Australian Broker Call

Morgans rates ADH as Upgrade to Add from Hold (1) -

Despite lowering EPS forecasts for FY22 after FY21 results, Morgans views Adairs as one of the cheapest retailers in the sector and upgrades its rating to Add from Hold. The price target eases to $4.20 from $4.46.

Mocka was the only disappointment for the analyst, with second half margins falling materially half-on-half due to a lower gross margin (supply chain challenges) and investment in talent and marketing.

Overall, FY21 produced a very strong period of growth in FY21, with heightened demand for product, material gross margin expansion and opex leverage, points out Morgans.

Target price is $4.20 Current Price is $3.76 Difference: $0.44
If ADH meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates ADH as Hold (3) -

Ord Minnett suggests FY22 is likely to be a year of moderation after a record year of sales growth and margin expansion. Operating margins are also expected to moderate given rising supplier costs and higher freight charges along with further investment in the business.

FY21 net profit was ahead of forecasts, up 102%, excluding one-off costs associated with the acquisition of Mocka and the new distribution centre.. The broker retains a Hold rating and reduces the target to $4.10 from $4.45.

Target price is $4.10 Current Price is $3.76 Difference: $0.34
If ADH meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates ADH as Buy (1) -

FY21 sales were up 29% and ahead of UBS estimates. Earnings also marginally beat forecasts. No guidance was provided. In the first seven weeks of the first half of FY22 like-for-like sales are up 5% while, overall, sales are down -12%.

While the trading update shows the impact of lockdowns, UBS still assesses this was a good result and online is growing well. Buy rating and $4.40 target maintained.

Target price is $4.40 Current Price is $3.76 Difference: $0.64
If ADH meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.23, suggesting upside of 15.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates ADI as Hold (3) -

FY21 funds from operations (FFO) were at the upper end of guidance with good leasing outcomes seeing occupancy increase over the period, highlights Morgans. Cash collection was considered strong at 99.9%. Hold rating and target rises to $3.51 from $3.28.

FY22 FFO guidance has been set at 19.3c while DPS guidance was for 17.3c. Upside risk relates to leasing outcomes at Rhodes Corporate Park, Sydney, which represents around 10% of income, explains the analyst.

Target price is $3.51 Current Price is $3.49 Difference: $0.02
If ADI meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates ANZ as Neutral (3) -

Following the third quarter FY21 Pillar 3 release, Credit Suisse has upgraded ANZ Bank's FY21 and FY22 earnings by 1% driven by lower bad debts, with downgrades of -1-2% at an underlying profit level.

Credit Suisse believes ANZ continues to face some balance sheet momentum headwinds in the near term, particularly in housing. While these are unlikely to be permanent, the broker believes ANZ could see muted revenue outcomes and some expense pressures as the bank addresses the issues.

Due to the low-interest rate environment, and lack of trading opportunities, the broker has reduced markets income estimates in second half FY21 (by -$100m) and also fee income due to lower levels of customer activity.

The broker's Neutral rating and $28.50 target are retained.

Target price is $28.50 Current Price is $28.31 Difference: $0.19
If ANZ meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $29.85, suggesting upside of 5.3% (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

Citi rates BHP as No Rating (-1) -

Citi's scenario analysis shows BHP Group's (ex petroleum) enterprise value/EBITDA at 3.2x in FY22, rising to 5.3x in FY24 as iron ore forecasts revert to US$79/t.

Under this scenario, the broker expects the group can sustain an average dividend yield of 10% over the three years FY22-24.

Citi is advising in relation to the unification of the legal structure and cannot provide a rating or target at present.

Current Price is $44.34. Target price not assessed.

Current consensus price target is $47.98, suggesting upside of 8.2% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.3

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

Citi rates BLX as Buy (1) -

Citi reiterates a Buy rating and believes the stock can outperform the broader discretionary retail sector on the back of the housing cycle.

There are also a number of longer-term growth opportunities including the trade channel and international expansion, which the broker believes may be under appreciated.

Earnings estimates have been lifted by some 7% which increases the price target to $2.35 from $2.21.

Target price is $2.35 Current Price is $2.02 Difference: $0.33
If BLX meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Ord Minnett rates BSL as Buy (1) -

Ord Minnett notes spreads from the North Star division have risen again, now at US$1400/t as hot rolled coil prices remain at record highs. Spreads for Australian steel products have also moved back up.

The broker highlights the stock is trading on a free cash flow yield of 30% for FY22 estimates and 21% for FY23. As the stock looks cheap, Ord Minnett retains a Buy rating and $35 target.

Target price is $35.00 Current Price is $23.37 Difference: $11.63
If BSL meets the Ord Minnett target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $29.05, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates CHC as Accumulate (2) -

Upon initial assessment, Charter Hall Group seems to have solidly beaten Ord Minnett's forecasts on key financial metrics for FY21, plus guidance for FY22 is above market consensus as well, on the broker's observation.

The FY21 'beat' seems to stem from a stronger earnings contribution from property development. Performance fees are expected to remain an important contributor in FY22 and Ord Minnett finds it a "good quality result".

