Australian Broker Call

Morgans rates AFG as Add (1) -

Morgans sees upside risk of more than 85cps to reach the current $3.40 target price, as surplus cash of around $67m can potentially be used to acquire distribution. The Add rating and $3.40 target are retained, with no material forecast changes.

After a failed attempt to acquire Connective, the broker expects further attempts to attain distribution. It's thought $67m can potentially buy a greater than 35% increase in profit, which in turn can potentially add more than $1.10 to the valuation on an ex-cash basis.

Target price is $3.40 Current Price is $2.79 Difference: $0.61
If AFG meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.39, suggesting upside of 21.6% (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

Credit Suisse rates APA as Neutral (3) -

APA Group has made an indicative offer for AusNet Services ((AST)), comprising $1.82 cash and 0.0 878 APA shares. This follows the offer from Brookfield.

Credit Suisse observes the acquisition is unlikely to add to growth for APA Group while the synergies are limited by regulation. If the company is successful, it anticipates raising equity to the sum of $1.5bn.

The broker considers it unlikely the bid will be successful and believes, furthermore, this provides a negative signal for value creation. Neutral maintained. Target is reduced to $8.80 from $9.90.

Target price is $8.80 Current Price is $8.46 Difference: $0.34
If APA meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.06, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

APA Group has made a proposal for Ausnet Services in cash and shares. Morgan Stanley estimates the company needs $50-100m in operating synergies to maintain free cash flow per share at $0.88 based on the implications of the proposal.

Synergies are assessed to be around 12% of the AusNet cost base without any head office rationalisation and tax consolidation. The broker considers the proposal consistent with APA Group's strategy.

The Equal-weight rating and $10.11 price target are retained. Industry view is Cautious.

Target price is $10.11 Current Price is $8.46 Difference: $1.65
If APA meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $10.06, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

UBS rates APA as Buy (1) -

Buy rating and $10.50 price target remain intact following APA Group joining the bidding contest for AusNet Services ((AST)), effectively offering a lower Foreign Investment Review Board (FIRB) approval risk in comparison with competing suitor Brookfield, comments UBS.

But Brookfield has a few extra-benefits it can offer such as allowing AusNet shareholders State Grid and Singapore Power to roll their equity of 19.99% and 32.75% respectively into a yet to create unlisted entity.

APA's proposal might attract ACCC concerns about market concentration, offers the broker.

Target price is $10.50 Current Price is $8.46 Difference: $2.04
If APA meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $10.06, suggesting upside of 17.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates API as Neutral (3) -

Credit Suisse adjusts forecasts to reflect the challenging environment caused by the pandemic. The broker notes guidance for FY21 underlying earnings only assumed the Sydney restrictions would be in place until the end of July.

Hence, FY21 EBIT estimates are lowered by -6% and FY22 EBIT by -9%. Credit Suisse now forecasts EBIT of $60m for FY21 and $70m for FY22.

Amid heightened competition in retail pharmacy, the broker retains a Neutral rating. Credit Suisse also considers a strong likelihood the offer from Wesfarmers ((WES)) will proceed. Target is raised to $1.55 from $1.38.

Target price is $1.55 Current Price is $1.47 Difference: $0.08
If API meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.44, suggesting downside of -3.1% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates ARB as Initiation of coverage with Overweight (1) -

Morgan Stanley initiates coverage on ARB Corp with an Overweight rating and $56 target. The broker notes the company is a global leader in the aftermarket parts and accessories for four-wheel-drive vehicles.

There are many advantages, the broker observes, in that the business has achieved vertical integration very well and also provides a superior product compared with the large number of highly fragmented sub-scale operators.

The stock is up 50% over the year to date yet the broker considers there are still aspects that are under-appreciated such as the store payback of 1-3 years and the US store roll-out over FY22. Industry view is In-Line.

