Australian Broker Call

Morgan Stanley rates ALL as Overweight (1) -

Morgan Stanley observes from recent data monthly revenue growth trends for Pixel United continue to improve sequentially (consensus forecast exceeded) for Aristocrat Leisure. 

Despite broader macroeconomic uncertainty, trends largely held for Gaming in the 4Q of 2022, according to the broker.

Stronger casino games partially offset a weaker performance in role playing games (RPG) and casual games, note the analysts.

The Overweight rating and $43 target are unchanged. Industry View: In-Line.

Target price is $43.00 Current Price is $36.45 Difference: $6.55
If ALL meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $41.26, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Ord Minnett rates AMI as Hold (3) -

Despite a positive outcome from normalising operations in the 2Q (production beat and costs in line), Ord Minnett highlights liquidity remains a risk as the timing of shipments negatively impacted the cash balance.

While the company has covenant wavers in place and access to a $10m undrawn loan facility, the analyst believes the company is not yet 'out of the woods'. It's thought an upcoming catalyst is the funding solution for Federation, due by the end of the 3Q FY23.

The Hold rating is retained and the target rises to 35c from 30c after the broker takes into account the 2Q and new commodity price forecasts.

Target price is $0.35 Current Price is $0.13 Difference: $0.22
If AMI meets the Ord Minnett target it will return approximately 169% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

Morgan Stanley expects a group earnings (EBIT) margin of 11.5% (consensus 11.8%) and underlying basic EPS of US$0.59 (consensus US$0.55) when Ansell reports 1H results on February 14.

While the broker thinks ongoing growth in industrial sales and a favourable mix shift towards in-house products should offset a rise in costs, it may be a while before a return to pre-pandemic margins. The FY19 group EBIT margin was 13%.

The Equal-weight rating and $28.77 target are retained. Industry view In-Line.

Target price is $28.77 Current Price is $28.62 Difference: $0.15
If ANN meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $28.55, suggesting upside of 0.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Ord Minnett rates ARB as Buy (1) -

While sales remain volatile, Ord Minnett notes a gradual improvement in automotive manufacturing supply chains, as reflected by the 11.9% increase in new vehicle car sales for January.

The increase, for the seventh consecutive month, was reported by the Federal Chamber of Automotive Industries.

Looking at key segments for ARB Corp, sales of both SUV and Light Commercial Vehicles rose by 17.9% and 1.6%, respectively.

The Buy rating and $35 target are unchanged.

Target price is $35.00 Current Price is $33.40 Difference: $1.6
If ARB meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $32.73, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates AUB as Buy (1) -

UBS reinitiates on AUB Group, describing the stock as attractively valued despite retaining a sector preference for Steadfast Group ((SFD)). According to the broker, the company enjoys tailwinds including a firming premium rate cycle and margin improvement. 

The company's recent Tysers acquisition, in UBS's opinion, transforms AUB Group into a global player with wholesale capability. The broker anticipates Tysers to be 15% earnings per share accretive, retaining scope to rise towards 30% longer-term. 

The broker reinitiates with a Buy rating and a target price of $27.00.

Target price is $27.00 Current Price is $24.15 Difference: $2.85
If AUB meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $26.37, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Morgan Stanley rates BEN as Overweight (1) -

While Morgan Stanley has no knowledge of merger talks between Bank of Queensland and Bendigo & Adelaide Bank, which has been speculated upon by the media, some initial thoughts are proffered.

Competitive disadvantages for smaller banks suggests mergers make sense, according to the analysts, and in the past few years Bendigo & Adelaide Bank has altered its former preference to remain independent.

Moreover, the broker believes a potential merger is unlikely to raise competition concerns and be blocked by the ACCC.

The Overweight rating and $10.10 target for Bendigo & Adelaide Bank are unchanged. Industry view: In-Line.

Target price is $10.10 Current Price is $10.06 Difference: $0.04
If BEN meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $10.23, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

While Morgan Stanley has no knowledge of merger talks between Bank of Queensland and Bendigo & Adelaide Bank, which has been speculated upon by the media, some initial thoughts are proffered.