Accumulate rating, $16.50 target.

Target price is $16.50 Current Price is $17.25 Difference: minus $0.75 (current price is over target).
If CHC meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.88, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates COE as Neutral (3) -

In a preview update prior to today's FY21 release, Macquarie's view is that Cooper Energy's profit guidance was disappointing, given higher operating and financing costs.

Pre-reported operating costs of $64m are 37% higher than Macquarie's forecasts, and the company is guiding to a underlying net profit loss of -$26m.

Macquarie points to Phase 2B works at the Orbost gas plant as having potential to improve production rates and enable normal operations.

In anticipation of the FY21 release, the Neutral rating was retained while the target price reduced to $0.22 from $0.29.

Target price is $0.22 Current Price is $0.21 Difference: $0.01
If COE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $0.33, suggesting upside of 64.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates COE as Buy (1) -

According to Ord Minnett's first glance, today's FY21 report by Cooper Energy was much weaker than expected, and this includes vis a vis market consensus forecasts.

The broker notes management at the company is quite optimistic, but FY22 guidance too is well below the broker's and market consensus forecasts.

Earnings estimates are thus expected to take a dive post today. Buy/Higher Risk. Target $0.45.

Target price is $0.45 Current Price is $0.21 Difference: $0.24
If COE meets the Ord Minnett target it will return approximately 114% (excluding dividends, fees and charges).

Current consensus price target is $0.33, suggesting upside of 64.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Citi rates COH as Sell (5) -

Further to the FY21 results, see Friday's Report, Citi lowers FY22 and FY23 estimates for earnings per share by -5% and -4%, respectively, on lower margins.

The current share price is implying even higher growth than the broker's estimate of 10%. Hence a Sell rating is maintained. Target is raised to $220 from $200.

While sales are now above pre-pandemic levels, Citi believes the recovery is taking longer than previously expected and FY23 will be the more normal year with revenue growth of 12%.

Target price is $220.00 Current Price is $237.05 Difference: minus $17.05 (current price is over target).
If COH 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 $222.64, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Credit Suisse rates COH as Neutral (3) -

Cochlear reported FY21 underlying net profit of $236.7m within guidance of $225-245m but -2% below consensus.

Impacted by higher operating expenses in second half FY21 versus first half FY21, net profit of $111m was -11% below first-half FY21.

Cochlear provided FY22 guidance for net profit of $265-285m (+12-20%), with the midpoint -10% below consensus estimates.

Credit Suisse notes the company's FY21 result indicated significant market share gains with unit sales up 7%, versus FY19 levels and versus peers who have seen cochlear implant unit sales still below pre-covid levels.

The broker believes market share gains are sustainable and will continue to support stronger earnings growth post-covid.

The neutral rating and target of $235.00 are both unchanged.

Target price is $235.00 Current Price is $237.05 Difference: minus $2.05 (current price is over target).
If COH meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $222.64, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates COH as Outperform (1) -

Macquarie notes Cochlear Limited's FY21 result was largely in line with expectations, but guidance for FY22 is a miss on the broker's forecast.

The broker highlights results show strong recovery in emerging markets but slightly weaker volumes in developed markets. Macquarie has moderated unit sales growth forecasts to capture a slower recovery in certain developed and emerging markets and a more gradual increase over the year.

Earnings per share forecasts are updated by -11% and -4% for FY22 and FY23 on near-term revenue forecasts and adjustments to operating expenses. 

Macquarie continues to view the company as positively leveraged to recovery in activity levels. The Outperform rating is retained and the target price decreases to $256.00 from $264.00.

Target price is $256.00 Current Price is $237.05 Difference: $18.95
If COH meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $222.64, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

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

FY21 revenue and net profit were below Morgan Stanley's estimates. FY22 guidance was also softer than expected, although the broker notes it remains sturdy enough, with 12-20% growth expected.

Morgan Stanley notes obstacles included disruptions from the pandemic with surgeries in Western Europe remaining below FY19 and emerging markets just above FY19.

Uncertainty is weighing on the unit trajectory but the broker assumes ongoing improvement. Target is reduced to $221 from $238. Equal-weight rating.  Industry view: In-Line.

Target price is $221.00 Current Price is $237.05 Difference: minus $16.05 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $222.64, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Morgans rates COH as Hold (3) -

While FY21 results were below consensus, they were in-line with Morgans expectations and guidance points to continued momentum. The Hold rating is unchanged and the target price increases to $214.50 from $201.10.

The broker cautions that unpredictable covid-recoveries (developed markets better, yet varied, emerging markets more prolonged), and increasing expenditures will likely limit operating leverage.

Target price is $214.50 Current Price is $237.05 Difference: minus $22.55 (current price is over target).
If COH meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $222.64, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Ord Minnett rates COH as Hold (3) -

FY21 net profit was below Ord Minnett's estimates because of higher operating costs. Key markets have recovered more rapidly than the broker feared, including a number of important emerging markets.

Ord Minnett believes the company is well-positioned to return to its strong historical growth profile after lifting its market share.