Target price is $56.00 Current Price is $47.34 Difference: $8.66
If ARB meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $48.74, suggesting upside of 2.2% (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

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

Further to the Brookfield proposal, Ausnet Services has received a proposal from APA Group which is, Morgans Stanley calculates, at around $2.60 a share compared with the $2.50 a share from Brookfield.

The broker highlights that AusNet's largest shareholders, Singapore Power and State Grid International, have not commented and both own other infrastructure assets in Australia. The broker retains an Equal-weight rating and $2.41 target. Industry view: Cautious.

Target price is $2.41 Current Price is $2.59 Difference: minus $0.18 (current price is over target).
If AST meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.03, suggesting downside of -19.3% (ex-dividends)

The company's fiscal year ends in March.

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 AST as Neutral (3) -

UBS anticipates a very high bar for FIRB approval of the non-binding indicative cash offer of $2.50 (pre-interim div) for AusNet Services from Brookfield Asset Management.

Should the offer and the current takeover proposal for Spark Infrastructure Group ((SKI)) be approved, 100% of Victoria’s electricity distribution and transmission infrastructure would be foreign owned. The Neutral rating and $1.80 target price are unchanged.

Target price is $1.80 Current Price is $2.59 Difference: minus $0.79 (current price is over target).
If AST meets the UBS target it will return approximately minus 31% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.03, suggesting downside of -19.3% (ex-dividends)

The company's fiscal year ends in March.

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 BHP as Outperform (1) -

BHP Group, in its ESG briefing, has maintained its emissions targets. These include a -30% reduction in operating emissions by FY30 and plans to achieve net will zero by 2050.

BHP Group has also increased its focus on cultural heritage amid changes in legislation, as well as biodiversity. Macquarie points out shareholders are increasingly factoring in ESG as part of investment criteria and, hence, the company is heeding the call.

Earnings momentum remains strong amid buoyant commodity prices and Macquarie maintains an Outperform rating and $56 target.

Target price is $56.00 Current Price is $37.75 Difference: $18.25
If BHP meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges).

Current consensus price target is $47.30, suggesting upside of 22.1% (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: 0.3

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

Macquarie rates BSL as Neutral (3) -

Macquarie assesses market conditions are changing, as US steel prices moved sideways over recent weeks.

Multiples have contracted meaningfully, the broker observes, and this is a risk to the direction of BlueScope Steel, notwithstanding the positive momentum still being derived from spot steel prices.

Neutral maintained. Target is reduced to $23.10 from $28.10.

Target price is $23.10 Current Price is $21.54 Difference: $1.56
If BSL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $28.28, suggesting upside of 30.1% (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 CIA as Upgrade to Buy from Neutral (1) -

While Citi lowers its price target for Champion Iron to $6.40 from $7.25, the broker raises the rating to Buy from Neutral after recent share price underperformance. It's thought iron ore may hold at greater than US$100 per tonne levels for longer than the market expects.

The analyst believes China's lead indicators are stabilising and have turned up off recent lows. The fact steel prices have stayed high is considered to point to consumption being driven more by state imposed production cuts than weakness in underlying demand.

Target price is $6.40 Current Price is $4.67 Difference: $1.73
If CIA meets the Citi target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

UBS rates CLV as Buy (1) -

UBS lowers its target price to $1.85 from $2 after a soft result without any major surprises. While first half customer orders look promising, operating conditions remain impacted by covid disruptions to the diagou channel and via travel restrictions.

The analyst assumes a gradual recovery, with revenues returning to pre-covid levels by FY23, with potential for a near-term re-rate as international borders reopen.

China’s regulation for increased DHA requirements for infant formula is expected to drive an initial revenue benefit for the company, and the broker notes its FY23 revenue forecasts may prove conservative.

Target price is $1.85 Current Price is $1.44 Difference: $0.41
If CLV meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

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

Citi rates ELD as Buy (1) -

The potential of this year’s winter crop and higher crop input prices continue to drive upside for Elders Rural Products sales growth in FY21, according to Citi. It's also thought early signs of growth heading into FY22 are promising.

