Australian Broker Call

Macquarie rates AIZ as Outperform (1) -

Macquarie observes the December metrics for Air New Zealand, which show a "solid" end to 2024.

The broker notes revenue per available seat kilometre rose to 0.7% from -0.5% in November due to limitations on capacity, which is still below pre-covid levels by -17%, the broker notes.

Load factors rose by 2.6 percentage points to 83.9% due to improvements in long haul, while short haul remained challenging.

The broker believes Air New Zealand will report at the upper end of 1H25 guidance and has increased EPS estimates by 4.7% and 3.1% for FY25/FY26, respectively.

Target price revised to NZ80c from NZ79c. Outperform rating unchanged.

Current Price is $0.56. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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 AMC as Outperform (1) -

Macquarie points to Amcor's 1H25 earnings and net profit after tax coming in slightly below expectations by -0.7%, with management retaining FY25 EPS guidance.

The broker highlights pleasing momentum in underlying volumes and growth in both flexible and rigid packaging, with destocking in healthcare largely in the rear-view mirror.

On the negative side, costs were up as the company seeks volume growth while the consumer remains challenged.

Macquarie observes Amcor does not envisage many tariff impacts, and management is becoming more upbeat on the strategic merits of the Berry acquisition.

Target price rises to $18.20 from $18. Outperform rating retained. Earnings forecasts are tweaked by the analyst.

Target price is $18.20 Current Price is $16.17 Difference: $2.03
If AMC meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $16.88, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Morgans rates AMC as Hold (3) -

Morgans notes on a constant currency basis, Amcor announced 1H25 results that met expectations, and management reconfirmed FY25 guidance.

The broker highlights ongoing advances in volumes with higher earnings before interest and tax margins for both flexibles and rigid packaging, with cost-outs and restructuring assisting the results.

De-stocking in healthcare remained a negative aspect for the company, although it is believed to be in its final stages.

Management pointed to the Berry Global acquisition as "on track," Morgans observes, with the shareholder meeting due on February 25.

No change to Hold rating. Target price lifts to $16.45 from $15.75. The broker believes the magnitude of the Berry acquisition will keep the share price in a range.

Target price is $16.45 Current Price is $16.17 Difference: $0.28
If AMC meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $16.88, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Ord Minnett rates AMC as Hold (3) -

Ord Minnett points to lower interest and tax expenses, as well as a decline in depreciation/amortisation charges, as contributing to Amcor's 1H25 earnings report, which met market expectations. The broker notes same currency sales slipped -1% over the period.

Management reconfirmed FY25 guidance, and the analyst observes the company views the result as a "solid outcome."

Ord Minnett's EPS forecasts slip by -0.4% in FY25 and rise by 7% for FY26/FY27. Target price is tweaked lower to $15.25 from $15.50. No change to Hold rating.

Ord Minnett believes Amcor has robust management and is operationally strong, but remains cautious on the US packaging sector as growth remains challenging.

Target price is $15.25 Current Price is $16.17 Difference: minus $0.92 (current price is over target).
If AMC meets the Ord Minnett target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.88, suggesting upside of 5.3% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

UBS rates AMC as Neutral (3) -

In line with forecasts by UBS and consensus, management at Amcor revealed 1H EPS growth of 3%, supported by cost control and volume growth. Management reiterated its FY25 EPS guidance.

The broker observes ongoing softness in North America Beverages in Q2, and destocking in the Health Care segment, which is "largely behind us", according to management.

The Neutral rating is retained. The target is raised to $16.90 from $16.65 reflecting the broker's higher assumed multiple and the recent Australian dollar decline.

Target price is $16.90 Current Price is $16.17 Difference: $0.73
If AMC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $16.88, suggesting upside of 5.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Ord Minnett rates ARB as Buy (1) -

Ord Minnett notes the ongoing decline in new vehicle sales in January by -3.3% post a record 2024, although sales have been in a declining trend for the last six months from 2023, the analyst states.

Passenger vehicle sales fell -22.2%, with light commercial vehicles down -10%, heavy commercial down -3.2%, and SUVs bucking the trend, up 5.9%.

Regarding the impact on ARB Corp, the analyst explains the company's key vehicle sales fell -6.6%. Ord Minnett believes ongoing weakness in sales should be somewhat offset by the robust order book and acquisition of Mits Alloy.

No change to the Buy rating and $47.15 target price.

Target price is $47.15 Current Price is $36.87 Difference: $10.28
If ARB meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $43.07, suggesting upside of 16.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates BBT as Buy (1) -

Ord Minnett observes BlueBet Holdings has announced an agreement to acquire ToySport's assets for -$10m, with deferred earn-out payments of -$5m.

The analyst anticipates the migration of new customers onto BlueBet's platform to commence as soon as April, resulting in a rise in management's EOS guidance of 30% for FY26/FY27.

The company has also undertaken a $15m institutional placement of 44.1m shares at a 3% premium, or 34c, to the previous close.

Buy rating retained. Target price rises to 46c from 38c. Ord Minnett lifts EPS forecasts by around 40% in FY26 and 36% in FY27.

Target price is $0.46 Current Price is $0.40 Difference: $0.065
If BBT meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates BPT as Sell (5) -

Citi notes Beach Energy's 1H25 net profit after tax met consensus expectations but opex for the field was higher than anticipated.

The broker notes operating cash flow of $659m came in well above consensus at $540m and the analyst's forecast of $571m largely due to lower working capital.

Notably, the dividend of 3c fell short of the 4c consensus forecast and Citi suggests the board is either retaining cash for possible M&A or waiting on Waitsia's progress for an improvement in outlook.

Management narrowed production guidance for FY25 to 18.5-20.5mmboe from 17.1-21.5mmboe due to better certainty on Waitsia, the broker explains.

Citi retains Sell rating and $1.30 as the analyst believes it is hard for investors to ascertain with some certainty what they are buying due to question marks on reserves, and Waitsia.

Target price is $1.30 Current Price is $1.52 Difference: minus $0.215 (current price is over target).
If BPT meets the Citi target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.57, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Shaw and Partners rates BTR as Buy, High Risk (1) -

Gold exploration and development company Brightstar Resources has received the final assay results from the Lord Byron deposit 
at the Jasper Hills Gold Project.

Shaw and Partners observes the results delineate consistent high-grade shoots, highlighting potential for larger conceptual open pit designs as well as underground mining scenarios.

The Buy, High Risk rating and 4c target are maintained.

Target price is $0.04 Current Price is $0.02 Difference: $0.02
If BTR meets the Shaw and Partners target it will return approximately 100% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates BWP as Upgrade to Neutral from Sell (3) -

Maintaining its $3.40 target, Citi upgrades BWP Trust to Neutral from Sell after assessing fair value for the REIT, following further analysis of 1H results.

The broker describes a stable growing business, supported by a strong underlying tenant covenant with Bunnings warehouses.

A summary of yesterday's research by Citi follows.

Citi's initial take on  today's 1H results for BWP Trust is to suggest finance costs and cap rates are turning around. Weighted average cost of debt of 4.4% also turned down, supported by a 98.7% occupancy rate, explain the analysts.

The interim dividend of 9.20cps matched forecasts by the broker and consensus.

Citi highlights the net tangible asset (NTA) metric of $3.92 places the stock on a share price discount to NTA of around -6%, with an improving cap rate of 5.43%.

Target price is $3.40 Current Price is $3.45 Difference: minus $0.05 (current price is over target).
If BWP meets the Citi 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 FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

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

Morgan Stanley is pleased by BWP Trust's 1H result given the distribution was covered by earnings for the first time in several years and the reduced number of lease expries yet to be extended in FY26.

The analysts point out a key market concern has been 40% of the REIT's leases will expire over FY26 and FY27.

Profit for the half met the broker's forecast and management reiterated FY25 guidance.

Target $3.90. Equal-weight. Industry View: In-Line.

Target price is $3.90 Current Price is $3.45 Difference: $0.45
If BWP meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Bell Potter rates COF as Hold (3) -

Centuria Office REIT reiterated FY25 guidance, though the -17.1% year-on-year decline in first-half funds from operations (FFO) missed Bell Potter and consensus forecasts for declines of -7.7% and -5.5%.

The miss was largely attributed to the divestment of high-yielding assets in the prior period and increasing portfolio vacancy, explain the analysts.

Bell Potter believes the asset devaluation cycle is nearing a nadir, supported by improving office transaction volumes in the first half and 37% of Centuria’s portfolio valuations either increasing or stabilising over the period.

The broker maintains a Hold rating, with the target easing to $1.20 from $1.25.

Target price is $1.20 Current Price is $1.14 Difference: $0.06
If COF meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Morgan Stanley rates COF as Underweight (5) -

Centuria Office REIT's 1H funds from operations (FFO) of $34.7m slightly missed Morgan Stanley's $35.8m forecast (consensus $36.6m), but management maintained FY25 guidance.

Portfolio occupancy was steady at 92.2% versus 92.5% as June 30, 2024.

Management stated it may "take some time" for industry tailwinds to translate to material earnings growth, though also noted the deep value its portfolio offers investors.

Replacement cost of assets at around $15k/sqm compares to book value at $7k/sqm, highlighted management.

Underweight rating for Centuria Office REIT. Target price $1.23. Industry view: In-Line. 

Target price is $1.23 Current Price is $1.14 Difference: $0.09
If COF meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $1.23, suggesting upside of 7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.3

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

Bell Potter rates COI as Speculative Buy (1) -

Bell Potter observes Comet Ridge and Santos have advanced the Mahalo joint venture into the front-end engineering design (FEED) phase, targeting a final investment decision (FID) by early 2026.

The recent quarterly activities and cash flow report revealed a cash balance of $19.3m, up from $11.4m in the prior quarter.

Funds received a $12m boost from an equity placement and $4m in grant funding from the Queensland government, applied to Mahalo East pilot drilling, explains the broker.

The broker's target price falls to 21c from 26c after incorporating the equity placement. Speculative Buy rating unchanged.

Target price is $0.21 Current Price is $0.14 Difference: $0.075
If COI meets the Bell Potter target it will return approximately 56% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

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

Morgan Stanley sees upside risk to Computershare's FY25 EPS guidance due to higher US interest rates and better margin balances, more than offsetting an around -3% headwind from a stronger US dollar.

The broker explains rising equity markets support staff share plans, while margin balances have been benefitting from stronger debt capital market (DCM) volumes.

Target rises to $31.10 from $27.70. Equal-weight. Industry view is In-Line.

Target price is $31.10 Current Price is $34.80 Difference: minus $3.7 (current price is over target).
If CPU meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.49, suggesting downside of -4.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 CWY as Overweight (1) -

In a preliminary assessment, Morgan Stanley anticipates a negative earnings impact of less than -2% after Cleanaway Waste Management advised of the closure of its liquid waste processing facility at St Marys, NSW, owing to a fire.

The analysts do not see any evidence of a systemic problem pertaining to the large number of similar processing sites within the company's Liquid Waste & Health division.

First half results are due on February 19.

Target $3.23. Overweight. Industry view: Cautious.

Target price is $3.23 Current Price is $2.70 Difference: $0.53
If CWY meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgan Stanley rates GDG as Overweight (1) -

Should government legislation be passed today by the Senate to increase the tax rate on superannuation, Morgan Stanley anticipates a step-change in growth for Investment Bonds over the medium-term.

Such an outcome would drive material upside earnings risk for Generation Development, in the analysts' view, as Investment Bonds will become more tax efficient than superannuation for balances greater than $3m.

Generation Development has been winning more than 50% of industry inflows for Investment Bonds, points out the broker.

Overweight. Target price $4.90. Industry View: In-Line. The stock is seen as offering an attractive risk/reward profile.

Target price is $4.90 Current Price is $4.37 Difference: $0.53
If GDG meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $4.72, suggesting upside of 1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Macquarie rates ILU as Outperform (1) -

Macquarie expects zircon prices to remain strong due to ongoing demand from high-performance materials and ceramic manufacturing, the analyst explains.

Australia has over 70% of the global zircon market, with Iluka Resources as a notable producer with a market share of circa 27% in 2023.

Following some softening in the zircon price in 2024 due to oversupply, the broker anticipates a rebalancing of the market in 2028 and a deficit in 2029 as supply growth exceeds demand.

Macquarie believes prices peaked in 2023 and could "moderate" over 2025-2028 but remain above US$1,730/t in the medium term.

Macquarie cuts EPS estimates for Iluka Resources by -3% in 2025 and less than -1% for 2026 and beyond.

Outperform rated. Target $6.80 unchanged.

Target price is $6.80 Current Price is $4.53 Difference: $2.27
If ILU meets the Macquarie target it will return approximately 50% (excluding dividends, fees and charges).

Current consensus price target is $5.95, suggesting upside of 29.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

UBS rates NWS as Buy (1) -

UBS' first take on News Corp's 1H25 earnings report suggests the headline result was better than consensus, although the analyst stresses the market's expectations were "messy."

Excluding Foxtel, earnings lifted 11% above consensus forecasts, with a better result from book publishing, digital real estate, and news media, the broker observes.

The divestment of Foxtel led to a reduction in net debt to US$215m from US$1.1bn.

UBS stays Buy rated, emphasising the 25% increase in free cash flow as supportive of the rating. Target price $64.50.

Target price is $64.50 Current Price is $53.21 Difference: $11.29
If NWS meets the UBS target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $54.50, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.8

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

Macquarie rates PMT as Outperform (1) -

After a period of restriction, Macquarie resumes coverage of Patriot Battery Metals with an Outperform rating and a 56c target price.

The broker notes Volkswagen has made a CA$68m strategic investment in the company, with funds to be deployed into exploration, development, and feasibility studies.

In return, Volkswagen will be eligible for a 100ktpa, ten-year offtake agreement for its subsidiary PowerCo, including a five-year extension option, the analyst notes.

Outperform. Target 56c. EPS forecasts are adjusted for the placement and equity dilution.

Target price is $0.56 Current Price is $0.33 Difference: $0.23
If PMT meets the Macquarie target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $0.77, suggesting upside of 127.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 1.0

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

Morgans rates PNI as Add (1) -

Pinnacle Investment Management reported 1H24 net profit after tax of $75.7m, a rise of 150% year-on-year, with affiliate earnings lifting 100% and excluding performance fees up 52%, Morgans notes.

Funds under management ended at $155.4bn, a rise of 41% for the period and up 16% ex-acquisition.

The broker highlights Pinnacle has "embedded" earnings drivers for FY26/FY27, including earnings from recent acquisitions, performance fees from Five V, and a scale-up of offerings from Lifecycle.

The company retains net capital of $340m, with $210m available for acquisitions, the analyst notes.

No change to Add rating, and target price lifts to $27.50 from $27.25. Morgans lifts EPS forecasts by 10% for FY25 and 5% for FY26.

Morgans believes the stock's valuation leaves it open to volatility in the markets, but the analyst remains upbeat on the longer-term outlook for the company.

Target price is $27.50 Current Price is $26.04 Difference: $1.46
If PNI meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $27.02, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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 states Pinnacle Investment Management reported a "flawless" 1H25 earnings report with better-than-expected performance across earnings, fees, net flows, and funds under management.

Net profit after tax advanced 151% year-on-year and came in around 20% over consensus estimates, the broker notes, with affiliate profit up 99% on the previous year.

The analyst lifts EPS estimates by 3% to 14% over the next three years, and the target price rises to $28 from $26.

Ord Minnett is upbeat on growth prospects from the recent UK acquisition of Lifecycle and stresses the company retains $210m of cash for further acquisitions.

Buy rating retained.

Target price is $28.00 Current Price is $26.04 Difference: $1.96
If PNI meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $27.02, suggesting upside of 4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Bell Potter rates PTM as Upgrade to Hold from Sell (3) -

Bell Potter raises its target for Platinum Asset Management to 70c from 59c and upgrades to Hold from Sell after adjustments to the analysts' financial model results in higher forecast earnings.

The broker is not getting too excited, noting revenue is still falling and new growth initiatives are yet to deliver.

Target price is $0.70 Current Price is $0.67 Difference: $0.03
If PTM meets the Bell Potter target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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

Citi rates REA as Buy (1) -

Citi's first inspection of REA Group's 1H25 report finds the result came in slightly higher than consensus, exceeding expectations by 2%, with earnings up 22% year-on-year.

Australia remained robust, with sellers continuing to grow, rising 88% in 1H25, up from 80% in 1H24. The number of properties tracked also advanced by 29% to 4.2m, an indicator for monetising future leads, the analyst details.

Geographic mix offered a headwind, with buy/yield growth weakening in 2Q25 and opex rising unexpectedly by 18% year-on-year from increased revenue costs.

Citi also points to India's core housing business coming under pressure. The broker believes the CEO's retirement announcement suggests another bid for UK's Rightmove at the end of the six-month restriction period in late March is now less likely.

Target $230. Buy. Limited earnings forecast changes are anticipated, the analyst states.

Target price is $230.00 Current Price is $251.85 Difference: minus $21.85 (current price is over target).
If REA meets the Citi target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $246.57, suggesting downside of -4.3% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

UBS rates REA as Buy (1) -

At first glance, UBS notes REA Group reported another robust 1H25 result, with earnings advancing 22% and EPS above consensus by 4%.

The analyst highlights the outlook for 2H25 is slightly lower than anticipated, and the CEO has announced his retirement, both factors expected to impact the share price.

Costs are flagged as rising for FY25, with UBS pointing to every 1% increase equating to a $6.5m rise in costs.

The outlook is softer against previous reports, with higher capex and less of a reduction in Indian associates differentiating this report from earlier, the analyst explains.

Buy rated. Target $268.

Target price is $268.00 Current Price is $251.85 Difference: $16.15
If REA meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $246.57, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Macquarie rates RHC as Neutral (3) -

Macquarie's analysis of Australian private hospital (APRA) data infers Ramsay Health Care is expanding below the industry average.

The analyst estimates the industry will advance by around 7.6% in FY25, compared to Ramsay generating domestic hospitals revenue of circa 5.4%, with expectations the company will return to industry levels in FY26.

At the upcoming 1H25 earnings report on February 27, the broker will focus on cost inflation, private health insurance increases, EU/UK tariff updates, operating trends, and digital and data developments.

Macquarie lowers EPS forecasts by -2% and -1% for FY25/FY26.

Target price falls to $35.90 from $42.75 due to changes in discounted cash flow assumptions and earnings estimate changes.

Neutral rated.

Target price is $35.90 Current Price is $33.67 Difference: $2.23
If RHC meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $41.84, suggesting upside of 24.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

UBS rates WES as Upgrade to Neutral from Sell (3) -

UBS raises its target for Wesfarmers to $76 from $69 and upgrades to Neutral from Sell due to the broker's higher earnings (EBT) forecasts for Bunnings.

Bunnings is the key share price driver for Wesfarmers, highlights the analyst, accounting for 56% of pre-tax earnings in FY24.

Management commentary at FY24 results left the market concerned around growth at Bunnings, but the broker is now confident Bunnings' sales growth can accelerate and return on capital (ROC) can expand.

Target price is $76.00 Current Price is $74.70 Difference: $1.3
If WES meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $66.83, suggesting downside of -13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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