While the pandemic could still cause near-term disruptions, with vaccination rates rising in most developed markets the broker anticipates just a short-term issue. Target is reduced to $227 from $230. Hold retained.

Target price is $227.00 Current Price is $237.05 Difference: minus $10.05 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $222.64, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Credit Suisse rates CWY as Upgrade to Neutral from Underperform (3) -

Cleanaway Waste reported FY21 underlying earnings of $535m, in line with Credit Suisse forecast and consensus, while underlying attributable net profit of $151m was below expectations, due to higher D&A than the broker had forecast.

Mainly driven by increased landfill amortisation at Erskine Park, and full-year contribution from acquisitions and new contract wins, management expects D&A to step up further to -$290m (excl. Suez Sydney) in FY22.

While Cleanaway faces a period of severe headwinds, the broker suspects earnings growth momentum could return from second half FY22.

Credit Suisse has raised FY22 net revenue forecasts by 2%, to $2,330m on higher contribution from Solid Waste Services.

Credit Suisse has upgraded Cleanaway to Neutral from Underperform and increased the target to $2.60 from $2.40.

Target price is $2.60 Current Price is $2.66 Difference: minus $0.06 (current price is over target).
If CWY meets the Credit Suisse target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.71, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates CWY as Outperform (1) -

Cleanaway Waste Management's FY21 results were below Macquarie's expectations, with underlying net profit of $153.2m a miss on the broker's expected $163.2m. 

Macquarie notes that while revenue progression was stronger than expected due to contract additions, new business and acquisition integration, depreciation drove lower underlying earnings and net profit outcomes than expected.

The broker points to the maturation of new business, as well as medium-term investment in less capital intensive assets, as aiding recovery. The broker updates earnings per share forecasts by -14.7%,-3.4% and -2.8% through to FY24.

The Outperform rating is retained and the target price increases to $3.15 from $3.00.

Target price is $3.15 Current Price is $2.66 Difference: $0.49
If CWY meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates CWY as Hold (3) -

After FY21 results, Morgans downgrades short-term forecasts while upgrading medium-term estimates and lifts its target price to $2.53 from $2.37.

Management reported strong momentum heading into FY22 until NSW covid restrictions hit, which compounded the previously disclosed New Chum (solid waste landfill facility) earnings decline in FY22, explains the analyst.

Morgans remains attracted to core growth and leverage to the ESG/sustainability thematic though seeks a more attractive purchase point and retains its Hold rating. 

Target price is $2.53 Current Price is $2.66 Difference: minus $0.13 (current price is over target).
If CWY meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.71, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Ord Minnett rates CWY as Accumulate (2) -

Underlying net profit was marginally below Ord Minnett's forecasts in FY21. Nevertheless the broker liked the result as cash conversion was strong.

After some years building out the infrastructure base, the company appears well-positioned to benefit from tailwinds that are driving the waste management industry and Ord Minnett retains an Accumulate rating, raising the target to $3.00 from $2.60.

Target price is $3.00 Current Price is $2.66 Difference: $0.34
If CWY meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.71, suggesting upside of 3.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Citi rates EVN as Neutral (3) -

Despite higher copper/gold prices over FY21, lower production expectations in FY22 have resulted in a -13% reduction in underlying net profit estimates.

Citi refines its forecasts with updated site guidance, allocating production ounces to lower margin assets. Neutral rating and $4.20 target retained.

Target price is $4.20 Current Price is $3.99 Difference: $0.21
If EVN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.19, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Morgans rates EVN as Hold (3) -

There were few surprises for Morgans in FY21 results as most production and cost details were provided via prior fourth quarter reporting. The broker retains its Hold rating and adjusts its target to $4.35 from $4.34.

The analyst highlights earnings (EBITDA) margins declined by -4% to 49%, which the company attributed to higher costs at Red Lake as it continues its turn around. The 5 cent final fully franked dividend was in-line with recent guidance.

Target price is $4.35 Current Price is $3.99 Difference: $0.36
If EVN meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.19, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.3

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

Credit Suisse rates HUM as Neutral (3) -

Humm Group's FY21 revenues were -2% below Credit Suisse estimates due to greater than expected revenue margin pressure in second half FY21.

Credit Suisse believes Humm Group's FY21 result confirmed previous reservations that strong volume growth in the BNPL may
be underpinned by compensation on merchant pricing due to intensifying industry competition, leading to greater than expected margin pressure.

The broker also notes guidance for a further step-up in cost-to-income (CTI) might be somewhat suggestive of higher than expected investments required for international expansion, while there is still earnings risk around recent covid disruptions.

Credit Suisse has lowered earnings estimates -13, -11%, -10% in FY22, FY23, and FY24 respectively driven by lower revenue margins and an increase in the CTI ratio in FY22 – in line with management commentary for a “moderate short-term increase” in CTI driven by investment in the UK and Canada.

Credit Suisse maintains its Neutral rating and target price of $1.05.

