.55.

Target price is $4.35 Current Price is $3.81 Difference: $0.54
If S32 meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting upside of 21.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

UBS rates SEK as Buy (1) -

UBS believes the market is under-appreciating the ability for dynamic pricing to deliver a step up in longer-term price growth.

The broker's latest check on job listing volumes for Seek Australia signals these are down around -24-26% in June, which brings the second half slump to around -17%. In FY24 volumes are expected to normalise closer to pre-pandemic levels.

Underlying EBITDA margins in Australasia are expected to hold up at around 66.3% as overall costs decline -3.6%. Buy rating reiterated. Target is raised to $27.80 from $27.70.

Target price is $27.80 Current Price is $21.80 Difference: $6
If SEK meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $28.36, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates SUN as Buy (1) -

Suncorp Group's reinsurance renewal for FY24 reflects a substantial increase in catastrophe allowance and capital requirements, as expected.

Citi points out the business will enter FY24 without the protection of an aggregate cover and with a higher MER for a first large event of $350m (from $250m).

Moreover, there is much more exposure to New Zealand as, after two significant events, reinsurance in New Zealand is hard to come by.

The broker estimates the combination of the higher catastrophe allowance and higher reinsurance expense will provide a -270 basis points headwind to underlying insurance margins in FY24.

Citi retains a Buy rating and $14.30 target.

Target price is $14.30 Current Price is $13.51 Difference: $0.79
If SUN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.57, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgan Stanley rates SUN as Overweight (1) -

Suncorp Group's FY24 reinsurance renewal fell towards the bottom end of Morgan Stanley's expectations. While CAT retentions and reinsurance costs were managed well, headwinds are expected via lower capital, a higher CAT budget and no aggregate cover.

Another disappointment for the analysts was management commentary around FY24 margins of 10-12%.

Nonetheless, the broker feels these concerns may be overlooked by the market as premium pricing remains well ahead of inflation.

For Suncorp Group, the Overweight rating and $14.50 target are unchanged. Industry View: In-Line.

Target price is $14.50 Current Price is $13.51 Difference: $0.99
If SUN meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.57, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgans rates SUN as Add (1) -

Suncorp Group has announced the combined cost of FY24 catastrophe reinsurance premiums and the natural hazard allowance is expected to exceed by 12% the FY23 level. 

Morgans lowers its underlying EPS forecasts for FY23 and FY24 by -5%-6%, for the higher reinsurance costs and more conservative bank bad debt assumptions. 

Separately, management noted FY23 natural hazards of -$1.275bn came in around -$100m worse than allowances. 

The broker’s target falls to $14.32 from $14.44 with earning changes offset by a valuation roll-forward. Add.

Target price is $14.32 Current Price is $13.51 Difference: $0.81
If SUN meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.57, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

UBS rates SUN as Buy (1) -

UBS notes, despite relatively benign second half catastrophe events, Suncorp Group has purchased less reinsurance cover for FY24, particularly in New Zealand, and more risk will be retained internally.

The broker highlights the company is managing towards a FY24 insurance margin of 10-12%. NZ cover was only placed to 52% above $100m, reflecting higher reinsurance quotes since Cyclone Gabrielle.

Buy rating and $15 target maintained.

Target price is $15.00 Current Price is $13.51 Difference: $1.49
If SUN meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.57, suggesting upside of 7.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates SYA as Outperform (1) -

Sayona Mining has updated on the Quebec production ramp up. At the end of June the project produced 30,000t of spodumene concentrate with an average grade of 5.5% and confirmed that producing at a lower grade of 5.5% results in higher recovery and greater production.

The ramp up is faster than Macquarie previously estimated while first shipment slated for the third quarter remains in line with estimates. Outperform maintained. Target is $1.80.

Macquarie retains an Outperform rating with a $0.24 target.

Target price is $0.24 Current Price is $0.19 Difference: $0.05
If SYA meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates TLC as Hold (3) -

Ord Minnett considers, in terms of ESG risk, lotteries are a relatively light form of gambling and relatively removed from conversations surrounding problem gambling because individual losses are much smaller.

Moreover, Lottery Corp's revenue is gained from small ticket sales to a large volume of customers compared with other forms of gambling where only a small number participate.

Hence, the broker thinks tighter regulation around harm minimisation that specifically targets lotteries is unlikely. Hold rating. Target is $4.70.

Target price is $4.70 Current Price is $5.24 Difference: minus $0.54 (current price is over target).
If TLC meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.43, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates TLC as Buy (1) -

UBS assesses lottery demand is linked to long-term economic prosperity, although in the short term calculations need to be normalised for jackpot volatility to provide an accurate starting point for growth.

Nominal GDP is the most easily explained macro driver of demand, which supports the broker's long-term 4.5% per annum top-line growth assumptions.

Hence, UBS is confident in bridging a volatile FY23 into FY24, continuing to believe that most of the volatility was driven by "bad luck". Buy rating retained. Target edges up to $6.00 from $5.95.

Target price is $6.00 Current Price is $5.24 Difference: $0.76
If TLC meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.43, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates TLS as Upgrade to Buy from Neutral (1) -

UBS upgrades Telstra Group to Buy from Neutral as its latest survey reveals the Australian mobile market is relatively rational and the company is leading the market on price increases.

Telstra appears to have gained a slight increase in share for its main brand with reduced churn intentions, despite the increased prices and a softer consumer environment.

UBS upgrades longer-term ARPU growth assumptions beyond FY24 for mobiles to 2.5%, from flat, while assuming CPI-linked price increases are more possible given the company's network differentiation. Target is raised to $4.75 from $4.60.

Target price is $4.75 Current Price is $4.31 Difference: $0.44
If TLS meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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