Australian Broker Call

UBS rates AGL as Neutral (3) -

It is UBS's view that the unsolicited bid received from Brookfield Asset Management and Grok Ventures increases the risk shareholders might not give their vote to the planned demerger process.

It's possible, speculates UBS, this is exactly what the bidders were trying to achieve as it buys them more time to prepare a counter-bid that will lead to a conversation with the AGL Energy board.

Further commentary highlights the complexity of any deal, with AER, FIRB and the ACCC as well as the federal government potentially included in the mix.

UBS makes the crucial point there is no precedent for Australian regulators allowing vertically integrated private ownership across all four components of the electricity supply chain in Australia. Neutral. Target $7.05.

Target price is $7.05 Current Price is $7.85 Difference: minus $0.8 (current price is over target).
If AGL meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.62, suggesting downside of -0.5% (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 ALU as Neutral (3) -

Altium's December first-half result fell shy of Citi's forecasts and the broker downgradeds EPS -2% to -3% for FY22-FY24.

The broker spies upside risk to FY22 revenue growth but is less certain about FY23, and Octopart remains the wildcard.

Citi expects a step-up in investment in Enterprise and product development could hamper operating leverage.

Neutral rating retained. Target price falls to $34.10 from $35.30.

Target price is $34.10 Current Price is $31.54 Difference: $2.56
If ALU meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $30.67, suggesting downside of -7.9% (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: -0.3

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

Citi rates ARB as Buy (1) -

ARB Corp's December first-half result pleased Citi, thanks to international border closures and stimulus.

While Citi doubts these trends will continue and expects interest rate hikes may hit discretionary spending, the broker believes the strong order book and backlog of new cars should cushion the impact in the second half.

The broker also appreciates the company's medium-term growth drivers: expansion in Europe, its Ford partnership, and opportunities for distribution gains in the US.

The broker cuts gross margin forecasts to reflect higher freight and shipping costs but upgrades FY22-FY24 EPS to reflect the order book and positive rollout prospects. 

Buy rating retained. Target price falls to $48.15 rom $57 to reflect higher capital expenditure and lower net cash.

Target price is $48.15 Current Price is $41.62 Difference: $6.53
If ARB meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $48.99, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

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

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

First half results were in line with estimates and the pre-release. Credit Suisse upgrades to Neutral from Underperform on recent share price weakness.

Upside is envisaged as further traction is obtained in the US and motor vehicle sales improve. The broker is not excessively bullish, being uncertain whether a very strong second half result will be bettered.

The US remains key to the stock over the next couple of years, and Credit Suisse retains a $40.60 target.

Target price is $40.60 Current Price is $41.62 Difference: minus $1.02 (current price is over target).
If ARB 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 $48.99, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

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 ARB as Upgrade to Outperform from Neutral (1) -

Following interim results, Macquarie upgrades its rating for ARB Corp to Outperform from Neutral. The outlook is considered positive based upon a strong order book, ongoing investment across the business and improved visibility for margins.

The first half delivered solid revenue growth for all segments including Original Equipment revenue, which rose  by 51%, while exports revenue grew 40%. The target price is adjusted down -2.6% to $48.

Target price is $48.00 Current Price is $41.62 Difference: $6.38
If ARB meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $48.99, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates ARB as Overweight (1) -

ARB Corp's December first-half result pleased Morgan Stanley.

The broker says the increase in margins to 24% from 22% pre-covid puts paid to the argument the company will not be able to sustain margins once covid normalises.

Morgan Stanley estimates FY24 earnings will be 21.4%, above pre-covid levels, but below current levels given reinvestment and conservatism.

The broker believes structural growth in exports and the Ford Bronco will step in to play once covid is benched.

FY22 EPS rise 7% and FY23 and FY24 EPS are unchanged. Overweight rating and $56 target price are retained. Industry View: In-line.

Target price is $56.00 Current Price is $41.62 Difference: $14.38
If ARB meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $48.99, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

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 ARB as Buy (1) -

Earnings growth was strong in the first half and in line with expectations. Despite supply constraints for new vehicles in Australia aftermarket sales were strong and the order book provides good visibility on earnings into the second half, Ord Minnett notes.

The broker believes the business has a reliable earnings outlook, amid continued growth in demand for 4WD accessories, increased market penetration offshore and further expansion of the store network. Buy rating retained. Target is $52.20.

Target price is $52.20 Current Price is $41.62 Difference: $10.58
If ARB meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $48.99, suggesting upside of 15.6% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates AUB as Outperform (1) -

First half results missed estimates although Credit Suisse notes premium rates increased more than originally expected. Hence, a miss on the broking side is likely to be the explanation for the negative reaction in the stock.

The main highlight were improvements in agency while further technology investment was a drag in New Zealand. Credit Suisse envisages more upside is on the cards and reiterates its Outperform rating. Target is reduced to $24.95 from $25.70.

Target price is $24.95 Current Price is $22.22 Difference: $2.73
If AUB meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $25.78, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

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 AUB as Accumulate (2) -

First half net profit of $30.7m was in line with forecasts and guidance. Strong organic trends are evident, Ord Minnett notes, despite the cost pressures.

The broker also notes the opportunity for acquisition-led growth as well as operating leverage, which should drive further margin improvements. Accumulate maintained. Target is $26.88.

Target price is $26.88 Current Price is $22.22 Difference: $4.66
If AUB meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $25.78, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

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

Credit Suisse rates AWC as Outperform (1) -

2021 results were in line with Credit Suisse estimates. The broker found little extra information regarding the tax dispute although expects  some news shortly on whether this will be dropped or pursued in the courts.

The company expects the global alumina market will be largely balanced over the year. On the Credit Suisse forecasts, Alumina Ltd presents a 10-11% yield over the next two years making it the best yield across its coverage.

Outperform rating and $2.30 target maintained.

Target price is $2.30 Current Price is $2.06 Difference: $0.24
If AWC meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.08, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Macquarie rates AWC as Neutral (3) -

Both Alumina Ltd's FY21 result and dividend were a miss versus Macquarie's forecasts. Dividends over the next 12 months are considered under threat from higher costs and cash outflows. The Neutral rating and $1.80 target price are reiterated.

An overall improvement in earnings was underpinned by higher alumina and aluminium prices in the 2H, partially offset by increased energy and caustic soda costs.

Target price is $1.80 Current Price is $2.06 Difference: minus $0.26 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.08, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Morgan Stanley rates AWC as Overweight (1) -

Alumina Ltd's FY21 result broadly met consensus (but proved a -10% miss on Morgan Stanley's earnings estimate), albeit to the soft side.

Production and capital-expenditure guidance met consensus estimates.

Management provided no specific guidance but advises Chinese average production costs rose 18% in 2021, suggesting continued strength in import parity prices.

Overweight rating retained. Target price eases to $2.10 from $2.13. Industry view: Attractive.

Target price is $2.10 Current Price is $2.06 Difference: $0.04
If AWC meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.08, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Ord Minnett rates AWC as Buy (1) -

Further to its initial reaction, Ord Minnett notes AWAC operating earnings experienced higher costs and were below forecasts. While disappointed with the rising costs, the broker factors in a mark-to-market review alumina prices, which have risen to US$400/t.

Valuation estimates are increased slightly and the broker retains a Buy rating, raising the target to $2.30 from $2.20. Over the longer term sustaining capital expenditure is expected to move back towards US$15/t from the current US$20/t.

Target price is $2.30 Current Price is $2.06 Difference: $0.24
If AWC meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.08, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in December.