Target price is $1.05 Current Price is $1.05 Difference: $0
If HUM meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 25.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates ING as Buy (1) -

Citi remains constructive on the ability of Inghams to maintain and grow sales and earnings in FY22, despite the current lockdowns. Volume growth is expected to remain resilient given the company's performance throughout the lockdowns to date.

The renewal of the Woolworths ((WOW)) supply agreement also removes a likely overhang. The broker upgrades estimates for FY22-FY23 by 2% on the improved margin outlook. Buy retained. Target rises to $4.55 from $4.35.

Target price is $4.55 Current Price is $4.09 Difference: $0.46
If ING meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates ING as Outperform (1) -

Inghams Group's FY21 result was at the top-half of guidance provided in May.

Credit Suisse believes margin efficiency benefits are likely to be a further tailwind into FY22-23, with management pointing to a potential 800bp uplift from current earnings margin levels.

Credit Suisse sees some offset in FY22 from feed cost-benefit, which the broker notes while still a net positive on FY21, is likely to be less material than originally expected given current wheat price levels.

On a like-for-like basis, the broker's underlying net profit estimate has increased 4.1% for FY22 and 1.1% for FY23.

Outperform rating maintained. Target rises to $4.40 from $4.10.

Target price is $4.40 Current Price is $4.09 Difference: $0.31
If ING meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates ING as Neutral (3) -

Inghams Group has delivered a strong full-year result, with underlying net profit of $101m a beat on Macquarie's forecast of $98m. 

Macquarie's focus now shifts to the impact of covid restrictions on FY22 given lockdowns in both Australia and New Zealand. The broker is forecasting 3% revenue growth but stagnant underlying earnings margins given potential impacts.

Inghams Group and Woolworths ((WOW)) have agreed in principle to a continuance of the supply agreement for poultry, meaning Woolworths will account for around 37% of group revenue.

The broker has updated earnings per share guidance by -1.4%, -5.5% and -3.8% for FY22, FY23 and FY24 respectively.

The Neutral rating is retained and the target price increases to $4.10 from $3.95.

Target price is $4.10 Current Price is $4.09 Difference: $0.01
If ING meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Despite an impressive FY21 result which beat expectations on a number of fronts, Morgans moderates forecasts given lockdowns in both Australia and New Zealand and uncertainty over 2H22 grain input costs. The rating slips to Hold from Add after a strong share rally.

The broker still forecasts modest growth in FY22 given management's expectations for volume growth and further operational benefits. Morgans would be buyers of the stock on any material weakness and increases its target price to $4.35 from $4.27.

Target price is $4.35 Current Price is $4.09 Difference: $0.26
If ING meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgans rates IRE as Hold (3) -

Morgans maintains a Hold rating and lifts its target price to $13.75 from $13.45 after a pre-released first half result. Management reaffirmed FY21 guidance. The short-term is considered reliant upon the EQT (or a competing) takeover bid.

In the absence of a takeover offer being formalised, the analyst sees a full valuation and -10% near-term downside in the share price should the offer be withdrawn.

Target price is $13.75 Current Price is $15.10 Difference: minus $1.35 (current price is over target).
If IRE meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.21, suggesting upside of 1.1% (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

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

Macquarie reports while Newcrest Mining's full-year result was strong, with underlying earnings and free cash flow beating forecasts by 11% and 41% respectively, FY22 guidance on costs and capital expenditure were both higher than expected.

The broker notes the capital cost for the Cadia 1-2 panel cave was 12% higher than forecast. Given higher cost guidance, Macquarie has reduced free cash flow generation to US$0.5bn over the next four years. 

Macquarie updates earnings per share forecasts by -15% in FY22, and -2%, 9%, -7% and -2% through to FY26.

The rating is downgraded to Neutral from Outperform and the target price decreases to $27.00 from $30.00.

Target price is $27.00 Current Price is $24.71 Difference: $2.29
If NCM meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $30.28, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Credit Suisse rates NHC as Outperform (1) -

New Hope delivered a solid July quarter to finish the year with earnings of $372m, towards the top end of guidance.

Credit Suisse notes $188m earnings for the quarter was a highlight, again demonstrating the strong free cash flow (FCF) generating the ability of being a low-cost producer in a favourable pricing backdrop.

The broker notes the company remains very cash generative and estimates 32% FCF yield for the 12-month forward, which could see net debt fully extinguish in the current quarter.

The Outperform rating and target price of $2.40 are both unchanged.

Target price is $2.40 Current Price is $1.93 Difference: $0.47
If NHC meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.12, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Macquarie rates NHC as Neutral (3) -

New Hope Corporation's fourth quarter results have highlighted strong production and sales at Bengalla. Full year production of 10m tonnes and sales of 8m tonnes were in line with targets. The New Acland project continues to ramp-down to care and maintenance.

Macquarie notes New Hope Corporation's fourth quarter earnings were a beat on the prior three quarters combined. The broker highlights thermal coal rallies have driven strong underlying earnings, with prices increasing from US$50 per tonne in late 2020 to a current US$170 per tonne.

The Neutral rating and target price of $1.90 are retained.

