Australian Broker Call

Credit Suisse rates 29M as Outperform (1) -

Credit Suisse reports a mixed bag for 29Metals in the September quarter. Production totaled 10,000 tonnes, 5% ahead of the broker's forecast, with strong production at the Capricorn Copper project, expected to continue, while Golden Grove was challenged. 

Seismicity has forced high grade mining at Golden Grove to be delayed until 2022. While lower grade mining took place, the delay has resulted in decreased mined credits in the second half and costs exceeding guidance by -$40-50m.

The broker downgrades its 2021 earnings per share forecast, but lifts 2022 by 20% on delayed high grade mining.

Credit Suisse retains the view the company offers the best value copper play on the ASX. The Outperform rating and target price of $3.15 are retained. 

Target price is $3.15 Current Price is $2.65 Difference: $0.5
If 29M meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates 29M as Outperform (1) -

29Metals' September quarter featured weak production at Golden Grove offsetting a better result at Capricorn Copper. Managagement has nonetheless retained 2021 production guidance but Macquarie believes costs will be higher than guidance suggests.

However, better grades at Golden Grove should lead to significant improvement in earnings and cash flow in the December quarter and into 2022, the broker believes, with valuation suggesting a 20% free cash flow yield for 2022.

Target falls to $3.30 from $3.60, Outperform retained.

Target price is $3.30 Current Price is $2.65 Difference: $0.65
If 29M meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.18, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in December.

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 ADI as Hold (3) -

Following Dexus Industria REIT (formerly APN Industria REIT) acquiring a range of industrial properties and development opportunities, Morgans increases its target to $3.56 from $3.51. An attractive dividend yield is noted, and the Hold rating is maintained.

As a result of the acquisitions, the company announced a raising of $250m via a $100m placement and a 1:3 non renounceable entitlement offer at $3.45. 

Target price is $3.56 Current Price is $3.41 Difference: $0.15
If ADI meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Morgans rates ALL as Add (1) -

Morgans now includes Aristocrat Leisure's proposed acquisition of UK-listed Playtech for -$5bn in its forecasts. The analyst's earnings (EBITA) estimates increase by 2% in FY22 and 17% in FY23.

The broker feels the transaction creates an opportunity to get to scale quickly in a market segment forecast to grow at a double digit rate over the next five years. The Add rating is unchanged and the target price falls to $52.50 from $52.90.

Target price is $52.50 Current Price is $47.10 Difference: $5.4
If ALL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $49.79, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Citi rates AMP as Neutral (3) -

It appears AMP still manages to surprise to the downside, with Citi analysts reporting Q3 cashflows were weaker than expected, albeit only marginally.

Bank loan growth proved a little above expectations and thus any changes made to forecasts remain small.

Citi is looking forward to investor day on November 30th. Neutral/High Risk rating and $1.25 target retained.

Target price is $1.25 Current Price is $1.17 Difference: $0.08
If AMP meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 1.1% (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 AMP as No Rating (-1) -

Flow and growth trends have remained weak through the third quarter for AMP, with Credit Suisse noting Australia Wealth Management outflows of -$1.4bn were slightly worse than the forecast -$1.3bn. 

AMP Capital also reported large outflows of -$12.0bn, while AMP Bank and New Zealand Management Wealth both reported minimal positive growth. Earnings per share estimates decrease 0-2% through to FY23.

Credit Suisse remains research restricted and cannot provide a rating or target for AMP.

Current Price is $1.17. Target price not assessed.

Current consensus price target is $1.17, suggesting upside of 1.1% (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 AMP as Neutral (3) -

The September quarter featured ongoing net outflows for AMP's wealth management and capital divisions, offset by above average bank loan and deposit growth.

The private markets demerger remains on track for the first half next year and an update will be provided at the Investor Day in late November.

The broker has returned from restriciion with a Neutral rating and $1.10 target, remaining cautious due to multiple headwinds and the risk of a new CEO rebasing earnings expectations.

Target price is $1.10 Current Price is $1.17 Difference: minus $0.07 (current price is over target).
If AMP 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 $1.17, suggesting upside of 1.1% (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) -

AMP's third quarter cash flows from the Australian Wealth Management and AMP Bank divisions were largely in line with Ord Minnett's expectations, although AMP Capital Investors fared worse than expected. 

The broker notes while AMP seems cheap, there is continuing uncertainty around impacts of the AMP Capital Investors demerger, and upside to the current price isn't guaranteed.

Hold rating and target price of $1.20 are both unchanged.

Target price is $1.20 Current Price is $1.17 Difference: $0.03
If AMP meets the Ord Minnett target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $1.17, suggesting upside of 1.1% (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 AND as Add (1) -

Ansarada Group's first quarter revenue was a slight beat versus Morgans, while cash costs were broadly in-line with expectations. It's thought the group is well placed for another period of growth in the second quarter. The Add rating and $1.93 target price are unchanged.

The analyst agrees with management on the strategic and financial worth of the TriLine acquisition, and notes other potential acquisitions may be a further share price catalyst.

Target price is $1.93 Current Price is $1.80 Difference: $0.13
If AND meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

In a preview of second half results due October 28, Morgan Stanley forecasts $3,114m for continuing cash profit (ex notable items), which is in-line with the consensus estimate of around $3,100m.

The analyst will be focusing upon margin management, the pathway to a $8bn cost base and the potential for further buybacks. Measures to address loss of market share in Australia are also believed to be key, given the country accounts for around 70% of group loans

Despite upgrading reported cash EPS estimates by circa 1.5%, the broker retains its Equal-weight rating and $28 target price. Industry view: In-Line.

Target price is $28.00 Current Price is $28.24 Difference: minus $0.24 (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 $29.60, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in September.

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

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

Bluescope Steel has increased first half earnings before tax guidance by $300m to $2.1-2.3bn, in a move that Credit Suisse notes was largely anticipated. 

