Australian Broker Call

Macquarie rates A11 as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of Atlantic Lithium with an Outperform rating and 80c target price.

The company is developing Ghana's Ewoyaa spodumene project in a 50:50 joint venutre with Piedmont Lithium ((PLL)) and targets production by 2025, when Piedmont's farm-in is completed.

Macquarie reports the project could yield 300ktpa of spodumene concentrate for at least 13 years, and has the potential to expand through exploration.

The pre-feasability study was finalised in September and the definitive feasibility study is due this year, and Macquarie expects this will prove a catalyst.

Target price is $0.80 Current Price is $0.66 Difference: $0.14
If A11 meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates AKE as Buy (1) -

Citi downgrades the ratings for a number of lithium equities under its coverage as lithium prices will likely remain under near-term pressure and some share prices have rallied hard.

The broker is hoping to achieve lower entry prices, especially as lithium prices may gain once restocking occurs along the battery supply chain in March-April.

Citi keeps its Buy rating and $16.90 target for Allkem.

Target price is $16.90 Current Price is $12.08 Difference: $4.82
If AKE meets the Citi target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $15.18, suggesting upside of 25.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Ord Minnett rates BHP as Hold (3) -

Ord Minnett recommends investors vote in favour of BHP Group's takeover of OZ Minerals at the scheme meeting on April 13. It's felt BHP is paying a full price and an alternative higher-priced offer is unlikely.

The analyst points out the dilution from the takeover for its fair value estimate for BHP is only small and the company can easily afford the -US$6.6bn price tag.

The $39.50 target and Hold rating are unchanged.

Target price is $39.50 Current Price is $47.93 Difference: minus $8.43 (current price is over target).
If BHP meets the Ord Minnett target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $43.90, suggesting downside of -7.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.0

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

Citi rates BSL as Buy (1) -

Management's cautious optimism for BlueScope Steel's US and Australian businesses was confirmed on a conference call with Citi.

The company noted robust underlying demand in the US and strong steel prices though was hesitant (conservative?) on the 2H of FY23 for North Star's profits, according to the analysts.

For Australia, management believes underlying domestic demand has not altered greatly and is not forecasting any near-term domestic restocking.

The broker retains its Buy rating and $20.50 target.

Target price is $20.50 Current Price is $20.37 Difference: $0.13
If BSL meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $18.62, suggesting downside of -7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Ord Minnett rates COS as Initiation of coverage with Buy (1) -

Ord Minnett likes the consistent profitable growth achieved by the software company Cosol and initiates coverage with a Buy rating and $1.07 target.

The analyst also anticipates growth from entry into the North American market and increasing take-up of products by the existing client base. It's also felt the valuation is currently attractive and accretive aquistions of the past will continue.

The company is described as an enterprise asset management (EAM) advisory, software, and solutions business.

Given over 56% of shares are owned by the board and management, there is a strong alignment of interests with remaining shareholders, explains the broker.

Target price is $1.07 Current Price is $0.75 Difference: $0.32
If COS meets the Ord Minnett target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates CXO as Dowgrade to Sell from Neutral (5) -

Citi downgrades the ratings for a number of lithium equities under its coverage as lithium prices will likely remain under near-term pressure and some share prices have rallied hard.

The broker is hoping to achieve lower entry prices, especially as lithium prices may gain once restocking occurs along the battery supply chain in March-April.

Citi downgrades its rating for Core Lithium to Sell from Neutral largely due to recent share price appreciation. The target falls to 90c from $1.00.

Target price is $0.90 Current Price is $1.00 Difference: minus $0.105 (current price is over target).
If CXO 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 $1.10, suggesting upside of 12.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates GMG as Buy (1) -

UBS observes the Goodman European Partnership (GEP) is a major contributor to Goodman Group's earnings and assesses the partnership's annual report.

The broker notes GEP's provisions for performance fees has fallen to E91.2m, down from E225m at June 30 and that GEP is in a good position to continue buying Goodman Group-developed assets. Property values were revalued down -13% in the December half and yields rose to 4.4% from 3.5%.

The broker estimates GEP's purchases of Goodman Group's properties potentially contributed $230m in development profits to the latter in the past year. Otherwise, gearing at 23% appeared benign as did the cost of debt and occupancy was greater than 99% and like-for-like rents grew 5.8%.

Steady as she goes. Buy rating and $23 target price retained.

Target price is $23.00 Current Price is $19.70 Difference: $3.3
If GMG meets the UBS target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $21.85, suggesting upside of 10.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates IGO as Buy (1) -

Citi downgrades the ratings for a number of lithium equities under its coverage as lithium prices will likely remain under near-term pressure and some share prices have rallied hard.

The broker is hoping to achieve lower entry prices, especially as lithium prices may gain once restocking occurs along the battery supply chain in March-April.

The Buy rating and $17.10 target for IGO are retained.

Target price is $17.10 Current Price is $13.75 Difference: $3.35
If IGO meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $16.17, suggesting upside of 20.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Having previously accumulated a near 18% interest in InvoCare, TPG global has launched an indicative bid to acquire the remainder of the company for $12.65/share, a 41% premium to the previous closing price.

Morgans notes the offer price is well above InvoCare's peer median FY23 EV/EBITDA multiple of 11.1x. The offer is at 15.2x, which is above the company's average over the past ten years of 13.9x and shy of the highest point of 16.6x in December 2017.

The analyst assigns a 70% probability the transaction proceeds.

The broker raises its target to $12.19 from $11.10 and lowers its rating to Hold from Add on valuation.

Target price is $12.19 Current Price is $12.08 Difference: $0.11
If IVC meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Ord Minnett rates IVC as Downgrade to Accumulate from Buy (2) -

Ord Minnett lowers its rating for InvoCare to Accumulate from Buy on valuation after a recent share price rally.

The $14.50 target is unchanged.

Target price is $14.50 Current Price is $12.08 Difference: $2.42
If IVC meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $12.05, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

UBS rates IVC as No Rating (-1) -

InvoCare has received a non-binding, unsolicited, indicative full takeover offer from US private equity firm TPG Global through a scheme of arrangement at $12.65 cash per share.

This represents a 41% premium to the company's previous close of $8.95, including the usual adjustment.

The bid is conditional on the board not engaging with third parties during the due diligence period and drawing up of transaction documents and InvoCare board support.

UBS, which according to the last entry in the FNArena database sits deeply below consensus on Invocare, is on research restriction.

Current Price is $12.08. Target price not assessed.

Current consensus price target is $12.05, suggesting upside of 0.4% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Macquarie rates LLL as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of Leo Lithium with an Outperform rating and $1.35 target price.

The broker forecasts that the company's 50% owned Goulamina project (with Ganfeng Lithium) will hit first production in late 2024, but expects direct shipping ore (the company is canvassing the opportunity) could deliver cash flow by late 2023.

Stage 1 development is expected to yield 500ktpa and Macquarie believes the project's recent resource upgrade paves the way for a bigger Stage 2 mine expansion, which could take production to more than 900ktpa, with a lower capital cost.

Outperform rating and $1.35 target price retained. 

Target price is $1.35 Current Price is $0.54 Difference: $0.815
If LLL meets the Macquarie target it will return approximately 152% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates LTR as Downgrade to Neutral from Buy (-1) -

Citi downgrades the ratings for a number of lithium equities under its coverage as lithium prices will likely remain under near-term pressure and some share prices have rallied hard.

The broker is hoping to achieve lower entry prices, especially as lithium prices may gain once restocking occurs along the battery supply chain in March-April.

Citi lowers its rating for Liontown Resources to Neutral from Buy largely because its share price has risen by around 30% over the past week after presenting at the BMO Capital Markets conference in the US. The $1.80 target is unchanged.

Target price is $1.80 Current Price is $1.66 Difference: $0.145
If LTR meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.05, suggesting upside of 25.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates LYC as Neutral (3) -

Lynas Rare Earths has announced that Japan Australia Rare Earths has committed another $200m in funding and will forego $11.5m interest from 2016, in return for supply prioritisation.

Macquarie cuts EPS forecasts -2% to -3% across FY23 to FY27 reflect the equity dilution.

After adding market uncertainty to the equation (pricing has been weaker and Tesla recently announced it planned to use less rare earths), the broker cuts the target price -9% to $8.10 from $8.90.

While the ramp-up of the Kalgoorlie project represents a near-term catalyst, uncertainties around this and the Malaysia processing operations are likely to weigh on sentiment, says the broker. Neutral rating retained.

Target price is $8.10 Current Price is $7.37 Difference: $0.73
If LYC meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

UBS rates LYC as Neutral (3) -

Lynas Rare Earths has announced that Japan Australia Rare Earths, Japan affiliate group Sojitz co, and Japan Organisation for Metals and Energy Security will inject $220m and waive US$11.5m of interest owing from 2016.

UBS sees this as a sign of continued Japanese support but considers lithium market dynamics to be more influential at this stage, and observes continued weakness in global pricing as production rises, as well as news that Tesla intends to reduce its rare-earths use.

The impending China quota annnouncement will be the next catalyst, says the broker, who believes rising demand will still win the day.

EPS forecasts ease slightly. Neutral rating and $9 target price retained.

Target price is $9.00 Current Price is $7.37 Difference: $1.63
If LYC meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

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

Citi downgrades the ratings for a number of lithium equities under its coverage as lithium prices will likely remain under near-term pressure and some share prices have rallied hard.

The broker is hoping to achieve lower entry prices, especially as lithium prices may gain once restocking occurs along the battery supply chain in March-April.

Citi lowers its rating for Mineral Resources to Neutral from Buy, largely because shares have rallied 12% over the last week. The $94 target is unchanged.

Target price is $94.00 Current Price is $88.73 Difference: $5.27
If MIN meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $95.61, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Macquarie rates MMS as Outperform (1) -

Macquarie downgrades McMillan Shakespeare to Neutral from Outperform, believing tailwinds and headwinds are netting out. Target price is steady at $14.78.

The Novated and Fleet Lease sector results suggest the market is experience continue supply constraints and pipeline extension; that used car prices continue to be expensive; that EV demand is rising given the FBT exemptions; cost pressures are continuing; and funding structures are changing.

On the upside, the broker observes vehicle supply is on the rise, the company has plenty of carryover revenue for the June half and novated lease yields are benefitting from higher car prices.

On the flipside, cycing time is uncertain, the funding mix is transitioning at a cost, and the broker spies re-contracting risk in Queensland and South Australia given June-half renewals.

Target price is $14.78 Current Price is $14.91 Difference: minus $0.13 (current price is over target).
If MMS meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.30, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Citi rates MP1 as Neutral (3) -

Prior to yesterday's resignation announcement by CEO Vincent English, Citi believed the outlook was difficult and the operational turnaround may take longer than the market was expecting.

The immediacy and timing of the announcement not only supports the analysts' prior view but also suggests a possible disagreement over direction, given a strategic review was imminent.

The Neutral rating and $7.05 target are unchanged.

Target price is $7.05 Current Price is $4.88 Difference: $2.17
If MP1 meets the Citi target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $8.65, suggesting upside of 78.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates MP1 as Downgrade to Neutral from Outperform (3) -

Macquarie reviews the Telecom, Media and Technology sectors and tinkers with most earnings estimates. Having observed reporting season outcomes, the broker advises investors stick to defensive stocks over those offering structural growth.

Coverage of Megaport is transferred to Darren Leung from Wei Sim.

The broker downgrades Megaport to Neutral from Outperform to reflect near-term macro pressures and strategic uncertainty given the recent change of management (CEO Vincent English has resigned, which follows movements in the Chief Revenu Officer position). The broker assesses the company's top-line growth remains elusive.

EPS forecasts fall -11% in FY23; -41% in FY24; and -23% in FY25. Target price falls -36% to $5 from $7.80.

Target price is $5.00 Current Price is $4.88 Difference: $0.12
If MP1 meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $8.65, suggesting upside of 78.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Ord Minnett rates MP1 as Buy (1) -

Charman and founder Bevan Slattery is taking on the CEO role at Megaport after the resignation of Vincent English, in a move Ord Minnett is uneasy about, given the abrupt nature of the announcement. The resignation is effective immediately.

In the absence of any news that changes the outlook for the stock, the broker maintains its Buy rating and $13 target.

The poor stock performance over the last 18 months is more a result of negative market sentiment toward unprofitable companies rather than poor business performance and execution, suggests the broker.

Target price is $13.00 Current Price is $4.88 Difference: $8.12
If MP1 meets the Ord Minnett target it will return approximately 166% (excluding dividends, fees and charges).

Current consensus price target is $8.65, suggesting upside of 78.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgan Stanley rates MQG as Overweight (1) -

At the first of its investor days in the US, Macquarie Group outlined substantial growth options in Private Markets, being Green Energy, Infrastructure, Digitalisation and Secondaries.

The Inflation Reduction Act legislation further enhances the Green Energy opportunity in the US, the broker notes. Investor questions have focused on how increasing competition will impact this growth but Morgan Stanley believes the opportunity is so large that several substantial winners will emerge and Macquarie is well placed to lead.

Overweight and $231 target retained. Industry view: In-Line

Target price is $231.00 Current Price is $193.00 Difference: $38
If MQG meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $199.13, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Citi downgrades its rating for New Hope to Neutral from Buy on valuation and earnings downgrades. FY24 earnings forecasts are slashed by -47% on lower forecast coal prices. The target falls to $4.90 from $6.15.

The analysts point out the NEWC600 thermal coal price has retraced by -58% from the peak attained last September.

With Asian utility coal restocking expected in June, the broker prefers Whitehaven Coal ((WHC)) for thermal coal exposure as its share price has underperformed by -20% over the last three months compared to New Hope shares.

Target price is $4.90 Current Price is $5.65 Difference: minus $0.75 (current price is over target).
If NHC meets the Citi target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.07, suggesting upside of 10.8% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates PAN as Outperform (1) -

Panoramic Resources has announced infill resource definition drilling results from Savannah North, and Macquarie says the results underpin future development.

Otherwise, management's cost and production update suggests it will meet the lower end of guidance, advises Macquarie.

Outperform rating and 20c target price retained.

Target price is $0.20 Current Price is $0.14 Difference: $0.06
If PAN meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates PLL as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage on Piedmont Lithium with an Outperform rating and $2.10 target price after the company announced it would take a 25% stake in Sayona Quebec, which the broker expects will generate US$1bn in cash flow over the next four years.

Macquarie says the deal sharply diversifies the company's growth outlook. Sayona Quebec is expected to process the spodumene onsite to lithium carbonate from 2027, and Piedmont Lithium has negotiated the rights to long-term surplus production. The broker expects the company will be able to use the cash to fund a lithium hydroxide refinery in Tennessee.

In the near term, the project's spodumene has received offtake commitments from Tesla and LG Chem.

Add to these projects the lithium hydroxide project in North Carolina, the company's 50% stake in Ewoyaa in Ghana, and the broker spies a long runway for growth.

Target price is $2.10 Current Price is $0.92 Difference: $1.18
If PLL meets the Macquarie target it will return approximately 128% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates PLS as Buy (1) -

Citi downgrades the ratings for a number of lithium equities under its coverage as lithium prices will likely remain under near-term pressure and some share prices have rallied hard.

The broker is hoping to achieve lower entry prices, especially as lithium prices may gain once restocking occurs along the battery supply chain in March-April.

Citi's preferred exposure in the sector is Pilbara Minerals given it has the simplest operational model. The Buy rating and $4.80 target are unchanged.

Target price is $4.80 Current Price is $4.16 Difference: $0.64
If PLS meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $5.12, suggesting upside of 25.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Ord Minnett rates RMD as Downgrade to Hold from Accumulate (3) -

Ord Minnett lowers its rating for ResMed to Hold from Accumulate on valuation after a recent share price rally.

The $35 target is unchanged.

Target price is $35.00 Current Price is $32.72 Difference: $2.28
If RMD meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $36.23, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Morgans rates RXM as Speculative Buy (1) -

Rex Minerals is on the path to funding its wholly-owned Hillside copper-gold project in South Australia. Morgans initiates coverage with a Speculative Buy rating and 49c target.

The -$854m project is projected to produce 42kt of copper and 30koz of gold in copper concentrate/year over an 11-year life from a resource containing over 4bnlbs of copper and 1.5moz of gold.

The broker feels the market will be more attuned to the value of the Hillside project once funding is resolved in mid-2023 (management's projected date). A final investment decision is also expected in mid-2023.

The company also has the Hog Ranch gold project in Nevada (US), a large (2.26Moz) low-grade deposit.

Target price is $0.49 Current Price is $0.30 Difference: $0.19
If RXM meets the Morgans target it will return approximately 63% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Macquarie rates STO as Outperform (1) -

Santos' Papua LNG project is targeting first production by late 2027 or 2028 advises Macquarie, the company moving into FEED phase. 

Outperform rating retained. Target price falls to $10 from $10.50 on lower Papua New Guinea valuation.

Target price is $10.00 Current Price is $7.33 Difference: $2.67
If STO meets the Macquarie target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $9.28, suggesting upside of 26.4% (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 SYA as Initiation of coverage with Outperform (1) -

Macquarie initiates coverage of Sayona Mining with a Outperform rating and 30c target price.

The broker observes that the company is set to become Canada's only spodumene producer in the next few months and plans through its 75% stake in Sayona Quebec (Piedmont Lithium ((PLL)) holds the remaining 25%).

Macquarie expects the company will also refine the product onsite, moving downstream.

Success depends upon the ability of the company to return the mine to production using existing infrastructure, which the broker says should accelerate the process.

The company also owns a second production hub at Moblan and, after recent drilling, the broker expects an upgrade to the Moblan resource estimate.

Target price is $0.30 Current Price is $0.25 Difference: $0.055
If SYA meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Citi rates WHC as Buy (1) -

Citi lowers its target for Whitehaven Coal to $9.00 from $9.25 after its FY24 earnings forecast is slashed by -47% on lower forecast coal prices.

As prices are now considered more sustainable, the discount applied by the broker to the company's valuation is reduced. Formerly, it was assumed investors would be reluctant to incorporate Citi's high near-term forecast for prices.

The analysts point out the NEWC600 thermal coal price has retraced by -58% from the peak attained last September.

With Asian utility coal restocking expected in June, the broker prefers Whitehaven Coal over New Hope for thermal coal exposure as its share price has underperformed by -20% over the last three months compared to New Hope shares.

Target price is $9.00 Current Price is $7.31 Difference: $1.69
If WHC meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $10.31, suggesting upside of 47.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Macquarie rates XRO as Neutral (3) -

Macquarie reviews the Telecom, Media and Technology sectors and tinkers with most earnings estimates. Having observed reporting season outcomes, the broker advises investors stick to defensive stocks over those offering structural growth.

Coverage of Xero is transferred to Darren Leung from Wei Sim.

The broker raises Xero's target price 14% to $80 from $70 to reflect the roll-forward of valuation, and the strategic shift to growth plus profitability.

Neutral rating retained.

Target price is $80.00 Current Price is $79.58 Difference: $0.42
If XRO meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $84.51, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.6

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