Australian Broker Call

Morgan Stanley rates 360 as Overweight (1) -

Life360's 4Q results are due on March 1, and Morgan Stanley forecasts FY23 guidance will be met for revenue, earnings and operating cash flow (OCF).

The broker feels the result will exceed consensus expectations and serve as a catalyst for shares to re-rate up towards the analyst's target of $11.50. Overweight rating. Industry View: In-Line.

Target price is $11.50 Current Price is $7.69 Difference: $3.81
If 360 meets the Morgan Stanley target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $10.45, suggesting upside of 32.4% (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: 1.0

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

Macquarie rates AGL as Neutral (3) -

AGL Energy's first half profit exceeded Macquarie's expectations by 23%, highlighting the leverage to a favourable pricing environment in wholesale electricity, driven by a retail pricing increase. Gas, despite a "horrible" winter, delivered a record gross margin.

Dividend policy at a 50% payout is conservative, the broker suggests, but understandable given capex spending.

While FY24 guidance of $680-780m has been lifted by $100m at the low end, the focus is on FY25 and FY26, where it is too early to provide guidance.

Macquarie sees peak earnings in 2024, as weighted-average FY25 should continue to decline in the coming six months. Target rises to $9.60 from $9.30, Neutral retained.

Target price is $9.60 Current Price is $8.80 Difference: $0.8
If AGL meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $10.79, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

While AGL Energy's 1H result beat Morgan Stanley's forecasts, the broker reduces its EPS forecasts after marking-to-market for forward electricity and certificate prices as inferred from 2H FY24 run-rates.

The analysts also note increased customer margins in the 1H are partly offset by increasing retail discounting and churn over the forecast period.

The broker's bear-case scenario (partly applied to the overall valuation) is cut by -19% to reflect AGL's strong leverage to commodity prices, which are in backwardation.

The 1H dividend of 26cps compared to the consensus expectation for 23cps.

The Equal-weight rating is unchanged and the target falls to $9.99 from $11.68. Industry View: Cautious.

Target price is $9.99 Current Price is $8.80 Difference: $1.19
If AGL meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $10.79, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates AGL as Accumulate (2) -

AGL Energy's December-half result appears to have met or outpaced Ord Minnett's forecast after net profit after tax more than quadrupled thanks to the company's greater generation-fleet availability and flexibility, says the broker. Management raised FY24 NPAY guidance by $100m.

Strong electricity margins buoyed customer markets margins, as did lower solar feed-in tariffs.

But Ord Minnett spies weaker wholesale electricity prices ahead and downgrades its medium-term NPAT forecast by -20%. The broker expects a recovery in electricity prices thereafter.

While this results in a -6% downgrade in the target price to $12, the broker still considers the company to be materially undervalued. Ord Minnett is forecasting a 53c full-year dividend.

Accumulate rating retained.

Target price is $12.00 Current Price is $8.80 Difference: $3.2
If AGL meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $10.79, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates AMC as Neutral (3) -

At first glance, a greater than expected volume dip, down -10% year-on-year, in the second quarter drove a slight miss on both quarterly earnings and revenue from Amcor.

Citi points out earnings per share were more in line, helped by interest expense and tax, leaving the company to reiterate full year earnings per share and free cash flow guidance.

Company commentary points to a volume acceleration in January. 

The Neutral rating and target price of $14.00 are retained.

Target price is $14.00 Current Price is $14.38 Difference: minus $0.38 (current price is over target).
If AMC 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 $15.41, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Citi rates ANZ as Neutral (3) -

Ahead of the banking sector's reporting season next week, Citi has reviewed its sector coverage. The broker remains wary on bank stocks following a strong share price run into reporting season, anticipating likely downside to core earnings.

For ANZ Bank, the broker anticipates a -20 basis point decline in the CET 1 ratio, following the bank's second half dividend payment.

The Neutral rating and target price of $26.00 are retained.

Target price is $26.00 Current Price is $27.65 Difference: minus $1.65 (current price is over target).
If ANZ meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.50, suggesting downside of -4.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgans rates AQZ as Add (1) -

The 1H result for Alliance Aviation Services slightly beat consensus estimates, while prior guidance for a stronger 2H remains on track, which Morgans suggests augers well for FY25.

Unfortunately, these positives were marred by vague outlook commentary by management, in the broker's view, and uncertainty over future capital needs.