Target price is $1.90 Current Price is $1.93 Difference: minus $0.03 (current price is over target).
If NHC meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.12, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Ord Minnett rates OTW as Buy (1) -

FY21 results were in line with the update in July. After a soft first half, Ord Minnett notes organic growth in recurring revenue in the second half was 7% and this bodes well for the target of 15% organic growth in FY22 amid the rolling out of new products.

The broker retains a Buy rating and raises the target to $5.06 from $4.82.

Target price is $5.06 Current Price is $4.26 Difference: $0.8
If OTW meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates PWH as Add (1) -

While FY21 revenue was below Morgans forecast, stronger-than-expected margin expansion resulted in earnings growth slightly ahead of expectations. The broker retains its Add rating and hikes the target price to $8.50 from $5.50. No FY22 guidance was provided.

The analyst highlights Emerging Technologies revenue growth of 113% was impressive with the segment now representing 11% of group revenue. With a healthy pipeline of opportunities across all key segments, the growth trend is expected to continue for the medium term.

Target price is $8.50 Current Price is $7.45 Difference: $1.05
If PWH meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 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 will announce a -$165-175 non-cash impairment charge with its first half result, which the broker sees as prudent, and announce the completion of the sale of Bibiani, which is positive for the deleveraging process.

Continued improvement at Syama Sulphides is key for sustained deleveraging, the broker suggests.

Outperform and 65c target retained.

Target price is $0.65 Current Price is $0.45 Difference: $0.2
If RSG meets the Macquarie target it will return approximately 44% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Credit Suisse rates S32 as Outperform (1) -

South32 delivered FY21 underlying earnings in-line with consensus estimates US$489m and a beat on net cash of US$406m; the final dividend was US5.5cps.

The outlook guidance was broadly for incremental production increases, but also increasing cost inflation.

Credit Suisse assesses the net earnings impact as modest, and notes South32 continues to invest modest capex in current operations to maximise efficiencies, which is a driver for higher production, but a lack of near-term growth projects means cash generation is largely returned to shareholders.

Outperform rating maintained. Target is $3.80.

Target price is $3.80 Current Price is $2.78 Difference: $1.02
If S32 meets the Credit Suisse target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $3.59, suggesting upside of 25.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Morgans rates S32 as Upgrade to Add from Hold (1) -

The FY21 result was ahead of Morgans estimates, and the broker upgrades its rating to Add from Hold given recent share price weakness. FY22 guidance was considered mixed, leading to higher production assumptions across some operations along with higher costs.

While cost pressures across the alumina smelters look like a key challenge heading into FY22, they look well covered by strength in metal prices, explains the broker. The target price rises to $3.30 from $3.15.

Target price is $3.30 Current Price is $2.78 Difference: $0.52
If S32 meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.59, suggesting upside of 25.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Macquarie rates SBM as Underperform (5) -

St Barbara expects to announce a -$275m non-cash impairment with respect to Atlantic at its FY21 result, which the broker views as prudent. The broker suspects a timely re-start of the plant at Simberi will be a key determinant of FY22 performance.

The broker forecasts muted cash flows ahead while noting St Barbara is highly leveraged to any gold price rally.

Underperform and $1.60 target retained.

Target price is $1.60 Current Price is $1.55 Difference: $0.05
If SBM meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.14, suggesting upside of 38.1% (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

Citi rates SGP as Buy (1) -

FY21 results were at the top of the guidance range yet slightly below Citi's expectations. The broker believes FY22 guidance could prove conservative, at funds from operations (FFO) per share of 34.6-35.6c.

The company is undertaking a strategic review with an update expected late in 2021. Citi increases the target by 4% to $5.03 amid lower net debt. Buy maintained.

Target price is $5.03 Current Price is $4.52 Difference: $0.51
If SGP meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates SGP as Neutral (3) -

Stockland Group's FY21 result hit the upper end of guidance and was in line with Credit Suisse, with funds from operations per share (FFOps) down -4.6% to 33.1c, in line with Credit Suisse's estimate.

While FY22 FFOps guidance of 34.6-35.6c is below Credit Suisse and consensus pre-result estimates, the broker notes the commercial code was only recently re-introduced.

The broker thinks the business is heading in the right direction with the re-setting of rents in the retail portfolio likely to be finalised in the next 18-24 months, the residential business looking well-positioned to keep delivering, the activation of the commercial development pipeline providing medium-to-long term growth, and the balance sheet in good shape.

Neutral rating is unchanged and the target rises to $4.66 from $4.51.

Target price is $4.66 Current Price is $4.52 Difference: $0.14
If SGP meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates SGP as Neutral (3) -

Stockland's guidance for FY22 is a -6% miss on Macquarie's forecasts, which the broker notes is driven by covid-related rent relief. Macquarie is forecasting funds from operations of 35.8 cents per share, 1% above the company's guidance.

Macquarie notes FY22 settlement guidance of 6,400 could have been over 7,000 were it not for delays, which would have been closer to the broker's prior forecast of 6,800 settlements. 

The broker updates earnings per share forecasts by -4%, 2% and 2% for FY22, FY23 and FY24 respectively.