The broker noted around $160m of the earnings increase was driven by US North Star spreads, reportedly US$570 per tonne compared to a modeled US$420 per tonne. Credit Suisse expects current trends to continue into 2022, with strong demand already predicted.

An additional $120m of the earnings increase was attributed by the broker to higher volumes and improved margins in Australian Steel.

The rating is upgraded to Outperform and the target price increases to $28.30 from $26.00.

Target price is $28.30 Current Price is $20.28 Difference: $8.02
If BSL meets the Credit Suisse target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $27.68, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates BSL as Neutral (3) -

BlueScope Steel has upgraded earnings guidance ahead of its AGM next month, thanks to strong hot-rolled coil prices and spreads and coated products prices in the US. Australia has seen increased volumes in higher-value home building products.

Steel prices have surprised the broker to the upside but there's already signs of easing. Neutral retained ahead of the AGM, target rises to $23.15 from $23.10.

Target price is $23.15 Current Price is $20.28 Difference: $2.87
If BSL meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $27.68, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Despite BlueScope Steel lifting first half guidance by 15%, Morgan Stanley believes outperformance is unlikely in an environment where second half prices are declining. The analyst feels pricing in Nth America has peaked.

Reasons for the guidance upgrade include strength in US HRC prices and spreads at North Star, and strong demand in Nth American coated products, explains the analyst. The broker maintains its Equal-weight rating and $23.50 target price. Industry View: In-Line.

Target price is $23.50 Current Price is $20.28 Difference: $3.22
If BSL meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $27.68, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates BSL as Buy (1) -

BlueScope Steel has upgraded its half-year guidance to $2.1-2.3bn but UBS already was positioned at $2.12bn. The analysts suggest North Star spreads and strong demand in Nth America Building products are key positive factors.

The broker agrees with forecasters elsewhere steel spreads are poised for normalisation, but UBS sees a number of reasons to retain its Buy rating for the stock (alongside an unchanged $28.50 price target).

Those reasons include the fact BlueScope Steel is forecast to have $5 per share net cash by FY23, while average selling prices are expected to remain high in Australia, plus the share price has not experienced the same upswing as have US peers.

Target price is $28.60 Current Price is $20.28 Difference: $8.32
If BSL meets the UBS target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $27.68, suggesting upside of 34.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates BUB as Buy (1) -

In the wake of global giant Nestle revealing it is reviewing its infant formula portfolio and distribution strategy in China, following persistent decline in sales, Citi analysts have grabbed the opportunity to reiterate their Buy/High Risk rating for Bubs Australia.

Citi's confidence is based upon improving momentum supported by the evolution of the corporate daigou channel, where the broker believes demand/supply is now closer to equilibrium.

Citi believes a continued focus on innovation should allow Bubs to expand into new markets/categories. Target price is now 58c.

Target price is $0.58 Current Price is $0.49 Difference: $0.09
If BUB meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

After a first quarter update by Camplify Holdings, Morgans increases its target price to $4.20 from $1.99 though reduces its rating to Hold from Add, due to the share price tripling since IPO.

The analyst highlights continued growth in Australia led by Queensland and WA, while the UK and Spain are showing promising early momentum post covid restrictions. There's considered a prodigious growth opportunity and the analyst likes the business model. 

Target price is $4.20 Current Price is $4.24 Difference: minus $0.04 (current price is over target).
If CHL meets the Morgans target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Macquarie rates CHN as Outperform (1) -

Chalice Mining's September quarter featured positive drilling results, suggesting strong potential for extension at depth, the broker notes. The company has sufficient funding for its busy drilling and study program and a maiden resource is expected before year-end.

Access to the state forest that will allow the large Hartog prospect to be drill-tested is expected in coming weeks. Outperform and $9.00 target retained.

Target price is $9.00 Current Price is $6.82 Difference: $2.18
If CHN meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

UBS rates CIM as Neutral (3) -

It turns out Cimic Group's Q3 market update missed the mark at UBS by some -3% though a 5% increase in work-in-hand to $35bn has been highlighted as a stand-out positive by the broker.

Company management has referred to the fact the next stage of the infrastructure cycle is ramping up, and this means many new infrastructure projects will be tendered and awarded.

On Cimic's numbers, some $450bn of projects is waiting to be awarded. UBS sees all this as underpinning its own forecasts.

Neutral maintained. Target is lifted to $22.50 from $21.10.

Target price is $22.50 Current Price is $21.88 Difference: $0.62
If CIM meets the UBS target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $25.37, suggesting upside of 18.1% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates CRN as Outperform (1) -

Coronado Global Resources has trimmed guidance and increased cost expectations following what Credit Suisse described as a soft September quarter.

Coal sales were a -6% miss on forecasts given lower production, leading to full year production being guided to the lower end of 18-19m tonnes. Looking ahead, expected increases in US domestic contract pricing could benefit earnings by as much as US$230m in 2022.

The Outperform rating is retained and the target price increases to $2.00 from $1.60.

Target price is $2.00 Current Price is $1.48 Difference: $0.52
If CRN meets the Credit Suisse target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 24.0% (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: 1.0

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

Macquarie rates CRN as Outperform (1) -

Coronado Resources' coal sales were soft in the September quarter but a pick-up is expected this quarter and 2021 guidance has been maintained. Realised prices increased 37% last quarter and this is expected to continue.

Buoyant prices continue to drive earnings and valuation upside, the broker notes, with current spot prices suggesting an 85% free cash flow yield.

Outperform and $2.00 target retained.

Target price is $2.00 Current Price is $1.48 Difference: $0.52
If CRN meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.74, suggesting upside of 24.0% (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: 1.0

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

Credit Suisse rates CWN as Neutral (3) -

Notable inclusions from Crown Resorts' trading update for Credit Suisse included floor activity being down -9% in Perth and digital revenue down -10%, while Melbourne anticipates reopening in early November assuming vaccination targets are met. 

