Australian Broker Call

Macquarie rates ALQ as Resume at Outperform (1) -

Macquarie has resumed coverage of ALS Ltd with an Outperform rating and target price of $18.20.

The company completed a $350m equity raise to fund four organic lab expansions, with the balance to support any bolt-on growth initiatives. Share purchase plan up to $40m is also currently being undertaken.

The broker notes a 15% return on capital is being targeted on lab expansions by FY31, implying a $34.5m boost to EBIT by FY31.

The analyst believes the company's 5-7% long-term organic revenue growth target is achievable due to emphasis on organic investment.

Minor changes to EPS forecasts, with FY26 lifted 0.1% and FY27 up 0.4%.

Target price is $18.20 Current Price is $16.20 Difference: $2
If ALQ meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $18.73, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY26:

Forecast for FY27:

Market Sentiment: 0.9

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

Citi rates ARB as Neutral (3) -

Citi observes ARB Corp's sales index rebounded in May, rising 3% from a -2% decline in April and in 3Q25. This is likely positive for the company's 2H Aftermarket sales.

Still, the broker sees risks to sales until the company introduces a range of aftermarket parts for the BYD Shark.

Neutral. Target unchanged at $39.54.

Target price is $39.54 Current Price is $31.70 Difference: $7.84
If ARB meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $39.12, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates ARB as Buy (1) -

Data from the Federal Chamber of Automotive Industries showed new vehicle sales fell -5.2% y/y in May, continuing with the declining trend for the last 10 months.

Stronger outcomes in FY24 were a factor but Ord Minnett expects FY26 to see sales growing because of easier comps.

Sales of ARB Corp's key vehicles rose 7.7%, due to growth in sports utility vehicles. The broker notes Toyota Prado and Land Cruiser sales offset the declines seen in the top two selling utes.

No change to forecasts. Buy. Target unchanged at $37.

Target price is $37.00 Current Price is $31.70 Difference: $5.3
If ARB meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $39.12, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

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

Bell Potter expects Austal to post a strong 2025 result, with earnings (EBIT) forecast at $85m on $1.67bn in revenue, equating to a 5.1% margin and net profit of $56.1m, implying earnings per share growth above 100%.

The broker’s earnings projection surpasses both company guidance of not less than $80m and the consensus estimate of $84.8m.

The analysts anticipate growth in A&NZ shipbuilding activity, following increased confidence in program timing under the re-elected Labor government.

Valuation revisions by the broker include a reduced WACC and higher EV/earnings and price/earnings multiples, reflecting improved macro conditions and Austal’s net cash advantage over peers.

Potential inclusion in the ASX200 in the September 2025 rebalance is also noted.

Bell Potter raises its target price to $5.60 from $4.45 and downgrades to Hold from Buy.

Target price is $5.60 Current Price is $5.94 Difference: minus $0.34 (current price is over target).
If ASB meets the Bell Potter target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.81, suggesting downside of -18.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Bell Potter rates AV1 as Speculative Buy (1) -

Bell Potter assesses Adveritas delivered a strong trading update, with annual recurring revenue rising by $2.3m to $10.2m as at 31 May, achieving management's June target one month early.

The company develops software solutions for enterprise customers which help maximise the return on digital advertising spend.

The broker attributes the growth primarily to momentum in the sports betting sector, with additional wins in crypto and financial services, and highlights early revenue from a second agency deal in the Middle East.

Adveritas plans to launch a Meta product and commence US operations next quarter, which Bell Potter sees as supportive of future growth.

Bell Potter raises its target price to 15c from 14c and retains a Buy (Speculative) rating.

Target price is $0.15 Current Price is $0.10 Difference: $0.053
If AV1 meets the Bell Potter target it will return approximately 55% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Shaw and Partners rates BWN as Initiation of coverage with Buy (1) -

Shaw and Partners initiated coverage of Bhagwan Marine with a Buy rating and target price of 80c.

The broker believes the marine services provider is well-placed to benefit from vessels shortage, and has several competitive advantages, including strategic locations near key clients and a highly skilled team that includes 200 underwater divers.

The analyst is forecasting $150m revenue in FY25 from oil and gas offshore and subsea services, and $100m from port and in-shore services. The company has a strong balance sheet after raising $80m from IPO, and the broker expects it will start paying dividend in 2H25.

Risks include demand variations in the oil and gas sector, labour challenges and key person risk associated with its founder.

Target price is $0.80 Current Price is $0.51 Difference: $0.29
If BWN meets the Shaw and Partners target it will return approximately 57% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates CAR as Buy (1) -

Citi notes Thor's 3Q result (3 months to April) was better than expected with a rise in both towable and motorised recreation vehicle sales.