The Neutral rating is retained and the target price increases to $4.68 from $4.50.

Target price is $4.68 Current Price is $4.52 Difference: $0.16
If SGP meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates SGP as Overweight (1) -

Residential momentum remains strong and was a highlight in FY21 with the company selling 7779 lots, the highest since FY17. Morgan Stanley expects FY22 will show the benefits of higher contracted prices.

Yet retail remains the chief concern and the key risk to FY22 guidance. FY21 results were slightly ahead of expectations. An update on the strategic review is expected later in the year. Morgan Stanley retains an Overweight rating, $5 target and In-Line industry view.

Target price is $5.00 Current Price is $4.52 Difference: $0.48
If SGP meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates SGP as Upgrade to Hold from Lighten (3) -

FY21 results were in line with the top end of guidance and slightly below Ord Minnett's forecast. The broker highlights the strong residential sales in the fourth quarter and the growing commercial development pipeline.

FY22 guidance is in line with expectations. As the stock is trading in line with the target, raised to $4.60 from $4.20, Ord Minnett upgrades to Hold from Lighten.

Target price is $4.60 Current Price is $4.52 Difference: $0.08
If SGP meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

UBS rates SGP as Buy (1) -

FY21 results were in line with UBS estimates. The broker believes the potential for a multiple re-rating from the well-articulated strategy is not yet captured in the share price.

Consistent with other A-REITs, overheads and maintenance expenditure have stepped up. FY22 guidance is for 34.6-35.6c in funds from operations (FFO) per share which UBS believes is a positive, given the risk of a major re-set is now off the table and when compared with other A-REITs that have been reluctant to provide guidance.

Buy rating and $ 5 target unchanged.

Target price is $5.00 Current Price is $4.52 Difference: $0.48
If SGP meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.83, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates SGR as Add (1) -

Following FY21 results, Morgans assesses a good performance by management to keep earnings flat, despite the almost complete disappearance of earnings from the International VIP business.

The broker feels it's important to look past the next few months to the potential of the business coming out of lockdown and into the future. Morgans retains its Add rating and increases its price target to $4.20 from $4.14.

Management indicated it is in discussions for the sale and partial leaseback of the Treasury Brisbane buildings, which is expected to realise $250m.

Target price is $4.20 Current Price is $3.60 Difference: $0.6
If SGR meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.18, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Ord Minnett rates SHL as Hold (3) -

Upon first glance, today's FY21 release by Sonic healthcare modestly beat expectations, underlying, except the 91c in dividend which came in lower than expected, points out Ord Minnett.

Reported profits fell short of market consensus by some -2.5% and the company has given no guidance for the year ahead.

Ord Minnett is equally disappointed by the absence of a special dividend, whereas it had penciled in 20c as a special, while pointing at the company's high cash liquidity position.

Hold. Target $40.

Target price is $40.00 Current Price is $42.83 Difference: minus $2.83 (current price is over target).
If SHL meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.67, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Credit Suisse rates SIQ as Outperform (1) -

SmartGroup Corp's first-half FY21 result followed the trends highlighted in May and there was little by way of surprise, and as a result, Credit Suisse has made no material changes to earnings forecasts or investment view following an in-line result.

Credit Suisse notes that new first-half FY21 orders are tracking ahead of expectations with a typical conversion rate of 99% providing some underpin to second-half FY21.

Outperform rating and target of $7.50 are both unchanged.

Target price is $7.50 Current Price is $7.56 Difference: minus $0.06 (current price is over target).
If SIQ meets the Credit Suisse target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.72, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates SIQ as Neutral (3) -

New novated order levels for Smartgroup Corporation have returned to pre-covid levels, with the company reporting 19% growth on the same quarter in FY20. Despite this, supply constraints have restricted Settlements growth to 4%.

Macquarie notes that recent lockdowns will impact on lead volumes and orders in the second half, with auto production constraints creating uncertainty.

The broker has updated earnings per share forecasts by 1.2%, 5.0%, and 5.2% for FY21, FY22 and FY23 respectively.

The Neutral rating is retained and the target price increases to $7.76 from $7.20.

Target price is $7.76 Current Price is $7.56 Difference: $0.2
If SIQ meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.72, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

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

First half net profit was lower than Morgan Stanley expected although underlying activity trends are considered strong. No guidance was provided.

While recent lockdowns may affect leads and volumes, in the broker's observation underlying demand in the automotive business is robust.

Equal-weight rating. Target is $7. Industry view: In Line.

Target price is $7.00 Current Price is $7.56 Difference: minus $0.56 (current price is over target).
If SIQ meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.72, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates SIQ as Upgrade to Add from Hold (1) -

Smartgroup Corp's first half profit (NPATA) was in-line with Morgans estimate. Novated lease orders were around 3% above pre-covid levels though settlements lagged by circa -11% below pre-covid, given vehicle supply constraints, explains the broker.

Current debt level allows for another special dividend or acquisitions, in the analyst's view, with a 14.5c special dividend in the second half seen as likely. Major contract risk has largely passed, and add-on insurance earnings risk is now considered manageable.

