Australian Broker Call

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

AGL Energy has committed to a complete exit from coal by 2035, ten years ahead of its previous target. 

Credit Suisse reports a -$20bn investment in 6.5 gigawatts of renewables and 5.5 gigawatts of storage investment by 2035 will replace around 7 gigawatts of coal capacity and 60% of energy operations.

The broker estimates AGL Energy will require -$400m annually through to 2030 to sustain announced projects, equating to a -$200m increase of growth capital expenditure in the next year. 

Credit Suisse expects free cash flow to remain strong, and updates its net profit assumption -6.5% and 11.0% in FY23 and FY24.

The rating is upgraded to Outperform and the target price of $8.20 is retained.

Target price is $8.20 Current Price is $6.60 Difference: $1.6
If AGL meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $8.53, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Macquarie rates AGL as No Rating (-1) -

AGL Energy's coal exit includes an earlier closure of its Loy Yang A, brought forward to 2035 from 2045. Macquarie highlights the earlier closure results in a -$0.7bn net profit loss, but sees potential that the closure could come even sooner if the transition picks up pace.

The company has set a target of 3.3 gigawatts renewable and 1.7 gigawatts firming by 2030, and 6.5 renewable and 5.5 firming by 2036. The broker expects 2030 targets can be comfortably funded from cash flow. 

Macquarie lifts its earnings forecast 15% for FY23, anticipating AGL Energy to benefit from high electricity prices in coming months. The broker remains on research restriction.

Current Price is $6.60. Target price not assessed.

Current consensus price target is $8.53, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

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

While FY23 guidance by AGL Energy was subdued, Morgan Stanley notes it was within expectations.

The company intends to exit coal generation by the end of FY35 and the broker views the 12-year replacement plan positively.

The plan involves -$20bn of capex (the company's share will be lower) compared to the -$5bn spent over the last 20 years.

Industry view is Cautious. Stock-specific view: Equal-weight. Target $8.01.

Target price is $8.01 Current Price is $6.60 Difference: $1.41
If AGL meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $8.53, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Morgans rates AGL as Add (1) -

Morgans feels it is a sound decision by AGL Energy to bring forward the closure of Loy Yang A by -10 years to 2035, given inflexible brown coal plants will struggle as more variable renewables enter the grid.

Management also raised FY23 earnings guidance and the broker raises its earnings (EBITDA) forecasts for FY24 onwards due to the continued strength of electricity futures prices.

The analyst expects these strong futures prices will drive higher customer pricing and gross margins for an extended period. The Add rating is unchanged, while the target rises to $8.81 from $8.63. 

Target price is $8.81 Current Price is $6.60 Difference: $2.21
If AGL meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $8.53, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Ord Minnett rates AGL as Buy (1) -

A strategy update from AGL Energy has focused on changes to long-dated generation plans, with the company bringing forward closure of its Victoria Loy Yang A plant to 2035 and committing -$20bn in new generation investment to replace it.

Given the long-dated nature of these plans Ord Minnett expects they are at risk of change, but notes commitments to building capacity are more immediate and should be able to be funded internally until at least 2030. 

The Buy rating is retained and the target price decreases to $9.50 from $10.00.

Target price is $9.50 Current Price is $6.60 Difference: $2.9
If AGL meets the Ord Minnett target it will return approximately 44% (excluding dividends, fees and charges).

Current consensus price target is $8.53, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

UBS rates AGL as Neutral (3) -

UBS modelling shows a credible path for attractive returns from an investment in batteries. Thus, the broker supports AGL Energy's planned investment in this area, as part of a completed strategic review.

The company will also bring forward the already planned retirement of the Loy Yang A coal-fired power station by -10 years.

The broker retains its Neutral rating given uncertainty around future capital structures and key executive roles. The $8.15 target is also unchanged.

Target price is $8.15 Current Price is $6.60 Difference: $1.55
If AGL meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $8.53, suggesting upside of 24.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Credit Suisse rates APM as Outperform (1) -

APM Human Services International will acquire US employment services provider Equus for -$225m, with completion expected by the end of the year. According to Credit Suisse the purchase will provide exposure to an additional 18 US states. 

Equus services 850,000 US individuals, with its employment services operations generating 75% of revenue. APM Human Services International does not expect any significant cost synergies but does see medium-term opportunity in expanding into disability employment services.

Credit Suisse expects the purchase to be 7% accretive to net profit in FY24. The Outperform rating is retained and the target price increases to $4.30 from $4.25.