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: 0.6

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

Citi rates AX1 as Neutral (3) -

Accent Group's December underlying first-half result missed consensus and Citi estimates by -6,% but sales outpaced consensus by 18% and Citi by 25%.

The broker therefore surmises that some stores aren't pulling their weight - most likely Glue which was purchased last year.

The dividend outpaced as did gross margins (by roughly 52%) and vertical product sales nearly tripled on the previous corresponding period. Store rollouts also clipped the retailer and online sales rose to 31% of sales from 21%, thanks in part to lockdowns.

On the flip side, the broker notes operating cash flow slumped as inventories hit cash conversion and costs rose by roughly 30% (again possibly because of Glue).

Neutral rating retained and target price is steady at $2.24, the broker fearing delivery delays may constrain growth in the second half.

Target price is $2.24 Current Price is $1.92 Difference: $0.32
If AX1 meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.52, suggesting upside of 21.9% (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 AX1 as Overweight (1) -

At first glance, Accent Group's December first-half earnings (EBIT) met pre-released guidance and generally pleased Morgan Stanley.

Management upgraded rollout targets and says trading this year suggests an improvement in the June half, albeit struck on flat gross margins. 

The broker admires the company's online strength, its scale and strategic execution and expects a rebound once covid eases.

Overweight rating and $2.95 target price retained. Industry view: In-line.

Target price is $2.95 Current Price is $1.92 Difference: $1.03
If AX1 meets the Morgan Stanley target it will return approximately 54% (excluding dividends, fees and charges).

Current consensus price target is $2.52, suggesting upside of 21.9% (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 AX1 as Buy (1) -

Following Accent Group's interim results, UBS assesses earnings were in-line with guidance while profit was a miss versus the consensus. Gross margins fell -480bps on the previous corresponding period from a sell through of inventory following covid closures.

Nonetheless, trading conditions look promising at the start of the 2H with the back to school period particularly strong, notes the analyst. The Buy rating is unchanged and the target falls to $2.50 from $2.75.

In the 1H there were 100 net new stores opened, exceeding the 75 estimated by UBS, and the store growth target has been upgraded by management again.

Target price is $2.50 Current Price is $1.92 Difference: $0.58
If AX1 meets the UBS target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $2.52, suggesting upside of 21.9% (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 BSL as Upgrade to Overweight from Equal-weight (1) -

BlueScope Steel's December first-half result met consensus and Morgan Stanley's forecasts but second-half guidance disappointed consensus by -18%.

Earnings (EBIT) hit record highs but cash flow fell well shy of the broker's forecasts due to a $1.1bn working capital build as higher inventories and inventory prices met higher receivables.

Uncertainty surrounds US spreads after US steel prices fell -45% from peaks but the broker expects stabilisation will soon occur as the industry rationalises and consolidates, supporting higher prices and a normalisation of spreads.

FY22 EPS forecasts fall to match guidance but Morgan Stanley upgrades to Overweight from Equal Weight, believing the value in the stock (company), with its net cash balance sheet and strong cash flow generation, is impossible to ignore.

Target price rises to $25 from $23.50. Industry view: In-Line.

Target price is $25.00 Current Price is $19.24 Difference: $5.76
If BSL meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $25.06, suggesting upside of 28.1% (ex-dividends)

The company's fiscal year ends in June.

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 BST as Outperform (1) -

Following interim results for Best & Less Group, Macquarie maintains its Outperform rating as margin management lends confidence to near-term performance.

The broker liked gross margins rising by 210bps to 50.8%, with the cost-of-doing-business falling by -7%.

The analyst leaves FY22-24 EPS forecasts largely unchanged. A roll-forward of the financial model results in an increased target price of $4.10, up from $3.90. 

Target price is $4.10 Current Price is $3.67 Difference: $0.43
If BST meets the Macquarie target it will return approximately 12% (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

Credit Suisse rates CGC as Outperform (1) -

Strong demand for produce continues, while 2022 is also expected to benefit from a full year of the 2PH acquisition. If potential is realised, Credit Suisse believes the stock will move towards fair value at around $4.

While upgrading EBITDA estimates the broker lowers estimates for earnings per share by -9-20% over the forecast because of higher depreciation and interest costs.

Australian dollar weakness is also working in the company's favour although 2022 will be an "off year" amid reduced yields. Outperform retained. Target is reduced to $3.70 from $4.15.

Target price is $3.70 Current Price is $3.26 Difference: $0.44
If CGC meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.55, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates CGC as Outperform (1) -

FY21 profits for Costa Group Holdings exceeded both the consensus and Macquarie's expectations. While no guidance was provided, general commentary was positive.

Locally, volumes for berries, mushrooms and tomatoes are strong, while early season China yields and demand are above the broker's expectation.

After applying a 7% premium to Macquarie's peer multiple, to account for the company’s average premium over the past three years, the target rises to $3.80 from $3.41. Outperform.

Target price is $3.80 Current Price is $3.26 Difference: $0.54
If CGC meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.55, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in December.

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

Morgans rates CGC as Hold (3) -

Morgans had anticipated Costa Group Holdings delivering a miss with its FY21 results, but the company delivered ahead of market expectations. Earnings and profit were 2.4% and 6.8% ahead of consensus forecasts respectively despite continued covid impacts. 

Strong contributions from berries, mushrooms and tomatoes drove material improvement in Produce and supported the result. Guidance was not provided for the coming year, but the company alluded to a strong start and an expected improved result. 

The Add rating and target price of $3.70 are retained.

Target price is $3.70 Current Price is $3.26 Difference: $0.44
If CGC meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.55, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in December.

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

Morgan Stanley rates COE as Underweight (5) -

Cooper Energy's December first-half result met pre-guided forecasts and FY22 guidance.

While management recently advised that work on Orbost Phase 2B would start at the end of this month, operator APA Group ((APA)) has advised of equipment delays, and the broker questions FY23 consensus earnings targets.

Net debt and cash flow also appear under threat given the Basker Manter abandonment program, surmises the broker.

Underweight rating retained, the broker preferring Karoon Gas ((KAR)). Target price steady at 23c. Industry view: Attractive.

Target price is $0.23 Current Price is $0.28 Difference: minus $0.05 (current price is over target).
If COE meets the Morgan Stanley target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.27, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

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

Cochlear's December first-half result outpaced Citi's forecasts and management upgraded guidance by 5% but advised of a softening in the net profit after tax margin to below the company's long-term target of 18% in FY22 and FY23.

Covid continued to hamper sales through operations but the company is expected to counterbalance this with a switch to replacements - Services and Acoustics (services revenue was a key feature of the result as was 40% revenue growth from Ossia).

EPS forecasts rise 5% for FY22, fall -1% for FY23 and rise 1% for FY24.

Buy rating retained. Target price rises to $235 from $220.

Target price is $235.00 Current Price is $207.37 Difference: $27.63
If COH meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting upside of 3.2% (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 COH as Outperform (1) -

First half net profit was ahead of estimates amid strong revenue growth and better cost control. Management has maintained guidance for FY22 net profit of $265-285m.

Restrictions on elective surgery and staffing shortages at hospitals are still expected to affect the second half. Credit Suisse expects a return to double-digit growth in FY23.

Outperform rating maintained. Target is raised to $240 from $235 and a new processor remains the catalyst.

Target price is $240.00 Current Price is $207.37 Difference: $32.63
If COH meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting upside of 3.2% (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 COH as Neutral (3) -

Macquarie notes better-than-expected 1H revenues and gross margins for Cochlear as Services/acoustics more than offset weaker-than-expected Cochlear implant volume/revenue. However, FY22 guidance implies weaker profits in the 2H.