While expecting relatively low growth, Morgans thinks the current free cashflow yield and balance sheet strength are fairly attractive. The broker raises its rating to Add from Hold and lifts its target price to $8.35 from $7.88.

Target price is $8.35 Current Price is $7.56 Difference: $0.79
If SIQ meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.72, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates SIQ as Buy (1) -

Further to the FY21 results, Ord Minnett upgrades the target to $8.00 from $7.70. Buy rating retained.

On the conference call, management has indicated the expanded roll-out of the deferred sales model will mean yields will continue to decrease before increasing again.

Target price is $8.00 Current Price is $7.56 Difference: $0.44
If SIQ meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.72, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates SYD as Neutral (3) -

First half EBITDA was below expectations primarily because of rent abatements and expected credit losses. Distributions and 2021 guidance remain suspended while Citi notes the market is focused on the impending takeover offer.

Target is raised to $8.45 in line with the revised takeover offer. Neutral maintained. While acknowledging the potential upside for the medium term, the broker believes a cash offer is attractive and therefore has a strong likelihood of being successful.

Target price is $8.45 Current Price is $7.70 Difference: $0.75
If SYD meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 8.3% (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

Credit Suisse rates SYD as Neutral (3) -

Sydney Airport delivered a weak first half FY21 result with revenue of $342m above expectations, but earnings of
$211m were below expectations due to higher costs resulting in a -10ppt margin differential compared to Credit Suisse. 

Management indicates the IFM consortium continues the dialogue with the board, despite the rejection of the $8.45 indicative offer.

Credit Suisse thinks the board is seeking a $9.0 indicative offer before granting due diligence. The broker also thinks the recently rejected indicative offer of $8.45 is attractive.

The broker is cutting FY21 earnings -28% but expects FY22 earnings at $900m.

Neutral rating is unchanged and the target price increases to $8.00 from $7.70.

Target price is $8.00 Current Price is $7.70 Difference: $0.3
If SYD meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 8.3% (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

Macquarie rates SYD as No Rating (-1) -

Covid lockdowns have driven faltering domestic and international traffic for Sydney Airport, leading to a soft first half.

Macquarie is forecasting second half results to be worse than both the first half of FY21 and the second half of FY20. Cash burn of -$5-10m is expected to grow in the coming month.

Despite this, the broker notes retailers leasing additional space implies confidence in recovery potential, and provides a lift to FY23 revenue.

Due to research restrictions, Macquarie cannot advise its valuation, nor rating.

Current Price is $7.70. Target price not assessed.

Current consensus price target is $8.33, suggesting upside of 8.3% (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

Morgan Stanley rates SYD as Overweight (1) -

First half EBITDA was well ahead of Morgan Stanley's estimates amid favourable rental collections. The broker notes liquidity has dropped to $2.9bn from $3.5bn. No distributions and no guidance were provided.

Target is $8.28. Overweight. Industry View: Cautious.

Target price is $8.28 Current Price is $7.70 Difference: $0.58
If SYD meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 8.3% (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

Morgans rates SYD as Hold (3) -

After first half results, Morgans leaves the $8.45 target price unchanged and in-line with the indicative takeover bid price and concludes management has done a good job of managing costs and capital.

At the end of the first half there was $8bn of debt and $0.5bn of cash. When earnings recover to pre-covid levels, the funds from operations (FFO) to debt ratio should lift to more than 12%, well above the 10 % at the end of FY19 estimates the broker.

This should provide significant balance sheet capacity, concludes Morgans. The Hold rating is unchanged.

Target price is $8.45 Current Price is $7.70 Difference: $0.75
If SYD meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 8.3% (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 SYD as Hold (3) -

First half results were below Ord Minnett's estimates, largely because of interest rate swap re-sets. No dividend was declared and no guidance was provided for 2021 given the uncertainty around recovery in travel.

The broker notes management has focused on initiatives to introduce new revenue streams through 107 ha of developable land and enhancements to the luxury precinct in terminal 1.

Hold retained. Target rises to $8.45 from $8.25.

Target price is $8.45 Current Price is $7.70 Difference: $0.75
If SYD meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.33, suggesting upside of 8.3% (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

UBS rates SYD as No Rating (-1) -

Operating earnings (EBITDA) fell -42% in the June half although this was broadly flat when compared with the prior half. UBS suspects the rest of 2021 will be the most difficult since the start of the pandemic as border closures are likely to persist until the end of the year.

The broker pushes out forecasts for a recovery in traffic by 3-6 months with a rapid recovery expected in domestic from December/January and international from the second quarter of 2022.

The broker is currently restricted from providing a rating or price target.

Current Price is $7.70. Target price not assessed.

Current consensus price target is $8.33, suggesting upside of 8.3% (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

Credit Suisse rates TPG as Neutral (3) -

TPG Telecom's first half FY21 headline earnings were in line with consensus, however, the result included a $14m benefit to earnings from lower handset receivables sale.

Management noted the positive impact of the recent price increases, with in-market pricing tracking at $3.50 compared to postpaid average revenue per unit (ARPU).

