Australian Broker Call

Citi rates AMP as Neutral (3) -

Looking at the failed negotiations with Ares, Citi believes AMP's plan to demerge its AMP Capital Private Markets business looks like the only viable option.

While a potential route to value realisation, the broker wonders how much of the business will be left by the time the demerger occurs in the first half of 2022 with rivals like Dexus Property Group ((DXS)) trying to pick off funds in the interim.

Citi maintains its $1.25 target price with a Neutral rating.

Target price is $1.25 Current Price is $1.14 Difference: $0.11
If AMP meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates AMP as Hold (3) -

In the absence of an Ares transaction, Morgans believes benefits will likely outweigh the costs in the decision to demerge AMP Capital’s Private Markets (PM). However, while AMP appears cheap based on multiples, it’s considered there are too many risks at present.

AMP will retain a 20% stake in the business post demerger. Investors would receive shares in PM proportional to their existing shareholdings in AMP Limited, after taking into account shares to be retained by AMP. 

AMP will restart its buyback of $200m now the portfolio review is complete. The Hold rating and $1.25 target are retained.

Target price is $1.25 Current Price is $1.14 Difference: $0.11
If AMP meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates AMP as Hold (3) -

Ord Minnett notes AMP will spin off its AMP Capital’s (CI) private markets investment management business after failing to reach an agreement with Ares Management about a potential sale of the business.

The broker thinks the move will give room for AMP private markets to stabilise its business. While in Ord Minnett's view, there is likely to be some near-term loss in earnings, some upside is expected over time.

Hold recommendation and a target price of $1.35.

Target price is $1.35 Current Price is $1.14 Difference: $0.21
If AMP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

UBS rates AMP as Neutral (3) -

AMP has concluded discussions with Ares and no sale of its AMPC private markets business will occur. As a result, the company will contemplate de-merging its private markets business, retaining up to 20% to participate in future growth.

UBS always anticipated the portfolio review would be risky and finds confirmation in the fact that external parties have struggled to find enough value to warrant taking it on.

Moreover, the situation has now resulted in elevated flow risk in what was previously assessed as a safe division. UBS downgrades its target to $1.17 from $1.45 and maintains a Neutral rating.

Target price is $1.17 Current Price is $1.14 Difference: $0.03
If AMP meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.30, suggesting upside of 14.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates ANZ as Overweight (1) -

Morgan Stanley believes the bank sector EPS upgrade cycle will continue to be supported by provision releases and a more modest rise in underlying loss rates. However, banks are considered likely to adopt a near-term conservative stance to capital management. 

As a result, buybacks are not imminent and payout ratios will remain less than 70%, explains the broker. Despite this the EPS upgrade cycle is expected to support an earlier and stronger dividend recovery in 2021.

The ANZ Bank price target is lifted to $28.50 from $27.40 on an increase in forecast medium-term return on equity (ROE). Overweight rating. Industry view: In-Line.

Target price is $28.50 Current Price is $28.70 Difference: minus $0.2 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $29.24, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Citi rates AX1 as Downgrade to Neutral from Buy (3) -

Citi highlights the Glue acquisition as yet another example of Accent Group's ongoing pursuit of growth. The acquisition price at $13m is small in Citi's view, meaning the downside is limited.

While Glue provides Accent Group with a growth avenue, Citi notes the group is already in the middle of many other growth opportunities that could lead to competition for management time and company resources.

Citi downgrades its rating to Neutral from Buy noting the share price is up almost 25% over the last month with the target price rising to $3.10 from $2.85.

Target price is $3.10 Current Price is $2.89 Difference: $0.21
If AX1 meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.82, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates AX1 as Equal-weight (3) -

Morgan Stanley calculates the acquisition multiple appears cheap for Next Athleisure (NAL), which includes the Glue Store. EPS forecasts are lifted by 2-9% after including the acquisition and revising organic growth higher. The target increases to $2.80 from $2.45.

Positives for the analyst include the Glue store roll-out opportunity - the domestic peer Universal Store Holdings ((UNI)) is targeting
around 100 stores over time. Also, there will be cross-sell options for vertical/distribution brands for Accent Group and NAL brands.