Competitive disadvantages for smaller banks suggests mergers make sense, according to the analysts, and in the past few years Bendigo & Adelaide Bank has altered its former preference to remain independent.

Moreover, the broker believes a potential merger is unlikely to raise competition concerns and be blocked by the ACCC.

The Equal-weight rating and $7.40 target for Bank of Queensland are unchanged. Industry view: In-Line.

Target price is $7.40 Current Price is $7.19 Difference: $0.21
If BOQ meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $7.63, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.1

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

Ord Minnett rates BOQ as Accumulate (2) -

In a review of its investment thesis for Bank of Queensland, Ord Minnett suggests that while management changes have created strategic uncertainty the digitisation program is largely intact.

The program aims to support loan and deposit growth and achieve productivity benefits, explains the analyst. It's also felt recent loan growth has not been compromised by lower lending standards, though bad debts are almost certain to increase.

Ord Minnett maintains its Accumulate rating and 8.80 target.

Target price is $8.80 Current Price is $7.19 Difference: $1.61
If BOQ meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.63, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.1

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

Credit Suisse rates BSL as Neutral (3) -

Given spot spreads, Credit Suisse has updated its second half North Star spreads by 4% and Australian steel spreads by -19%. With lagged pricing largely locked in when the company presented its November update, the broker sees little risk to the first half. 

Ahead of BlueScope Steel's full first half release, the broker is anticipating the company can deliver a first half at the top end of guidance and that second half guidance will beat consensus expectations 10-15%. 

The Neutral rating is retained and the target price increases to $19.90 from $18.50.

Target price is $19.90 Current Price is $18.99 Difference: $0.91
If BSL meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $18.92, suggesting downside of -1.3% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates COF as Add (1) -

The share price rallied following a solid leasing update (according to Morgans) by Centuria Office REIT as part of 1H results. Occupancy increased to 96.4% from 94.9% in June, while the weighted average lease expiry remained at 4.2 years.

Management reaffirmed FY23 guidance for funds from operations (FFO) of 15.8cpu and DPS of 14.1cpu.

The net tangible asset (NTA) metric fell to $2.40 from $2.50 after a -2% fall in valuations for the portfolio as the weighted average cap rate expanded by 17bps to 5.75%.

The Add rating is unchanged and the target falls to $2.19 from $2.23.

Target price is $2.19 Current Price is $1.76 Difference: $0.43
If COF meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $1.88, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgan Stanley rates CSL as Overweight (1) -

In anticipation of 1H results for CSL due on February 14, Morgan Stanley forecasts group revenue growth, earnings (EBIT) and profit (NPATA) of 17% (consensus 17.6%), US$2,232m consensus (US$2,272) and US$1,649m, respectively.

Despite collection volumes returning to pre-pandemic levels, the broker thinks margin recovery at CSL Behring will be gradual as opposed to V-shaped due to higher average cost of collections. Also, it's thought physician and prescriber behaviors need time to adjust.

The Overweight rating and $354 target are unchanged.

Target price is $354.00 Current Price is $313.81 Difference: $40.19
If CSL meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $329.03, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Ord Minnett rates CWY as Lighten (4) -

Ord Minnett sees Cleanaway Waste Management's solid waste collection service as a low barrier to entry business with no meaningful labour, fleet or collection advantage and retains its Sell rating.

The target falls by -4% to $2.20 following a change in analyst at Morningstar, from where Ord Minnett now whitelabels its research.

Previously, the broker had sourced its research from JP Morgan and the prior target and rating in the FNArena database were $3.10 and Buy.

Target price is $2.20 Current Price is $2.76 Difference: minus $0.56 (current price is over target).
If CWY meets the Ord Minnett target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.72, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates IAG as Buy (1) -

Citi  has been left disappointed by Insurance Australia Group's -5% margin guidance miss, and particularly the -2.2% that largely correlates to higher than expected motor claims inflation which the company had previously claimed to have good visibility over. The remaining -2.8% relates to increased catastrophe costs.