Target price is $4.30 Current Price is $3.21 Difference: $1.09
If APM meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

UBS rates APM as Buy (1) -

UBS raises its FY23-26 EPS forecasts by 2-6% for APM Human Services International following the announced acquisition of Equus Workforce Solutions and certain affiliates.

After allowing for the transaction and higher interest rates the broker's target rises to $3.95 from $3.85. Buy.

Equus is a provider of employment services in the US, which accounts for 75% of revenue, and also provides additional services in the US and Canada.

The deal is 100% debt funded and management estimates 7% EPS accretion on FY22 (pro forma).

Target price is $3.95 Current Price is $3.21 Difference: $0.74
If APM meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates BBT as Buy (1) -

BlueBet Holdings has recently launched its ClutchBet operations in Iowa, with entry marking the first of four states that will comprise the company's first phase launch in the US. 

Ord Minnett finds the product to have a comprehensive sports offering across al major sports, plus a broad global offering.

The broker expects BlueBet Holdings to maintain a localised marketing effort to refine and differentiate its product, with ClutchBet's Iowa partner, Q Casino, rebranding its sports bar as the ClutchBet Lounge. 

The Buy rating and target price of $0.80 are retained.

Target price is $0.80 Current Price is $0.47 Difference: $0.33
If BBT meets the Ord Minnett target it will return approximately 70% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates BPT as Underperform (5) -

Following a -21% share price fall in Beach Energy, Macquarie sees the stock as trading in line with its net asset value and offering an improved risk-reward profile, and has subsequently lifted its rating.

The broker highlights the same downside risks remain, including FY24 production being heavily dependent on costly investment in the Cooper Basin.

Earnings per share estimates decrease -5% in FY23 on a lower Brent outlook, but lift 29% and 22% in FY24 and FY25.

The rating is upgraded to Neutral from Underperform and the target price decreases to $1.50 from $1.55.

Target price is $1.50 Current Price is $1.47 Difference: $0.03
If BPT meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $1.83, suggesting upside of 23.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.1

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

Macquarie rates CHN as Outperform (1) -

Chalice Mining has released its full year result, and with a $129.6m cash position and free cash flow of $65.3m Macquarie finds the company well funded for exploration and pre-development activities for the year ahead.

A recent seismic survey at Julimar has suggested mineralisation may be deeper than previously estimated, and deeper drilling is needed. The company expects to deliver a scoping study by the end of the year.

The Outperform rating and target price of $7.50 are retained.

Target price is $7.50 Current Price is $3.84 Difference: $3.66
If CHN meets the Macquarie target it will return approximately 95% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

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

Capricorn Metals' full year result has missed Macquarie's expectations by -7% at the net profit line, which the broker attributed to higher-than-expected finance costs, depreciation and amortisation and tax charges.

Positively, both net debt and underlying earnings exceeded the broker's assumptions. Ahead of a resource update of Capricorn Metals' Mt Gibson asset, Macquarie lifts its valuation by $60m given recent positive drill results. 

The rating is upgraded to Outperform from Neutral and the target price decreases to $3.30 from $3.60.

Target price is $3.30 Current Price is $2.76 Difference: $0.54
If CMM meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates CXO as Outperform (1) -

Ganfeng Lithium is no longer a substantial shareholder in Core Lithium having sold part of its shareholding, but the selldown has had no impact of the offtake agreement between the two companies according to Macquarie.

Ganfeng Lithium's intention to offtake 75,000 tonnes of spodumene annually was one of two offtake agreements covering 80% of Core Lithium planned production over the first four years. The company remains in negotiations with Tesla on a third agreement. 

The Outperform rating and target price of $1.80 are retained.

Target price is $1.80 Current Price is $1.11 Difference: $0.69
If CXO meets the Macquarie target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates GL1 as Outperform (1) -

In a move Macquarie expects will allow Global Lithium Resources to leverage off production potential of its Manna and Marble Bar projects, the company will explore downstream partnership opportunities with SK On Co as part of a new memorandum of agreement.

Among other opportunities, the companies will look into downstream processing to produce battery grade lithium products and options in the battery material supply chain. Under the agreement, Global Lithium Resources will also explore options for investment and offtake.

The Outperform rating and target price of $3.00 are retained.

Target price is $3.00 Current Price is $2.30 Difference: $0.7
If GL1 meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Credit Suisse rates GUD as Outperform (1) -

Credit Suisse finds opportunity for investors in G.U.D. Holdings' de-rating in the wake of its AutoPacific Group purchase and subsequent earnings downgrade.