The Neutral stance by the broker attempts to balance modest operating leverage and a recovery in activity against elevated multiples. In fact, CSL ((CSL) is seen as more appealing in the sector, at current levels. The target price falls to $215 from $222.50. Neutral.

Target price is $215.00 Current Price is $207.37 Difference: $7.63
If COH meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting upside of 3.2% (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 COH as Upgrade to Equal-weight from Underweight (3) -

Cochlear's December first-half result missed consensus and Morgan Stanley's forecasts at the top line, as covid continued to hamper trade.

But margins managed to outpace thanks to a reducton in operating expenses and research and development. EPS outpaced by a decent clip.

Management reiterated FY22 guidance (which the broker believes to be conservative) and predicts a reduction in net profit margins with implants continuing to be stymied by hospital staffing shortages.

Despite this, the broker says the debate is shifting to robust services and upgrades revenue as a counterbalance. Upgrade to Equal-weight from Underweight. Target price rises to $208.00 from $180. Industry view: In-line.

Target price is $208.00 Current Price is $207.37 Difference: $0.63
If COH meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting upside of 3.2% (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 COH as Upgrade to Add from Hold (1) -

Cochlear delivered better than anticipated first half results, with Morgans noting improving clinic access allowed for strong sales growth in the Services and Acoustics segments which were up 21% and 40% respectively.

Expect the second half to be weighted to the same segments as operating theatre capacity remains constrained. Capacity and staffing issues continue to drag but easing restrictions should see a surgical backlog addressed, increasing optimism in the company's outlook. 

The rating is upgraded to Add from Hold and the target price increases to $233.20 from $214.50.

Target price is $233.20 Current Price is $207.37 Difference: $25.83
If COH meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting upside of 3.2% (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 COH as Hold (3) -

First half net profit was well ahead of Ord Minnett's forecasts amid stronger services and acoustics sales. The broker considers a recovery is now broad-based and pandemic issues are manageable.

Moreover, the medium-term outlook is compelling. Nevertheless, with limited upside potential, a Hold rating is maintained as the target is increased to $223 from $207.

Target price is $223.00 Current Price is $207.37 Difference: $15.63
If COH meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $225.70, suggesting upside of 3.2% (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 COL as Neutral (3) -

First half results signalled the company can successfully manage the volatility related to the pandemic. As a result, Credit Suisse suspects a slower rate of sales growth and low inflation is not a major concern for the market.

The broker also anticipates market growth will slow further as expenditure moves to foodservice in the absence of mobility restrictions, and customers become more value conscious as inflation garners momentum.

Neutral rating maintained. Target rises to $18.32 from $16.93.

Target price is $18.32 Current Price is $17.27 Difference: $1.05
If COL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $18.86, suggesting upside of 5.9% (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 COL as Outperform (1) -

Following Coles Group's interim earnings, Macquarie lowers its target price by -0.5% to $19.70 as lower peer multiples offset improved earnings. Outperform maintained.

Supermarket sales continue to benefit from covid and the broker suggests inflation could result in an upside surprise for sales in the 2H.

By way of explaining covid, Liquor and Express largely offset each other, while a stronger demand for off-premise liquor largely offset falling demand for petrol, explains the analyst.

Target price is $19.70 Current Price is $17.27 Difference: $2.43
If COL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $18.86, suggesting upside of 5.9% (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 COL as Add (1) -

First half results from Coles Group were largely in line, with earnings of $975m down -4% and profit of $549m down -2%. Given Woolworths ((WOW)) reported higher covid costs impacted earnings, Morgans had expected similar, so the result surprised to the upside. 

The broker expects the higher costs will drive a -70 basis point earnings margin decline for Woolworths, while Coles' margins declined only -10 basis points. 

While the company did not provide sales growth metrics for the beginning of the second half, it did allude to elevated sales in early January before a moderation through to February. Earnings forecasts decrease -1% each year through to FY24. 

The Add rating is retained and the target price decreases to $19.70 from $19.90.

Target price is $19.70 Current Price is $17.27 Difference: $2.43
If COL meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $18.86, suggesting upside of 5.9% (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 COL as Hold (3) -

First half earnings were ahead of forecasts as Ord Minnett notes Coles Group has defied concerns regarding supply chain cost pressures. The broker lifts forecasts by 1% for FY22 and 3% for FY23-24.

Still, Ord Minnett highlights, smart selling benefits have likely peaked and the cycling of a low-cost period along with the need to invest are likely to drive greater margin contraction in the second half.  Hold maintained. Target rises to $18.60 from $17.80.

Target price is $18.60 Current Price is $17.27 Difference: $1.33
If COL meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.86, suggesting upside of 5.9% (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 COL as Upgrade to Neutral from Sell (3) -

Following 1H results for Coles Group, UBS upgrades its rating to Neutral from Sell as Supermarkets earnings (EBIT) exceeded both the broker's and the consensus forecast. In addition, Liquor and a lower net interest assumption drive the target to $17.25 from $16.50.

Despite market share concerns, the analyst now has greater confidence in cost management for Supermarkets. The Smarter Selling cost saving program is thought to have offset a negative channel shift to online and helped reduce the negative covid impact.

Target price is $17.25 Current Price is $17.27 Difference: minus $0.02 (current price is over target).
If COL meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.86, suggesting upside of 5.9% (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 DHG as Buy (1) -

UBS maintains its Buy rating for Domain Holdings after interim earnings (EBITDA) came in 7.5% ahead of expectations. It's felt the market overly focused upon a -$3m increase in cost guidance to the exclusion of the strong revenue outlook.

The company has achieved a higher depth penetration (i.e. the % of upgraded ads) and an improved depth mix, despite putting through a 10% price increase, explains the analyst.

The broker highlights a 1H 19% jump in controllable yield (10% price increases and 9% depth), and a strong listing environment is evident from the first six weeks of the 2H. The target price is lowered to $5.50 from $5.60.

Target price is $5.50 Current Price is $4.03 Difference: $1.47
If DHG meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $5.29, suggesting upside of 28.6% (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 DRR as Neutral (3) -

Deterra Royalties' December first-half result met consensus and Citi forecasts.

Citi says the focus now shifts to the future, management updating its strategy with some rebalancing of bulks, base metals and battery metals, and notes that ESG will be a central driver of the investment process.

The company refinanced and expanded its credit facility at lower average margins on longer-dated repayments.

FY22 EPS forecasts ease -3%. FY23/24 EPS estimates are unchanged. Target price rises to $4.60 from $4.15. Neutral rating retained.

Target price is $4.60 Current Price is $4.43 Difference: $0.17
If DRR meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting upside of 2.7% (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 DRR as Neutral (3) -

First half results were pre-released, although Credit Suisse notes expenses have risen amid higher corporate development costs. The company stated it has run the ruler over a number of M&A opportunities but has not found enough value to date.

Credit Suisse expects the new $350m debt facility will improve the ability to pay for assets when competing with peers. Deterra Royalties also highlighted a new capital management plan. Neutral maintained. Target is $4.20.

Target price is $4.20 Current Price is $4.43 Difference: minus $0.23 (current price is over target).
If DRR meets the Credit Suisse target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.55, suggesting upside of 2.7% (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 DRR as Outperform (1) -

Deterra Royalties' interim results were largely in-line with Macquarie's expectations, as was the announcement of a fully franked interim dividend of 11.68cps.