Despite this, the broker highlights future underlying margin trends appear positive, noting price rises are set to flow through. While reinsurance could prove an ongoing headwind, and the margin impacts likely significant in FY24, Citi continues to find the stock attractive.

The Buy rating is retained and the target price decreases to $5.30 from $5.40.

Target price is $5.30 Current Price is $4.73 Difference: $0.57
If IAG meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Credit Suisse rates IAG as Outperform (1) -

Credit Suisse has called Insurance Australia Group's first half pre-release an "unwelcome surprise", with the company reporting higher than expected underlying inflation headwinds and a sizeable perils allowance increase. 

The broker notes Insurance Australia Group will need to expand its underlying margins 4.5% over the second half to meet company guidance, which it finds ambitious. Credit Suisse sees little risk to the share buyback, with capital remaining healthy.

The Outperform rating is retained and the target price decreases to $5.68 from $6.03.

Target price is $5.68 Current Price is $4.73 Difference: $0.95
If IAG meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 13.3% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

First half profit for Insurance Australia Group was a -25% miss versus the prior forecasts of Morgan Stanley and consensus, due to a much lower core margin, higher CATs and reserving top-ups.

The largest negative surprise for the broker was the core margin. It's thought this outcome may restrict share price performance until the group consistently delivers upon guidance. Higher motor inflation drove most of the margin fall, explain the analysts.

Management reduced its reported margin guidance for FY23 by -10%.

The Equal-weight rating and $4.80 target are retained. Industry View: In-Line. 

Target price is $4.80 Current Price is $4.73 Difference: $0.07
If IAG meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

After Insurance Australia Group released 1H results, which were a -20% miss on profit versus the consensus forecast and lowered FY23 guidance, Morgans reduces its FY23 EPS forecast by -33%.

The group also issued an update on the impact of the Auckland floods (a maximum event loss), which the analyst considers a worst case outcome. Additionally, motor claims inflation was worse than the market expected.

As the broker lowers its target to $5.04 from $5.57, the differential between the new target and the share price falls, leading to a ratings downgrade to Hold from Add.

Target price is $5.04 Current Price is $4.73 Difference: $0.31
If IAG meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates IAG as Sell (5) -

UBS has described a disappointing, but not altogether surprising, update from Insurance Australia Group. First half net profit from the insurer missed consensus expectations by -22%, largely on a weak insurance margin of 8.5%. The broker continues to find a heavily reduced full year margin guidance optimistic. 

However, the broker identified the major disappointment of Insurance Australia Group's update as the marked decline in underlying margins to 10.7%, from 15.1% in the previous comparable period. UBS notes the decline is a result of motor claims inflation spike, higher perils allowance and insufficient repricing action.

The Sell rating and target price of $4.20 are retained.

Target price is $4.20 Current Price is $4.73 Difference: minus $0.53 (current price is over target).
If IAG meets the UBS target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.19, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgan Stanley rates IEL as Overweight (1) -

The Canadian government has announced that it will accept Pearson’s (IDP Education's competitor) language test as proof of English proficiency for the purpose of economic visas.

The analyst reminds investors similar circumstances arose in the the UK for IDP Education in 2020, resulting in an around -10% share loss for the specific channel where competition was opened up.

The broker estimates the impact of losing the sole testing status in Canada will be a -1.5-2% headwind to its FY24 earnings (EBIT) estimates.

The Overweight rating and $36.80 target are maintained. Industry View: In-Line.

Target price is $36.80 Current Price is $32.12 Difference: $4.68
If IEL meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $33.22, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates IEL as Buy (1) -

UBS expects the entrance of a new competitor should have an immaterial impact on IDP Education with the Pearsons English language test now accepted as an alternative to the IELTS or CELCIP for Canadian economic visas. 

IDP Education continues to experience strong recovery in its Australian business, and UBS expects this to further benefit from the reopening of China, although it expects this to play a bigger part on the company's FY24. 

The Buy rating and target price of $34.85 are retained.

Target price is $34.85 Current Price is $32.12 Difference: $2.73
If IEL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $33.22, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates IPL as Hold (3) -

Fertiliser prices have normalised, which is largely responsible for an around -16% share price retreat since last November for Incitec Pivot, explains Ord Minnett.