Equal-weight retained as the broker feels that although execution is strong and near-term momentum is likely to continue, comparisons to prior periods will be tough to emulate in FY22. Industry view is In-Line.

Target price is $2.80 Current Price is $2.89 Difference: minus $0.09 (current price is over target).
If AX1 meets the Morgan Stanley target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.82, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgans rates AX1 as Hold (3) -

Morgans expects a negligible profit contribution in FY21/22 from the acquisition of the Glue Store retail operations and the associated Next Athleisure wholesale/distribution business. 

However, the analyst increases the underlying earnings forecast in FY22/23 after taking a more optimistic approach to revenue/margin assumptions. The target price is increased to $2.55 from $2.40 and the Hold rating is unchanged.

The broker sees youth apparel as a natural fit though notes Glue Store has struggled in recent years and a restructure will be required. It’s considered prudent to await more information before adjusting forecasts.

Target price is $2.55 Current Price is $2.89 Difference: minus $0.34 (current price is over target).
If AX1 meets the Morgans target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.82, suggesting downside of -3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates BAP as Buy (1) -

GPC, which owns Bapcor's major competitor Repco, released its March quarter result. The results showed continuing strong sales momentum in Repco, observes Citi, consistent with Bapcor’s latest update.

Citi reiterates the Buy rating on Bapcor and expects stronger favourable trading conditions, also noting the company continues to invest in a number of long term growth strategies including supply chain optimisation.

Target is retained at $9.50.

Target price is $9.50 Current Price is $8.23 Difference: $1.27
If BAP meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $9.08, suggesting upside of 8.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Ord Minnett rates BKL as Hold (3) -

Blackmores' latest update highlighted near-term sales challenges in the Australian market, with international borders remaining shut. Ord Minnett notes competitors looking towards the daigou (personal shopper) channel to offset the lost sales.

Even so, management remains positive on the medium-term outlook for the business due to increased investment in IT, digital capabilities and supply chain to drive gross margins higher.

Hold recommendation with the target price rising slightly to $76 from $75.

Target price is $76.00 Current Price is $75.50 Difference: $0.5
If BKL meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $74.95, suggesting upside of 4.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.2

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley believes the bank sector EPS upgrade cycle will continue to be supported by provision releases and a more modest rise in underlying loss rates. However, banks are considered likely to adopt a near-term conservative stance to capital management. 

As a result, buybacks are not imminent and payout ratios will remain less than 70%, explains the broker. Despite this the EPS upgrade cycle is expected to support an earlier and stronger dividend recovery in 2021.

The Commonwealth Bank price target is lifted to $83 from $79 on a modest increase in forecast medium-term return on equity (ROE). Underweight rating. Industry view: In-Line.

Target price is $83.00 Current Price is $89.39 Difference: minus $6.39 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $81.86, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.3

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

Macquarie rates EHL as Outperform (1) -

FY21 operating earnings (EBITDA) are expected to be $235-238m. Market conditions are favourable Macquarie notes, across the western region and Pit N Portal. The eastern region is showing some improvement in customer demand along with the commencement of new projects.

Some project commissioning issues highlight the added level of complexity and risk in contract mining, the broker points out, compared to equipment rental. Macquarie finds the valuation undemanding and retains an Outperform rating. Target is $1.30.

Target price is $1.30 Current Price is $0.91 Difference: $0.39
If EHL meets the Macquarie target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates ELD as Buy (1) -

Elders looks well-positioned to provide a "solid" first half result, in Citi's view, led by strong demand for rural products from favourable cropping conditions and tight crop input markets.

The broker expects the first-half operating income to be $80m, up 9% over last year, and in line with consensus. Citi expects the second half sales growth to be 11% with an operating income of $101m driven by continued growth in sales of rural products. 

Buy rating retained with a target of $13.20.

Target price is $13.20 Current Price is $12.38 Difference: $0.82
If ELD meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $12.89, suggesting upside of 4.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Citi rates GUD as Buy (1) -

GPC, which owns Bapcor's major competitor Repco, released its March quarter result. The results showed continuing strong sales momentum in Repco, observes Citi, consistent with Bapcor’s latest update.

