Australian Broker Call

Macquarie rates AKE as Outperform (1) -

Allkem has announced an asset swap that will see the company transfer its Borax Argentina project and a US$14m cash payment to Minera Santa Rita S.R.L in exchange for the Maria Victoria lithium tenements adjacent to Allkem's Olaroz project.

Macquarie notes Allkem will emerge from the deal as a simplified, lithium pure play, and highlights the transaction has been immaterial to earnings forecasts. The broker notes movements in lithium pricing remain the biggest risk to forecasts.

The Outperform rating and target price of $16.20 are retained.

Target price is $16.20 Current Price is $12.82 Difference: $3.38
If AKE meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Allkem will acquire 100% of the Maria Victoria lithium tenement (north of Olaroz) for -$14m and shares in Borax, which Morgan Stanley describes as a non core holding.

Management stated the acquisition allows more efficient development of the Olaroz project. There is no current resources or reserve at the new tenement. 

The Equal-weight rating and $12.55 target are retained. Industry View: Attractive.

Target price is $12.55 Current Price is $12.82 Difference: minus $0.27 (current price is over target).
If AKE meets the Morgan Stanley target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $14.51, suggesting upside of 15.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates AKE as Buy (1) -

Allkem will transfer Borax Argentina to Minera Santa Rita in return for 100% of the Maria Victoria lithium tenement.

Maria Victoria is a strategic lithium tenement 10km north of Allkem's Olaroz processing facility and to the north and west of current Olaroz stage 1 and proposed stage 2 production wells, UBS notes.

The acquisition will allow Allkem to focus on growing production and development of Olaroz Stage 3 although the transaction remains conditional on completion of due diligence and third party approvals.

Buy and $15.20 target retained.

Target price is $15.20 Current Price is $12.82 Difference: $2.38
If AKE meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $14.51, suggesting upside of 15.7% (ex-dividends)

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 AMI as Outperform (1) -

Aurelia Metals has reported high grade infill drilling results from its Federation project, including a 12.5 grams of gold per tonne interception at a depth of 20 metres, as noted by Macquarie.

The broker highlights the feasibility study for the Federation project remains on track for delivery in the first quarter of FY23, and expects this could be a catalyst for the company.

The Outperform rating and target price of $0.40 are retained.

Target price is $0.40 Current Price is $0.28 Difference: $0.12
If AMI meets the Macquarie target it will return approximately 43% (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 APM as Outperform (1) -

July data for the Disability Employment Services program, the largest contract for APM Human Services International, suggest to Credit Suisse a stronger 2H compared to the 1H in Australia.

For upcoming FY22 results, the broker forecasts profit (NPATA) of $167m, 6% above prospectus forecasts.

The Outperform rating and $4.25 target are retained.

Target price is $4.25 Current Price is $3.48 Difference: $0.77
If APM meets the Credit Suisse target it will return approximately 22% (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 ASX as Equal-weight (3) -

Based upon the first ten trading days of August for interest rate futures on the ASX, Morgan Stanley extrapolates a 27% year-on-year (yoy) rise, and forecasts a 8.5% recovery in FY23.

All else being equal, the broker estimates around 3% upside to its FY23 earnings forecast, should rate volumes increase by 15% yoy.

The broker retains its Equal-weight rating and $80.50 target price.  Industry view: Attractive.

Target price is $80.50 Current Price is $83.06 Difference: minus $2.56 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $82.25, suggesting downside of -1.9% (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 BEN as Neutral/High Risk (3) -

Citi views the FY22 earnings report from Bendigo & Adelaide Bank as in line, with the cash earnings beating on expectations from a 2-3% write-back in provisions.

The broker highlights the stock underperformed post the results announcement, which Citi attributes to the "confusion" around NIM, with management offering no guidance around how the bank can benefit from rising interest rates,

Citi earnings forecasts are adjusted by 9.5% for FY23 and 3.4% for FY24 from a peak in NIM in the 2H23 and strong deposit leverage, with the outlook thereafter becoming more uncertain.

A Neutral rating is retained and the price target is lowered to $10.40 from $11.00.

Target price is $10.40 Current Price is $9.88 Difference: $0.52
If BEN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $9.77, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Credit Suisse rates BEN as Outperform (1) -

Following FY22 results, Credit Suisse continues to believe Bendigo & Adelaide Bank has material leverage upside to interest rates, despite an increase in community bank revenue share that would negate some of the net interest margin upside.

The broker feels management's explanation on the revenue share was confusing, and thinks it unlikely the revenue share will move to 57-76bps, as implied. Forecasts are increased to 40-45bps from 30bps.

The analyst highlights from the FY22 result that costs were well managed in an inflationary environment. The Outperform rating and $11.10 target are maintained.

Target price is $11.10 Current Price is $9.88 Difference: $1.22
If BEN meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.77, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Macquarie rates BEN as Underperform (5) -

Macquarie notes new guidance issued by Bendigo & Adelaide Bank implies the bank is less leveraged to rising rates than previously thought, and coupled with a subdued earnings growth outlook the broker sees limited upside risk in the bank at its current valuation.

The broker believes market expectations for leverage to rising rates largely failed to take into consideration how these benefits would be shared with Bendigo & Adelaide Bank's community banking partners. Macquarie downgrades its earnings per share forecasts -3-8% through to FY25.

The Underperform rating is retained and the target price decreases to $9.25 from $10.00.

Target price is $9.25 Current Price is $9.88 Difference: minus $0.63 (current price is over target).
If BEN meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.77, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

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

Morgan Stanley lowers its target for Bendigo & Adelaide Bank to $9.40 from $10.00 following FY22 results that missed expectations and after cautious margin outlook commentary. The Equal-weight rating is retained. Industry view: Attractive.

Second half cash profit was an 8% beat versus the broker's forecast, though pre-provision profit was a -4% miss.

The leverage to higher interest rates was less positive than the analyst forecast, while margin headwinds from mortgages persist. Management is also paring back growth with a view to improving returns and capital generation.

Morgan Stanley cuts its FY23 margin forecast by around -15bps to 1.68% due partly to mortgage competition and new guidance on the Community Bank revenue share. The latter is thought to imply a materially larger and earlier margin drag than forecast.

Target price is $9.40 Current Price is $9.88 Difference: minus $0.48 (current price is over target).
If BEN meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.77, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Ord Minnett rates BEN as Downgrade to Lighten from Hold (4) -

While Bendigo & Adelaide Bank's result beat Ord Minnett on the profit line, and the dividend was as expected, it was a very soft underlying result with net interest margin falling -11 basis points in the second half, -6bp more than forecast.