While the analysts' earnings forecasts are largely unchanged, the target falls to $4.75 from $5.20 on materially higher net debt estimates. Add.

Target price is $4.75 Current Price is $3.18 Difference: $1.57
If AQZ meets the Morgans target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates AQZ as Buy (1) -

Alliance Aviation Services' December-half result outpaced Ord Minnett's forecasts by 3% due to the ongoing ramp-up of the Embraer fleet deployment.

The company is also benefiting from greater fleet utilisation as seasonal FIFO/Contract work kicks in and growth from the company's Aviation Services Segment.

A big capex bill is pending for the purchase of 28 more Embraer #190s over the next 2.5 years, but the broker says the company has plenty of funding options and no dividends are forecast until FY26.

Buy rating retained. Target price falls to $4.35 from $4.50, the broker expecting a -2% to -4% fall in profit before tax.

Target price is $4.35 Current Price is $3.18 Difference: $1.17
If AQZ meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates BEN as Sell (5) -

Ahead of the banking sector's reporting season next week, Citi has reviewed its sector coverage. The broker remains wary on bank stocks following a strong share price run into reporting season, anticipating likely downside to core earnings.

Citi expects Bendigo & Adelaide Bank can deliver both core and cash earnings in-line with consensus expectations, with higher other operating income and better average interest-earning assets offsetting a slight miss in net interest margin.

The Sell rating and target price of $8.85 are retained.

Target price is $8.85 Current Price is $9.82 Difference: minus $0.97 (current price is over target).
If BEN meets the Citi target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.03, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Citi rates BLD as Sell (5) -

Upon first glance, it appears Boral's interim revenue met consensus expectations, but at the operational level (EBIT) the outcome lays well, well below forecasts, point out Citi analysts.

Digging deeper into the numbers, Citi notes Quarry pricing seems to have been the prime positive contributor, suspecting the highest margin inside the group has been at Quarry operations.

All in all, the broker is prepared to call it a "solid" performance, but also notes the share price has performed strongly in the lead-in, and valuation is now at a circa 50% premium to long term averages.

Sell. Target $4.60.

Target price is $4.60 Current Price is $5.41 Difference: minus $0.81 (current price is over target).
If BLD meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.90, suggesting downside of -16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

UBS rates BLD as Neutral (3) -

In an initial assessment of Boral's 1H results, UBS notes a strong beat, while new FY24 earnings (EBIT) guidance exceeds the consensus forecast by 7%.  No interm dividend was paid, when the broker was expecting 5cps.

Earnings for the 1H of $201m compare to forecasts by the broker and consensus for $167m and $161m, respectively. The 1H earnings margin of 10.9% beat the broker's 8.8% forecast.

The analysts attribute the strong 1H performance to a combination of pricing and strong cost control. UBS is surprised how rapidly management contained costs.

Management upgraded FY24 earnings guidance to $330-350m from $300-330m. Neutral rating. Target 5.50.

Target price is $5.50 Current Price is $5.41 Difference: $0.09
If BLD meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $4.90, suggesting downside of -16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

Citi rates BOQ as Sell (5) -

Ahead of the banking sector's reporting season next week, Citi has reviewed its sector coverage. The broker remains wary on bank stocks following a strong share price run into reporting season, anticipating likely downside to core earnings.

For Bank of Queensland, the broker has updated its model, noting the bank is particulalry exposed given its greater exposure to term deposits. Citi lowers its cash earnings assumptions -8-12% on lower net interest margins.

The Sell rating is retained and the target price decreases to $5.05 from $5.20.

Target price is $5.05 Current Price is $5.99 Difference: minus $0.94 (current price is over target).
If BOQ meets the Citi target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.59, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.6

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

Morgan Stanley rates BOQ as Underweight (5) -

Morgan Stanley adjusts its forecasts for Bank of Queensland as management re-shapes its growth targets and business priorities in response to changes in the operating environment and industry outlook.

The broker feels the aim will be to invest more in business banking and growing non-interest income, and reduce reliance on mortgages.

The company remains committed to its digital transformation, according to the analysts. However, overall efforts to improve returns is expected to result in a lower medium-term volume growth profile.

The target rises to $5.70 from $5.30 largely because the broker changes its bull and bear case probabilities.

The rating for Bank of Queensland is Underweight. Industry View: In-Line.