The broker increases expected corporate costs by -$20m in FY22, in line with company guidance, on legal and consulting spend. 

The Neutral rating and target price of $9.80 are retained.

Target price is $9.80 Current Price is $9.47 Difference: $0.33
If CWN meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $11.73, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates CWN as Neutral (3) -

Earlier reopenings in the east and better trading in Perth in the first half have been offset by Crown Resorts' higher corporate costs. Macquarie does not envisage normal trading before FY23.

Then there's the matter of the Crown Melbourne Royal Commission, for which an outcome is imminent. This will set the precedent, the broker notes, for the Sydney and Perth licences.

The broker's $10.40 target, down from $11.00, assumes all casino licences are retained. Neutral maintained.

Target price is $10.40 Current Price is $9.47 Difference: $0.93
If CWN meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.73, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates CWN as Buy (1) -

Ord Minnett described Crown Resorts' Perth operations as delivering a mixed performance since reopening, following the company's trading update. While main floor gaming revenue was down -9% in the region, non-gaming revenue increased 34%. 

The broker reduces its estimated main floor gaming revenue decline to -12% from -14% for the first half, and non-gaming revenue growth increases to 8%, previously flat. The company has also indicated an increase in full-year corporate costs to -$130m.

The Buy rating and target price of $15.00 are retained.

Target price is $15.00 Current Price is $9.47 Difference: $5.53
If CWN meets the Ord Minnett target it will return approximately 58% (excluding dividends, fees and charges).

Current consensus price target is $11.73, suggesting upside of 21.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgans rates DMP as Hold (3) -

After Domino's Pizza Enterprises' European investor day, Morgans came away convinced the business has a long way to run. Management appears to be actively considering M&A as a means to compound its strong organic rollout trajectory.

Implying further growth potential, the analyst also points out the density of stores in Europe is a fraction of that in Australia. The Hold rating and $146 target price are unchanged.

Target price is $146.00 Current Price is $133.00 Difference: $13
If DMP meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $131.90, suggesting downside of -0.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

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

Morgan Stanley rates ELO as Overweight (1) -

While Morgan Stanley considers Elmo Software's first quarter update was strong, the broker's key concern is liquidity. It's thought a positive catalyst will be certainty regarding the path towards becoming free cash flow positive.

The analyst expects guidance will be achieved, especially should the company benefit from some post-lockdown trends. They are an accelerated uptake of system digitisation, cloud migration and remote working contingencies.

The Overweight rating and $7.80 target price are unchanged. Industry view: In-line.

Target price is $7.80 Current Price is $5.46 Difference: $2.34
If ELO meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates FLT as Hold (3) -

In the third capital raising since covid began, Flight centre Travel Group announced another $400m convertible note to repay debt and fund growth. Morgans notes shares are trading in-line with pre-covid on a fully diluted basis and retains its Hold rating.

The analyst feels the company is currently fairly priced. Given that many agents have left the industry, it's thought having enough staff to service re-opening demand may be a challenge. The target price rises to $19.50 from $18.60. 

Target price is $19.50 Current Price is $20.39 Difference: minus $0.89 (current price is over target).
If FLT meets the Morgans target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.21, suggesting downside of -10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Credit Suisse rates HLS as Outperform (1) -

Credit Suisse notes Healius has almost achieved first half earnings before tax in just the first quarter. The company reported earnings before tax of $201.9m, up 159% year-on-year, while consensus forecasts had the company earning $205m for the full half. 

The broker notes record covid testing rates coupled with more resilient base business during lockdowns were drivers of strong results. While current levels of testing will not last, it is Credit Suisse's view that the market underestimates a medium-term persistence.

Earnings per share estimates increase 39% for FY22 and 2% for FY23.

The Outperform rating and target price of $5.55 are retained.

Target price is $5.55 Current Price is $4.75 Difference: $0.8
If HLS meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Macquarie rates HLS as Outperform (1) -

The September quarter saw implied earnings run-rates for the first half ahead of Macquarie's forecast, driven by ongoing covid testing.

The broker expects testing numbers to ease going forward, but margin improvement will stem from Healius' sustainability improvement program.

With a strong balance sheet, and an attractive valuation, the broker retains Outperform. Target rises to $5.65 from $5.55.

Target price is $5.65 Current Price is $4.75 Difference: $0.9
If HLS meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.16, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

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

Following first quarter results for Healius, Morgan Stanley estimates that covid test revenue was around $244m versus the broker's estimate of $134m. This revenue already equates to the analyst's first half estimate and shows much higher margins for the covid tests.

Hence, there is upside risk to FY22 estimates though the broker assumes at least some diminishing of tests in the December quarter. The Equal-weight rating and $4.60 target price are retained. Industry view: In-Line.

Target price is $4.60 Current Price is $4.75 Difference: minus $0.15 (current price is over target).
If HLS 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 $5.16, suggesting upside of 4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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' September quarter performance looked stronger-than-expected, report Citi analysts, but they are worried about price momentum for both zircon and synthetic rutile with demand from China seen at risk.

Irrespective, the strong quarterly report has triggered (noticeable) upgrades to forecasts. Neutral with a target price of $10.00.

Target price is $10.00 Current Price is $9.68 Difference: $0.32
If ILU meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.48, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

Credit Suisse rates ILU as Neutral (3) -

Iluka Resources has reported solid production and sales in the September quarter, leading to Credit Suisse increasing earnings forecasts 19% in 2021 and 3-4% in the years following. 

While the company raised zircon prices in the quarter, noting fourth quarter pricing is fully committed, the broker is cautious about future pricing given downturns in China's housing construction. Credit Suisse notes this could be a major price driver for the rest of the year.

The Neutral rating is retained and the target price increases to $9.00 from $8.80.

Target price is $9.00 Current Price is $9.68 Difference: minus $0.68 (current price is over target).
If ILU meets the Credit Suisse target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.48, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates ILU as Outperform (1) -

Better than expected prices and sales volumes in the September quarter drove a beat on the broker's revenue forecasts for Iluka Resources. Volumes are expected to be similar in this quarter, with zircon sales fully committed.

The broker expects ongoing positive pricing momentum in zircon and rutile over the next 12-18 months as supply issues linger.

Outperform retained, target rises 2% to $10.80.

Target price is $10.80 Current Price is $9.68 Difference: $1.12
If ILU meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.48, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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 ILU as Equal-weight (3) -

Morgan Stanley considers the third quarter was good operationally for Iluka Resources, with improved pricing for zircon though prices declined for rutile. For the latter, management noted fourth quarter increases of US$175-200/t announced by all major producers.

While probably factored into the share price, the analyst likes the market fundamental for mineral sands. The Equal-weight rating and $8.40 target price are unchanged. Industry view: In-Line.

Target price is $8.40 Current Price is $9.68 Difference: minus $1.28 (current price is over target).
If ILU meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.48, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

Ord Minnett rates ILU as Hold (3) -

The September quarter production report from Iluka Resources revealed production and sales well ahead of Ord Minnett's forecasts. Following a mark-to-market review of commodity prices, the analyst makes minimal changes to earnings forecasts.

The broker retains its Hold rating and $9.20 target price. While the analyst likes the leading position in mineral sands and growing rare earths exposure, there are uncertainties surrounding both the project pipeline and the China property outlook.

Target price is $9.20 Current Price is $9.68 Difference: minus $0.48 (current price is over target).
If ILU 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 $9.48, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates MGR as Outperform (1) -

Mirvac's September quarter update has reaffirmed operating earnings guidance of at least 15.0cps. The broker is currently forecasting 15.3cps and consensus is at 15.8cps.

Residential pre-sales should continue to increase, the broker notes, as new apartments are launched, while $1bn worth of developments are progressing, providing earnings and valuation upside risk.

Outperform retained. Target falls to $3.14 from $3.28 to reflect residential headwinds from APRA tightening.

Target price is $3.14 Current Price is $2.97 Difference: $0.17
If MGR meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgan Stanley rates MGR as Overweight (1) -

Following a first quarter update from Mirvac Group, Morgan Stanley assesses residential as good, office development traction as impressive and Retail perhaps a little weak. The latter was due to inner city and CBD exposures.

Management maintained EPS/DPS guidance of at least 15cps and 10.2cps. Morgan Stanley's Overweight rating and $3.30 target price are maintained. Industry view: In-Line.

Target price is $3.30 Current Price is $2.97 Difference: $0.33
If MGR meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates MGR as Hold (3) -

Following Mirvac Group's September-quarter update, Ord Minnett retains its Hold rating and $2.90 target price. The analyst notes good progress was made on office and industrial developments, and management reiterated FY22 guidance.

While residential settlements and sales decelerated from the prior quarter, the first quarter of the financial year was still the second strongest quarter of sales in four years.

Target price is $2.90 Current Price is $2.97 Difference: minus $0.07 (current price is over target).
If MGR meets the Ord Minnett target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.12, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates MGX as Outperform (1) -

Advanced stripping continued in the September quarter and is expected to continue through this quarter, suppressing Mt Gibson Iron's sales and grades. Lower grade ore led to a weak realised price of US$29/t.

The broker expects weak pricing to continue to year-end before recovering in 2022, when buoyant iron ore pricing will drive earnings upside momentum.

Target falls to 80c from 90c, Outperform retained.

Target price is $0.80 Current Price is $0.45 Difference: $0.35
If MGX meets the Macquarie target it will return approximately 78% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Citi rates MP1 as Buy (1) -

Citi only initiated coverage on Megaport last month. The subsequent catch up with management has revealed that port sales have been negatively impacted in Q1 because of a change in sales commission and with a number of sales people setting other priorities.

Citi is not too fussed about it and adds momentum exiting Q1 is still positive. The analysts clearly hold a positive view on Megaport's future overall.

Supply chain issues have ramped up cash burn, while port churn has picked up as well. Target price remains $20 with a Buy rating.

Target price is $20.00 Current Price is $18.00 Difference: $2
If MP1 meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $17.68, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Ord Minnett rates MP1 as Sell (5) -

Megaport’s first quarter update was broadly in-line with Ord Minnett's expectations, and the broker retains its Sell rating and $15 target price.

Despite record monthly recurring revenue (MRR) over the quarter, the analyst points out sales momentum has normalised while costs appear to have ramped-up. The latter as part of Megaport’s investment in the indirect sales channel and Megaport Virtual Edge (MVE). 

Ord Minnett feels it may take time to deliver incremental growth, and in the short term operating deleverage may occur as a result of the above-mentioned investments.

Target price is $15.00 Current Price is $18.00 Difference: minus $3 (current price is over target).
If MP1 meets the Ord Minnett target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.68, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates MP1 as Buy (1) -

Megaport's market update missed UBS's forecast, but softer port sales were largely compensated for through stronger services. The broker does believe the company needs to demonstrate stable and consistent port sales.

UBS continues to like the longer-term growth story, but also finds that Megaport needs to improve on consistent growth in port sales to keep its growth profile in the market intact, and meet the broker's forecasts.

Buy rating retained with a target of $18 (was $20.45) on reduced estimates and, let us say, slightly increased conservatism.

Target price is $18.00 Current Price is $18.00 Difference: $0
If MP1 meets the UBS target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $17.68, suggesting upside of 1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates MQG as Overweight (1) -

After recently upgrading its target price for Macquarie Group on the basis of leverage to the green thematic, Morgan Stanley addresses the key investor pushback. This regards the opaque nature of earnings and difficulty of forecasting.