Iron ore prices continue to drive upside risk and the broker maintains an Outperform rating, with a spot price scenario generating 30% and 60% higher earnings for FY23 and FY24. The target price of $5.20 is unchanged.

Target price is $5.20 Current Price is $4.43 Difference: $0.77
If DRR meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.55, suggesting upside of 2.7% (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 EHE as Neutral (3) -

In the wake of Estia Health's interim results, Macquarie sees an improvement in underlying trend though feels a degree of uncertainty in relation to future funding.

Lower than expected revenue and higher costs resulted in a -22% earnings (EBITDA) miss for mature homes in the 1H, explains the analyst.

A Neutral rating is maintained with favourable medium-longer term fundamentals for the sector balanced against near-term covid-induced earnings risk and the uncertainty around funding. The $2.30 target is unchanged.

Target price is $2.30 Current Price is $2.12 Difference: $0.18
If EHE meets the Macquarie target it will return approximately 8% (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

Ord Minnett rates EHE as Hold (3) -

First half net profit was ahead of expectations. The broker expects occupancy will recover over the remainder of FY22 as restrictions around the management of coronavirus outbreaks are reduced.

Yet without details regarding the new funding model from the government forecasting future earnings is difficult, although the broker is confident the new system will ensure earnings are, at the least, maintained. Hold rating maintained. Target is reduced to $2.10 from $2.15.

Target price is $2.10 Current Price is $2.12 Difference: minus $0.02 (current price is over target).
If EHE meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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 EVT as Buy (1) -

Event Hospitality and Entertainment's December first-half result beat Citi's forecasts thanks to strong cost savings.

Citi is unsure of the sustainability of the cost cuts given covid has obscured the picture but expects cost-cuts should continue to support margin expansion and returns in the near term.

The broker notes the company's non-core property divestment program is supporting valuation (to about 41% above the share price) and there is still another $60m to go.

FY23 and FY24 EPS estimates are cut -3% to -7% to reflect a forecast slow recovery in international travel and reduced earnings from the property business post divestment.

Buy rating retained, the broker holding a positive industry view post-covid. Target price eases to $18.35 from $18.65.

Target price is $18.35 Current Price is $14.64 Difference: $3.71
If EVT meets the Citi target it will return approximately 25% (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 GEM as Neutral (3) -

Following FY21 results for G8 Education, Macquarie downgrades its FY22 EPS forecast by -7% on a downward revision to margins from wages and covid-induced occupancy challenges. 

However, the analyst notes signs of a turnaround, with 21 out of 52 impaired centres now exited and centres within the Improvement Program showing earnings growth.

After increasing the assumed risk free rate and allowing for the turnaround, the broker's target price rises to $1.30 from $1.10. Neutral. 

Target price is $1.30 Current Price is $1.27 Difference: $0.03
If GEM meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.37, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in December.

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 GEM as Buy (1) -

G8 Education delivered a 5% beat versus prior guidance, with solid cost control (in a challenging environment) a key highlight for UBS. It's felt the worst impacts of omicron have passed and 6% pricing increases in January more than offset labour and other cost pressures.

The broker expects an on market buyback. Given an improved outlook, the assumed weighted average cost of capital is reduced to 9.7% from 10.5% and the target price rises to $1.43 from $1.25. Buy.

Target price is $1.43 Current Price is $1.27 Difference: $0.16
If GEM meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $1.37, suggesting upside of 5.0% (ex-dividends)

The company's fiscal year ends in December.

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 HUB as Outperform (1) -

First half results were well ahead of estimates. A 10% beat on platform revenue margins more than offset a miss on cost forecasts. This signals to Credit Suisse that the pressure on the front book revenue margins is now behind the company.

The upgrade of the funds under administration target to $83-92bn by FY24 implies a step up in the annual rate of flows and is taken as a sign of management's confidence.

Moreover, the broker considers the target conservative as second quarter flows were annualising above the top end of this range. Outperform reiterated. Target rises to $37.00 from $36.50.

Target price is $36.50 Current Price is $24.68 Difference: $11.82
If HUB meets the Credit Suisse target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $34.11, suggesting upside of 25.8% (ex-dividends)

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 HUB as Outperform (1) -

First half results were ahead of expectations. Macquarie expects the performance on revenue margins to continue amid strong flows.

Hub24 is now the broker's preferred exposure among wealth platforms. Macquarie upgrades estimates for EBITDA by 2-4% and raises the target to $33.50 from $32.40. Outperform retained.

Target price is $33.50 Current Price is $24.68 Difference: $8.82
If HUB meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $34.11, suggesting upside of 25.8% (ex-dividends)

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

Morgans rates HUB as Add (1) -

First half results from Hub24 were slightly ahead of Morgans' expectations, with the company reporting 79% earnings growth on the previous comparable period to $29.7m and 89% profit growth to $14.2m. 

Continued strong funds under management growth of around 40% per annum is translating to revenue improvement as margins stabilise. The funds under asset target increased to $83.92bn in FY24, expected net inflows of $10-14bn annually account for much of the uplift.

The Add rating is retained and the target price decreases to $32.85 from $34.35.

Target price is $32.85 Current Price is $24.68 Difference: $8.17
If HUB meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $34.11, suggesting upside of 25.8% (ex-dividends)

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 HUB as Buy (1) -

First half results were in line at the EBITDA level. Ord Minnett incorporates the Class acquisition into forecasts for the first time and carries forward the strong revenue outcome. This drives a 6-8% upgrade to estimated earnings per share.

The broker believes Hub24 is well-placed to increase its platform flows and market share over the next few years. Buy rating reiterated. Target rises to $35 from $34.

Target price is $35.00 Current Price is $24.68 Difference: $10.32
If HUB meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $34.11, suggesting upside of 25.8% (ex-dividends)

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

Citi rates JDO as Neutral (3) -

Judo Capital Holdings' maiden December first-half result strongly outpaced Citi's estimates, strong underlying revenue delivering a huge beat on cash earnings, and management expects to exceed prospectus forecasts.

Citi spies even larger earnings upgrades in FY23, the company enjoying a timing benefit as the RBA raises its cash rate, delivering a net-interest-margin windfall.

The broker admires the company's asset quality. Non-performing exposures were flat, a greater percentage of loans were fully secured and covid-impacted sectors fell to 8.9% from 9.5%.

The broker considers recent share-price weakness provides an opportune entry point. Buy rating retained. Target price rises to $2.40 from $2.20.

Target price is $2.40 Current Price is $1.94 Difference: $0.46
If JDO meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.42, suggesting upside of 20.8% (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 JDO as Outperform (1) -

First half results showed the company's "execution credentials" Credit Suisse asserts, and Judo Capital is on track to beat prospectus forecasts in FY22.

The broker liked the loan growth and credit quality although staff cost inflation is considered a potential negative impact for future earnings. Outperform and $2.75 target maintained.

Target price is $2.75 Current Price is $1.94 Difference: $0.81
If JDO meets the Credit Suisse target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $2.42, suggesting upside of 20.8% (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

Macquarie rates JDO as Neutral (3) -

The maiden first half result was slightly ahead of both Macquarie's and the prospectus forecasts. Still, the broker highlights execution risk in terms of medium-term prospectus expectations and underlying trends are showing some competitive pressures.

As FY22 expenses are likely to be higher than prospectus caution prevails and the broker retains a Neutral rating, raising the target to $2.10 from $2.00.

Target price is $2.10 Current Price is $1.94 Difference: $0.16
If JDO meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.42, suggesting upside of 20.8% (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

Morgan Stanley rates JIN as Overweight (1) -

Jumbo Interactive's December first-half result beat Morgan Stanley at the revenue level by 4% (thanks to strong jackpots) but fell -3% shy on EPS.