This was due to competitive pressures, calling into question the growth strategy that has been pursued by management, the broker suggests.

The bigger issue for Ord Minnett however was the revelation that Community Bank revenue sharing is likely to significantly reduce rate leverage – the broker estimating more than one third of the benefit could be given up.

Target falls to $8.70 from $10.60, downgrade to Lighten from Hold.

Target price is $8.70 Current Price is $9.88 Difference: minus $1.18 (current price is over target).
If BEN 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 $9.77, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.2

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

Macquarie rates BHP as Outperform (1) -

It is Macquarie's view, upon first glance, that today's FY22 release by BHP Group marked a strong result, with the headline number surprising to the upside.

Cash flow proved "materially better" and facilitated a better-than-anticipated dividend, as well as lower debt. The company might be approaching net zero debt by year-end, suggests Macquarie.

Cost guidance proved in line with the broker's projections, but capex guidance turned out higher-than-anticipated, and "materially" so, the broker points out.

Target $48. Outperform.

Target price is $48.00 Current Price is $38.92 Difference: $9.08
If BHP meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $42.35, suggesting upside of 4.5% (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: 0.4

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

Ord Minnett rates BHP as Hold (3) -

Ord Minnett, upon initial assessment, reports BHP Group's FY22 financials are in line, with a higher-than-anticipated US175c dividend.

Net debt equally surprised. The broker does suggest the intention to spend more (capex) on future facing commodities might upset some investors.

BHP is investigating further volume increases for its iron ore operations. Higher capex might lead to reduced forecasts regarding free cash flow, points out the broker.

Target price is $43.00 Current Price is $38.92 Difference: $4.08
If BHP meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $42.35, suggesting upside of 4.5% (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: 0.4

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

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

Beach Energy reported FY22 earnings after tax of $504m which came in -12% below Citi's forecasts and -10% below consensus.

Higher costs, including higher tax and restoration expenses provided for an -8% miss on EDITDA earnings for Citi.

Beach Energy reduced the production guidance to 20.0-22.5MMboe for FY23, which is reliant on Otway customer nominations.

The broker's earnings forecasts have been reduced by -8% for FY23 and -2% for FY24, following the results, to reflect higher costs, a downgrade in reserves and risks to the ambitious targets of 28MMboe in FY24.

Citi downgrades the rating to Neutral from Buy and the target price is lowered to $1.85 from $2.10.

Target price is $1.85 Current Price is $1.65 Difference: $0.2
If BPT meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates BPT as Downgrade to Underperform from Neutral (5) -

Beach Energy has reported net profit of $504m in FY22, missing Macquarie's forecasts by -13%.

The broker noted the dividend was unchanged, and highlights higher capital expenditure costs in the Cooper Basin, a pending class action and approaching decommissioning provisions are likely encouraging conservatism from management.

The broker also found FY23 guidance disappointing, with the company suggesting production of 20.0-22.5m barrels of oil equivalent in the coming year, a -7% miss on Macquarie's forecasts, with capital expenditure of $800-1,000m, 16% above Macquarie's forecasts.

The rating is downgraded to Underperform from Neutral and the target price decreases to $1.55 from $1.85.

Target price is $1.55 Current Price is $1.65 Difference: minus $0.1 (current price is over target).
If BPT meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.84, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates BPT as Underweight (5) -

Despite the retention of an Underweight rating in the wake of FY22 results for Beach Energy, Morgan Stanley doesn't see significant downside in absolute terms. The $1.80 target is unchanged. Industry view is Attractive.

A mix of higher costs and lower production guidance led to yesterday's stock price fall, according to the analyst. The absence of any capital management initiatives were also thought to contribute.

FY23 production guidance came in below the broker's forecast, and guidance for FY23 production costs rose to $12-13/boe from $11.7/boe in FY22.

Target price is $1.80 Current Price is $1.65 Difference: $0.15
If BPT meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

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

Morgans rates BPT as Hold (3) -

Higher operating costs for Beach Energy undermined record FY22 revenue and resulted in a significant earnings (EBITDA) miss versus Morgans and the consensus forecast.

FY23 production was a -9% miss versus the consensus estimate and the FY24 outlook is -6% less than the broker forecast.

Management provided a breakdown of capital expenditure by asset and the analyst now sees higher-than-expected sustaining capital requirements to maintain production plateaus in the Cooper Basin.

The target falls to $1.74 from $1.91 and the Hold rating is maintained.

Target price is $1.74 Current Price is $1.65 Difference: $0.09
If BPT meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

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 BPT as Accumulate (2) -

Beach Energy's full year net profit of $504.3m and operating earnings of $1.11bn missed Ord Minnett's expectations, driven by higher than expected operating costs.

Looking ahead, the company has guided to production of 20.0-22.5m barrels of oil equivalent, implying no growth year-on-year.

The broker noted FY23 guidance was impacted by project deferrals, and that market estimates are likely too high and will be revised downwards. 

Ord Minnett highlighted these issues have occurred increasingly frequent for Beach Energy, which the broker finds indicative of asset quality. 

The Accumulate rating is retained and the target price decreases to $1.85 from $2.00.

Target price is $1.85 Current Price is $1.65 Difference: $0.2
If BPT meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 16.5% (ex-dividends)

The company's fiscal year ends in June.

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

UBS rates BPT as Buy (1) -

Beach Energy reported second half profit more than -15% below market expectations, dragged down by higher provisions for restoration expenses and higher royalty costs, UBS notes.

FY23 production guidance also missed market expectations due to a faster natural decline in BassGas and Kupe, also dragging FY24 production targets slightly lower.

But Beach offers strong leverage to rising east coast gas prices and the balance sheet provides for growth optionality later in the year, UBS notes, or could support stronger shareholder returns following a capital review from end-FY23.

Buy retained, target falls to $2.00 from $2.05.

Target price is $2.00 Current Price is $1.65 Difference: $0.35
If BPT meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $1.84, suggesting upside of 16.5% (ex-dividends)

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

Citi rates BSL as Buy (1) -

The 2H22 earnings results were better than expected, notes Citi, with earnings before interest and tax beating the broker's forecasts by 5% and 4% above consensus.

The domestic market continued to benefit from strong demand in construction, distribution and manufacturing with the 2H22 impacted by covid and floods. 

BlueScope Steel's 1H23 guidance was lower, in the $800-$900m range due to lower US pricing spreads and weaker Asian steel prices.