The analyst believes the group is deserving of a higher multiple based on rapidly-growing green revenues and the increase in green-related indices overseas. Moreover, there's thought to be large uncrystallised gains on the balance sheet relating to existing investments.

The broker retains its Overweight rating and $240 target price. Industry view in-line.

Target price is $240.00 Current Price is $197.84 Difference: $42.16
If MQG meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $187.82, suggesting downside of -5.6% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

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

Orora reiterated full year growth guidance at its AGM and announced a new $150m buyback.

First half earnings for Australian beverages are expected to decline due to the loss of Chinese wine sales. The company has done a good job of replacing that market, Macquarie notes, but the impact will take a while to flow though.

Solid demand and well managed costs should deliver growth in North America earnings.

The broker upgrades to Outperform from Hold on a forecast total shareholder return of 16% and a PE discount to market. Target unchanged at $3.60.

Target price is $3.60 Current Price is $3.23 Difference: $0.37
If ORA meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

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

After Orora's FY21 trading update, Morgan Stanley determines the business is tracking in-line with its expectations. The announcement of a $150m on-market buyback is also considered a positive.

Due to Chinese wine tariffs, first half Australasian earnings (EBIT) are expected to decline though should return to growth in the second half, assures the analyst. North American earnings are expected to grow in FY22.

Target price steady at $3.50. Equal-weight rating retained. Industry view: In-Line.

Target price is $3.50 Current Price is $3.23 Difference: $0.27
If ORA meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Morgans rates ORA as Hold (3) -

Morgans makes no changes to FY22 Australasia and North America earnings (EBIT) forecasts, in the wake of Orora's AGM, (other than an adjustment to the first and second half split for Australasia). The Hold rating is unchanged and the target price rises to $3.44 from $3.40.

Management announced an additional $150m on-market buyback, and reiterated guidance for higher group underlying earnings in FY22.

Target price is $3.44 Current Price is $3.23 Difference: $0.21
If ORA meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.46, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.1

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

Citi rates PPT as Neutral (3) -

At face value, Perpetual's Q1 market update was a positive one, but Citi analysts point out there was one big boost from one large mandate that had been filled quicker-than-expected.

Underlying, the analysts spotted sizeable outflows from both fixed income and US equities. The analysts do concede investment performance has been "strong" recently, but Citi is not sure whether we are witnessing a turning point in fund flows.

Target price lifts to $40.40 from $39.40. Neutral rating retained.

Target price is $40.40 Current Price is $40.38 Difference: $0.02
If PPT meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $41.41, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Credit Suisse rates PPT as Outperform (1) -

Credit Suisse reports Perpetual has seen improving flow and growth trends in all businesses in the first quarter, and the broker sees potential for positive trends to continue looking ahead. 

The broker notes positive results highlight that the company is now benefiting from global platform investments. Credit Suisse updates earnings per share forecasts by 4.5% through to FY24.

The Outperform rating is retained and the target price increased to $43.00 from $41.50.

Target price is $43.00 Current Price is $40.38 Difference: $2.62
If PPT meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $41.41, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgan Stanley rates PPT as Overweight (1) -

September quarter inflows of $0.1bn to Perpetual was a beat versus Morgan Stanley's -$1.3bn estimate, driven by global equities. Assets under management (AUM) were also ahead of the broker's forecast.

After an improved performance by most funds and a strong performance in Wealth and Corporate Trust, the broker retains its Overweight rating and $45 target price. Industry view: In-Line.

Target price is $45.00 Current Price is $40.38 Difference: $4.62
If PPT meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $41.41, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Morgans rates PPT as Add (1) -

After Perpetual's first quarter business update, Morgans upgrades FY22 and FY23 earnings by 2% and 4% on higher funds under management (FUM) forecasts. This was partially offset by increased expense growth guidance. The target rises to $45.07 from $42.92.

The analyst likes that Corporate Trust and Perpetual Private saw sequential funds under administration (FUA) growth of 5% and 9%. Asset under management (AUM) growth of 3% for Perpetual Asset Management was also considered a positive. The Add rating is unchanged.

Target price is $45.07 Current Price is $40.38 Difference: $4.69
If PPT meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $41.41, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Ord Minnett rates PPT as Hold (3) -

In a surprise to the market and a beat on Ord Minnett's expectations, Perpetual's funds under management were up 2.7% on the prior period, to total $101.1bn, following net outflows over recent quarters. 

Despite this, the broker does wait to see how near-term fund performance reflects change in flows outlooks. The company also upgraded FY22 cost growth guidance to 3-5%, largely on the Laminar Capital acquisition, as well as increasing one-off costs to -$42-47m for the year.

The Hold rating is retained and the target price increases to $40.00 from $37.00. 

Target price is $40.00 Current Price is $40.38 Difference: minus $0.38 (current price is over target).
If PPT meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.41, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Citi rates PRU as Neutral (3) -

Citi found Perseus Mining's September quarter update a rather "mediocre" outcome, with operational issues at both Sissingue and Edikan ensuring expectations weren't met.

The analysts do highlight, at the group level, both production and costs remain on track to meet half-year guidance.

Target at $1.80 and the Neutral rating remain intact. Forecasts have been slightly amended, also incorporating a slightly lower gold price forecast.

Target price is $1.80 Current Price is $1.67 Difference: $0.13
If PRU meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Credit Suisse rates PRU as Outperform (1) -

While Credit Suisse has noted a soft quarter for Perseus Mining, the company reported record quarterly production despite challenges at Edikan. Edikan's production of 32,000 ounces marked a -18% miss on forecast.

Edikan productivity was reportedly impacted by equipment availability, driving the result. Production of 65,000 ounces at Yaoure, which contributed 85% of group cash flow, provided offset.

Outperform maintained. Target is raised to $1.90 from $1.60.