Citi sees strong sales momentum in the aftermarket auto part retailers to be a tailwind for auto part suppliers like GUD Holdings ((GUD)). The broker considers the 5% organic growth for the company expected in the second half of 2021 to be increasingly looking conservative.

Citi has retained its Buy rating with a target price of $14.90.

Target price is $14.90 Current Price is $13.26 Difference: $1.64
If GUD meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $13.71, suggesting upside of 2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates ILU as Neutral (3) -

Iluka Resources' production and sales in the March quarter were better than Citi expected given the early restart of synthetic rutile production. The quarter group sales beat Citi expectations by 31% and were up 75% over last year.

The average price realisation at $1,485/t was flat versus the December quarter and lower than the broker's assumed $1,552/t.

The company has guided to synthetic rutile production in 2021 of 190kt and Citi has increased its FY21 operating income and net profit estimates by 15% and 32%. 

Neutral rating is retained with a target price of $7.50.

Target price is $7.50 Current Price is $7.39 Difference: $0.11
If ILU meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $6.86, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates ILU as Underperform (5) -

Credit Suisse notes zircon and rutile sales were strong and revenue was the highlight of the March quarter. Prices were maintained in line with the prior quarter, ahead of the price rise announced for the June quarter. This was offset by weak performance at Sierra Rutile.

The broker continues to expect Sierra Rutile will leak cash, as production declined to 26,000t in the March quarter and operations continue to experience difficulties.

Underperform rating maintained as Credit Suisse asserts there are plenty of unknowns around growth options. Target is $5.70.

Target price is $5.70 Current Price is $7.39 Difference: minus $1.69 (current price is over target).
If ILU meets the Credit Suisse target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.86, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates ILU as Neutral (3) -

First quarter earnings were well ahead of Macquarie's expectations as inventory was sold down. Production of synthetic rutile has recommenced while realised pricing is marginally better than the broker anticipated.

Macquarie acknowledges the outlook is somewhat uncertain as the company will be assessing growth options over the next two years. Neutral rating retained. Target is raised to $7.00 from $6.90.

Target price is $7.00 Current Price is $7.39 Difference: minus $0.39 (current price is over target).
If ILU meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.86, suggesting downside of -8.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Morgan Stanley assesses first quarter production was weaker across the board though a positive was synthetic rutile (SR) production restarting earlier than expected. Zircon production was -8% softer, while rutile was down -26%.

The lower rutile production was mainly driven by poor production at Sierra Rutile Ltd (SRL) and also at the Jacinth-Ambrosia mine (JA) in zircon-rich areas, explains the broker.

SR production for the quarter was also considered significantly softer though sales were circa 46kt stronger than forecast. Equal weight with a target price of $5.90. Industry view: Attractive.

Target price is $5.90 Current Price is $7.39 Difference: minus $1.49 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.86, suggesting downside of -8.2% (ex-dividends)

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates KGN as Outperform (1) -

Kogan.com faces some difficulties associated with the stock levels returning to normal and is also cycling strong sales growth in the prior corresponding period. Yet the issues are temporary and Credit Suisse remains positive about the medium-term opportunities.

The number of customers that are active continues to expand, but the momentum in sales appears to have slowed at a faster rate than the company expected. Outperform maintained. Target is reduced to $17.93 from $20.85.

Target price is $17.93 Current Price is $10.69 Difference: $7.24
If KGN meets the Credit Suisse target it will return approximately 68% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates LEP as Lighten (4) -

Ord Minnett included the sale of four of ALE Property Group pubs in its financial model. The broker notes the pub sales will be the first in seven years by the group with more divestments likely to follow.

In Ord Minnett's view, ALE Property seems to be capitalising on strong transaction markets by divesting assets that are expected to have a weaker rental outlook.

Lighten rating is maintained with the target rising to $4.30 from $4.20.

Target price is $4.30 Current Price is $4.72 Difference: minus $0.42 (current price is over target).
If LEP meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Macquarie rates LME as Outperform (1) -

Limeade has maintained FY21 guidance for revenue of US$50-53m along with an operating earnings loss of -US$5-8m.

Three new enterprise contracts were signed during the March quarter, including a large US retailer and one in Europe for Limeade Engagement.

The broker reiterates its Outperform rating with a target of $1.73.

Target price is $1.73 Current Price is $0.85 Difference: $0.88
If LME meets the Macquarie target it will return approximately 104% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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 MCR as Outperform (1) -

Development at Cassini and Durkin North has started. This is to be the focus for Mincor Resources throughout 2021, ahead of production commencing in early 2022.

Macquarie highlights exploration drilling continues to provide upside to its assumptions. Outperform rating and $1.30 target retained.

Target price is $1.30 Current Price is $0.98 Difference: $0.32
If MCR meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

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

Morgan Stanley believes the bank sector EPS upgrade cycle will continue to be supported by provision releases and a more modest rise in underlying loss rates. However, banks are considered likely to adopt a near-term conservative stance to capital management. 

As a result, buybacks are not imminent and payout ratios will remain less than 70%, explains the broker. Despite this the EPS upgrade cycle is expected to support an earlier and stronger dividend recovery in 2021.

The National Australia Bank price target is lifted to $26.30 from $25.30 on a modest increase in forecast medium-term return on equity (ROE). Equal-weight rating. Industry view: In-line.

Target price is $26.30 Current Price is $26.46 Difference: minus $0.16 (current price is over target).
If NAB meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.84, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

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

Macquarie suggests Origin Energy must address leverage in order to maintain an investment grade credit rating, noting the company's second earnings downgrade has meant S&P has placed a negative watch over its BBB rating.

Earnings have structurally declined and leverage is stretched. The broker believes the negatives are entrenched in the share price and therefore upgrades to Outperform from Neutral. Target is raised to $4.70 from $4.68.

At a minimum Macquarie believes the dividend policy needs to be reviewed in order to retain cash and some debt reduction will be necessary.

Target price is $4.70 Current Price is $4.13 Difference: $0.57
If ORG meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.06, suggesting upside of 21.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates OSH as Neutral (3) -

Given the misses on Oil Search's sales volumes and realized LNG prices, Citi has downgraded its 2021 earnings forecast by -12% to US$381m.

Oil Search has delayed the final investment decision FID on its Biomass project and has also pushed non-essential investment due to covid related operational difficulties.

Thinking the stock is valued fairly at current pricing, Citi maintains its Neutral rating with the target dropping to $4.21 from $4.41.

Target price is $4.21 Current Price is $3.78 Difference: $0.43
If OSH meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates OSH as Neutral (3) -

First quarter production was slightly below Macquarie's estimates amid some unplanned downtime at Hides. Still, the broker considers the company's risk management has been good despite the heightened impact of the pandemic in PNG.

The introduction of a 15-30% partner to the Alaskan project will be a critical catalyst and the broker expects the sale process will take 3-6 months. Macquarie reduces the target to $4.15 from $4.40. Neutral maintained.

Target price is $4.15 Current Price is $3.78 Difference: $0.37
If OSH meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

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

After first quarter production results, Morgan Stanley highlights capex intentions have been reduced in 2021, due to covid-19.

Other operating costs are guided to be higher, due to the company's recent hedging strategy, which the broker views as favourable.

The analyst assesses Oil Search retains the most leverage to Brent, with around 50% upside at US$65/bbl. However, this growth
comes with funding risk. Equal-weight retained with a target of $4.50. Industry view: Attractive.

Target price is $4.50 Current Price is $3.78 Difference: $0.72
If OSH meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Ord Minnett rates OSH as Buy (1) -

Oil Search released its March-quarter production report. Ord Minnett observes strong performance by the Papua LNG project despite unplanned outages in the quarter.

The broker sees the key catalyst for Oil Search this year as the selling down process of the Alaska operation, which the company is conducting in conjunction with its joint venture (JV) partner Repsol.

This process is expected to be completed around the time of the final investment decision (FID) later in the year. 

Buy rating with a target of $5.35.

Target price is $5.35 Current Price is $3.78 Difference: $1.57
If OSH meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $4.40, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Macquarie rates PGL as Neutral (3) -

Originations were up 20% sequentially in the March quarter with momentum accelerating from a typically slower January/February period.

Macquarie asserts the company needs to optimise yield and manage asset quality while controlling costs in order to provide support for a re-rating. Neutral rating and $0.92 target maintained.