A further $500m buy-back was approved by management over the next 12 months and the balance sheet remains strong, despite higher working capital commitments.

Citi downgrades earnings forecasts by -14% and -17% for FY23 and FY24, respectively on lower hot-rolled coil steel estimates.

A Buy rating is retained and the price target is adjusted to $20.60 from $22.50.

Target price is $20.60 Current Price is $17.55 Difference: $3.05
If BSL meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $20.99, suggesting upside of 22.8% (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

Credit Suisse rates BSL as Neutral (3) -

FY22 results for BlueScope Steel revealed 2H earnings 11% above guidance and the consensus forecast, and a 10% beat versus Credit Suisse's estimate. The buyback was topped-up by $150m.

The midpoint of 1H guidance for FY23 was a -$70m miss versus the broker's forecast. By segment, guidance for Australian Steel Products missed by -$50m, NS BlueScope Coated -$140m with a $100m beat for Buildings Nth America.

The analyst estimates the two misses above are largely recurring while the beat is non recurring from FY24. The Neutral rating is unchanged, while the target rises to $18.50 from $17.70 on a change in valuation methodology.

Target price is $18.50 Current Price is $17.55 Difference: $0.95
If BSL meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $20.99, suggesting upside of 22.8% (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

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

While BlueScope Steel delivered a beat to Macquarie's expectations in FY22, supported by ongoing strength in residential demand, the company's FY23 guidance is softer than expected, implying a weak first half according to the broker.

The company is guiding to earning of $800-900m in the first half, and Macquarie has downgraded its earnings per share forecasts -32%, -19% and -17% through to FY25. The broker also noted BlueScope Steel lifted capital expenditure estimates again, accounting for acquisitions and further investment intent in the US.

The rating is downgraded to Neutral from Outperform and the target price decreases to $18.25 from $19.55.

Target price is $18.25 Current Price is $17.55 Difference: $0.7
If BSL meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $20.99, suggesting upside of 22.8% (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

Morgan Stanley rates BSL as Overweight (1) -

While BlueScope Steel's FY22 results were a 4% and 3% beat, respectively, compared to consensus and Morgan Stanley's forecasts, 1H guidance for FY23 was a -28% miss. The final dividend of 25cps was considered in line and the buyback was extended by $150m.

Australian Steel Products and Buildings & Coated Products US were the key beats for FY22, while North Star and New Zealand disappointed, explains the analyst.

The broker's EPS forecasts for FY23 and FY24 decline by -21% and -4% and the price target falls to $24 from $25. Overweight. Industry view: In-Line.

Target price is $24.00 Current Price is $17.55 Difference: $6.45
If BSL meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $20.99, suggesting upside of 22.8% (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 BSL as Buy (1) -

BlueScope Steel's FY22 underlying net profits of $2.70bn came in ahead of Ord Minnett's expected $2.53bn, with the company also reporting earnings of $3.8bn and a final dividend of 25 cents per share.

Looking ahead, the broker noted first half earnings guidance for FY23 of $800-900m disappointed, with Ord Minnett having forecast earnings of $988m. The broker has reduced its forecast to $876m in the first half, and has downgraded its full year forecast -14% after accounting for the latest update on forward curves for steel prices.

The Buy rating is retained and the target price decreases to $22.00 from $23.00.

Target price is $22.00 Current Price is $17.55 Difference: $4.45
If BSL meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $20.99, suggesting upside of 22.8% (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 BSL as Buy (1) -

BlueScope Steel's second half result beat both UBS and guidance. First half FY23 guidance is in line with the broker, highlighting that while conditions are moderating, they remain above normal.

Despite the risk of softening end-markets, UBS expects management to progress identified future projects with a focus on long-term returns rather than near-term cycles. M&A has positioned the company well in the US.

Locally, Colorbond continues to gain market share. Buy retained, target falls to $22.60 from $23.50 on lower US steel spreads.

Target price is $22.60 Current Price is $17.55 Difference: $5.05
If BSL meets the UBS target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $20.99, suggesting upside of 22.8% (ex-dividends)

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

Credit Suisse rates CAR as Outperform (1) -

Credit Suisse assesses Carsales FY22 earnings were in line with the broker's forecast and guidance, though the quality of the result was better than expected.

Management guided to “good” growth in adjusted revenue and adjusted earnings (EBITDA) on a pro-forma basis in FY23, which prompts the analyst to forecast 9.9% and 11.3% growth for each metric.

Minor changes are made to forecasts and the target increases to $25.25 from $24.00 on a roll forward of the analyst's valuation model. The Outperform rating is maintained.

Target price is $25.25 Current Price is $22.90 Difference: $2.35
If CAR meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $23.83, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

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

Having pre-released results, Macquarie notes no surprises in Carsales's full year result but highlights FY23 guidance surprised to the upside. 

The broker also noted company commentary that depth penetration will increase as time to sell declines is a reflection of the less cyclical nature of Carsales, and supports Macquarie's preference for Carsales over other online classifieds.

The broker highlighted Korean operations as the only soft spot in the update, where Carsales is undergoing its third year of investment in Dealer Direct, with the company expecting cost growth to exceed revenue in the coming year.

The rating is downgraded to Neutral from Outperform and the target price increases to $24.40 from $22.00.

Target price is $24.40 Current Price is $22.90 Difference: $1.5
If CAR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $23.83, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgans rates CAR as Hold (3) -

The FY22 result for Carsales tallied with recent management guidance and was "solid" according to Morgans. Volumes partially recovered in the 2H, and yield enhancement initiatives (such as dynamic pricing) drove revenues, explains the analyst.

The broker highlights 26% revenue growth in Private, driven primarily by strong volume growth and the dynamic pricing strategy. This performance helped increase private advertising yield by 19% on the previous corresponding period.

Revenue growth was also assisted by strong performances by Media, Encar and Trader Interactive. A final dividend of 24.5cps was declared. The target price rises to $23.70 from $22.15. Hold.

Target price is $23.70 Current Price is $22.90 Difference: $0.8
If CAR meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $23.83, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates CAR as Lighten (4) -

Given a pre-guided result from Carsales there were few surprises in the FY22 reported numbers for Ord Minnett but the headline outlook appears positive.

The FY23 outlook provided by management was stronger than Ord Minnett anticipated, but concern remains over traction in its Trader Interactive product given the company removed the crucial indicator for ‘leads’ from its release and the ‘visits’ metric was down sequentially -15% year-on-year.

On a positive share price response the stock is now trading at the top end of its historical PE multiple range. The broker thus retains Lighten. Target rises to $20.00 from $19.75.

Target price is $20.00 Current Price is $22.90 Difference: minus $2.9 (current price is over target).
If CAR meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.83, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

UBS rates CAR as Downgrade to Neutral from Buy (3) -

Carsales reported in line with guidance provided in late June. Trading commentary indicates positive momentum across the company's businesses but generally in line with the broker's forecasts.

In addition to updating for the FY22 result, UBS has updated forecasts to reflect the consolidation of Trader Interactive following the acquisition of the remaining 51% stake Carsales did not previously own, and the subsequent capital raising.

Dilution from the capital raising more than offsets accretion from the deal, UBS estimates, hence target falls to $24.60 from $25.00. On recent share price performance the broker downgrades to Neutral from Buy.

Target price is $24.60 Current Price is $22.90 Difference: $1.7
If CAR meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $23.83, suggesting upside of 7.3% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

UBS rates CGF as Neutral (3) -

Upon initial glance, it seems Challenger's FY22 result unveiled a weaker-than-expected FY23 outlook. Management has now announced a strategic review for the bank business.

Other financial metrics seem broadly in line with expectations, albeit the 11.5c in dividends beats consensus' 10.3c.

Net profit does reflect softer earnings in the business units, UBS points out, while lower corporate costs provided the offset. Losses in the bank operations delivered the stand-out negative surprise.

Buy. Target $8.30.

Target price is $8.30 Current Price is $7.12 Difference: $1.18
If CGF meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.19, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Ord Minnett rates CQE as Hold (3) -

Charter Hall Social Infrastructure REIT reported FY22 funds from operations up 8% year-on-year but -2.4% below Ord Minnett’s forecast, due largely to lower rental income.

FY23 dividend guidance was a touch soft versus the broker's forecast and consensus, implying no growth on FY22.

Ord Minnett likes Charter Hall Social’s defensive characteristics, but sees better relative value elsewhere in the sector. Hold retained,
target rises slightly to $3.80 from $3.70.

Target price is $3.80 Current Price is $3.76 Difference: $0.04
If CQE meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates CTM as Outperform (1) -

Centaurus Metals has announced the appointment of Dr Natalia Streltsova to its board as an Independent Non-Executive Director, in a move Macquarie has described as a strong positive as the company moves towards finalising a feasibility study for its Jaguar project.

The broker notes an updated mineral resource, expected in the third quarter of 2022, looks to be the next catalyst for the company, noting a 500,000 tonne measured and indicated resource is targeted.

The Outperform rating and target price of $1.30 are retained.

Target price is $1.30 Current Price is $1.07 Difference: $0.23
If CTM meets the Macquarie target it will return approximately 21% (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

Ord Minnett rates EVT as Buy (1) -

Ord Minnett has refreshed its earnings assumptions made for Event Hospitality & Entertainment following the interim result in February. At the time, the broker elected to adopt a very conservative approach to the outlook given the uncertainty created by the omicron wave.

Given the benefit of almost six months’ worth of data and industry feedback, Ord Minnett has updated its assumptions to reflect a range of positive developments, specifically hotel demand and box office strength.

Buy retained, target rises to $19.77 from $18.72.

Target price is $19.77 Current Price is $14.61 Difference: $5.16
If EVT meets the Ord Minnett target it will return approximately 35% (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 FMG as Underperform (5) -

Macquarie offers an FY22 earnings preview for Fortescue Metals with much of the expected earnings already discounted, following the 4Q22 trading update.

The FY22 results are due to be released on August 29.

Broker earnings forecast are a -42% decline for FY22 to US$6bn on the previous year as the increase in iron ore volumes was more than offset by the lower prices and higher costs.

Macquarie is focussing on the dividend payout, which is forecast at a 68% ration and assesses the market will be looking at the allocation between dividends versusinvestment plans for Fortescue Future Industries.

An Underweight rating and $16 price target are maintained.

Target price is $16.00 Current Price is $19.13 Difference: minus $3.13 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.83, suggesting downside of -13.3% (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: -0.4

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

Citi rates GMG as Buy (1) -

Upon first assessment, Goodman Group's FY22 EPS was smack bang in line with consensus, but FY23 guidance for 11% growth is well below market consensus (+15%) and Citi's forecast (+20%).

The analysts point out Goodman Group is typically very conservative at first, as has also been the case throughout the year past, which started with guidance for 10% growth and today the warehouse logistics facilitator delivered 24% growth.

Citi also highlights funds under management continues to be strong, but the share price is expected to respond negatively to the below-expectations guidance. Buy.

Target price is $22.00 Current Price is $20.65 Difference: $1.35
If GMG meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $22.24, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates GMG as Hold (3) -

Upon initial glance, Goodman Group's FY22 performance met forecasts, including the dividend. Ord Minnett does point out development earnings contributed 47% of group earnings.

Forward guidance is below current market consensus, with a flat dividend trajectory. Ord Minnett suggests Goodman Group has a history of starting the new year conservatively, but that dividend guidance implies a lower payout next year.

Target price is $21.00 Current Price is $20.65 Difference: $0.35
If GMG meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $22.24, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates GMG as Neutral (3) -

UBS has expressed positive first impressions of today's FY22 result for Goodman Group, and while FY23 guidance for 11% growth is also robust, it falls below the 15% expected by the market.

The broker still expects upgrades through FY23, and $430m profit from conditional contracts that settle are expected to largely de-risk earnings guidance.

Operating earnings of $1,528m for FY22 compared to the broker's $1,550m expectation, while the dividend of 30cps was pre-announced.

UBS has a $19.40 target and Neutral rating.

Target price is $19.40 Current Price is $20.65 Difference: minus $1.25 (current price is over target).
If GMG meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.24, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates GPT as Neutral (3) -

Citi views the 1H22 results for GPT Group as upbeat compared to market expectations but views the group's earnings outlook as subdued from relatively higher interest rates.

Office represents 38% exposure to the group and returns are forecast to be under pressure as lease incentives continue; logistics is 28% of the portfolio and momentum is expected to continue, while retail at 24% of the group could benefit from a rotation into GPT Group's more "attractive developments".

The broker's earnings forecasts are adjusted by 0.7% and -1.2% for FY22 and FY23 for a faster recovery in retail and office, offset by higher interest rates expectations.

The price target is lowered to $4.90 from $5.37 due to valuation changes and the Neutral rating is retained.

Target price is $4.90 Current Price is $4.53 Difference: $0.37
If GPT meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates GPT as Neutral (3) -

GPT Group's 1H funds from operations (FFO) of 17.04cps exceeded Credit Suisse's 15.7cps estimate due to growth in Investment and Funds Management earnings, partly offset by higher overheads and net finance costs. A 1H dividend of 12.7cps was declared.

The group is guiding to FY22 FFO of 32.4cps compared to a previous range of 31.7-32.4cps, with unchanged full year dividend guidance of 25cps. The outlook for debts costs was worse than the analyst forecast.

The target falls to $4.93 from $5.24. Neutral.

Target price is $4.93 Current Price is $4.53 Difference: $0.4
If GPT meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates GPT as Neutral (3) -

Macquarie points out that GPT Group reported 1H22 earnings, 8% above expectations. Management has upgraded 2022 guidance with funds from operations of 32.4c per share from 31.7c per share.

The broker noted the strength in retail sales, remaining above pre-covid levels, caution on office segment of the market and industrial growth should be maintained.

GPT Group addressed much of the market's concerns over debt costs, surmises the broker, providing an updated hedging strategy with an average fixed rate of 2.8% and 71% hedged over the next 2.5 years.

Macquarie adjusts earnings forecasts by 3.3% for FY22 and -0.3% for FY23, reflecting the higher hedging costs from higher interest rates.

Neutral rating retained. Target price falls to $4.68 from $4.69.

Target price is $4.68 Current Price is $4.53 Difference: $0.15
If GPT meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

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 GPT as Underweight (5) -

First half funds from operations (FFO) for GPT Group were a strong beat versus Morgan Stanley's forecast due to stronger-than-expected rental income. Management confirmed FY22 guidance for 32.4cps, slightly above the consensus estimate for 31.6cps.

The group expects a -$30m headwind from cost of debt in the 2H. Management ruled out a buyback, preferring its $200-250m/year Logistics pipeline.

The broker increases its target to $4.50 from $4.30 after the good 1H result. The Underweight rating is unchanged. Industry view is In-Line. 

Target price is $4.50 Current Price is $4.53 Difference: minus $0.03 (current price is over target).
If GPT meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.72, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates GPT as Lighten (4) -

GPT Group reported first half funds from operations well ahead of Ord Minnett’s forecast due to higher retail net operating income and fewer abatements and land tax rebates than a year ago.

2022 guidance is at the top end of the previous range, implying an in-line second half, as rising debt costs start to have an impact and will be a bigger headwind for earnings, the broker notes.

The office portfolio remains a challenge, with plenty of expiry in difficult leasing markets, and gearing is at the middle to end of the target range ahead of a likely devaluation cycle, suggesting asset sales are likely needed to fund developments.

Lighten retained, target rises to $4.75 from $4.60.

Target price is $4.75 Current Price is $4.53 Difference: $0.22
If GPT meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in December.

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 GUD as Neutral (3) -

G.U.D. Holdings reported FY22 earnings which came in -2% below Citi's expectations and -4% below consensus, with profits after tax hit with a -$38m impairment from Davey intangibles.

The analyst noted the robust result from the legacy auto business, particularly when compared to the previous period and points to 4% growth for FY23 forecasts from price rises.

Citi considers the outlook for APG as uncertain, as the rate of earnings improvement remains dependent on the recovery in new car sales and supplies. APG guidance, as provided by G.U.D. Holdings, may be conservative or lower than the market had anticipated.

The broker's earnings forecasts are adjusted for higher interest costs and a slower ramp in APG earnings by -7% and -12% for FY23 and FY24, respectively.

A Neutral rating is retained and the target price is lowered to $8.75 from $9.95.

Target price is $8.75 Current Price is $8.94 Difference: minus $0.19 (current price is over target).
If GUD 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 $11.52, suggesting upside of 29.7% (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

Credit Suisse rates GUD as Outperform (1) -

Due to recent guidance by G.U.D. Holdings, Credit Suisse makes only minor changes to forecasts in the wake of FY22 results. The Outperform rating is held on the expectation for strong future cash flows and a pay down of net debt.

The broker's investment thesis largely revolves around whether the APG acquisition will ultimately prove to be wise. It's felt the market is overly negative on the acquisition, and the stock should rerate materially over the next 12-24 months if the analyst is proven correct.

The target rises to $14.10 from $14.00 and the Outperform rating is maintained.

Target price is $14.10 Current Price is $8.94 Difference: $5.16
If GUD meets the Credit Suisse target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $11.52, suggesting upside of 29.7% (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

Macquarie rates GUD as Outperform (1) -

G.U.D. Holdings reported FY22 revenue and earnings results that were 2% and 3%, respectively above Macquarie's forecasts.

Divisionally, automotive (ex-APG) performed strongly, while APG suffered from supply constraints from limited new vehicle supplies, but 4Q22 is considered as the bottom with earnings expected to improve over FY23.

G.U.D. Holdings managed to offset inflationary pressures with higher prices. Working capital needs rose from supply chain problems and recent acquisitions, but the broker points to a solid balance sheet and 66% of the debt is fixed or hedged.

The company provided no guidance, but updates at the October AGM will be provided.

The Outperform rating is retained and the target price decreases to $13.24 from $14.10, with any positive news on new vehicle supplies seen as a positive catalyst for a re-rating of the stock.

Target price is $13.24 Current Price is $8.94 Difference: $4.3
If GUD meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $11.52, suggesting upside of 29.7% (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

Ord Minnett rates GUD as Buy (1) -

G.U.D. Holdings has reported full year net profit of $89m, a beat to Ord Minnett's expected $82.9m. The broker notes operating earnings of $149.5m represents 47.1% year-on-year growth, while a final dividend of 22 cents per share took the full year payout to 39 cents per share.

The broker highlighted a strong result from the automotive division, excluding the recently acquired AutoPacific Group, reporting organic revenue and earnings growth of 6.5% and 10.5% respectively. The AutoPacific Group result did drag on results, impacted by slowing delivery of new vehicles.

The Buy rating is retained and the target price decreases to $12.00 from $12.50.

Target price is $12.00 Current Price is $8.94 Difference: $3.06
If GUD meets the Ord Minnett target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $11.52, suggesting upside of 29.7% (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 GUD as Neutral (3) -

The resilience of the underling Auto business again showed through in GUD Holdings' FY22 result, UBS suggests. Second half organic Auto revenue grew more than 8% year on year, comfortably above effective price increases.

This indicates continued volume growth despite cycling strong double-digit growth comparables in the prior year. the broker notes, and pricing has helped offset escalating costs.

The key swing factor remains the APG acquisition, for which the path back to long-term trends has been pushed further out in time.

Target rises to $9.50 from $9.10, Neutral retained.

Target price is $9.50 Current Price is $8.94 Difference: $0.56
If GUD meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $11.52, suggesting upside of 29.7% (ex-dividends)

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

Credit Suisse rates GWA as Neutral (3) -

While the FY22 result for GWA Group was in line with the consensus forecast, Credit Suisse assesses a poor quality result, with $15.1m in costs taken-up as significant items. Additionally, operating cash flow conversion included a $44m increase in working capital.

The broker increases its FY23 profit forecast by 2%, though decreases its FY24 estimate by -6%, and the target falls to $2.30 from $2.70, while the Neutral rating is unchanged. It's felt an attractive dividend yield balances out the tepid growth outlook.

Target price is $2.30 Current Price is $2.18 Difference: $0.12
If GWA meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 2.5% (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

Macquarie rates GWA as Neutral (3) -

The FY22 reported earnings for GWA Group came in marginally below Macquarie's expectations.

The broker noted concerns over the increase in gearing to 1.7x from higher inventories and a fall in gross margins of 350bp in the 2H22 from cost increases.

On the positive side, GWA Group has continued with the roll out of the plumber relationships, improved the product range mix and pushed through price increases, with more forecast for FY23.

The broker's earnings forecasts are adjusted by -7% and -4% for FY23 and FY24, respectively and Macquarie sees little scope for a re-rating of the stock, barring a change in the macro environment and more guidance post the outlook for the existing inventories.

The target price is lowered to $2.10 from $2.15 on valuation and the Neutral rating is retained.

Target price is $2.10 Current Price is $2.18 Difference: minus $0.08 (current price is over target).
If GWA meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.20, suggesting upside of 2.5% (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

Morgans rates GWA as Hold (3) -

While the FY22 result for GWA Group was largely in line with Morgans expectations, the target falls to $2.21 from $2.40 due to increased cautiousness on the medium-term growth outlook for the housing market.

In addition, the broker's FY23-25 underlying profit estimates fall by between -2-6% mainly due to higher net interest expenses. These higher interest rates, along with falling house prices and declining building approvals, keep Morgans Hold-rated.

The FY22 15cps dividend was stronger than the broker's 14cps forecast and the consensus expectation for 13.9cps.

Target price is $2.21 Current Price is $2.18 Difference: $0.03
If GWA meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.20, suggesting upside of 2.5% (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

Morgans rates HCW as Add (1) -

HealthCo Healthcare & Wellness REIT delivered FY22 funds from operations (FFO) in line with guidance, and announced the sale of the Masters site in St Marys in Sydney, as well as an on-market buy-back.

The dividend for FY22 was 7.5cpu, and the same dividend is expected by the board in FY23. FY23 FFO guidance was below the analyst's expectation due partly to the impact from the asset sale and higher interest costs.

The target falls to $2.16 from $2.28, while the add rating is unchanged.

Target price is $2.16 Current Price is $1.71 Difference: $0.45
If HCW meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $1.96, suggesting upside of 9.9% (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

Macquarie rates IMD as Outperform (1) -

Imdex reported FY22 results in line with Macquarie's expectations.

The company grew both revenues and earnings, up 29% and 29%, respectively over the year, with a notable gain in EBITDA margins by 220bp to 30.7%.

Macquarie highlights the American operations were the star, revenues up 39% and now representing 47% of the group's total revenues.

Macquarie adjusts earnings forecasts by -2.7% for FY23 and -3.5% for FY24 and in the absence of any FY23 guidance from Imdex, the current outlook for activity levels remains in place for the upcoming financial year.

An Outperform rating is retained and the target price is $2.70.

Target price is $2.70 Current Price is $1.97 Difference: $0.73
If IMD meets the Macquarie target it will return approximately 37% (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

Citi rates JBH as Buy (1) -

JB Hi-Fi reported FY22 earnings in-line with pre-released results, notes Citi, with July trading revealing no slowdown in sales growth.

Citi is more upbeat than consensus on the outlook for Australian retail spending.

Citi uses New Zealand retail sales, which are growing at a 5.5% pa 3-year compound rate, despite a -7% fall in house prices, as an indication that Australian retail sales will remain firmer for longer.

The analyst views the -4% FY23 forecast sales growth as too conservative and the $200m in inventories can be adjusted according to changing demand patterns and thus not presenting a concern for earnings.

Citi FY23 earnings forecasts are 15% above consensus and the broker views the valuation as reasonable.

A Buy rating is maintained and the target price is raised to $50 from $47 on higher market and peer valuations.

Target price is $50.00 Current Price is $45.10 Difference: $4.9
If JBH meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $47.64, suggesting upside of 7.9% (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 JBH as Outperform (1) -

Following FY22 results for JB Hi-Fi, Credit Suisse retains its Outperform rating and notes the company continues to generate sales and earnings that exceed expectations. It's felt the market continues to price the stock for a looming downgrade to earnings.

As the result was pre-released, there were no surprises at an aggregate level for the broker. The final dividend was 153cps and the gross
margin improved year-on-year in the 2H for both JB Hi-Fi Australia and The Good Guys, in line with the analyst's forecast.

The target falls to $53.56 from $57.23.

Target price is $53.56 Current Price is $45.10 Difference: $8.46
If JBH meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $47.64, suggesting upside of 7.9% (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

Macquarie rates JBH as Underperform (5) -

"No surprises" for the FY22 results from JB Hi-Fi notes Macquarie, with the results having been pre-released.

Demand for Consumer Electronics and Home Appliances were strong over the 2H22, alongside online sales, which were up 53% on the previous year, and now represent 17.6% of total sales.

JB Hi-Fi provided a trading update of Australia sales up 9.2% in July with the analyst pointing to a the start of a lockdown in July, 2021. Management will also continue to invest in the NZ business, some $5-$10m over the next 3 years.

Macquarie upgrades earnings forecasts by 3.5% for FY23 and 3.9% for FY24 and notes wages and rent rises will put pressure on business costs with consumers thus far accepting price rises, particularly on Home Appliances.

An Underperform rating is retained and the target price is raised to $41.30 from $40.90.

Target price is $41.30 Current Price is $45.10 Difference: minus $3.8 (current price is over target).
If JBH meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $47.64, suggesting upside of 7.9% (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 JBH as Add (1) -

Morgans retains its $50 target for JB Hi-Fi following FY22 results that showed an acceleration in demand in the 2H, with 10% year-on-year sales growth.

Record sales for FY22 (pre-announced in July) continued into July, and the analyst considers a slowdown is unlikely in the 1H.  While higher wages could weigh on margins, increased selling prices (already raised for home appliances) are thought to offer protection.

The broker suggests JB Hi-Fi offers an attractive dividend yield and good exposure to any recovery in sentiment toward discretionary retailers and retains its Add rating.

Target price is $50.00 Current Price is $45.10 Difference: $4.9
If JBH meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $47.64, suggesting upside of 7.9% (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

Ord Minnett rates JBH as Hold (3) -

Having pre-released financials, JB Hi-Fi's full year net profit of $544.9m was in line with Ord Minnett's forecasts, and the broker notes this represents 7.7% growth on FY21 results and 118.0% on FY19 pre-covid results.

The broker highlighted continued like-for-like sales growth in July, with JB Hi-Fi Australia delivering a 9.7% three-year compound annual growth rate and The Good Guys an 11.4% growth rate.

Ord Minnett notes while JB Hi-Fi continues to benefit from elevated consumer spending, the market appears to be looking through to normalised earnings and inventory base. The Hold rating is retained and the target price increases to $47.00 from $42.00.

Target price is $47.00 Current Price is $45.10 Difference: $1.9
If JBH meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $47.64, suggesting upside of 7.9% (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 JBH as Neutral (3) -

JB Hi-Fi had pre-released numbers in July. The FY22 result featured a sales rebound from FY21 and margin expansion, particularly for The Good Guys, UBS notes. FY23 has begun well but an inventory rebuild to pre-pandemic levels has led to weaker cash flow.

UBS expects margins will fall in FY23-24 due to increased stock availability and softer demand, resulting in the company funding more promotions, while trading profits are not expected to continue at current levels.

UBS does make the point JB Hi-Fi has a good track record of managing inventory judiciously.

Neutral retained, target rises to $44 from $42.

Target price is $44.00 Current Price is $45.10 Difference: minus $1.1 (current price is over target).
If JBH meets the UBS target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $47.64, suggesting upside of 7.9% (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

Citi rates JHX as Buy (1) -

James Hardie Industries reported Q1 financials and Citi analysts, upon initial read, believe the company delivered a -5% in what was meant to be a relatively straightforward backward looking result, according to the commentary.

Disappointment rules thus. Softer margins stood out. FY23 guidance has been lowered with the analysts comenting this move was "largely expected".

Citi highlights market consensus had already more or less assumed as much regarding FY23. While there are positives to take away, suggest the analysts, they also highlight volume weakness has occurred earlier than anticipated (by two quarters or so).

Buy. Target $44.30.

Target price is $44.30 Current Price is $36.67 Difference: $7.63
If JHX meets the Citi target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $50.28, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in March.

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 JHX as Buy (1) -

On Ord Minnett's initial analysis, James Hardie Industries' Q1 performance fell short of expectations. With inflation a problem for every single division, the net profit missed the broker's forecast by -7%.

Management has downgraded FY23 guidance and the broker highlights this pulls guidance simply in line with its own forecast.

Target price is $52.00 Current Price is $36.67 Difference: $15.33
If JHX meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $50.28, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates JHX as Buy (1) -

James Hardie Industries' FY23 guidance downgrade, by -3%, pulls the company's forecast in line with UBS and consensus, the broker points out in an initial response to today's FY22 release.

An otherwise strong performance was dragged lower by higher costs, according to the analysts. UBS believes underlying the net profit fell short of forecasts, both at the broker and market consensus.

UBS retains confidence in management executing on the right strategy, believing James Hardie will be able to drive margin recovery throughout FY23.

Buy. Target $53.

Target price is $53.00 Current Price is $36.67 Difference: $16.33
If JHX meets the UBS target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $50.28, suggesting upside of 38.3% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates MIN as Buy (1) -

Following a trip to Western Australia, Citi has reinforced the lithium conviction of "higher for longer" and has re-assessed earnings forecasts based on Mineral Resources' aim to convert all their spodumene into hydroxide.

The analyst is upbeat into the FY22 results announcement, due on August 23, with the company expected to announce more information on Wodgina and the hydroxide tolling, which may result in an upgrade to consensus earnings forecasts.

Citi adjusts earnings forecasts to include Mt Marion and Wodgina in FY23 and FY24, lifting estimates by 11% and 22%, respectively.

A Buy rating is maintained and the target price is raised to $76 from $73 following the earnings forecasts changes.

Target price is $76.00 Current Price is $60.81 Difference: $15.19
If MIN meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $73.56, suggesting upside of 21.7% (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 NEA as Neutral (3) -

Macquarie highlights the non-binding indication of interest to acquire Nearmap by Thoma Brave for $2.10 per share.

The broker considers the offer price as a marginal discount to aerial imaging peers, based on an EV/sale multiple for FY23-FY24 and below Macquarie's discounted cashflow valuation of $3.10.

The analyst adjusts earnings forecasts for the guidance update by 5% and 1%, respectively.

Nearmap continues to generate negative cashflows, which Macquarie views as a negative for valuations, and in the absence of the takeover going ahead, the stock could be a value trap.

A Neutral rating is retained and the price target is raised to $2.00 from $1.40 on an 85% probability that the takeover goes ahead.

Target price is $2.00 Current Price is $1.89 Difference: $0.11
If NEA meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates NEA as Overweight (1) -

The bid by US private equity firm Thoma Bravo highlights the intrinsic value in Nearmap's business, according to Morgan Stanley. There's now expected to be a greater focus on fundamentals versus share prices across the Australian small cap SaaS sector.

While the bid represents a 39% premium to Nearmap's last traded price, the broker lists a number of reasons for the company's currently depressed multiple, which point to a lowball bid. 

The Overweight rating and $1.80 target are maintained. Industry view In-Line.

Target price is $1.80 Current Price is $1.89 Difference: minus $0.09 (current price is over target).
If NEA meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.90, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates RIO as Neutral (3) -

Turquoise Hill has decided to reject Rio Tinto's proposal to privatise the company as it does not reflect a fair value, and Rio has not sweetened the offer. Rio is disappointed by the decision, UBS notes, especially in light of weaker copper prices, and is considering its options.

The broker sees potential for Rio to distribute more cash to shareholders over the next 12 months if it walks away from this deal.

On the assumption of downside risk to iron ore prices, UBS retains Neutral and a $90 target.

Target price is $90.00 Current Price is $95.27 Difference: minus $5.27 (current price is over target).
If RIO meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $110.36, suggesting upside of 15.6% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

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

Morgan Stanley retains its Equal-weight rating on valuation, but acknowledges various positives may surprise, including Philips not competing for new patients for another 12 months.

In addition, ResMed's strategy to combat the global chip shortage through AirSense 10 card-to-cloud CPAP devices might lead to those users switching to AirSense 11 direct cloud connectivity upon the next reimbursement-allowed device cycle.

Target $31.70. Industry view In-Line.

Target price is $31.70 Current Price is $33.40 Difference: minus $1.7 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.66, suggesting upside of 8.7% (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: 0.5

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

UBS rates SCP as Neutral (3) -

UBS assesses an in-line FY22 result for Shopping Centres Australasia Property upon initial review, though FY23 guidance is soft relative to consensus. The Neutral rating and $2.72 rating are retained.

FY22 funds from operations (FFO) were $192.7m and the pre-announced dividend was 15.2cpu.

The broker expects FY23 earnings will be negatively impacted by debt costs and potentially softer operating metrics. FY23 FFO guidance was for at least 17cpu.

Target price is $2.72 Current Price is $2.95 Difference: minus $0.23 (current price is over target).
If SCP meets the UBS target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.89, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

UBS rates SEK as Neutral (3) -

UBS, in an initial response to today's FY22 release, observes A&NZ and Asia delivered better-than-expected top-line growth, but a weak performance from Latin America means Seek's EBITDA missed market consensus (though meeting UBS's forecast).

The job ads platform operator did deliver much stronger-than-anticipated FY23 guidance, notes the analyst, on the proviso that macro conditions continue the way they are/were.

Neutral. Target $32.

Target price is $32.00 Current Price is $24.37 Difference: $7.63
If SEK meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $31.87, suggesting upside of 37.9% (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

Citi rates SGM as Buy (1) -

Upon initial glance over Sims' FY22 release, Citi analysts believe EBIT is in line with guidance, while the 91c dividend comes as a positive surprise.

The outlook commentary remains cautious given many uncertainties, note the analysts.

Target $17. Buy.

Target price is $17.00 Current Price is $15.71 Difference: $1.29
If SGM meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $17.78, suggesting upside of 16.9% (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 SWM as Buy (1) -

Earlier today, Seven West Media released FY22 financials and UBS responded as follows: Result marginally ahead, buyback positive. Outlook mixed.

Deeper into the details, the media company's 39% TV revenue share target is higher than the 37% penciled in by UBS, while the broker's cost forecast sits at the lower end of management's guidance.

Buy. Target 95c.

Target price is $0.95 Current Price is $0.52 Difference: $0.43
If SWM meets the UBS target it will return approximately 83% (excluding dividends, fees and charges).

Current consensus price target is $0.71, suggesting upside of 42.0% (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

UBS rates TGR as Buy (1) -

The board of Tassal Group has agreed to the $5.23 takeover offer by Canadian giant Cooke.

In an initial review, UBS assesses a solid outcome, after the company released FY22 results today. Pending further analysis, the Buy rating and $4.10 target are placed under review.

Operating earnings (EBIT)/profit exceeded the broker's forecasts by 5% on strong domestic and export pricing in the 2H.

Target price is $4.10 Current Price is $4.89 Difference: minus $0.79 (current price is over target).
If TGR meets the UBS target it will return approximately minus 16% (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: 1.0

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

UBS rates TPW as Neutral (3) -

In a first read on today's FY22 results for Temple & Webster, UBS assesses an earnings (EBITDA) beat and a sales miss. Revenue of $426m compared to $429m expected by the broker, while earnings (EBITDA) of $19m were a 104% beat. No dividend was declared.

The broker feels the market may struggle with the opposing metrics of slower sales but higher margins. It's noted the company has previously focused on the revenue opportunity, so optimisation of margins is considered surprising.

The analyst likes the organic/inorganic optionality afforded by the very healthy cash balance. The Neutral rating and $4.25 target are retained.

Target price is $4.25 Current Price is $4.40 Difference: minus $0.15 (current price is over target).
If TPW meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.69, suggesting downside of -18.6% (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

Citi rates WBC as Buy (1) -

Citi broadly concludes Westpac's 3Q22 earnings are trading in-line with expectations following a lower-than-expected 3Q22 CET1 announcement of 10.75% versus the consensus expectations of 11.20% and Citi's forecast of 10.83%.

The weaker capital result is attributed to $15.8bn rise in the interest rate risks to the banking book which is forecast to reverse once the yield curve changes shape (rates fall).

The broker notes Bad and Doubtful Debts remain low and asset quality strong.

The broker's earnings forecasts are unchanged for FY22 and upgraded by 11% for FY23 with NIM expected to peak at 2.13% in the 2H23.

Citi retains a Buy rating and $29 price target.

Target price is $29.00 Current Price is $22.43 Difference: $6.57
If WBC meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $24.23, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Overweight (1) -

Morgan Stanley found the Q3 market update by Westpac rather weak: "materially below forecast" with higher interest rate risk in the
banking book (IRRBB) to blame.

The broker states there are no more buybacks in its forecasts.

Overweight rating and $22.30 target are maintained. Industry view: Attractive.

Target price is $22.30 Current Price is $22.43 Difference: minus $0.13 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.23, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in September.

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 WBC as Hold (3) -

Ord Minnett has noted a disappointing capital outcome reported in Westpac's third quarter update.

With the broker having forecasted a second half common equity tier-1 ration of 11.5%, it was noted even allowing for earnings improvement in the fourth quarter, capital is tracking below the run rate required to reach forecast.

The broker has attributed Westpac's weaker quarter to 3.9% quarter-on-quarter growth in risk-weighted assets, equating to a -37 basis point drag on capital, but noted this mirrored results reported by peers.

The Hold rating and target price of $22.00 are retained.

Target price is $22.00 Current Price is $22.43 Difference: minus $0.43 (current price is over target).
If WBC meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.23, suggesting upside of 8.3% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates WBC as Neutral (3) -

Westpac has released a June quarter Capital, Credit Quality and Funding update. Based on limited disclosure, UBS finds it is difficult to infer too much about the earnings trajectory of the bank during the quarter.

Credit quality suggests a provision release is possible in the second half and would be a positive earnings surprise to the market, UBS notes, albeit of lower quality.

Overall, Westpac retains a strong capital buffer, and asset quality during the reported period continued to strengthen, with stressed exposures falling on a percentage basis. UBS retains a Neutral rating and $26 target.

Target price is $26.00 Current Price is $22.43 Difference: $3.57
If WBC meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $24.23, suggesting upside of 8.3% (ex-dividends)

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