Target price is $1.90 Current Price is $1.67 Difference: $0.23
If PRU meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates PRU as Outperform (1) -

Perseus Mining saw all mines missing Macquarie's production estimates in the September quarter, with Edikan a particular drag. Costs nonetheless proved resilient. Perseus expects Edikan's issues to be temporary and two mines were impacted by heavy rain.

Despite the setback, the ramp-up of Yaoure will lead to stronger production growth and lower costs, driving share price momentum, the broker suggests. Outperform and $1.80 target retained.

Target price is $1.80 Current Price is $1.67 Difference: $0.13
If PRU meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Morgans rates RIO as Hold (3) -

Five years in advance of prior plans, Rio Tinto is targeting a -50% reduction in Scope 1 & 2 emissions by 2030. In reaction, Morgans lowers its target price to $112 from $115, due to the additional capex required. The Hold rating is unchanged.

The analyst had anticipated an alternative strategy of pushing into new metals or material acquisitions, rather than rapid decarbonisation.

Target price is $112.00 Current Price is $96.79 Difference: $15.21
If RIO meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $115.29, suggesting upside of 21.1% (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: 0.4

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

UBS rates RIO as Sell (5) -

UBS goes straight to the core: Rio Tinto's increased focus on operational excellence, ESG credentials and rebuilding public trust after the disaster known as the Juukan Gorge debacle in essence amounts to lower returns for shareholders.

Management is accelerating the quest to lower the company's scope 1&2 emissions while pivoting the business as a whole more towards growth in energy transition commodities.

As a result, capex will be higher, now guided at -$9-10bn instead of -$8.5bn. UBS has cut its net present value by circa -10% which leads to an -8% drop in price target; to $79 from $86. Sell rating remains in place.

Target price is $79.00 Current Price is $96.79 Difference: minus $17.79 (current price is over target).
If RIO meets the UBS target it will return approximately minus 18% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $115.29, suggesting upside of 21.1% (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: 0.4

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

Macquarie rates RMS as Outperform (1) -

Ramelius Resources' two mines performed ahead of expectation in the September quarter and a stronger December quarter is expected, leading the broker to assume a beat on cost guidance.

The Edna stage 3 study and the potential acquisition of Apollo Consolidated ((AOP)) would change the broker's outlook, but in the latter case, Gold Road Resources ((GOR)) has gazumped Ramelius' offer and now holds a blocking stake.

Outperform and $1.90 target retained.

Target price is $1.90 Current Price is $1.53 Difference: $0.37
If RMS meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 28.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Ord Minnett rates RMS as Accumulate (2) -

While the first quarter result for Ramelius Resources came in as Ord Minnett expected, some exciting drill results from the Bartus East Prospect at Mt Magnet were released. FY22 guidance was unchanged.

The broker upgrades its FY22 forecast earnings by 5%, largely due to non-cash inventory movements, and lifts its target price to $1.65 from $1.45. The Accumulate rating is unchanged.

Target price is $1.65 Current Price is $1.53 Difference: $0.12
If RMS meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 28.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.9

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

Citi rates S32 as Buy (1) -

Following a broadly in-line September quarter production report, Citi analysts highlight South32 is currently in a commodity sweet spot. Current spot prices suggest a discounted cash flow (DCF) valuation of $5.20 whereas the broker's base case sits currently at $4.30.

Forecasts for FY22-24 rise by single digit percentages as Citi incorporates a higher contribution from the Mozal transaction, with higher cost expectations providing some negative offset.

Sierra Gorda is as yet not included in the numbers. Buy. Target $4.30.

Target price is $4.30 Current Price is $3.84 Difference: $0.46
If S32 meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Credit Suisse rates S32 as Outperform (1) -

South32 has reported a solid September quarter, with Credit Suisse noting the period was marked by high cash generation, with net cash up to US$254m, and increased working capital.

A downside to the quarter was South Africa's Industrial Development Corporation deciding to purchase a stake of the Mozal aluminum smelter, limiting South32's ability to acquire the full 25% stake available. The company will likely now purchase 16.6% for -US$166m. 

The broker's earnings estimates increase 19% in FY22, remain unchanged for FY23, but decrease -2% in FY23 given the smaller stake in Mozal. 

The Outperform rating and target price of $4.60 are retained.

Target price is $4.60 Current Price is $3.84 Difference: $0.76
If S32 meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Macquarie rates S32 as Outperform (1) -

South32's September quarter saw higher than forecast volumes in manganese, silver and alumina and lower volumes in met coal and nickel. Full year production and cost guidance remain unchanged.

The South Africans have triggered pre-emptive rights which cut South32's additional stake in the Mozal aluminium smelter in Mozambique to 16.6% from 25%.

Macquarie retains Outperform, preferring South32 in the space given exposure to well positioned commodities. Target falls to $4.90 from $5.00.

Target price is $4.90 Current Price is $3.84 Difference: $1.06
If S32 meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Morgans rates S32 as Hold (3) -

South32's first quarter operational result held few surprises for Morgans. The Hold rating is maintained and the target price increases to $3.77 from $3.74. Manganese ore operations in Australia (GEMCO) and South Africa (Mamatwan) were considered standouts.

Noting that Illawarra Metallurgical Coal's performance was mixed, the analyst sees an opportunity to divest these difficult coal operations in the currently supportive markets.

Target price is $3.77 Current Price is $3.84 Difference: minus $0.07 (current price is over target).
If S32 meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.35, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Ord Minnett rates S32 as Buy (1) -

South32 reported a solid September quarter, with Ord Minnett now including the 45% stake in the Sierra Gorda asset in its model under the assumption the deal will close on January 1.

This increases FY23 operating earnings by US$582m, and the broker notes the acquisition cost of -US$1.82bn is below the broker's net present value estimate of US$2.04bn, implying an accretive transaction.