The broker says Jumbo was unable to leverage the revenue beat as service fees and marketing spend rose, and expects costs, particularly for staff, will continue to rise.

The broker says the result suggests fears around market share loss now appear overdone, citing 15% active customer growth. 

Overweight rating retained. Target price rises to $22 from $21.20. Industry view: In-line.

Target price is $22.00 Current Price is $17.04 Difference: $4.96
If JIN meets the Morgan Stanley target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $20.17, suggesting upside of 14.2% (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

Morgans rates JIN as Add (1) -

Morgans notes a top line beat in Jumbo Interactive's first half didn't carry through to underlying metrics given high operating expenditure investment, resulting in a -5% underlying earnings miss and -7% profit miss although up 16.9% and 18.2% year-on-year respectively. 

Acceleration of the customer acquisition strategy was one driver of increased expenditure, with marketing costs rising 80% year-on-year, but the addition of 198,000 new players should begin to benefit the company from the second half.

The Add rating is retained and the target price decreases to $20.50 from $20.75.

Target price is $20.50 Current Price is $17.04 Difference: $3.46
If JIN meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $20.17, suggesting upside of 14.2% (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

UBS rates JIN as Neutral (3) -

Following interim results for Jumbo Interactive, UBS highlights strong top-line growth within lottery retailing (up around 35% year-on-year) due to an improving jackpot run. Overall, revenue met expectation though increased costs pressured margins.

However, the increased costs mainly related to headcount, explains the analyst, which will set up growth for FY23 onwards. The target price rises to $18 from $17.30, while the Neutral rating is unchanged.

Target price is $18.00 Current Price is $17.04 Difference: $0.96
If JIN meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $20.17, suggesting upside of 14.2% (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

Macquarie rates MAH as Outperform (1) -

First half revenue was stronger than anticipated although EBIT was in line. The order book remains robust and increased underground work is expected to be positive for margins over the medium term.

Macquarie notes cost pressures were evident in the first half and cash conversion was weaker than expected. Heightened capital expenditure forecasts reduce estimates for FY23 and FY24 by -1% and -7%, respectively.

Outperform retained. Target is reduced to $0.30 from $0.33.

Target price is $0.30 Current Price is $0.16 Difference: $0.14
If MAH meets the Macquarie target it will return approximately 87% (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 MGX as Outperform (1) -

After an initial glance at today's interim results for Mount Gibson Iron, Macquarie highlights the advanced stripping program at Koolan Island continued into FY22 and materially impacted.

Despite rising iron ore prices, headline results and cash flow were down materially year-on-year though the broker still sees upside. After the end of stripping and under a spot price scenario, earnings are forecast to increase 100% from FY23 to the end of mine life.

The Outperform rating and $0.70 target price are unchanged.

Target price is $0.70 Current Price is $0.56 Difference: $0.14
If MGX meets the Macquarie target it will return approximately 25% (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

Credit Suisse rates MND as Neutral (3) -

First half revenue and net profit were ahead of Credit Suisse estimates. The broker reduces EBIT forecasts for FY22-23 by -10.1-12.7% as Andrew Hodge takes on coverage of the stock.

The broker remains wary of the large Western Australian FIFO workforce, as increased coronavirus transmission occurs and borders re-open. While the impact on labour should be temporary, the broker does not expect material improvement in margins until late FY24.

Neutral rating maintained. Target is reduced to $10.30 from $10.50.

Target price is $10.30 Current Price is $10.99 Difference: minus $0.69 (current price is over target).
If MND meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.40, suggesting upside of 3.2% (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 MND as Outperform (1) -

First half net profit was well ahead of forecasts. Macquarie considers the results of good quality, noting the strong cash flow. Maintenance is now 56% of group revenue, which lifted 21% as a result of the resource/energy sectors catching up on deferred activity.

Margins also appear to be bottoming. The broker notes a "significannt bidding opportunity" across the lithium, gold, copper, renewables and iron ore sectors. Outperform retained. Target rises to $12 from $11.

Target price is $12.00 Current Price is $10.99 Difference: $1.01
If MND meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $11.40, suggesting upside of 3.2% (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

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

Monadelphous reported first half revenue and earnings well ahead of Morgan Stanley, but the company has guided to a second half revenue decline, in line with the broker's forecast, which implies a first half skew.

Management has warned labour shortages will persist even after Western Australia opens its border. The broker is even unsure about FY23, given WA is only now seeing an omicron wave.

The company has managed the situation well, the broker concludes, but further upside would require new contract wins and more clarity on FY23 conditions. Equal-weight and $11.20 target retained.

Target price is $11.20 Current Price is $10.99 Difference: $0.21
If MND meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $11.40, suggesting upside of 3.2% (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 MND as Buy (1) -

First half results were well ahead of forecasts, revealing strong demand for maintenance services. Management has acknowledged an impact from a shortfall in skilled resources stemming from the Western Australian border closures and the impact on FIFO workers.

Ord Minnett notes more challenges are expected, with the Omicron spread in Western Australia delayed relative to other states.

Meanwhile, oil & gas capital expenditure appears to be levelling off and the outlook for all commodities appears robust. Buy rating retained. Target rises to $12.50 from $11.50.

Target price is $12.50 Current Price is $10.99 Difference: $1.51
If MND meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $11.40, suggesting upside of 3.2% (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

UBS rates MND as Neutral (3) -

UBS notes 1H sales growth of 12% versus the previous corresponding period (pcp) for Monadelphous Group far exceeded management's own guidance for similar growth to the pcp.

Meanwhile, group earnings (EBITDA) were a 19% beat versus the analyst's and the consensus estimate, with the Maintenance division largely responsible. It's thought high iron ore maintenance activity as well as some catch-up on deferred volumes contributed.

A margin recovery reflects new work being priced at rates that better reflect current tight WA labour market conditions, explains the broker. The target price rises to $11 from $10.60 on upgraded Maintenance forecasts. Neutral.

Target price is $11.00 Current Price is $10.99 Difference: $0.01
If MND meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $11.40, suggesting upside of 3.2% (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 NAN as Sell (5) -

Nanosonics's December first-half met consensus forecasts, and disappointed Citi due to a revenue hit (partly covid driven), and the broker downgrades EPS forecasts -121%, -24% and -18% in FY22, FY23 and FY24.

Citi now forecasts a small FY22 loss, expecting EMEA and APAC sales will take longer than forecast to establish and the general outlook has deteriorated.

Sell rating retained. Target price slides to $4 from $5.

Target price is $4.00 Current Price is $4.10 Difference: minus $0.1 (current price is over target).
If NAN 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 $4.34, suggesting upside of 4.4% (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 NAN as Add (1) -

Despite Nanosonics' first half results being largely in line with expectations and company guidance, the share price declined -13% following the results release. Sales were up 41% in the half, and momentum appears to have continued into the early second half. 

The share price decline is a continuation of selling pressure that has seen the stock decline -25% in the past month, which Morgans attributes to concern around the GE Health transition and CORSIS commercial launch. 

Morgans notes the stock suits investors with a higher risk profile. The Add rating is retained and the target price decreases to $5.43 from $5.97.

Target price is $5.43 Current Price is $4.10 Difference: $1.33
If NAN meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $4.34, suggesting upside of 4.4% (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

Ord Minnett rates NAN as Lighten (4) -

First half net profit was less than expected as costs increased. Ord Minnett forecasts a -$2.6m loss in FY22 before a return to a modest $4.8m profit in FY23.