Target price is $0.92 Current Price is $0.84 Difference: $0.08
If PGL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates PNI as Buy (1) -

Ord Minnett believes Australia’s funds management sector is entering a golden period led by low interest rates and better industry performance. The broker expects Pinnacle Investment Management to benefit materially from the operating environment.

Buy rating with the target rising to $12 from $9.68.

Target price is $12.00 Current Price is $9.93 Difference: $2.07
If PNI meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $10.50, suggesting upside of 0.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates PPT as Neutral (3) -

Perpetual's third quarter was a little better than Citi expected, mostly led by positive markets. The broker highlights improvement in the company's flow momentum and continued sound investment performance.

Even so, Citi believes the market will wait for more evidence of a flow turnaround before warming to the story.

Neutral retained, target rises to $35 from $33.50.

Target price is $35.00 Current Price is $33.91 Difference: $1.09
If PPT meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $36.08, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates PPT as Outperform (1) -

Most divisions provided stronger asset growth in the March quarter but flows were a source of disappointment for Credit Suisse. The broker upgrades estimates for earnings per share by 3% for FY21 and 7% for FY22-23 to allow for stronger asset growth.

Credit Suisse reiterates an Outperform rating, highlighting its view is not based on a turnaround in flows during the current quarter but rather over 2021 and beyond. Target is raised to $39 from $37.

Target price is $39.00 Current Price is $33.91 Difference: $5.09
If PPT meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $36.08, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates PPT as Overweight (1) -

Morgan Stanley explains March quarter International (which includes Barrow Hanley and Trillium) saw larger outflows than expected due to institutional US equity outflows.

However, Trillium delivered $204m of inflows and the broker highlights it is adding a new team to run global ESG equity strategies out of the UK, as well as building out UK / EU distribution.

Investments funds under management (FUM) were around $4bn ahead of the forecast by the broker. Overweight retained. Target is $40.60. Industry view: In-line.

Target price is $40.60 Current Price is $33.91 Difference: $6.69
If PPT meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $36.08, suggesting upside of 2.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates REH as Initiation of coverage with Neutral (3) -

Macquarie initiates coverage with a Neutral rating and $19.40 target. The stock may appear expensive but the broker believes there is upside potential along with significant option value in the US.

Still, the current valuation is fair, reflecting what Macquarie describes as "sensible scenarios" from the benefits of consolidation and execution on the business model in the US

 Fundamentally, the broker notes the business operates in an industry vertical were it can bring knowledge, technology and service together and generate a competitive advantage along with strong margins.

Target price is $19.40 Current Price is $20.17 Difference: minus $0.77 (current price is over target).
If REH meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.60, suggesting downside of -21.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Credit Suisse rates RMD as Outperform (1) -

ResMed is cycling US$35m in benefits from the pandemic in terms of ventilator sales. Credit Suisse forecasts revenue growth of 3% and earnings growth of 7% in the current quarter. The broker does not include any pandemic-related ventilator sales in its estimates.

Cash is building up and the broker suspects a buyback could commence in FY22. Outperform rating retained with a target price of $29.50.

Target price is $29.50 Current Price is $27.12 Difference: $2.38
If RMD meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $28.17, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

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

ResMed will release third quarter earnings on Friday, 30th April AEDT. Morgan Stanley assesses continuation towards pre pandemic levels in the core business and reinforced benefits from the connected care strategy should support the share price.

The broker expects sequential improvement in the core sleep business in the quarter and through FY21. It's also expected US and ROW devices sales will be down -3% and -11% on the pcp, respectively, as the business continues operating below pre pandemic levels.

Equal-weight. Industry view: In-Line. Price target is $27.40.

Target price is $27.40 Current Price is $27.12 Difference: $0.28
If RMD meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $28.17, suggesting upside of 3.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Credit Suisse rates SEK as Outperform (1) -

Credit Suisse expects Australasia will benefit in the second half from significantly better volumes and mix shift to corporate/small-medium enterprises. As a result estimates are upgraded.

The broker assumes a pulling forward of volumes into FY21, with limited changes to Australasian estimates beyond this. The model is also updated to reflect the sell-down of Zhaopin to 23.5% and the likely classification of remaining investments as investment entities.

