Australian Broker Call

Citi rates IDX as Neutral (3) -

Citi resumes coverage of Integral Diagnostics with a Neutral rating and a $3 target price following the completion of the merger with Capitol Health.

The combined group is now the third-largest radiology group in Australia, with an 11% market share.

Citi estimates the earnings impact to be neutral but highlights possible upside from cost synergy savings of $10m.

Management has provided no FY25 guidance, though Integral Diagnostics reported 1Q25 organic revenue growth of 8.6% year-on-year.

The broker forecasts earnings margin expansion of 400bps by FY28 and acknowledges long-term demand growth driven by ageing demographics and a transition to "higher-end modalities".

Target price is $3.00 Current Price is $3.00 Difference: $0
If IDX meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 18.3% (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

Citi rates SKO as Buy (1) -

Citi believes growth for Booking.com in business customer acquisition is positive for Serko in 2H25, as Booking.com has experienced an acceleration in growth to over 800k business-registered companies.

The broker forecasts 2H25 annual growth in completed room nights for Serko, improving from 27% year-on-year growth in 2Q25.

The stock remains Buy rated with a $4.25 target price.

Target price is $4.25 Current Price is $3.34 Difference: $0.91
If SKO meets the Citi target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $5.08, suggesting upside of 52.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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 WDS as Sell (5) -

Citi lowers the target price on Woodside Energy to $21.50 from $23 due to the mark-to-market of long-term LNG prices following the fall in contract prices.

The analyst views the asset swap with Chevron, whereby Woodside Energy takes Chevron's interest in North West Shelf oil and gas and Angle carbon capture and storage for Woodside's interest in Wheatstone and Julimar-Brunello, as short-term earnings accretive.

Citi's estimated impact is a reduction in gearing at the peak by over 300bps and an improvement in credit rating, increasiing the ability to fund an 80% payout ratio.

The broker lifts EPS forecasts by 5% and 9% for 2024/2025, respectively, with 2026 earnings estimated to rise around 54% on a higher equity share of production.

A final investment decision on Browse appears unlikely, the analyst states, based on Citi's capex estimate of -US$25bn–US$30bn.

Sell rating maintained.

Target price is $21.50 Current Price is $23.55 Difference: minus $2.05 (current price is over target).
If WDS meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.38, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.0

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