Staffing shortages are likely to affect US ultrasound procedures coinciding with the transition to a more direct distribution model. As a result, Ord Minnett is concerned that sales growth may be stymied even when the pandemic recedes.

The broker retains a Lighten rating given an elevated valuation and the challenges ahead. Target is reduced to $3.60 from $4.05.

Target price is $3.60 Current Price is $4.10 Difference: minus $0.5 (current price is over target).
If NAN meets the Ord Minnett target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.34, suggesting upside of 4.4% (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 NHF as Hold (3) -

First half profit of $81m from nib Holdings was in line and a 25% increase on the previous comparable period, while revenue of $1.35bn was not only up 8% but a 4% beat to Morgans' forecast. The company issued an interim dividend of 11 cents per share.

Australian residents health insurance (arhi) reported strong results as continued covid impacts drove fewer private hospital surgery claims, while unsurprisingly international inbound health insurance (iihi) continued to battle a challenging environment resulting in a -$7.4m loss. 

The Hold rating is retained and the target price decreases to $7.14 from $7.53.

Target price is $7.14 Current Price is $6.78 Difference: $0.36
If NHF meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.84, suggesting upside of 0.5% (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

UBS rates OZL as Neutral (3) -

The FY21 result from OZ Minerals was broadly in-line with both consensus and UBS's forecasts, while guidance was maintained for FY22.

The broker was pleased that no additional capex was attached to the new decarbonisation road map.

Looking forward, the analyst feels a premium has already been built into the share price for the appealing growth profile and low cost of production. Hence, a Neutral rating is retained. The target price slips to $25.80 from $25.90.

Target price is $25.80 Current Price is $24.85 Difference: $0.95
If OZL meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $25.21, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in December.

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 PLS as Outperform (1) -

Macquarie's initial impression following today's interim results from Pilbara Minerals, is the announcement of the CEO's pending departure is of even greater importance than the weaker than expected result.

An earnings miss versus the broker was largely due to exploration and feasibility study costs being expensed rather than capitalised. The underlying profit miss of -23% was attributed to the earnings miss and higher finance costs.

Guidance for the 2H sees production volumes in-line but cash costs lower than expected. Outperform rating and $3.70 target.

Target price is $3.70 Current Price is $2.79 Difference: $0.91
If PLS meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $3.49, suggesting upside of 22.4% (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

Macquarie rates PRN as Outperform (1) -

Perenti Global's first half revenue was stronger than Macquarie expected while EBITA was in line as a result of higher depreciation. Group and segment margins were stable. Nevertheless, Macquarie notes margin pressures continue.

The outlook for the rest of FY22 remains positive as work momentum escalates, while margins are expected to improve in the second half. Revenue guidance has been lifted to $2.2-2.4bn. Outperform retained. Target is reduced to $1.10 from $1.20.

Target price is $1.10 Current Price is $0.75 Difference: $0.35
If PRN meets the Macquarie target it will return approximately 47% (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

UBS rates PRN as Buy (1) -

UBS assesses interim results for Perenti Global were a slight beat versus expectations,. Better-than-expected revenue and surface
margins were estimated to be offset by lower-than-expected Australian underground margins (labour pressures in WA).

Management upgraded revenue guidance though left earnings (EBITDA) guidance unchanged. The Buy rating and $1.00 target price are unchanged.

Target price is $1.00 Current Price is $0.75 Difference: $0.25
If PRN meets the UBS target it will return approximately 33% (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

Morgan Stanley rates PWR as Overweight (1) -

Peter Warren Automotive's result beat Morgan Stanley and the top end of guidance, and momentum is continuing into the second half. The integration of the Penfolds acquisition (cars, not wine) is going to plan and opening further organic and inorganic opportunities, the broker notes.

The result de-risks FY22 organic profit expectations given lockdown and supply issues impacted in the first half but will ease in the second, with the broker expecting supply to improve to meet a backlog of orders.

The broker continues to see the stock as an attractive mid- to high-single-digit organic earnings growth story with M&A upside, but margin normalisation is likely to mask growth in the near term. Target falls to $4.20 from $4.60, Overweight retained.

Industry view: In-Line.

Target price is $4.20 Current Price is $2.70 Difference: $1.5
If PWR meets the Morgan Stanley target it will return approximately 56% (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

Morgans rates PWR as Add (1) -

Peter Warren Automotive's December first-half result outpaced guidance, a rise in gross margins cushioning a prospectus revenue  miss.

A non-recurring government grant for apprentices also fed into the beat. Cash conversion was strong and the company shifted from net cash to net debt following the PMG acquisition.

The company declares a maiden dividend of 9cps. Morgans says the order book is strong, with a delivery pipeline of three months, albeit delivery delays appear likely to continue. Acquisitions are expected to continue apace and the broker says funding capacity is solid.

Morgans says that under the two Agency model with Honda and Mercedes, no sales revenue will be recognised (commission based) and that revenue will be -$88m lower, but that this should not affect profit before tax.

The broker estimates Mercedes constitutes 9% of group earnings which casts doubt over management's profit-before-tax call and future margin outcomes.

Morgans upgrades forecast FY22 EPS by 8%, FY23 EPS by 20% and FY24 EPS by 4%. 

Add rating retained, the broker believing the consolidation will sustain profits and growth in the long term. Target price eases to $3.95 from $4.16.

Target price is $3.95 Current Price is $2.70 Difference: $1.25
If PWR meets the Morgans target it will return approximately 46% (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 PXA as No Rating (-1) -

Macquarie notes today's Pexa Group interim result was above the broker's forecasts. At first glance, it's thought that while FY22 prospectus forecasts were raised, some conservatism was applied.

First half earnings (EBITDA) of $83.2m beat Macquarie's forecast of $72.3m, due to better revenue with costs in-line.

First lenders recently signed up to the PEXA platform in the UK and the analyst feels progress is being made toward the planned 'go live' in the 4Q of 2022.

Due to current research restrictions, Macquarie doesn't provide a target price or rating.

Current Price is $17.01. Target price not assessed.

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

Credit Suisse rates REP as Outperform (1) -

RAM Essential Services has upgraded FY22 guidance to free funds from operations of $21.6m and a distribution of 4c, representing a forecast pay-out of 96%. Credit Suisse observes this is largely a function of around $24m in new acquisitions in the second half to date.

The broker revises up forecasts, assuming the rolling out of the development pipeline occurs as planned and there are no further unannounced acquisitions. Earnings are considered highly predictable and an Outperform rating is maintained. Target is $1.05.

Target price is $1.05 Current Price is $0.95 Difference: $0.1
If REP meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.09, suggesting upside of 15.1% (ex-dividends)

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 REP as Buy (1) -

First half results were better than expected. Ord Minnett observes the company continues to deliver on its strategy of growth, being able to successfully implement capital recycling.

Management has increased FY22 guidance by 2% to free funds from operations of $21.6m. The exposure to medical post the capital recycling transactions will increase to 50%. Buy rating maintained. Target is $1.14.

Target price is $1.14 Current Price is $0.95 Difference: $0.19
If REP meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.09, suggesting upside of 15.1% (ex-dividends)

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

Credit Suisse rates RRL as Outperform (1) -

First half earnings were in line with estimates. The company has opted not to pay an interim dividend given the weak first half and current expenditure requirements.

Credit Suisse notes management is also unwilling to commit to a final dividend and cuts its assumption to 3c from 5c per share and FY23/24 to 5c from 8c.