The result aligns with the broker's view for steady recreation vehicle demand, giving more confidence in the 8% y/y growth forecast for CAR Group's Trader Interactive business in 2H25.

For FY26, the broker is forecasting growth to accelerate to 11% y/y with weighting to 2H, due to the risk of tariff impact going into the year.

Buy. Target unchanged at $42.

Target price is $42.00 Current Price is $35.89 Difference: $6.11
If CAR meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $41.30, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Bell Potter rates CYC as Buy (1) -

Bell Potter notes nuclear medicine specialist Cyclopharm has installed 16 Technegas systems so far in 2025, progressing steadily but at a slower pace than expected.

US installation forecasts are revised to 90 systems from 217, and the broker's FY25 revenue forecast is downgraded by -28% to $34.9m due to prolonged hospital decision cycles and readiness issues.

Earnings (EBIT) breakeven is now expected in H2 of 2026, delayed from earlier forecasts by the analysts, though substantial earnings are projected for 2027.

Bell Potter views competitor Lantheus's sale of its Xenon-based imaging unit as partial validation of Technegas’s technical superiority. 

The broker lowers its target price to $2.20 from $2.70 and maintains a Buy rating.

Target price is $2.20 Current Price is $1.17 Difference: $1.035
If CYC meets the Bell Potter target it will return approximately 89% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates ELD as Buy (1) -

Bell Potter observes the Elders' share price has underperformed since the announcement of the Delta Agribusiness acquisition in November 2024, with the stock losing -15% of its value. 

The core business is now trading at a discount to historical earnings (EBITDA) multiples, note the analysts.

The broker sees upside potential from base business execution, including $15m in margin gains from backward integration and $11m from the Systems Modernisation (SYSMOD) program.

Another $2m is expected from acquisition annualisation, along with a $12m recovery from the end of the South Australian drought, supporting the broker's FY27 earnings forecast of of $190-200m.

Bell Potter also highlights livestock price leverage, noting a 3.5% cattle price increase adds circa $1.4m to earnings, with current pricing at a steep discount to US benchmarks suggesting potential upside in a restocking cycle.

Bell Potter retains the $9.10 target price and Buy rating.

Target price is $9.10 Current Price is $6.15 Difference: $2.95
If ELD meets the Bell Potter target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 44.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Ord Minnett rates INR as Speculative Buy (1) -

Project update by ioneer for Rhyolite Ridge revealed a four-fold increase in ore reserves and a 95-year mine plan, but it also showed a 112% rise in capex estimate to -US$1.7bn.

Ord Minnett estimates total construction funding requirement of -US$1.9bn, including allowance for other debt fees. With US$1.0bn funding expected from the Department of Energy, the broker believes a US$300m equity raise is likely and the balance US$600m from 49% stake sale.

The broker is not ruling out a takeover offer. The revised modelling accounted for the higher capex, operating expense and mine plan, and share dilution, resulting in a target price cut to 20c from 30c.

Speculative Buy maintained.

Target price is $0.20 Current Price is $0.12 Difference: $0.085
If INR meets the Ord Minnett target it will return approximately 74% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 1.0

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

Citi rates JDO as Neutral (3) -

The key news at Judo Capital's June 3 investor day, comment analysts at Citi, was the plan to introduce two new deposit products, which will diversify the funding base and lower overall funding costs.

While positive, Citi is skeptical this will improve the net interest margin or go towards lower-return assets to boost growth.

Overall, the repricing in term deposits following the RBA rate cut had brought them back into the 80-90bps target range. The broker notes the bank's FY25 loan book guidance of $12.4-12.6bn looks achievable with the spot book at $12bn as of June 2.

FY26 EPS forecast lifted by 5% to reflect better-than-expected term deposit spreads.

Neutral. Target lifted to $1.60 from $1.55.

Target price is $1.60 Current Price is $1.53 Difference: $0.07
If JDO meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgans rates JDO as Downgrade to Accumulate from Buy (2) -

Following the 2025 investor day, Morgans has increased confidence in Judo Capital’s business model and earnings outlook, noting strong management execution and an improving net interest margin (NIM) profile.

Loan growth guidance remains intact with $2-3bn per year targeted over the next few years, underpinned by banker expansion and improved productivity, explains the broker. 

It's also felt the recent uptick in May lending offers a positive signal after weaker growth earlier in 2025.

The improving NIM has been aided by higher front book margins, improved funding mix, and declining term deposit spreads, explains the analyst. However, the new warehouse lending product is expected to dilute margin while lifting returns on equity.