While the broker reduces its shorter-term EPS forecasts, midcycle assumptions are little changed and the target of $3.50 is kept.

It should be noted this new target is a leg down from the prior $4.30 target in the FNArena database, as Ord Minnett now sources research from Morningstar instead of JP Morgan.

Target price is $3.50 Current Price is $3.42 Difference: $0.08
If IPL meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 19.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates JHG as Hold (3) -

As Ord Minnett is now sourcing whitelabeled research from Morningstar instead of JP Morgan, a new update by the analyst appears as a pseudo 'initiation of coverage' in the FNArena database, given no prior coverage by JP Morgan.

For now, the broker maintains its Hold rating and $37.00 target for Janus Henderson, following 4Q earnings results, though is likely to increase its target by 5-10%.

This prospective change results from higher levels of assets under management (AUM) as well as revenue and profitability, explains the analyst. Adjusted 4Q EPS of US61c beat the consensus expectations by the broker and consensus for US42c and US45c.

Target price is $37.00 Current Price is $41.46 Difference: minus $4.46 (current price is over target).
If JHG 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 $34.67, suggesting downside of -17.7% (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: -0.5

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

Macquarie rates LTR as Outperform (1) -

Liontown Resources has commenced open pit mining at its Kathleen Valley project, having recently optimised its mine plan for the project's first five years including an expansion of the Kathleen's Corner open pit. 

Macquarie highlights first production continues to be expected mid-2024. 

Elsewhere, the company is advancing its direct ship ore opportunity and preparing samples for customers. The broker points out this earnings from direct ship ore sales are not included in its base case and offer upside to its valuation. 

The Outperform rating and target price of $2.60 are retained.

Target price is $2.60 Current Price is $1.56 Difference: $1.04
If LTR meets the Macquarie target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates LYC as Sell (5) -

Ord Minnett assesses a strong sequential 2Q operational result by Lynas Rare Earths with unit costs retreating from recent highs and realised prices comfortably exceeding expectations. It's noted the prior quarter had been affected by water supply issues.

Margin pressure has been eased, according to the broker, as a result of the 14% rally in NdPr pricing to around US$90/kg over the last three months.

The analyst remains cautious around project execution risk at Kalgoorlie and retains a Sell rating. The target climbs to $5.05 from $4.95.

Target price is $5.05 Current Price is $9.40 Difference: minus $4.35 (current price is over target).
If LYC meets the Ord Minnett target it will return approximately minus 46% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.42, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

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

After updating forecasts following Mineral Resources' 2Q production report, Morgan Stanley lowers its target to $80.70 from $83.40 largely due to higher cost guidance and lower shipped guidance for lithium.

In addition, the analysts change the pricing mechanism to use spot pricing for lithium at Mt Marion (as guided by the company), which removes a six month lag-based price protection provided previously by higher past prices.

Iron ore production and pricing for the 2Q were beats of 30% and 20%, respectively, compared to the broker's estimates. Equal-weight. Industry view: Attractive. 

Target price is $80.70 Current Price is $88.79 Difference: minus $8.09 (current price is over target).
If MIN meets the Morgan Stanley target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $96.30, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates MQG as Neutral (3) -

Shares in Macquarie Group have re-rated back towards $190 per share over January, benefiting from a perceived soft landing, peak inflation and moderating rates, according to Citi.

With the company due to provide a third quarter update, Citi sees Macquarie Group as being at risk of having to justify increasing expectations against reality.

The broker is anticipating very weak deal flow, both in terms of fees and realisations, and predicts Macquarie will deliver its first negative comparable quarterly result post pandemic. 

The Neutral rating and target price of $172.00 are retained.

Target price is $172.00 Current Price is $190.43 Difference: minus $18.43 (current price is over target).
If MQG meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $190.38, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates PSI as Initiation of coverage with Neutral (3) -

UBS initiates coverage on PSC Insurance. While the broker finds the company a quality insurance broker with robust organic growth and a successful merger and acquisition record, it finds these factors largely appreciated by the market at current valuations.