The broker noted a record quarterly manganese ore production, and both alumina and aluminum production largely in line with forecast, although nickel was a -9% miss. 

The Buy rating is retained and the target price increases to $4.60 from $3.90.

Target price is $4.60 Current Price is $3.84 Difference: $0.76
If S32 meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

UBS rates S32 as Buy (1) -

South32 released a mixed production report, in the view of UBS analysts, but production guidance and operational performances continue to plan.

The analysts observe elevated met coal and aluminium prices continue to drive the company's cashflow. South32's net cash position has increased by US$254m in the quarter, bringing the balance to US$660m, the broker points out.

Buy rating retained. Target $4.10.

Target price is $4.10 Current Price is $3.84 Difference: $0.26
If S32 meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.35, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.9

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

Macquarie rates STO as No Rating (-1) -

Santos' September quarter was a little soft but the December quarter outlook is strong, Macquarie suggests. Santos enjoys sizeable spot LNG price exposure via Darwin LNG and gearing is likely to fall below 28% by year-end.

Production at Roma and Arcadia for GLNG continues to improve and Arcadia stage 2 is progressing. The broker is currently on research restriction.

Current Price is $7.20. Target price not assessed.

Current consensus price target is $8.07, suggesting upside of 14.8% (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: 0.7

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

Morgan Stanley rates STO as Overweight (1) -

Morgan Stanley assesses Santos has delivered steady third quarter production results. Realised LNG prices continue to improve due to  higher spot sales and GLNG has benefited from rising LNG production due to higher third-party gas.

The broker expects the company will outperform peers in 2022. The Overweight rating and target price of $8.60 are retained. Industry view: Attractive.

Target price is $8.60 Current Price is $7.20 Difference: $1.4
If STO meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $8.07, suggesting upside of 14.8% (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: 0.7

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

Morgans rates STO as Add (1) -

Third quarter production for Santos was roughly in-line with the estimate by Morgans, while sales revenue was a 5% beat on better-than-expected prices. The upstream performance of GLNG impressed and it's noted the first well is coming online at Bayu-Undan.

Management maintained sales guidance and narrowed production guidance to (the upper part of the range) 88-91mmboe from 87- 91mmboe. The broker maintains its Add rating and increases its target price to $8.85 from $8.75.

Target price is $8.85 Current Price is $7.20 Difference: $1.65
If STO meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.07, suggesting upside of 14.8% (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: 0.7

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

Ord Minnett rates STO as Buy (1) -

Ord Minnett has described a mixed quarterly result for Santos. While production exceeded expectations by 2%, revenue was largely in line. Both revenue and free cash flow benefited from higher commodity pricing.

Spot pricing on liquefied natural gas drove a 38% price increase on the previous quarter, and the broker notes this environment will help drive Santos to close FY21 with US$1.2bn in free cash.

Additionally, it was noted that the Oil Search ((OSH)) merger is on track for end-of-year completion.

The Buy rating is retained and the target price decreases to $8.00 from $8.05.

Target price is $8.00 Current Price is $7.20 Difference: $0.8
If STO meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $8.07, suggesting upside of 14.8% (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: 0.7

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

UBS rates STO as Buy (1) -

Santos' September quarter production report missed UBS's forecasts because of lower third party sales (Cooper basin). Lower realised prices also disappointed.

The broker does highlight the fact both costs and capex guidance have been pared back, further providing evidence of Santos's low cost operating model.

Estimates have gone up on reduced costs and Santos remains UBS's preferred stock in the energy sector. Buy. Price target moves to $8.55 from $8.65 as less drilling is forecast to weigh on prospects for 2022-23.

Target price is $8.55 Current Price is $7.20 Difference: $1.35
If STO meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $8.07, suggesting upside of 14.8% (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: 0.7

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

Credit Suisse rates TCL as Outperform (1) -

While Transurban reported first quarter traffic was down -12.4% year-on-year, Credit Suisse notes this result was better than expected. When compared to pre-covid levels, traffic was down -34.5% for the quarter.

Elsewhere, the remuneration report received 25.74% of votes against adoption, with shareholders concerned about short-term incentive payments in Credit Suisse's view.

The broker lifts underlying earnings forecasts 12.6% and dividends 18% for FY22, largely on an earlier-than-expected reopening of Sydney and Melbourne. 

The Outperform rating remains and the target price increases to $15.15 from $15.10.

Target price is $15.15 Current Price is $13.62 Difference: $1.53
If TCL meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.97, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates TCL as No Rating (-1) -

Transurban's traffic numbers were down -40-50% in the September quarter but that's in the past, with reopenings suggesting a rapid rebound. The broker anticipates normalisation in FY23 and dividend eclipsing FY19's peak.

The broker is currently under reesearch restriction.

Current Price is $13.62. Target price not assessed.

Current consensus price target is $14.97, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Following Transurban Group's September quarter traffic update, Morgan Stanley notes proportional average daily traffic was a -2% miss versus expectations The broker overestimated Melbourne traffic though notes truck numbers across Australia were favourable.

Management provided evidence that suggests to the analyst an encouraging recovery in early October. The Equal-weight rating and $14.28 target price are maintained. Industry View: Cautious.

Target price is $14.28 Current Price is $13.62 Difference: $0.66
If TCL meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $14.97, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Ord Minnett rates TCL as Buy (1) -

Transurban Group's September update has reported a -12% year-on-year decline in average daily traffic, but Ord Minnett notes given improving vaccination rates and reduced restrictions conditions are likely to improve significantly. 

Unsurprisingly, average daily traffic in Sydney and Melbourne was even lower, at -45.5% and -30.7% respectively, but Sydney already reported momentum across September and October as lockdown ended and a similarly quick recovery is expected in Melbourne.

The Buy rating is retained and the target price increases to $16.30 from $16.20.

Target price is $16.30 Current Price is $13.62 Difference: $2.68
If TCL meets the Ord Minnett target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $14.97, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Citi rates WES as Sell (5) -

Citi analysts could not spot any difference between Wesfarmers' AGM update and commentary delivered with the release of FY21 financials.

The analysts remain of the view that positive momentum at Bunnings is well and truly in the share price. Sell rating retained, alongside a target price of $49.

Target price is $49.00 Current Price is $55.55 Difference: minus $6.55 (current price is over target).
If WES meets the Citi target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $56.75, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Macquarie rates WES as Neutral (3) -

Macquarie has made no forecast changes folloiwng Wesfarmers' AGM, which noted sales improving for Bunnings, Officeworks and Catch but with Kmart and Target impacted by store closures.

The broker considers the business is well positioned ahead of Christmas. Margin pressures from supply chain issues, wage inflation and input cost inflation will weigh on the apparel businesses, but the broker has taken these into account.

Neutral and $61.35 target retained.

Target price is $61.35 Current Price is $55.55 Difference: $5.8
If WES meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $56.75, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

UBS rates WES as Neutral (3) -

Taking a broad view, UBS analysts conclude from Wesfarmers' AGM update that strong sales growth was achieved in areas that have started to re-open, also helped by strong brands such as Bunnings and Officeworks.

In addition, the analysts note the company's retail brands have managed disruptions in global supply chains to be well positioned with inventory for the upcoming Christmas trading period.

Neutral and $62 target retained.

Target price is $62.00 Current Price is $55.55 Difference: $6.45
If WES meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $56.75, suggesting downside of -1.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

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

Citi rates WPL as Neutral (3) -

Woodside Petroleum is not making it any easier for the hardcore fans out there with the Q3 production report once again disappointing.

Citi analysts point out production itself was in-line, including with market consensus, but third party sales volumes masked weakness in the company's own performance.

Citi has cut 2021 forecast by -8%. There was also a downgrade to Wheatstone reserves which has the broker reducing the project value by -75c per share.

Target price declines by -4% to $22.59. Neutral rating retained.

Target price is $22.59 Current Price is $23.95 Difference: minus $1.36 (current price is over target).
If WPL 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 $26.37, suggesting upside of 13.3% (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: 0.6

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

Credit Suisse rates WPL as Outperform (1) -

Credit Suisse notes Woodside Petroleum is positioned to benefit from elevated spot LNG pricing heading into winter, but that the company is also leveraged to a tight LNG market beyond the upcoming season. The broker upgrades both near and long-term uncontracted prices.

Elsewhere, the Scarborough selldowns continue to progress, while Phase 2 to restore 2P reserves at Wheatstone does not present a near-term production risk but does shorten project life by a few years.

The Outperform rating is retained and the target price increases to $28.32 from $27.65.

Target price is $28.32 Current Price is $23.95 Difference: $4.37
If WPL meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $26.37, suggesting upside of 13.3% (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: 0.6

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

Macquarie rates WPL as Neutral (3) -

Woodside Petroleum's September quarter production was in line with forecasts albeit revenues were weaker than expected due to a combination of lower LNG pricing and less trading, suggesting a skew to the December quarter.

Wheatstone's reserves have been reduced by -27% following drilling, which represents 6% of Woodside's total or 3% when Scarborough comes on line. While this downgrade was a surprise, the broker still expects the merger with BHP Petroleum to be transformational.

Target falls to $25.90 from $27.15, Neutral retained.

Target price is $25.90 Current Price is $23.95 Difference: $1.95
If WPL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $26.37, suggesting upside of 13.3% (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: 0.6

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

Morgan Stanley rates WPL as No Rating (-1) -

Woodside Petroleum's third quarter production revealed revenue lower than Morgan Stanley's expectations. It's noted that forecasting Woodside's LNG revenue is problematic, given it includes a significant trading portion.

The company announced an around -30% downgrade to its share of 2P reserves for the Wheatstone asset. Morgan Stanley is restricted on providing a rating and a target price estimate.

Current Price is $23.95. Target price not assessed.

Current consensus price target is $26.37, suggesting upside of 13.3% (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: 0.6

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

Morgans rates WPL as Add (1) -

Morgans assesses a key lowlight from Woodside Petroleum's third quarter was the large downgrade to reserves at the Wheatstone project, (11% of the overall company valuation). The fall in developed 2P likely brings forward capex spend and shortens the project life. 

While the overall third quarter results were mixed, they were close to the analyst's estimates. The broker reduces its target price to $29.65 from $30.90 and maintains its Add rating.

Target price is $29.65 Current Price is $23.95 Difference: $5.7
If WPL meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $26.37, suggesting upside of 13.3% (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: 0.6

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

Ord Minnett rates WPL as No Rating (-1) -

Woodside Petroleum reported attributable production of 22m barrels of oil equivalent (mmboe) for the September quarter, a - 4% miss versus Ord Minnett's estimate. The broker lowers its Net present value forecast after a -27% fall in the Wheatstone project's 2P reserves.

More positively, the analyst points out the sale process for Pluto Train 2 and Scarborough is proceeding well. 

Ord Minnett is research restricted on Woodside Petroleum and is unable to provide a recommendation or target price.

Current Price is $23.95. Target price not assessed.

Current consensus price target is $26.37, suggesting upside of 13.3% (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: 0.6

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

UBS rates WPL as Buy (1) -

Woodside Petroleum released a "soft" quarterly production update, comments UBS, with a -23% hit to total 2P reserves at Wheatstone the negative stand-out.

The broker points out the risk is Wheatstone could require accelerated development capex to help maintain current production rates.

All-in-all, UBS has cut its valuation by -4.5% to generate a new price target of $25.40 (down from $26.60). Buy rating retained.

Target price is $25.40 Current Price is $23.95 Difference: $1.45
If WPL meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $26.37, suggesting upside of 13.3% (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: 0.6

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