A key catalyst is the update on the Garden Well main underground and the broker also notes the opening of the Western Australian border poses a threat that is not actually captured in guidance. Outperform rating retained. Target rises to $2.45 from $2.25.

Target price is $2.45 Current Price is $1.97 Difference: $0.48
If RRL meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 15.4% (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

Morgan Stanley rates RRL as Overweight (1) -

Regis Resources' profit result was a miss due to higher D&A, and a forecast dividend was not forthcoming. FY production and cost guidance is unchanged, but capex guidance for McPhillamy's of $29m compares to the broker's $105m expectation.

The broker has delayed its McPhillamy's start-up expectation by six months. Forecast earnings have been trimmed, but on a reset of gold price assumptions, target rises to $2.10 from $2.05.

Overweight retained. Industry view: Attractive.

Target price is $2.10 Current Price is $1.97 Difference: $0.13
If RRL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 15.4% (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

Morgans rates RRL as Hold (3) -

Regis Resources softer first half result offered little surprise given the company had flagged this last month, but a decision not to pay an interim dividend did surprise Morgans. 

Contribution from the Tropicana acquisition drove a 22% revenue increase on the previous comparable period, while earnings were flat as higher operating costs impacted. Expect a stronger second half, necessary to achieving reaffirmed guidance of 420-475,000 ounces.

The Hold rating is retained and the target price decreases to $1.98 from $2.00.

Target price is $1.98 Current Price is $1.97 Difference: $0.01
If RRL meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.22, suggesting upside of 15.4% (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 SDF as Upgrade to Buy from Accumulate (1) -

First half earnings were slightly weaker than Ord Minnett expected. FY22 guidance has been upgraded to underlying EBITA of $330-340m, given organic trends.

The broker notes, overall, guidance for earnings per share and EBIT increases 2.5% for FY22, with a strong second-half skew because of the timing of acquisitions.

Ord Minnett also observes a high premium rate currently favours brokers and underwriting agencies. Rating is upgraded to Buy from Accumulate and the target is raised to $5.50 from $5.44.

Target price is $5.50 Current Price is $4.68 Difference: $0.82
If SDF meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.44, suggesting upside of 10.5% (ex-dividends)

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 SGP as Hold (3) -

At first glance, results in the first half were ahead of Ord Minnett's forecasts. The FY22 FFO guidance range has been lifted to 35.1-35.6c per security, a 1% upgrade at the mid point.

On the positive side the sale of the retirement living  business has been contracted and gearing should improve to around 16% post balance-date transactions.

On the negative side, residential settlement guidance for FY22 is reduced to 6000 lots because of disruptions from the pandemic and office occupancy is down to 90.6%.

Hold rating and $4.75 target.

Target price is $4.75 Current Price is $4.02 Difference: $0.73
If SGP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 15.3% (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

Morgan Stanley rates SHL as Overweight (1) -

For a review of Morgan Stanley's response to Sonic Healthcare's result, see yesterday's Broker Call.

Further consideration has the broker cutting its target to $40.00 from $42.80, noting the balance sheet has stengthened, but not as much as thought. Overweight retained. Industry view: In-Line.

Target price is $40.00 Current Price is $35.49 Difference: $4.51
If SHL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $39.35, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgan Stanley rates SLC as Overweight (1) -

In a brief review of Superloop's result, Morgan Stanley concludes it is difficult to interpret given the Exetel acquisition and divestment of Hong Kong/Singapore assets in the period. FY guidance was nevertheless retained.

Earnings guidance implies a 38/62% skew to the second half, the broker notes, driven by organic growth, annualisation of synergies and full six month contribution from Exetel.

Student accommodation demand headwinds in the first half will ease in the second. The company's turnaround, and balance sheet repair, appear to be on track. Overweight and $1.45 target retained for now. Industry view: In-Line.

Target price is $1.45 Current Price is $0.96 Difference: $0.49
If SLC meets the Morgan Stanley target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $1.36, suggesting upside of 44.3% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates SLC as Add (1) -

Superloop's first half results were in-line with Morgans' expectations. Revenue was up 125% year-on-year to $119.8m, profit was up 60% to $39.6m and earnings were up 12% to $9.1m, and the company reaffirmed full year guidance. 

Guidance will require a sizeable 54% earnings growth from $9.1m to $14.0m in the coming half, but the broker notes management is yet to miss guidance. 

Core business segments, Consumer, Business and Wholesale, all reported double digit growth but Morgans notes negative cash flow disappointed. Expect cash flow to revert in the second half but accelerated sales and marketing spend from the fourth quarter. 

The Add rating is retained and the target price decreases to $1.37 from $1.42.

Target price is $1.37 Current Price is $0.96 Difference: $0.41
If SLC meets the Morgans target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $1.36, suggesting upside of 44.3% (ex-dividends)

The company's fiscal year ends in June.

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 SLC as Accumulate (2) -

First half EBITDA was ahead of forecasts yet Ord Minnett suggests this is a soft result that implies a skew to the second half.

Guidance for EBITDA of $23-25m is maintained and the broker believes this is within reach, stemming from Exetel cost synergies and the run rate of growth.

Ord Minnett maintains an Accumulate rating and reduces the target to $1.25 from $1.40. The broker continues to envisage value in Superloop through its strategically attractive Australian fibre assets and the expected 18% cash backing post the asset sale.

Target price is $1.25 Current Price is $0.96 Difference: $0.29
If SLC meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.36, suggesting upside of 44.3% (ex-dividends)

The company's fiscal year ends in June.

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

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

SomnoMed has introduced its "Rest Assure" product that enables its devices to measure efficacy and compliance measures, filling a major gap in CPAP and COAT therapy, says Morgans.

The product provides a sleep score similar to ResMed's ((RMD)) AirView platform.

Morgans considers the device to be a potential game-changer, boosting the company's allure as a takeover target.

Morgans upgrades to Add from Hold, believing the product will improve SomnoMed's growth prospects. Target price eases to $2.51 from $2.61.

Target price is $2.51 Current Price is $1.85 Difference: $0.66
If SOM meets the Morgans target it will return approximately 36% (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

Morgans rates STP as Add (1) -

Step One Clothing's December maiden first-half result met Morgans forecasts and the company reaffirms FY22 guidance.

The launch of the woman's range proved the standout, selling 50,000 units in the first month and attracting 12,000 new customers in the first two weeks, leading the broker to expect a strong sales run in May and June, and into FY23.

UK growth was modest as forecast and the company is shifting its advertising and marketing to an influencer strategy. FY22 earnings forecasts are steady. 

Morgans considers the company to be sharply oversold and believes the investment thesis is intact. Add rating retained. Target price eases to $2.40 from $2.70.

Target price is $2.40 Current Price is $1.07 Difference: $1.33
If STP meets the Morgans target it will return approximately 124% (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

Credit Suisse rates SVW as Outperform (1) -

First half EBIT was ahead of expectations. As a result of a new analyst covering the stock and adjustments to take into account the treatment of Boral ((BLD)) property sales, Credit Suisse increases FY22 EBIT forecasts by 3.6% and lowers FY23-24 by -2.2-5.8%.

The broker believes a continued strong performance from Coates in conjunction with improvement in WesTrac and Boral will result in robust growth for the next couple of years.

Credit Suisse retains an Outperform rating and reduces the target to $26.55 from $28.00.

Target price is $26.55 Current Price is $21.67 Difference: $4.88
If SVW meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $26.84, suggesting upside of 17.3% (ex-dividends)

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 SVW as Outperform (1) -

First half earnings were ahead of forecasts. WesTrac EBIT beat forecasts by 5% and Coates by 11%. Macquarie considers this a solid outcome amid headwinds and current uncertainties.