The broker sees potential for organic trends to moderate moving forwards, with the company exposed to moderating premium rates in its UK business, and prefers sector stocks with greater leverage to the domestic property rate cycle and stronger balance sheets. 

The broker initiates with a Neutral rating and a target price of $4.75.

Target price is $4.75 Current Price is $4.70 Difference: $0.05
If PSI meets the UBS target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates PXA as Add (1) -

Morgans considers Pexa Group represents a quality, defensive technology play with potential for offshore expansion, and initiates coverage with an Add rating and $15.32 target.

The analyst likes the group's strong defensive earnings profile, significant first mover advantage and feels the UK expansion has been well executed so far. Strong cash flows are expected to fund expansion into new areas/future capital returns.

According to the analyst, risks include a failure to execute on new growth areas like International and PEXA Digital Growth.

Target price is $15.32 Current Price is $13.07 Difference: $2.25
If PXA meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $16.94, suggesting upside of 26.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates SFR as Outperform (1) -

Sandfire Resources' Motheo project appears to be progressing well, with an update from the company suggesting construction is nearing completion. The dry plant is 95% complete, with commissioning works underway, and wet plant commissioning in progress. 

Macquarie highlights material upside risk to its assumptions in a spot price scenario, and could see Sandfire Resources deliver a profit in FY23, while also boosting FY24 and FY25 earnings by 3-7x. 

The Outperform rating and target price of $7.00 are retained. 

Target price is $7.00 Current Price is $6.19 Difference: $0.81
If SFR meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.81, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.1

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

Credit Suisse rates SGM as Neutral (3) -

Prior to 1H results for Sims, Credit Suisse lifts its 2H earnings (EBIT) forecast by 93% to $121m, which compares to the consensus estimate of $107m.

After taking into account the recent result of overseas peer Steel Dynamics, the analyst also reduces its forecast 2H US volume decline to -5% from -10%. 

As a result of these forecast changes, the broker's target rises to $14.30 from $12.20. The analyst expects ongoing volume weakness will slow any margin recovery and maintains a Neutral rating.

Target price is $14.30 Current Price is $15.54 Difference: minus $1.24 (current price is over target).
If SGM meets the Credit Suisse target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.02, suggesting downside of -16.1% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Morgan Stanley rates SUN as Overweight (1) -

While Morgan Stanley acknowledges negative crossover sentiment from a margin downgrade by Insurance Australia Group, a pre-existing preference for Suncorp Group still holds.

The broker feels Suncorp is better placed on reinsurance timing compared to Insurance Australia Group, has no quota share impact and more cost savings. A lesser exposure to new Zealand (floods) is also considered another advantage.

The Overweight rating and $14.50 target are retained. Industry View: In-Line. 

Target price is $14.50 Current Price is $12.33 Difference: $2.17
If SUN meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $14.08, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Credit Suisse rates TPW as Neutral (3) -

As part of its 1H result preview for Temple & Webster on February 14, Credit Suisse looks out further and forecasts an increase in 2H revenue of 3% versus the previous corresponding period. The consensus forecast is for a 10% year-on-year rise for the 2H.

The analyst expects a FY23 earnings (EBITDA) margin of 4% at the mid-point of guidance for 3-5%.

The Neutral rating and $5.03 target are unchanged.

Target price is $5.03 Current Price is $5.54 Difference: minus $0.51 (current price is over target).
If TPW meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.37, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates WTC as Sell (5) -

Competitor quarterly results have highlighted a continued decline in freight volumes and yields over the December quarter, which Citi expects will translate to WiseTech Global. However, the broker anticipates global roll outs and new customer wins to offset. 

The broker does see some risk to revenue growth in FY24, as the company cycles roll outs and price increases. While Citi decreases its FY23 earnings forecast -1% to reflect transaction costs, the acquisition of Envase drives a 3% increase to FY24 and FY25 forecasts.

The Sell rating is retained and the target price increases to $53.65 from $52.70.

Target price is $53.65 Current Price is $62.00 Difference: minus $8.35 (current price is over target).
If WTC meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $65.31, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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