Target price is $5.70 Current Price is $5.99 Difference: minus $0.29 (current price is over target).
If BOQ 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 $5.59, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.6

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

Citi rates CBA as Sell (5) -

Ahead of the banking sector's reporting season next week, Citi has reviewed its sector coverage. The broker remains wary on bank stocks following a strong share price run into reporting season, anticipating likely downside to core earnings.

For CommBank, the broker remains 2% ahead of consensus expectations on earnings, and anticpates a 210 cents per share dividend.

The broker notes the bank did deliver dividend upside in the second half of FY23, it expects the board would be wary of lifting the dividend now.

The Sell rating and target price of $84.00 are retained.

Target price is $84.00 Current Price is $115.87 Difference: minus $31.87 (current price is over target).
If CBA meets the Citi target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $91.86, suggesting downside of -20.9% (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: 0.0

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

Citi rates CLW as Neutral (3) -

Despite a slight beat to consensus with its first half earnings per share result, Charter Hall Long WALE REIT has retained its below-consensus full year earnings per share guidance of 26 cents.

Citi sees potential for more downside ahead for the REIT, following large book value write downs in the half. As per the broker, Charter Hall Long WALE REIT wrote down book values by -4.5% in the period, resulting in a -7% decline to infrastructure portfolios and a -9% decline to office.

The broker expects cap rates will remain relatively "sharp" against a higher bond yield environment, and drive further downside to book values.

The Neutral rating is retained and the target price decreases to $3.90 from $4.00. For the shares to re-rate, Citi says the remaining $500m worth of asset sales remains key.

The broker's current forecasts assume the disposals will be executed by mid-2024, resulting in -2% dilution for future earnings.

Target price is $3.90 Current Price is $3.87 Difference: $0.03
If CLW meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates CLW as Neutral (3) -

Charter Hall Long WALE REIT's first half operating earnings were broadly in line with Macquarie's expectations, and FY24 guidance is reaffirmed.

The key positive, the broker suggests, was -$145m of divestments completed and another -$500m is being considered, which would reduce look-through gearing to around 37%.

But the outlook for earnings growth remains challenging with the roll-off in hedging resulting in interest expense continuing to rise in the medium term. Macquarie highlights an otherwise resilient portfolio.

Neutral retained, target rises to $3.62 from $3.54.

Target price is $3.62 Current Price is $3.87 Difference: minus $0.25 (current price is over target).
If CLW 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 $3.80, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

Charter Hall Long WALE REIT's 1H earnings were in line with Morgan Stanley's forecast and FY24 EPS guidance was maintained. The capitalisation rate of the portfolio expanded by 31bps to 5.08%.

While gearing remains high, the broker notes $500m of assets are in due diligence for divestment, which would take gearing down to around 39% from 43.2%.

As 52% of leases are CPI-linked, point out the analysts, the average rent review resulted in a 4.3% lift to 1H rents.

Equal-weight. Target $3.70. Industry view: In-Line. 

Target price is $3.70 Current Price is $3.87 Difference: minus $0.17 (current price is over target).
If CLW meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.80, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates CLW as Hold (3) -

Charter Hall Long WALE REIT's December-half result broadly met Ord Minnett's forecasts and management retained guidance.

The broker appreciates the company's progression with divestments ($145m out of a slated $650m) in a tough "transactional" environment, which suggest look-through gearing will fall to 37% when the program is finalised.

Hold rating retained, the broker expecting the company's loan to value ratio is likely to remain elevated despite asset sales. 

Target price edges up to $3.68 from $3.62.

Target price is $3.68 Current Price is $3.87 Difference: minus $0.19 (current price is over target).
If CLW meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.80, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgan Stanley rates COH as Underweight (5) -

While Cochlear is not due to report 1H results until February 19, management has upgraded FY24 earnings guidance in advance by around 8%, to a level around 3% ahead of the consensus estimate.

Stronger Cochlear implant (CI) conditions across developing and emerging markets were responsible for the upgrade, explains the broker, with management increasing CI unit growth expectations.

The Underweight rating remains due to a full valuation, but the broker's target rises to $258 from $240. Industry view: In-line.

Target price is $258.00 Current Price is $304.74 Difference: minus $46.74 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $242.40, suggesting downside of -24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.7

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

Ord Minnett rates COH as Sell (5) -

Cochlear's December-half sales outpaced Ord Minnett's forecasts by 14% and the company retained market-share gains, suggesting continued strength in the June half, surmises the broker. Costs rose 20%.

Management raised FY24 guidance 8% at the midpoint accordingly.

But the broker considers Cochlear shares to be overvalued and observes management has advised backlogs are stabilising and expects revenue growth to slow near term. The broker forecasts a five-year compound annual growth rate of 11%.

Sell rating retained. Target price rises to $220.00 from $210.00.

Target price is $220.00 Current Price is $304.74 Difference: minus $84.74 (current price is over target).
If COH meets the Ord Minnett target it will return approximately minus 28% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $242.40, suggesting downside of -24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.7

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

UBS rates COH as Sell (5) -

UBS feels compelled to explain the downgrade to Sell, communicated earlier this week, had nothing to do with how Cochlear is performing operationally in the here and now.

It is, and remains, about an "unusual risk" (the broker's terminology) that might create an unusual situation for the company.

With Moderna's potential threat coming through children, the broker acknowledges Cochlear could grow faster through its key target group, adults, but it would also come with higher costs.

The latter implies lower long term margins, and this would still be a negative. The counter-argument is that investors could quickly forgive the company for the dip in mid-term earnings profile.

UBS also stresses its call is not centred around the valuation of the shares. Not without a potential Moderna trigger anyway. Sell. Target $240.

Target price is $240.00 Current Price is $304.74 Difference: minus $64.74 (current price is over target).
If COH meets the UBS target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $242.40, suggesting downside of -24.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.7

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

UBS rates CSL as Buy (1) -

CSL reports interim financials next week and UBS believes investors' eyes will be focused on the gross margin for Behring. Market consensus wants to see 50.3%, reports the broker. UBS's forecast is for 49.8%.

While questions remain about Vifor, UBS argues the Behring story is much more important. As might be the release of the phase III AEGIS II trial data for pipeline plasma-derived compound, CSL112.

UBS can see the excitement in case of a positive outcome, but refrains from joining the pre-announcement positivos. Let's wait and see first, the broker suggests, also referring to Novartis' Entresto where blockbuster sales took four years to materialise.

Minor amendments to the modeling have pushed up the price target by $10 to $350 and EPS estimates slightly lower. Buy.

Target price is $350.00 Current Price is $303.15 Difference: $46.85
If CSL meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $331.37, suggesting upside of 8.8% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates CTT as Buy (1) -

Ahead of Bell Potter's expectations, Cettire has reported first half sales revenue of $354m and adjusted earnings of $26m. 

The result represents 89% sales revenue growth year-on-year, and accounting for the outperformance the broker is now assuming year-on-year revenue growth of 66% in the third quarter and 62% over the second half.

The company has followed up with a strong start to the second half, with gross revenue in January up 80%.

It is Bell Potter's opinion that Cettire's ability to outperform its peer group far outweighs others. The Buy rating is retained and the target price increases to $4.80 from $4.00.

Target price is $4.80 Current Price is $4.19 Difference: $0.61
If CTT meets the Bell Potter target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates DXI as Add (1) -

Following a review of Dexus Industria REIT's 1H result, Morgans notes resilient portfolio metrics, and highlights higher occupancy levels compared to June 30 last year.

The impact from higher finance costs in the period were offset by lower debt levels due to asset sales, explains the analyst. It's felt the current pro forma look-through gearing of 26.2% ensures sufficient capacity to complete the $42m development pipeline.

Management reiterated FY24 guidance for funds from operations (FFO) and dividend of 17.1cpu and 16.4cpu, respectively.

The Add rating and $3.18 target are unchanged.

Target price is $3.18 Current Price is $2.89 Difference: $0.29
If DXI meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates JDO as Sell (5) -

Ahead of the banking sector's reporting season next week, Citi has reviewed its sector coverage. The broker remains wary on bank stocks following a strong share price run into reporting season, anticipating likely downside to core earnings.

Judo Capital has already pre-released some results, disclosing profits before tax of $67m, reflecting a 24% half-on-half increase. Citi expects the main focus of the full result to be detail underpinning FY25 growth guidance.

The Sell rating and target price of 87 cents are retained.

Target price is $0.87 Current Price is $1.20 Difference: minus $0.325 (current price is over target).
If JDO meets the Citi target it will return approximately minus 27% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.17, suggesting downside of -0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates LYC as Outperform (1) -

Lynas Rare Earths recently commented that it held discussions with MP Materials in the US regarding a potential transaction. In a merger scenario, Macquarie believes Lynas would deserve a premium underpinned by its fundamental value, market position and processing capability.

Both Lynas and MP are dominant players in the ex-China rare earths industry with collectively 20% ex- China market share, the broker notes.

Otherwise, achieving first production at Kalgoorlie and production ramp-up at its Malaysian facilities are key catalysts in the near term. Target falls to $7.00 from $7.30 on lower rare earth prices, Outperform retained.

Target price is $7.00 Current Price is $5.98 Difference: $1.02
If LYC meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $7.63, suggesting upside of 29.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Citi rates MGR as Neutral (3) -

It is Citi's belief that a 6% rally in Mirvac Group's share price is reflective of investor excitement around the company's first half beat to consensus. The broker has retained its Neutral rating on the stock.

The broker explains its stance, noting while Mirvac Group's repositioning away from office and into industrial and living sectors is likely to see it emerge as a high quality company in the future, the path to get there is likely to pressure earnings growth.

Citi also flagged weaker residential sales for the company in the first half, with full year settlements now anticipated towards the lower end of previous targets.

The Neutral rating is retained and the target price increases to $2.30 from $2.20.

Target price is $2.30 Current Price is $2.24 Difference: $0.06
If MGR meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 12.8% (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

Macquarie rates MGR as Outperform (1) -

Mirvac Group's first half earnings came in ahead of consensus but below Macquarie. FY24 guidance was reiterated. The broker believes key concerns going into the result have been alleviated to a degree.

These are achieving residential settlement guidance for the low end of 2,500-3,000, and delivering commercial development earnings from 55 Pitt Street in the second half.

While the resi environment remains sluggish, Mirvac is well placed to capitalise on a market recovery, the broker suggests, supported by its growing resi development pipeline and expected RBA rate cuts from August.

Target rises to $2.38 from $2.20, Outperform retained.

Target price is $2.38 Current Price is $2.24 Difference: $0.14
If MGR meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 12.8% (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

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

Morgan Stanley believes a positive sharemarket response to Mirvac Group's 1H results was due to a beat against expectations, and greater surety FY24 guidance will be attained.

Profit for the 1H of $252m far exceeded the broker's $207m estimate (consensus $235m), due largely to greater-than-expected 1H settlements, thanks to a big final two weeks of December.

Equal-weight. Target $2.30. Industry view: In-Line.

Target price is $2.30 Current Price is $2.24 Difference: $0.06
If MGR meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 12.8% (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 MGR as Accumulate (2) -

Mirvac Group's December-half result appears to have met Ord Minnett's forecasts and management reaffirmed FY24 guidance.

Higher interest costs were the main drag on operating profit after tax and while the broker expects this will continue to drag as hedges expire, Ord Minnett believes the worst is over.

Ord Minnett appreciates the company's debt, construction cost and lead-time position relative to peers, which is aided by the balance sheet and integrated development offering (although the broker suggests it's worth keeping an eye on balance sheet movements given recent incremental increases in the face of asset sales).

With national apartment construction approvals at a decade low, the broker posits limited new supply should favour Mirvac's existing pipeline and pre-sales

Buy rating retained, the broker observing the shares screen as sharply undervalued.

Target price is $3.10 Current Price is $2.24 Difference: $0.86
If MGR meets the Ord Minnett target it will return approximately 38% (excluding dividends, fees and charges).

Current consensus price target is $2.53, suggesting upside of 12.8% (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

Morgan Stanley rates MQG as Overweight (1) -

Morgan Stanley already forecasts a -50% commodities income drop in the 2H for Macquarie Group. At the company's open briefing on February 13, it's fully expected management will comment commodities income will be significantly/substantially down in Q3.

The broker's US gas price dispersion index fell by -41% in the December quarter, and is tracking down -70% for the March quarter, compared to a record high in the previous corresponding period.

The $202 target and Overweight rating are maintained. Industry view: In-Line.

Target price is $202.00 Current Price is $191.32 Difference: $10.68
If MQG meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $181.16, suggesting downside of -5.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

Citi rates NAB as Sell (5) -

Ahead of the banking sector's reporting season next week, Citi has reviewed its sector coverage. The broker remains wary on bank stocks following a strong share price run into reporting season, anticipating likely downside to core earnings.

For National Australia Bank, the broker expects stronger earnings, assuming a better bad and doubtful debt result than consensus.

The Sell rating and target price of $25.75 are retained.

Target price is $25.75 Current Price is $32.46 Difference: minus $6.71 (current price is over target).
If NAB meets the Citi target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.44, suggesting downside of -12.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Macquarie rates NWS as Upgrade to Outperform from Neutral (1) -

News Corp's Dec Q earnings were a 22% beat to Macquarie forecasts and are labelled as strong across all businesses. Advertising exposure and consumer-facing subscriptions were more resilient than expected, and cost discipline helped operating leverage.

The digital information businesses continue to perform, the broker notes, with Dow Jones "firing on all cylinders". News Corp indicated it is in advanced discussions with AI providers around receiving monetisation for its content, which suggests upside risk.

Rolling forward reduced balance sheet risk and earnings changes leads to a target increase to $41.85 from $37.00, and an upgrade to Outperform form Neutral.

Target price is $41.85 Current Price is $41.85 Difference: $0
If NWS meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $38.68, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.5

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

Morgan Stanley rates NWS as Overweight (1) -

News Corp's 1H earnings (EBITDA) beat the consensus forecast by 6.2% with Books and Digital Real Estate notable beats of 13% and 5%, respectively, according to Morgan Stanley. Overall the result supports the broker's Overweight recommendation.

The analysts highlight an impressive ongoing turnaround for Books, the strong cyclical recovery underway at REA Group and ongoing solid growth for the Dow Jones unit.

The target rises to US$29.50 from US$27.50 target price. Industry view: Attractive. 

Current Price is $41.85. Target price not assessed.

Current consensus price target is $38.68, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.5

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

Ord Minnett rates NWS as Lighten (4) -

News Corp's December-half result appears to have outpaced Ord Minnett's forecasts, thanks to the seemingly unstoppable rise in Dow Jones' earnings in the December quarter. It was a similar story with book publishing.

Ord Minnett observes Dow Jones is on track to become the group's largest profit generator this financial year. Its high-margin professional information business continues to positively surprise.

News media and subscription video services continued to underwhelm.

REA Group represents about 65% of News' market value and excluding this, the company is looking 6x overvalued, opines the broker, especially given the recent tech rally is behind much of the recent strong rise in the share price.

Lighten rating retained. Target price rises 5% to $34.

Target price is $34.00 Current Price is $41.85 Difference: minus $7.85 (current price is over target).
If NWS meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.68, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in June.

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: 0.5

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

Bell Potter rates REA as Hold (3) -

A strong first half update from REA Group, says Bell Potter, with improved buy yield underpinning an earnings per share lift of 22% year-on-year to 189 cents, and a dividend lift of 16% to 87 cents per share.

The company reported a 19% increase to buy yield, comprised of a 13% price increase passed through in the first quarter, as well as a listings increase. 

REA Group has flagged a strong start to January, with listings up 12% year-on-year, and reiterated its outlook for 3-5% listings growth over the full year.

According to the company, should momentum continue through February and March the top end of this range is achievable.

The Hold rating is retained and the target price decreases to $174.00 from $179.00.

Target price is $174.00 Current Price is $176.43 Difference: minus $2.43 (current price is over target).
If REA meets the Bell Potter target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $172.74, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates REA as Neutral (3) -

Following a first glance at REA Group's first half results yesterday, Citi has highlighted stronger than expected yield growth as a positive of the result. In particular, yield for residential listings grew 19% year-on-year, while rent revenue increased 6%. 

Less positively is an apparent slowing of revenue growth in India, which slowed to 17% year-on-year growth in the second quarter from 25% in the previous quarter. 

REA Group has taken a -$120m impairment on its stake in Property Guru due to a weaker than expected outlook for Malaysia and Singapore.

Citi looks to more detail on cost growth over the second half, and how impacts may flow into FY25. The Neutral rating and target price of $185.80 are retained.

Target price is $185.80 Current Price is $176.43 Difference: $9.37
If REA meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $172.74, suggesting downside of -7.2% (ex-dividends)

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates REA as Neutral (3) -

REA Group's first half earnings were slightly below Macquarie's expectations due to a softer geographical mix but were a beat to consensus due to cost management.

REA increased its group opex guidance to mid-to-high teens from low-to-mid teens. The increase was said to be due to strategic initiatives to support growth over the medium to long term.

The concern, suggests the broker, is that the market sometimes view this as cost of doing business rather than genuine investment, however, increased investment aligns with REA's view of top line growth improving.

Otherwise, valuation keeps Macquarie on Neutral. Target falls to $179 from $185.

Target price is $179.00 Current Price is $176.43 Difference: $2.57
If REA meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $172.74, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgan Stanley rates REA as Overweight (1) -

Morgan Stanley has greater confidence in higher-for-longer price/yield growth for REA Group following 1H results, which showed New Listing volumes rising by 3-5% on the previous corresponding period. Revenue was in line with the consensus forecast.

The company's market leadership is driving a stronger yield uplift of 19% (broker 14% previously), and Australian real estate transaction volumes are recovering well, explain the analysts.

Margins also expanded to 59% from 56% in the previous corresponding period, highlights Morgan Stanley.

The Overweight rating is retained and the target rises to $210 from $200. Industry View: Attractive.

Target price is $210.00 Current Price is $176.43 Difference: $33.57
If REA meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $172.74, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates REA as Hold (3) -

Morgans assesses a "broadly solid" 1H result for REA Group (a marginal beat against consensus expectations), and raises its target to $165 from $155, while retaining a Hold recommendation.

The broker highlights robust growth for Australian Residential was driven by both yield and volume, while REA India revenue grew by 21% on the previous corresponding period.

New listings volumes in Australian Residential increased by 4% on the previous corresponding period, assisted by Buy Yield growth, which was partially offset by revenue deferral, explains the analyst.

The 87cps interim dividend missed forecasts by the broker and consensus for 92cps and 96cps, respectively.

Target price is $165.00 Current Price is $176.43 Difference: minus $11.43 (current price is over target).
If REA meets the Morgans target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $172.74, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates REA as Sell (5) -

REA Group's December-half result broadly met Ord Minnett's forecasts thanks to a strong performance from Australian residential, which outpaced continued heavy losses in India.

A sharp 13% average increase in residential listings was a major contributor to the result and the broker says the company's wide moat supports such rises without fears of market share lost (as opposed to the narrow-moat Domain Holdings Australia ((DHG)) which suffered market-share loss recently as a result of price rises).

Ord Minnett expects listings momentum to continue in the June half.

Sell rating retained, the broker considering the company to be very overvalued. Target price edges up 2% to $112.50.

Target price is $112.50 Current Price is $176.43 Difference: minus $63.93 (current price is over target).
If REA meets the Ord Minnett target it will return approximately minus 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $172.74, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

UBS rates REA as Neutral (3) -

UBS raises its target for REA Group to $182.90 from $167 following "solid" 1H results due largely to a higher FY25 earnings multiple. January listing volumes growth of 12% year-on-year were stronger than the analyst anticipated.

The broker raises its FY24 listing volume growth forecast to 5% from 4% due to a strong start for the 3Q and better growth in Commercial, Developer and Finance, partly offset by a lower revenue growth forecast for Elara Technologies in India.

The Neutral rating is maintained.

Target price is $182.90 Current Price is $176.43 Difference: $6.47
If REA meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $172.74, suggesting downside of -7.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgans rates STA as No Rating (-1) -

Shares in Strandline Resources have been in voluntary suspension since last October, as the company evaluates a revised operations strategy and the company's financial position.

While awaiting the outcome of these deliberations, Morgans withdraws its target price, recommendation and forecasts.

Current Price is $0.10. Target price not assessed.

Market Sentiment: 1.0

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

Ord Minnett rates STO as Accumulate (2) -

Santos and Woodside have cancelled merger talks, Woodside reiterating it is only interested in value-accretive deals for shareholders, leaving investors puzzling as to what this means for Santos.

The broker considers it to be fairly benign, believing Santos was probably just demanding its pound of flesh as commodities prices recovered during talks.

Santos' management has advised it is looking for other ways to unlock value. Ord Minnett believes there are plenty of options available  and discounts none of them, while observing rising risks in pending developments.

Accumulate rating and $12.30 target price retained.

Target price is $12.30 Current Price is $7.34 Difference: $4.96
If STO meets the Ord Minnett target it will return approximately 68% (excluding dividends, fees and charges).