Livestock prices have continued to set records and the analyst expects prices to remain around current levels for the remainder of 2021, with a gradual easing over 2022/23. The target price rises to $13.75 from $13.40 and the Buy rating is unchanged.

Target price is $13.75 Current Price is $12.29 Difference: $1.46
If ELD meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.15, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates KMD as Neutral (3) -

Underlying (EBITDA) of $113.3m for FY21 missed guidance issued in late June just before the onset of lockdowns. Macquarie notes the offshore launch of Kathmandu was announced with expansion into Europe and Canada due in FY22.

The broker does not include the expansion in estimates, yet successful execution will deliver upside to forecasts. Macquarie expects a recovery later in FY22, assuming no lockdowns and a moderation of the headwinds to supply chain.

Neutral maintained. Target rises to $1.50 from $1.35.

Target price is $1.50 Current Price is $1.41 Difference: $0.09
If KMD meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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 KMD as Overweight (1) -

At first glance, Morgan Stanley assesses the FY21 result and the commencement of FY22 were below expectations, largely because of the lockdowns.

The broker expects sales will rebound as Australasia reopens and consumers spend more time outdoors. In the interim, the balance sheet is considered well-positioned and the stock screens attractively. In FY21 sales were up 15% and underlying EBITDA up 36%.

Overweight. Industry view In-Line. Price target is $1.80.

Target price is $1.80 Current Price is $1.41 Difference: $0.39
If KMD meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

UBS rates KMD as Buy (1) -

As expected by UBS, FY21 results revealed pressure on Kathmandu sales due to store closures, while Oboz sales were ahead of expectations. The Buy rating and NZ$1.70 target price are unchanged. 

The FY21 adjusted earnings (EBITDA) margin improved by 190bps to 12.3% (UBS forecast 12.6%). The miss reflected higher selling expenses partly offset by lower administration costs and higher wage subsidies, explains the analyst.

The broker maintains a positive view with potential for a doubling of earnings from FY20 to FY23.

Current Price is $1.41. Target price not assessed.

Current consensus price target is $1.65, suggesting upside of 13.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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

Citi rates MP1 as Initiation of coverage with Buy (1) -

Citi initiates coverage on Megaport with a Buy rating and $20 target price. With a with a forecast 3 year revenue compound annual growth rate (CAGR) of over 40% and operating leverage expected to deliver software-like margins, further upside is expected.

Importantly, the broker sees the stock as a play on various trends including digitisation, multi-cloud adoption and more distributed infrastructure and computing.

The analyst cautions the new product, Megaport Virtual Edge, could take longer to gain traction given a more complex sale and dependency on SD-WAN partners.

Target price is $20.00 Current Price is $17.72 Difference: $2.28
If MP1 meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $18.29, suggesting upside of 4.3% (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 NHC as Buy (1) -

Cash generation was the highlight of a FY21 result which was largely in-line with Citi's expectations. The broker marginally increases its FY22 forecasts due to better volume expectations from Bengalla. The Buy rating and $2.20 target price are maintained.

The analyst points out European gas and Asian gas prices have moved to highs and are adding further pressure to coal markets caught short of production capacity.

Target price is $2.20 Current Price is $2.15 Difference: $0.05
If NHC meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in July.

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 NHC as Outperform (1) -

FY21 results were largely in line with expectations. Credit Suisse notes free cash flow is improving and Acland stage 2 is likely to go into care and maintenance while the future of stage 3 is unknown.

The broker has lifted its coal price forecasts, which increases FY22 earnings estimates by 29%. Outperform retained. Target rises to $2.70 from $2.40.

Target price is $2.70 Current Price is $2.15 Difference: $0.55
If NHC meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in July.

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 NHC as Outperform (1) -

FY21 results were broadly in line with Macquarie's estimates. The second half was supported by the rally in coal prices.