Morgans retains the $1.75 target price and downgrades to Accumulate from Buy as the broker adjusts to its new ratings methodology.

Target price is $1.75 Current Price is $1.53 Difference: $0.22
If JDO meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.93, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Ord Minnett rates LYC as Upgrade to Accumulate from Hold (2) -

Ord Minnett sees Lynas Rare Earths as a beneficiary of the volatile and uncertain rare earths (REO) environment.

The broker expects China decoupling to occur even if a US-China trade war is averted, and expects the company to benefit from greater demand and better pricing.

The broker notes the company's March quarter report suggests it needs both volume and stronger pricing to offset fixed costs, and the REO environment offers scope for both.

Rating upgraded to Accumulate from Hold. Target unchanged at $8.70.

Target price is $8.70 Current Price is $8.23 Difference: $0.47
If LYC meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $8.14, suggesting downside of -11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Morgans rates MAF as Downgrade to Accumulate from Buy (2) -

MA Financial acquired IP Generation, a real estate investment manager specialising in shopping centres, for around -$90.4m.

Morgans reckons the deal is EPS-accretive on a full-year basis. IP Generations' exposure to shopping centres aligns well with the company's focus on retail assets and its plan to create a leading integrated real estate asset manager.

The deal will boost AUM to over $12bn, keeping the company on track to meet the FY26 target of $14bn. FY26 EPS forecast lifted by 2%.

Target rises to $8.23 from $8.11. Rating downgraded to Accumulate from Buy.

Target price is $8.23 Current Price is $7.25 Difference: $0.98
If MAF meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.57, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

UBS rates NSR as Buy (1) -

National Storage REIT is selling the second tranche of development assets into its ventures fund JV with Singapore's wealth fund GIC, which will result in $140m in proceeds to repay debt.

Tranche two will see $228m of capital deployed, which is in addition to $270m from tranche one. The REIT will continue to hold 25% equity interest, with the remaining 75% belonging to GIC.

UBS notes this is not a profit event for the REIT, but it highlights potential for more such deals and provides funding options. The broker also forecasts an average 2% earnings lift from FY26-29.

Buy. Target rises to $2.57 from $2.49.

Target price is $2.57 Current Price is $2.34 Difference: $0.23
If NSR meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgan Stanley rates NWS as Overweight (1) -

Morgan Stanley believes the market underappreciates the earnings power and growth outlook of the Dow Jones division within News Corp.

Particularly as the segment's revenue model continues shifting towards more stable subscription and enterprise streams, explain the analysts.

The broker expects Dow Jones to contribute around 30% of group revenue and 40% of earnings (EBITDA) in FY26 following a Foxtel exit, making it the second-largest segment after REA/Move Inc.

Structural revenue growth of 10-20% annually over five years is anticipated from the enterprise segment, supported by EBITDA margins of 40-50%, highlights the broker.

Morgan Stanley values Dow Jones at US$12bn or US$21 per News Corp share on a standalone basis, using a sum-of-the-parts approach, around US$4 per share above consensus.

Morgan Stanley retains an Overweight rating with a US$37 target price. Industry View: Attractive.

Current Price is $49.86. Target price not assessed.

Current consensus price target is $65.50, suggesting upside of 32.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.8

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

Bell Potter rates PBH as Hold (3) -

PointsBet Holdings has received an improved takeover proposal from Japanese digital entertainment group MIXI, lifting the cash offer by 13.2% to $1.20 per share, prompting a variation to the original Scheme Implementation Deed.

MIXI has also indicated it may pursue an off-market takeover at the same price with a 50.1% minimum acceptance condition if the Scheme fails at the rescheduled June 25 meeting.

The revised offer matches the all-cash bid by BETR Entertainment ((BBT)), notes the broker, but questions remain due to the effective blocking stake held by BETR and structural limitations preventing all shareholders from accessing its offer.

The broker raises its target price to $1.20 from $1.10 and maintains a Hold rating.

Target price is $1.20 Current Price is $1.20 Difference: $0
If PBH meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Morgans rates SOL as Hold (3) -

WH Soul Pattinson and Brickworks ((BKW)) have announced a merger that will unwind the cross-shareholding between the two that has existed since 1969.

The newly capitalised TopCo will be a $14bn entity, with new equity used to cover outstanding Brickworks' debt, WH Soul Pattinson's convertible notes and transaction costs.

Morgans notes a fully underwritten capital raise of around $550m at the company's pre-announcement price of $36.93.will be undertaken. The broker believes the merger will benefit both and put TopCo in a new cash position.

Hold. Target lifted to $43.15 from $37.50.

Target price is $43.15 Current Price is $41.41 Difference: $1.74
If SOL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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