Current consensus price target is $9.44, suggesting upside of 29.2% (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: 0.5

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

Citi rates TCL as Buy (1) -

Citi continues to see upside to Transurban Group's full year dividend guidance, despite first half traffic growth tracking below the broker's expectations.

The company has explained the slower traffic growth, citing construction impacts on toll roads, expected to normalise once construction completes, and diversion of traffic from adjacent roads into Westconnex.

It is realisation of distributions from road toll joint ventures in the second half, alongside a better than expected cost outcome in the same period, that underpins Citi's expectations of dividend upside.

The Buy rating is retained and the target price decreases to $15.60 from $15.90.

Target price is $15.60 Current Price is $13.19 Difference: $2.41
If TCL meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $13.96, suggesting upside of 7.9% (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

Macquarie rates TCL as Outperform (1) -

Transurban Group's first half earnings and cashflow were in line with Macquarie, which the broker suggests is "remarkable" given the softness in fourth quarter traffic, with roadworks hurting Sydney and Melbourne and rain dampening Brisbane.

No dividend guidance upgrade is disappointing, but Macquarie assumes it reflects the impact of roadworks continuing to have a drag on organic growth and the pressure from re-financings adding to interest expense.

A traffic surge will emerge as roadworks complete driving momentum from FY26 through to FY29, the broker suggests, which drives strong earnings and cashflow growth.

Target rises to $13.69 from $13.40, Outperform retained.

Target price is $13.69 Current Price is $13.19 Difference: $0.5
If TCL meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $13.96, suggesting upside of 7.9% (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

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

Transurban Group's 1H proportional earnings (EBITDA) were in line with the consensus forecast, while traffic and revenue results were broadly in line with Morgan Stanley's estimates.

The committed capex pipeline appears broadly unchanged to the analyst. Management anticipates cost growth of 4-6% compared to the previous expectation for 6%.

Target $14.28. Equal Weight. Industry View: Cautious.

Target price is $14.28 Current Price is $13.19 Difference: $1.09
If TCL meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $13.96, suggesting upside of 7.9% (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 rates TCL as Hold (3) -

Morgans describes a "mixed" 1H result for Transurban Group with in-line earnings (EBITDA) growth, but cash flow arguably below expectation.

Management's FY24 dividend guidance of 62cps was maintained. The broker forecasts DPS will grow at a mid-single digit compound annual growth rate (CAGR) across FY25-27.

The Hold rating is unchanged and the target falls to $12.32 from $12.66, partly driven by weaker traffic generation in Sydney and Melbourne, explains the analyst.

Target price is $12.32 Current Price is $13.19 Difference: minus $0.87 (current price is over target).
If TCL meets the Morgans target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.96, suggesting upside of 7.9% (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 TCL as Hold (3) -

Transurban Group's December-half result appears to have met Ord Minnett's forecasts, the company posting gains across all markets.

The broker estimates like-for-like traffic has recovered to pre-pandemic levels with the exception of Sydney, due to disruption from constructions. 

The broker appreciates the company's sound balance sheet. Free cash flow more than covered the company's interim dividend of 30c.

Hold rating and $12.50 target price retained.

Target price is $12.50 Current Price is $13.19 Difference: minus $0.69 (current price is over target).
If TCL meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.96, suggesting upside of 7.9% (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

Citi rates WBC as Neutral (3) -

Ahead of the banking sector's reporting season next week, Citi has reviewed its sector coverage. The broker remains wary on bank stocks following a strong share price run into reporting season, anticipating likely downside to core earnings.

According to Citi, the big question for Westpac is whether a new Chair will drive greater disclosure from the bank. The broker sits -1% below consensus estimates, largely on expectations of higher operating expenditure.

The Neutral rating and target price of $22.25 are retained.

Target price is $22.25 Current Price is $24.41 Difference: minus $2.16 (current price is over target).
If WBC meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.08, suggesting downside of -5.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Ord Minnett rates WDS as Buy (1) -

Santos and Woodside have cancelled merger talks, Woodside reiterating it is only interested in value-accretive deals for shareholders, leaving investors puzzling as to what this means for Santos.

The broker considers it to be fairly benign, believing Santos was probably just demanding its pound of flesh as commodities prices recovered during talks.

Buy rating and $45 target price retained.

Target price is $45.00 Current Price is $32.33 Difference: $12.67
If WDS meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $35.53, suggesting upside of 11.5% (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: 0.3

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