Macquarie remains cautious about thermal coal over the longer term but current prices remain a key catalyst for New Hope.

Acknowledging the problems with New Acland, the broker is still impressed with Bengalla operations. Outperform retained. Target is steady at $2.40.

Target price is $2.40 Current Price is $2.15 Difference: $0.25
If NHC meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in July.

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

Morgans rates NHC as Add (1) -

Stronger-than-expected thermal coal pricing drives upgrades to Morgans FY22-23 earnings (EBITDA) forecasts, after New Hope Corp reported FY21 results. Operating cashflow was a miss as abnormals linked to Acland’s ramp-down were underestimated.

Assuming no M&A or major investment in the near-term, the broker sees upside for both capital and shareholder returns. The target price rises to $2.61 from $2.08 and the Add rating is maintained.

Target price is $2.61 Current Price is $2.15 Difference: $0.46
If NHC meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $2.48, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in July.

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 PMV as Neutral (3) -

Credit Suisse assesses the second half is likely to have been strong although the continuation of the restrictions across parts of NSW and Victoria present some downside risk to guidance provided in June. The broker uses FY23 to reflect more normal earnings estimates.

The broker suspects spring inventory is likely to provide the greater risk for retailers as some apparel stores will effectively miss an entire season of in-store trading. Neutral maintained. Target is reduced to $26.28 from $26.70.

Target price is $26.28 Current Price is $28.07 Difference: minus $1.79 (current price is over target).
If PMV meets the Credit Suisse target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.61, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates S32 as Outperform (1) -

Alcoa will re-start its share of capacity at the Alumar aluminium smelter in Brazil by the end of 2022. South32 owns 40% of the project and Macquarie expects the company to formally commit to the re-start over the next few months.

The broker incorporates the re-start in forecasts, which increases prospective aluminium production for South32 by around 20%. Outperform retained. Target is raised to $4.30 from $4.10.

Target price is $4.30 Current Price is $3.29 Difference: $1.01
If S32 meets the Macquarie target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $3.71, suggesting upside of 11.0% (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: 1.0

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

Morgan Stanley rates S32 as Overweight (1) -

Alcoa will re-start its aluminium capacity at the Alumar smelter in Brazil. Full capacity of the smelter is 447,000t and it is owned 40% by South32. Full capacity is expected by the end of 2022.

Morgan Stanley estimates an EBITDA uplift of US$87m from the company's share in its base case FY23 forecasts.

Target is $3.45. Overweight rating retained. Industry view: Attractive.

Target price is $3.45 Current Price is $3.29 Difference: $0.16
If S32 meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.71, suggesting upside of 11.0% (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: 1.0

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

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

Citi downgrades its rating to Neutral from Buy as a result of lower-than-expected margins and guidance. The company downgraded FY23 earnings (EBITDA) guidance to $95-100m from $100m. The target price falls to $0.60 from $0.70.

The company reported first half underlying profit around -10% below consensus due to a lower-than-expected gross margin on a normalisation of the sales mix, explains the broker.

While it's too early to see an impact, the analyst feels the potential acquisition of Australian Pharmaceutical Industries ((API)) by Wesfarmers ((WES)) is unlikely to be positive.

Target price is $0.60 Current Price is $0.62 Difference: minus $0.02 (current price is over target).
If SIG meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.65, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in January.

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

Credit Suisse rates SIG as Outperform (1) -

In its first half results, Sigma Healthcare has downgraded guidance because of the lingering nature of the pandemic, now expecting EBITDA growth in FY22 of 5% instead of 10%.

The company now expects FY23 EBITDA of $95-100m. As a result, Credit Suisse lowers estimates by around -5% across the forecast period.

The broker believes the bid by Wesfarmers ((WES)) for Australian Pharmaceutical ((API)) signals Sigma Healthcare is undervalued. Outperform rating maintained. Target is reduced to $0.70 from $0.73.