Once investments are excluded, the multiples are not considered demanding and the broker retains an Outperform rating, raising the target to $34.00 from $30.50.

Target price is $34.00 Current Price is $31.72 Difference: $2.28
If SEK meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $28.62, suggesting downside of -9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgans rates SEK as Hold (3) -

Morgans upgrades forecasts for the third time since FY20 results and lifts the target price to $27.48 from $24.87. This is due to significant upgrades to listing volumes and earnings assumptions for the second half.

The broker highlights the current domestic employment market is ideal, with strong job ad listings and a tighter candidate supply environment.

The Hold rating is maintained as Morgans believes the current momentum is adequately reflected in the share price. The broker remains somewhat cautious on the long-term growth profile after the imminent Zhaopin stake sell down. 

Target price is $27.48 Current Price is $31.72 Difference: minus $4.24 (current price is over target).
If SEK meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.62, suggesting downside of -9.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Morgan Stanley rates SHL as Overweight (1) -

Applying a read through from a US-based competitor's results, Morgan Stanley assesses some downside risk to its Sonic Healthcare assumptions for the second half of FY21.

The broker assumes US revenue grows over 46% in the June half year driven by over 9% growth in the base business and covid testing. The broker retains an Overweight rating and the $39.80 price targe target. Industry view: In-line.

Target price is $39.80 Current Price is $36.58 Difference: $3.22
If SHL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $37.47, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates SLR as Outperform (1) -

March quarter production was in line with Macquarie's estimates while cost performance was better than expected. FY21 guidance of 240-250,000 ounces has been maintained.

Growth projects are on track and the broker believes the company is in a good position, expecting continued improvements in grade at Mount Monger in the June quarter. Outperform rating and $2.20 target maintained.

Target price is $2.20 Current Price is $1.83 Difference: $0.37
If SLR meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates STO as Add (1) -

Morgans assesses first quarter production was roughly in-line with estimates, sales volumes/revenue were below and free cash flow (FCF) was ahead.

The broker highlights realised prices continue to recover, more than offsetting lower volumes. Also, FCF is expected to jump in the second quarter as the quarter lag in achieved LNG prices works its way through.

While gearing remains high, the balance sheet is strengthening and capex is being phased out. The Add rating is unchanged and the target price is increased to $8.50 from $8.30.

Target price is $8.50 Current Price is $6.98 Difference: $1.52
If STO meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $7.87, suggesting upside of 13.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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 WBC as Overweight (1) -

Morgan Stanley believes the bank sector EPS upgrade cycle will continue to be supported by provision releases and a more modest rise in underlying loss rates. However, banks are considered likely to adopt a near-term conservative stance to capital management. 

As a result, buybacks are not imminent and payout ratios will remain less than 70%, explains the broker. Despite this the EPS upgrade cycle is expected to support an earlier and stronger dividend recovery in 2021.

Westpac Bank is the broker's preferred major due to excess capital and healthy provisioning and the most earnings and dividend leverage to a recovery. Also, there's considered potential upside to operating performance and relatively low investor expectations.

The target is lifted to $28 from $27.20 on a modest increase in forecast medium-term return on equity (ROE). Overweight rating. Industry view: In-line.

Target price is $28.00 Current Price is $25.12 Difference: $2.88
If WBC meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $26.72, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Morgans rates YFZ as Add (1) -

Morgans notes investor confidence may take some time to rebuild after a downward guidance revision to FY21 prospectus forecasts. This was driven by higher promotional spend and covid-19 impacts on the B2B channel. The target is lowered to $1.13 from $1.59.

The covid impacts included petrol and convenience customers maintaining ‘minimal stocking levels’ and negligible sales to gyms/corporate customers. The analyst maintains an Add rating, given the recent share price fall.

Although net revenue guidance fell 1-3% and earnings (EBITDA) guidance to $1-2m from $2.9m, B2C delivered solid metrics, according to the broker. Lower value is attributed to B2B revenues versus the core B2C segment, given B2B is a lower margin segment.

Target price is $1.13 Current Price is $0.60 Difference: $0.53
If YFZ meets the Morgans target it will return approximately 88% (excluding dividends, fees and charges).

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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