Based on new disclosures, Credit Suisse estimates TPG’s portfolio of 1,200 macro towers could generate earnings of $50m and would be valued at $1bn based on a 20x earnings multiple.

Credit Suisse notes while any transaction could be a positive catalyst for TPG, the broker suspect any monetisation remains highly uncertain.

The Neutral rating and the target price of $6.40 are both unchanged.

Target price is $6.40 Current Price is $6.58 Difference: minus $0.18 (current price is over target).
If TPG meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.53, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates TPG as Outperform (1) -

TPG Telecom's first half results were below Macquarie's expectations. Earnings per share forecasts have been updated by -31%, -33% and -29% for FY22, FY23 and FY24 respectively.

Macquarie expects the company to continue to be impacted by NBN headwinds and an absence of mobile international roaming over the next 12 months, and that underlying earnings will continue to decline in the second half.

The company has also announced a review of infrastructure assets, and the broker notes proceeds from a potential monetisation of passive assets could result in capital management.

The Outperform rating is retained and the target price decreases to $7.70 from $8.20.

Target price is $7.70 Current Price is $6.58 Difference: $1.12
If TPG meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.53, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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 TPG as Overweight (1) -

Morgan Stanley, at first glance, notes revenue missed estimates in the first half although lower costs meant EBITDA was in line.

While the broker can discern sequential improvement from the combined TPG and Vodafone businesses there is more that is required.

Still, Morgan Stanley remains optimistic about the potential for the merger to create shareholder value.

The Overweight rating and target price of $9.50 are retained. Industry view: In-line.

Target price is $9.50 Current Price is $6.58 Difference: $2.92
If TPG meets the Morgan Stanley target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $7.53, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates TPG as Add (1) -

After first half results, Morgans trims earnings (EBITDA) forecasts by around -4% and retains its Add recommendation. FY21 earnings are estimated to be around $1.7bn after management noted no significant 1H/2H seasonality in the business.

Operating cashflow was weak, largely due to some timing issues that are expected to fully reverse in the second half, explains the broker. The 8cps dividend was double the 4cps forecast by the analyst, suggesting confidence that cashflow weakness is short term.

Morgans retains its Add rating and lowers its target price to $7.11 from $7.17.

Target price is $7.11 Current Price is $6.58 Difference: $0.53
If TPG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.53, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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 TPG as Downgrade to Hold from Buy (3) -

Further to the first half results, Ord Minnett notes the company is confident regarding the market conditions, largely relying on the 5G roll-out in mobile and fixed wireless to drive revenue growth.

As the stock has performed strongly and is nearing valuation the broker downgrades to Hold from Buy while raising the target to $6.85 from $6.50.

Target price is $6.85 Current Price is $6.58 Difference: $0.27
If TPG meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.53, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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

UBS rates TPG as Buy (1) -

First half operating earnings were slightly ahead of UBS estimates while revenue was slightly lower. The broker notes the company is on track to reach 85% of 5G population coverage in 10 Australian cities/regions by the end of the year.

UBS plans to review its forecasts and retains a Buy rating and $7.60 target at present.

Target price is $7.60 Current Price is $6.58 Difference: $1.02
If TPG meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $7.53, suggesting upside of 21.0% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates TRS as Add (1) -

The FY21 result was in-line with recently downgraded guidance and Morgans retains its Add rating and reduces its target price to $6.51 from $6.80. While sales intensity has proven elusive over the years, it's thought cost efficiency progress is being made.

The broker points out a material rise in working capital expenditure, which impacted cashflow and the net cash position. The latter fell to $70m, which is still considered comfortable.

With lockdowns continuing to impact CBD/large shopping centre stores, the analyst expects rent reductions or stores will be closed in these locations.

Target price is $6.51 Current Price is $5.80 Difference: $0.71
If TRS meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $7.37, suggesting upside of 28.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates TWE as Neutral (3) -

Aided by 19-Crimes global growth, which was flat with FY20, Treasury Wine Estates delivered a solid $510m FY21 earnings, comments Credit Suisse.

While there was no quantitative earnings guidance for FY22, management remained “positive on outlook across all key markets”, reports the broker.

With another half-year of China missing in FY22, Credit Suisse projects flattish earnings with all regions delivering growth.

The broker expects the company's corporate net debt to fall to perhaps as low as $200m by end of FY22 and notes the company is flagging up to another $150m of asset sales from its US divestment program.

The broker retains its Neutral rating and the target price increases to $12.30 from $11.30.

Target price is $12.30 Current Price is $13.20 Difference: minus $0.9 (current price is over target).
If TWE meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.53, suggesting downside of -9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Citi rates VVA as Downgrade to Neutral from Buy (3) -

FY21 results revealed the adverse impact of the lockdowns on earnings. Citi expects this will overshadow the network expansion opportunities over the longer term.

With 85% of the locations temporarily closed and the company concentrating on cash preservation, the broker downgrades to Neutral from Buy. Target is reduced to $1.75 from $2.50.

Target price is $1.75 Current Price is $1.72 Difference: $0.03
If VVA meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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