Target price is $0.70 Current Price is $0.62 Difference: $0.08
If SIG meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $0.65, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in January.

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

Macquarie rates SIG as Neutral (3) -

First half revenue was in line with Macquarie's estimates. FY22 guidance has been downgraded to underlying EBITDA growth of 5% from the prior guidance of 10% because of the extended lockdowns.

Macquarie considers the valuation appealing but remains cautious because of the risks over the short term and the uncertainty around the competitive landscape. Neutral retained. Target is reduced to $0.65 from $0.70.

Target price is $0.65 Current Price is $0.62 Difference: $0.03
If SIG meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $0.65, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in January.

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 TAH as Hold (3) -

Ord Minnett reviews Sportsbet's contribution to Tabcorp Holdings. The broker concludes it contributes more than 15% of the revenue in the Media division but much more than that to profit margins.

The analyst sees the Media business as the main attraction for takeover bids due to its strong margins and facilitation of turnover. Ord Minnett maintains its Hold rating and $4.75 target price.

Target price is $4.75 Current Price is $4.84 Difference: minus $0.09 (current price is over target).
If TAH 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 $5.49, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates TCL as Upgrade to Outperform from Neutral (1) -

Transurban in consortium is acquiring the remainder of WestConnex from the NSW government for $11.1bn. This will take its stake to 50% from 25.5% at a cost of $5.6bn.

Credit Suisse believes the deal is attractive as it will provide Transurban with control of all Sydney's toll roads and places the company in a good position to deliver value. Rating is upgraded to Outperform from Neutral and the target raised to $15.10 from $14.00.

Target price is $15.10 Current Price is $14.18 Difference: $0.92
If TCL meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $14.98, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates TCL as No Rating (-1) -

Transurban along with joint-venture partners will acquire the remaining 49% stake in WestConnex for $11.1bn from the NSW government. The company has also confirmed diminished traffic during the lockdowns while still guiding to a first half distribution of $0.15.

Transurban company has emphasised the acquisition of the stake in WestConnex will mean a further $600m in capital is released in coming years that will be used to offset dilution caused by the acquisition.

Macquarie is currently restricted on providing a rating and target at present.

Current Price is $14.18. Target price not assessed.

Current consensus price target is $14.98, suggesting upside of 5.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates WBC as Neutral (3) -

Westpac has hosted an ESG briefing in which the bank has elevated climate change as a key priority. Management has reiterated a commitment to exiting all thermal coal exposure in the lending portfolio by 2030.

In oil & gas, Westpac will lend only to new customers that have Paris-aligned goals. Macquarie notes the bank is also seeking to maintain women in leadership positions at 50%. Westpac will report its FY21 results on November 1.

The Neutral rating and target price of $26.50 are retained.

Target price is $26.50 Current Price is $25.19 Difference: $1.31
If WBC meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $28.37, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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 believes the update on ESG has highlighted the efforts the bank is undertaking to improve its risk governance. Westpac believes risk management will be strengthened by changes to the board committees and a simplification of its structure as well as a new operating model.

The bank is seeking to maintain a 50% representation for women in leadership across the group. Westpac also remains committed to the UN sustainable development goals.

The $29.20 target price and Overweight rating are unchanged. Industry view: In-line.

Target price is $29.20 Current Price is $25.19 Difference: $4.01
If WBC meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $28.37, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates WBC as Hold (3) -

Westpac has focused on governance and risk in its ESG briefing, Ord Minnett notes, given numerous compliance failings in recent years. The broker maintains a Hold rating and $27 target, pending more certainty regarding the cost savings plan.

Westpac has also maintained its climate change principles, with the broker noting only $2.8bn in exposure to coal and oil & gas. In contrast, exposure to climate change solutions has increased to $10.1bn and 75% of electricity generation in the portfolio is now renewable.

Target price is $27.00 Current Price is $25.19 Difference: $1.81
If WBC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $28.37, suggesting upside of 13.9% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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