Guidance for Coates has been upgraded while WesTrac guidance was maintained. Group guidance is for EBIT growth of 8-10% on pro forma FY21. Outperform maintained. Target is reduced to $28.00 from $28.60.

Target price is $28.00 Current Price is $21.67 Difference: $6.33
If SVW meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $26.84, suggesting upside of 17.3% (ex-dividends)

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 SVW as Buy (1) -

First half underlying earnings were weaker than Ord Minnett expected, largely because of the consolidated contribution from Boral ((BLD)). The company expects low double-digit EBIT growth from Coates, which experienced growth across all geographies and segments.

WesTrac benefited from elevated commodity prices although underlying cash conversion weakened in the first half largely because of an increase in working capital in order to manage supply chain disruptions.

Ord Minnett retains a Buy rating and raises the target to $25 and $24.

Target price is $25.00 Current Price is $21.67 Difference: $3.33
If SVW meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $26.84, suggesting upside of 17.3% (ex-dividends)

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

UBS rates SVW as Buy (1) -

Seven Group Holdings delivered a solid 1H, according to UBS, with earnings from Industrial Services (WesTrac & Coates Hire) 5% ahead of the consensus estimate.

Coates Hire is benefiting from strong infrastructure construction activity and operating leverage is rising with utilisation, explains the analyst.

Earnings guidance of 8-10% growth on a like-for-like basis is seen as conservative and the broker now expects growth of 13% following updates to its Boral ((BLD)), Beach Energy ((BPT)) and Media forecasts.

The target price rises to $27.80 from $27.15. Buy.

Target price is $27.80 Current Price is $21.67 Difference: $6.13
If SVW meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $26.84, suggesting upside of 17.3% (ex-dividends)

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

Morgans rates SWP as Speculative Buy (1) -

Morgans notes Swoop Holdings' first half results were better than expected, with the company delivering 47% year-on-year revenue growth, a 10% beat to forecast, and 130% year-on-year earnings growth, a 19% beat to forecast.

While organic growth was in the double digits, acquisitions contributed sizeably to the result. Further synergies from recent acquisitions are yet to be realised, and two acquisitions in the third quarter and further near-term acquisition alluded to offer upside risk. 

Earnings forecasts increase 7% and 35% for FY22 and FY23 respectively. Updated forecasts are at the top end of company guidance, which Morgans expects will be upgraded following the company's next acquisition completion. 

The Speculative Buy rating and target price of $1.44 are retained.

Target price is $1.44 Current Price is $1.20 Difference: $0.24
If SWP meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Morgan Stanley rates TLS as Overweight (1) -

Telstra and TPG Telecom ((TPG)) have signed a mobile network sharing deal in regional Australian markets, which Morgan Stanley believes makes financial and strategic sense.

Telstra provides TPG access to its mobile network, and TPG allows Telstra to access its regional 4G/5G spectrum.

The broker suggests Telstra benefits in three ways: earnings accretion, valuation lift, and a cheap way to access more regional spectrum. Overweight and $4.60 target retained. Industry view: In-Line.

Target price is $4.60 Current Price is $3.93 Difference: $0.67
If TLS meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting upside of 10.2% (ex-dividends)

The company's fiscal year ends in June.

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 UWL as Neutral (3) -

Uniti Group's first half underlying EBITDA was in line with Macquarie's forecasts. The company has indicated it is on track to meet consensus forecasts for FY22 EBITDA of $145bn despite the impact of the pandemic on construction.

Macquarie notes connection momentum has supported the contract order book for FTTP, with contracted/in-construction premises increasing to 292,000 in December and 55.8% expected to be delivered in the next five years.

Neutral maintained. Target is reduced to $3.70 from $4.38.

Target price is $3.70 Current Price is $3.37 Difference: $0.33
If UWL meets the Macquarie target it will return approximately 10% (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

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

Ord Minnett was underwhelmed by the first half result, amid delays that reduced the number of completed fibre connections. Nevertheless, the broker considers the share price reacted unnecessarily to future planned capital expenditure to upgrade the Velocity network.

The broker believes Uniti Group is justified in investing ahead of the potential growth, as it crystallises a 7-10-year pipeline of work. The broker upgrades to Buy from Accumulate and reduces the target to $3.88 from $4.21, given the marginally lower earnings base.

Target price is $3.88 Current Price is $3.37 Difference: $0.51
If UWL meets the Ord Minnett target it will return approximately 15% (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 VEE as Add (1) -

Veem's December first-half result met Morgans forecasts and pre-guidance issued in November.

One-off production issues, labour and capacity challenges and higher raw material prices were as expected.

The broker cuts FY22 to FY24 EBITDA forecasts -6% to -8% and suspects cost pressures may yet come home to roost in FY22.

Target price eases to $1.15 from $1.25. Add rating retained, the broker appreciating the company's unique products and expecting demand will remain strong. Morgans cites GYRO's $14.6bn market but says execution will be the key.

Target price is $1.15 Current Price is $0.78 Difference: $0.37
If VEE meets the Morgans target it will return approximately 47% (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 VNT as Outperform (1) -

After an initial glance over FY21 results, Macquarie believes newly-listed Ventia Services Group is strongly positioned for success in FY22 and beyond.

The analyst suggests the company has navigated covid (especially labour shortages) with minimal impact. Pro forma profit came in 6.5% ahead of the prospectus forecast, while FY22 proforma prospectus forecasts were reaffirmed.

An unfranked dividend of $1.47cps was declared. The Outperform rating and $2.80 target are maintained.

Target price is $2.80 Current Price is $2.06 Difference: $0.74
If VNT meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 VRT as Downgrade to Neutral from Outperform (3) -

First half net profit was -12% below Macquarie's forecasts. This reflects weaker revenue and higher costs. Nevertheless, the broker considers this reflects an investment in future growth and the market should continue to benefit from behavioural shifts.

That said, Macquarie believes growth is captured in current forecasts and downgrades to Neutral from Outperform. Target is raised to $7.35 from $7.10, stemming from an equal weighting of DCF valuations and the CapVest bid at $7.60.

Target price is $7.35 Current Price is $7.30 Difference: $0.05
If VRT meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.15, suggesting downside of -2.6% (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 VRT as Hold (3) -

In line first half results from Virtus Health included $17.0m profit, down from $23.1m in the previous comparable period, and $37.9m earnings, down from $59.0m. Morgans noted Australian volumes remained strong, up 1.3%, while international declined -4.1%, but the company expect international to return to growth as covid disruptions stabilise. 

Costs impacted in the half to meet covid safety protocols, as well as continued growth investment including in the Precision Fertility digital platform. The Precision Fertility digital platform is scheduled for launch in September; the platform should offer a step change in how the company delivers results for patients. 

No updates were provided on the company's suitor CapVest, which Morgans notes will be a key determinant of share price direction. 

The Hold rating and target price of $7.60 are retained.

Target price is $7.60 Current Price is $7.30 Difference: $0.3
If VRT meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $7.15, suggesting downside of -2.6% (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

Ord Minnett rates WOR as Hold (3) -

At first glance, Worley revealed a weaker-than-expected result for the first half. Management believes the outlook for investment is improving, although Ord Minnett suspects the weaker result will lead to consensus downgrades.

There was no explicit FY22 guidance. Hold rating and $10.50 target maintained.

Target price is $10.50 Current Price is $11.80 Difference: minus $1.3 (current price is over target).
If WOR meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.61, suggesting downside of -6.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23: