Australian Broker Call

Macquarie rates AGY as Outperform (1) -

Macquarie is encouraged by results from long-term pump testing at Argosy Minerals' Rincon lithium brine project, confirming brine can be extracted from the deep sand aquifer. The economics of doing so have also improved.

The Outperform rating is retained and the target slips to 75c from 80c as the broker is now assuming an equity raise in its forecasts.

A material upcoming catalyst will be securing Argentinian government approval to progress with Rincon, suggests the analyst.

Target price is $0.75 Current Price is $0.34 Difference: $0.41
If AGY meets the Macquarie target it will return approximately 121% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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 AIS as Outperform (1) -

Aeris Resources is planning to place its Jaguar operations into care & maintenance during August at a cost of around -$7.2m, with annual C&M costs expected to be -$4.5m.

Jaguar was not generating positive cash flow at current zinc prices, notes Macquarie, and geotechnical issues were weighing on production.

Largely due to C&M at Jaguar, management's FY24 guidance for 45kt of copper equivalent was a -28% miss versus Macquarie's forecast. Zinc, gold, and silver differences were also largely due to C&M.

The broker halves its target to 30c and retains its Outperform rating.

Target price is $0.30 Current Price is $0.23 Difference: $0.07
If AIS meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $0.49, suggesting upside of 114.5% (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 AIS as Downgrade to Hold from Buy (3) -

The fourth quarter report from Aeris Resources was weaker than Ord Minnett expected as Jaguar and Mount Colin underperformed.

FY24 guidance was also significantly below expectations as Jaguar was closed because of seismic issues that have limited access to higher grade stopes.

The company has entered into an onerous debt package associated with Jaguar's closure costs and higher-than-expected capital expenditure forecasts.

While still envisaging longer-term value appeal, Ord Minnett downgrades to Hold from Buy and reduces the target to $0.27 from $0.74.

Target price is $0.27 Current Price is $0.23 Difference: $0.04
If AIS meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $0.49, suggesting upside of 114.5% (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

Morgan Stanley rates ALL as Overweight (1) -

Morgan Stanley observes digital revenue growth trends remain stable, supporting its view of positive booking growth in the second half of FY23.

The broker retains a view that Aristocrat Leisure's content advantage will support its ambition to become a scale player in the US iGaming market amid continued strength in land-based gaming.

Digital is also a meaningful generator of profits for the company which has a portfolio that is more diverse than peers.

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

Target price is $43.00 Current Price is $40.24 Difference: $2.76
If ALL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $44.06, suggesting upside of 8.2% (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 ARB as Buy (1) -

New vehicle sales increased strongly in July, up 14.7%, the highest outcome for July on record. This comes as global automotive production improves and supply chains normalise.

Ord Minnett notes the challenges for the Australian aftermarket business have been exacerbated by labour shortages but the longer-term prospects remain favourable. Buy rating and $34 target maintained for ARB Corp.

Target price is $34.00 Current Price is $30.58 Difference: $3.42
If ARB meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $28.75, suggesting downside of -7.0% (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 BOE as Outperform (1) -

In a major de-risking step, according to Macquarie, to the restart of production at Honeymoon in the 4Q of 2023, Boss Energy announced the first set of NIMCIX loading and elution columns for the IX circuit has been delivered.

The broker makes no changes to forecasts and the Outperform rating and $3.50 target are unchanged.

Target price is $3.50 Current Price is $2.89 Difference: $0.61
If BOE meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $3.44, suggesting upside of 18.2% (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

Citi rates CCX as Neutral (3) -

After the market's close yesterday, City Chic Collective announced it had found a buyer for its Evans business, at a selling price some -72% lower than what it paid when acquiring this business in December 2020.

Citi analysts' response includes the admission the price received does not seem "unreasonable". The analysts are worried about brand damage though, given City Chic has been discounting feverishly.

Also, given City Chic recently extended bank covenants through to 1Q25, the need to sell EMEA exposure is seen as "slightly surprising" unless the outlook for the higher margin Australia business has weakened over recent months.

The UK market used to be a future growth driver, but now that exposure will be gone. Citi sees less negotiating power with suppliers. It also suggests, surmise the analysts, sales weren't ready to turn around anytime soon.

Neutral/High Risk. Target lifts to 49c from 45c on slightly higher forecasts.

Target price is $0.49 Current Price is $0.48 Difference: $0.01
If CCX meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $0.50, suggesting downside of -19.4% (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 CCX as Equal-weight (3) -

City Chic Collective is leaving the EMEA region which comprised 12% of FY22 group revenue, having divested its Evans business and the inventory to AK Retail Holdings for $12m. The company will also close its UK warehouse and the Navabi brand.

Morgan Stanley believes the divestment is strategically and financially sensible and should be a positive catalyst, although the long-term impact from aggressive discounting on the company's brands remains unknown.

On this point, there is a risk that gross margins have been permanently affected if discounts become entrenched.

The Equal-weight rating is unchanged. Target is $0.40. Industry view: In line. 

Target price is $0.40 Current Price is $0.48 Difference: minus $0.08 (current price is over target).
If CCX meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.50, suggesting downside of -19.4% (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

Ord Minnett rates CCX as Hold (3) -

City Chic Collective will divest its European operations including its entire EMEA inventory. Ord Minnett considers the short-term impact will be positive from an earnings perspective, given estimated losses in Europe were -$6m in FY23.

The company has retained the right to trade under the City Chic and Avenue brands in EMEA, although the broker considers this unlikely in the medium term.

Amid further challenges on the horizon, including finding a pathway to profitability in the US, Ord Minnett retains a Hold rating. Target is raised to $0.60 from $0.50.

Target price is $0.60 Current Price is $0.48 Difference: $0.12
If CCX meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $0.50, suggesting downside of -19.4% (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 CXO as Outperform (1) -

Progressing the BP33 underground operation at Finniss is a key focus for Core Lithium, explains Macquarie, with the mine
accounting for around 50% of production at the project.

Management has announced commencement of early site works at BP33, with $45-50m allocated to establish a covered box-cut, making it easier to manage surface water inflow.

The Outperform rating and 90c target are unchanged.

Target price is $0.90 Current Price is $0.67 Difference: $0.235
If CXO meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $0.72, suggesting upside of 12.0% (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

Ord Minnett rates DOW as Accumulate (2) -

Downer EDI has pre-released an unaudited FY23 net profit of $156m, around -8% below Ord Minnett's expectations. Nevertheless, the broker finds no longer-term implications from the miss.

The company is expected to make solid progress in both revenue and margin improvement going forward and Ord Minnett expects strong public sector demand will provide annual revenue growth of 5.7% to FY27.

The company is also making progress on its cost reductions, a key plank in its 4.5% EBITA margin target. Ord Minnett retains an Accumulate rating with a $5.60 target.

Target price is $5.60 Current Price is $4.26 Difference: $1.34
If DOW meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in December.

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 DOW as Neutral (3) -

Downer EDI has pre-announced its FY23 earnings ahead of the official results on August 10. A non-cash impairment is included of $550m with more than 85% related to the write-down of goodwill in the facilities and utilities segments. Underlying net profit at $174m is in line with UBS and guidance.

The broker assesses the early announcement partially de-risks the upcoming result and now anticipates the market will focus on company guidance and outlook commentary for FY24.

UBS currently expects FY24 underlying net profit of $215m and believes the results will be an opportunity for the company to show positive momentum towards its FY25 EBITDA margin restoration target of over 4.5%. Neutral rating and $4.65 target retained.

Target price is $4.65 Current Price is $4.26 Difference: $0.39
If DOW meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in December.

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 FLT as Downgrade to Neutral from Outperform (3) -

After Flight Centre Travel upgraded FY23 guidance on July 20, Macquarie decides to raise its earnings forecasts largely due to higher margin assumptions, which elevates its target by 8% to $23.

The broker's rating is downgraded to Neutral from Outperform on valuation after a 58% year-to-date share price rally.

The analyst highlights the company's total transaction value (TTV) for FY23 of $22bn represents 93% of the record FY19 level. It's thought market share gains are ongoing with Leisure demand remaining strong and the corporate business outperforming peers.

Target price is $23.00 Current Price is $22.58 Difference: $0.42
If FLT meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $24.83, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Ord Minnett rates HLO as Accumulate (2) -

Ord Minnett asserts the trading update from Helloworld Travel provides further evidence that households are spending a greater amount of disposable income on holidays.

Holiday expenditure has historically behaved as a non-discretionary item in Australia, and the pandemic appears to have solidified this trend once restrictions were lifted.

As a result, the the broker believes the stock is likely to enjoy positive earnings momentum in the short term.

The acquisition of Express Travel Group is expected to be completed shortly. Accumulate retained. Target is raised to $3.08 from $2.84.

Target price is $3.08 Current Price is $2.90 Difference: $0.18
If HLO meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.31, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Bell Potter rates IGL as Buy (1) -

Bell Potter assumes the lack of a trading update by IVE Group is good news and FY23 guidance will either be met or improved upon. It's felt the stock price presents a buying opportunity by trading down around -10-15% from when guidance was last updated.

The broker forecasts solid underlying EBITDA and profit growth in FY24 of 9% and 14%, respectively, largely driven by the Ovato acquisition.

Bell Potter retains a Buy rating and $3 target.

Target price is $3.00 Current Price is $2.29 Difference: $0.71
If IGL meets the Bell Potter target it will return approximately 31% (excluding dividends, fees and charges).

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

Bell Potter rates JHG as Hold (3) -

Bell Potter assesses a good 2Q for Janus Henderson with growth in funds under management (FUM), cost control and a beat for adjusted operating profit.

Institutional sales continue to be strong, according to the analyst, while the efforts to protect the US intermediary business are producing reduced outflows and stronger inflows.

The company has invested $25m for a 49% stake in a joint venture with a firm called Privacore, which has experience in distributing alternative investments. The broker believes this will be a potentially highly scalable platform, offering investors better returns.

Hold. The target rises to $45 from $42.64.

Target price is $45.00 Current Price is $41.99 Difference: $3.01
If JHG meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $41.36, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in December.

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: 0.0

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

UBS rates JHX as Buy (1) -

In reading through competitor LP's second quarter commentary, UBS notes capital expenditure guidance was reduced and interprets this as a positive signal for James Hardie Industries.

For James Hardie, the broker conservatively assumes a -15% decline in volumes in the first quarter and a -9% renovation segment volume decline in FY24.

Buy rating and $49.50 target.

Target price is $49.50 Current Price is $41.34 Difference: $8.16
If JHX meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $43.70, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Ord Minnett rates LLC as Buy (1) -

Ord Minnett assesses construction as a low-margin, risky business with the main positive for Lendlease Group being the expertise it provides for the development business rather than specifically for generating profit.

Management has recently confirmed it will cut staff in the construction division, which the broker acknowledges does not bode well for margins in the near term.

Yet development and funds management appear set for substantial earnings growth as the pipeline expands, around half which is residential property.

While believing it does not make sense for the stock to trade near its NTA of 8.09 as of December 2022, Ord Minnett suspects the market is sceptical, refraining from crediting a recovery to the company until earnings and cash flow growth are actually delivered.

Buy rating and $14.45 target maintained.

Target price is $14.45 Current Price is $8.40 Difference: $6.05
If LLC meets the Ord Minnett target it will return approximately 72% (excluding dividends, fees and charges).

Current consensus price target is $10.41, suggesting upside of 24.1% (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 LNK as Neutral (3) -

Citi observes Link Administration's pre-release of FY23 items signals revenue and operating EBIT will be above prior forecasts, with several small acquisitions helping

Reflecting the update, the broker lifts FY23 estimates for EPS by 6% although considers a lot of uncertainty pervades the stock and as a result retains a Neutral rating. FY23 revenue is now guided higher at around $1.23bn while operating EBIT is guided at $178.1m.

Target is reduced to $1.50 from $1.60.

Target price is $1.50 Current Price is $1.46 Difference: $0.045
If LNK meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.87, suggesting upside of 30.1% (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 LNK as No Rating (-1) -

A trading update revealed FY23 operating earnings (EBIT) for Link Administration of $178.1m were 3.5% above the top-end of the guidance range of $169-$172m. 

Macquarie raises its earnings forecasts for FY23/24 though lowers them from FY25 onwards to reflect the divestments of the BCM arm and Link Funding Solutions.

Macquarie is on research restriction and doesn't provide a rating or target.

Current Price is $1.46. Target price not assessed.

Current consensus price target is $1.87, suggesting upside of 30.1% (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

Bell Potter rates LTR as Speculative Buy (1) -

To accrue early revenues, Liontown Resources will proceed with its direct shipping ore (DSO) strategy, with Bell Potter estimating cash of around $100m at current prices (not incorporated into forecasts).

The broker anticipates offtake agreement will be signed in coming months.

The Kathleen Valley underground mining contract will be awarded this quarter, notes the analyst, providing key inputs for the project's financial model.

The Speculative Buy rating and $3.35 target are retained.

Target price is $3.35 Current Price is $2.74 Difference: $0.61
If LTR meets the Bell Potter target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $2.91, suggesting upside of 6.2% (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 LTR as Outperform (1) -

Liontown Resources aims to sell 250-300kt of direct shipping ore (DSO) ahead of first spodumene production, which remains on track for mid-2024.

Discussions are well advanced with potential customers, observes Macquarie, which incorporates 200kt of DSO shipments into its forecasts and raises its target to $3.10 from $3.00. Outperform.

Target price is $3.10 Current Price is $2.74 Difference: $0.36
If LTR meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $2.91, suggesting upside of 6.2% (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

Bell Potter rates MCE as Speculative Buy (1) -

Demand for subsea infrastructure remains robust, according to Bell Potter's industry feedback, and tendering activity is buoyant as developers secure longer-term engineering, procurement and construction (EPC) capacity.

Matrix Composites & Engineering's near-term earnings are leveraged to increases in global offshore energy development activity, which is currently at least at a five-year high, according to the broker's estimate.

The Speculative Buy rating and 35c target are retained.

Target price is $0.35 Current Price is $0.27 Difference: $0.085
If MCE meets the Bell Potter target it will return approximately 32% (excluding dividends, fees and charges).

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 PLL as Outperform (1) -

Piedmont Lithium has announced first shipment of 20.5kt of spodumene concentrate from its 25%-owned North American Lithium operation on the spot market at around US$3,700/t, delivering strong cash flow, notes Macquarie.

The next two shipments in August and September will be sold to Piedmont Lithium under the offtake agreement, where the cost is capped at US$900/t, explains the broker.

The Outperform rating is unchanged and the target rises to $1.90 from $1.80.

Target price is $1.90 Current Price is $0.80 Difference: $1.105
If PLL meets the Macquarie target it will return approximately 139% (excluding dividends, fees and charges).

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 PLS as Outperform (1) -

Taking into account delays over the past 18 months across the industry for lithium projects, Macquarie would regard an on-time delivery of P680 a key catalyst for Pilbara Minerals.

The mineral resources and ore reserves update are scheduled for the September quarter.

Management has an option to deliver additional shareholder returns via share buybacks, and the analyst's on-market buyback scenario
indicates a potential shareholder return of up to $1.5bn over 12 months.

The Outperform rating and $7.30 target are unchanged.

Target price is $7.30 Current Price is $4.94 Difference: $2.36
If PLS meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $5.36, suggesting upside of 7.6% (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

Bell Potter rates PME as Hold (3) -

As long as long as radiologists are required for radiology, stellar returns for Pro Medicus are likely to continue, in Bell Potter's view.

The company has one of the highest returns on equity (ROE) on the ASX at over 60%, explains the analyst, and recent contract wins in May and August are worth a combined $44m over eight years.

While AI tools have the potential to disrupt the company's business, it would only replace radiologists in low acuity work such as breast density assessment and screening exams, notes the broker.

The target rises to $67 from $59, driven by an extension to the broker's discounted cash flow model. The Hold rating is unchanged.

Target price is $67.00 Current Price is $69.90 Difference: minus $2.9 (current price is over target).
If PME meets the Bell Potter target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $54.84, suggesting downside of -21.7% (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

Morgans rates PNI as Add (1) -

In line with Morgans expectation, Pinnacle Investment Management reported FY23 profit of $76.5m, or $53.5m ex-principal investments/performance fees.

For the 2H, funds under management (FUM) closed up 10.5% to $91.9bn and net inflows of $3.1bn were an improvement on the 1H.

The broker makes minor changes to EPS forecasts and lifts its target to $10.70 from $10.50.

While investors may have an opportunity to buy at lower levels due to general market volatility, Morgans believes management can deliver on an earnings step-up in FY25/26. The Add rating is retained 

Target price is $10.70 Current Price is $10.05 Difference: $0.65
If PNI meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $10.21, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Ord Minnett rates PNI as Hold (3) -

Pinnacle Investment Management's FY23 net profit was slightly ahead of Ord Minnett's forecasts amid "solid" growth in funds under management and improving net flows.

Affiliate profitability did pressure the result but the broker observes the outlook is improving and FY23 is expected to be the peak year for Horizon 2 investment costs.

While the result was "decent", the broker finds the valuation difficult with a FY24 estimated PE of 23.9x. Given that, a Hold rating is maintained while the target is raised to $9.70 from $9.20.

Target price is $9.70 Current Price is $10.05 Difference: minus $0.35 (current price is over target).
If PNI meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.21, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

UBS rates PNI as Neutral (3) -

Pinnacle Investment Management provided a second-half profit outcome that missed UBS estimates. The share of affiliate profit was also weaker.

The broker found the message similar to the first half result, in that long-term fee margins will improve and Metrics' transaction fees will soon be evident in fee margins.

UBS increases estimates for FY24 in terms of flows and the performance fee outlook as well as the parent fee revenue in the outer years. Still, a more cautious view is taken for fee margins in FY24. Neutral maintained. Target is steady at $9.20.

Target price is $9.20 Current Price is $10.05 Difference: minus $0.85 (current price is over target).
If PNI 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 $10.21, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgans - Cessation of coverage

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 RMD as Buy (1) -

ResMed released Q4 financials after the US market's close this morning Australian time and Citi analysts, upon first assessment, observe the EPS has missed market consensus by -5%.

The 'miss'' can be blamed on a lower than forecast gross margin, higher expenses and wider JV losses. The gross margin has been impacted by devices growing quicker than masks, the broker explains.

Management commentary, the broker highlights, is indicative of slower margin recovery than what consensus had assumed. All of this is taken as a negative and overshadowing the fact top line growth remains strong for the company.

Buy. Target $40.50.

Target price is $40.50 Current Price is $33.85 Difference: $6.65
If RMD meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $38.00, suggesting upside of 23.9% (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

Macquarie rates RXM as Outperform (1) -

While incorporating Rex Minerals' $8m placement into Macquarie's forecasts drives a -7% EPS decrease in FY24 due to increased dilution, the broker retains its 32c target and Outperform rating.

The company is issuing 40m of new shares at 20cps and funds will be deployed to progress operational readiness activities at the company's Hillside copper project, the second largest undeveloped copper reserve in Australia.

Target price is $0.32 Current Price is $0.22 Difference: $0.1
If RXM meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

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

UBS rates SHL as Sell (5) -

UBS observes Sonic Healthcare shares have fallen in recent weeks and are now closer to the price target, which increases to $34 from $31, but retains a Sell rating on the possibility of downside to FY24 EBIT margin estimates.

The broker now includes acquisitions MLD, Diagnosticum and Synlab Suisse in its modelling, which adds a combined $360m in sales on a full-year constant currency basis.

The main way the company is different from its pre-pandemic set centres on the funds now available on the balance sheet and acquisitions that would make sense to UBS would have "some geographic adjacency" to the existing business.

Target price is $34.00 Current Price is $34.46 Difference: minus $0.46 (current price is over target).
If SHL meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.45, suggesting upside of 6.9% (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

Citi rates SUN as Buy (1) -

The ACCC has knocked back the proposed "merger" between ANZ Bank ((ANZ)) and the banking operations of Suncorp Group. The announcement was made this morning.

Citi, in an initial response, states this is an unfortunate outcome for the bancinsurer. Both parties are of the intention to appeal the ACCC decision.

The broker is of the view the Competition Tribunal might well overrule the ACCC and give the green light for the proposed deal. Today's decision does imply at least a delay of 6-9 months, explains Citi.

Target price $14.90. Buy. The broker remains confident margin expansion lays ahead.

Target price is $14.90 Current Price is $14.04 Difference: $0.86
If SUN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.92, suggesting upside of 6.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates SYA as Outperform (1) -

Sayona Mining has announced first shipment of 20.5kt of spodumene concentrate from its 75%-owned North American Lithium operation on the spot market at around US$3,700/t, notes Macquarie.

The next two shipments in August and September will be sold to 25%-owner Piedmont Lithium under an onerous offtake agreement, where the cost is capped at US$900/t, explains the broker.

Macquarie downgrades its near-term forecasts for Sayona Mining to reflect higher volumes sold under the offtake agreement and reduces its target by -17% to 20c. The broker's lower target also incorporates higher shipping costs.

Target price is $0.20 Current Price is $0.15 Difference: $0.05
If SYA meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

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 SYR as Outperform (1) -

Syrah Resources has signed binding offtake agreements with Graphex Technologies and Westwater Resources, both of which are
developing active anode material facilities in the US, observes Macquarie.

Management is aiming for around 100ktpa of ex-China fines sales from 2026.

Separately, the analyst points out the offtake and supply of fines to the company's Vidalia expansion could push volumes at the Balama Graphite operations in Mozambique closer to capacity, with upside for the mine's economics.

The Outperform rating and $1.30 target are retained. 

Target price is $1.30 Current Price is $0.72 Difference: $0.585
If SYR meets the Macquarie target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $1.15, suggesting upside of 66.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Shaw and Partners rates SYR as Buy (1) -

Syrah Resources has announced two multi-year offtake agreements with battery anode material producers in the US. Shaw and Partners assesses this is the first step towards meaningfully diversifying Balama sales away from China.

The agreements are with Graphex Technologies and Westwater Resources to supply natural flake to their facilities in Michigan and Alabama, respectively. No pricing was disclosed.

Buy rating and $1.30 target maintained. The broker assesses the graphite shortages that are forecast as well as a lack of new supply means prices must move up in the medium term to spark new production.

Target price is $1.30 Current Price is $0.72 Difference: $0.585
If SYR meets the Shaw and Partners target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $1.15, suggesting upside of 66.7% (ex-dividends)

The company's fiscal year ends in December.

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: 0.7

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

Ord Minnett rates VUK as Accumulate (2) -

The Virgin Money UK third quarter result was in line with expectations and Ord Minnett believes this justifies the share price rallying almost 25% since early July.

Nevertheless, with credit growth weak, competition is expected to erode some of the margin upside that was enjoyed from higher rates.

Further cost savings are expected in FY24, with cuts to the branch network considered low hanging fruit. Significantly, the loan book is performing and the broker takes comfort in the strong capital position of the bank.

Ord Minnett retains an Accumulate rating with a $4.00 target.

Target price is $4.00 Current Price is $3.47 Difference: $0.53
If VUK meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $3.60, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

This company reports in GBP. 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