The broker expects there is longer-term opportunity in the stock for investors who can look past near-term impacts of low vehicle deliveries.

The broker finds AutoPacific Group a strong business that improves G.U.D. Holdings. It expects G.U.D. Holdings will materially re-rate over a 12-24 month period. 

The Outperform rating and target price of $14.10 are retained.

Target price is $14.10 Current Price is $7.54 Difference: $6.56
If GUD meets the Credit Suisse target it will return approximately 87% (excluding dividends, fees and charges).

Current consensus price target is $11.52, suggesting upside of 55.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Ord Minnett rates IRE as Accumulate (2) -

Iress has issued its second guidance downgrade of the year, a result of a soft second half off the back of challenging macro conditions. Given the company's ambitious 2025 targets, Ord Minnett expects the market to read the downgrade poorly.

The broker finds the industry backdrop supportive, and remains positive on opportunities in superannuation administration. 

The Accumulate rating is retained and the target price decreases to $10.80 from $13.10 given changes to near-term earnings forecasts.

Target price is $10.80 Current Price is $8.70 Difference: $2.1
If IRE meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $11.78, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in December.

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

Macquarie rates JMS as Outperform (1) -

Jupiter Mines has delivered a strong financial performance in the second quarter according to Macquarie, with production 3% higher than expected and shipments 13% higher.

The Tshipi mine delivered earnings of $87.7m, a 33% beat to Macquarie's assumptions, but the broker maintains consolidation of Kalahari Manganese Fields would benefit the manganese market. 

The Outperform rating and target price of $0.25 are retained.

Target price is $0.25 Current Price is $0.19 Difference: $0.06
If JMS meets the Macquarie target it will return approximately 32% (excluding dividends, fees and charges).

The company's fiscal year ends in February.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates PAN as Neutral (3) -

In its annual mineral resource and reserve statement, Panoramic Resources has lifted its total nickel in mineral reserve 1% to 8.5m tonnes, but Macquarie highlights initial positive drilling results from the Savannah project are yet to be incorporated into the resource. 

The result of Panoramic Resources' statement is a more than 2% increase to Macquarie's earnings per share forecasts between FY23 and FY27.

The Neutral rating is retained and the target price decreases to $0.18 from $0.23.

Target price is $0.18 Current Price is $0.20 Difference: minus $0.02 (current price is over target).
If PAN meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

FY22 results for Premier Investments were in line with Citi's estimate and ahead of the consensus forecast. Sales for the first seven weeks of FY23 were 21.5% above pre-covid levels.

The broker upgrades its forecasts to reflect a positive surprise in Peter Alexander sales and its contribution to a gross margin uplift. While the target is increased to $25.30 from $25.00, the rating falls to Neutral from Buy, given recent share price strength.

The company announced an on-market buyback of up to $50m and a special dividend of 25cps.

Target price is $25.30 Current Price is $23.69 Difference: $1.61
If PMV meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Credit Suisse rates PMV as Outperform (1) -

Credit Suisse finds Premier Investments to be presenting attractively after another strong result. The company finished the year with $402m in net cash, announcing a 79 cent per share final dividend and a $50m on market share buyback. 

The broker lifted its forecasts 4.4%, 1.7% and 3.0% through to FY25, assuming improved recovery in Smiggle in the next year, and structural growth in both Smiggle and Peter Alexender in FY23-25.

The Outperform rating is retained and the target price decreases to $28.94 from $30.10.

Target price is $28.94 Current Price is $23.69 Difference: $5.25
If PMV meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates PMV as Outperform (1) -

Despite lockdown and difficult covid comps in the previous year, Premier Investments has delivered earnings growth in FY22. Full year earnings of $352.5m were ahead of last year's $342.8m, while the company came in ahead of Macquarie's expectations on key lines.

The company announced a $50.0m on market buyback, with a cash balance of $471.3m supportive of capital management. Macquarie has also found early FY23 trading encouraging, with sales up 46.7% in the first seven weeks, noting these results are cycling lockdowns in the previous year.

The broker expects sales will come under pressure in the coming year given the current macro environment. The Outperform rating is retained and the target price decreases to $29.00 from $35.00.

Target price is $29.00 Current Price is $23.69 Difference: $5.31
If PMV meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

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

While FY22 results for Premier Investments were in line with Morgan Stanley's forecasts, the 1H of FY23 is tracking well ahead of the consensus estimate.

Total sales have risen 46.7% year-on-year in the first seven weeks of FY23 (cycling -9.5%) versus the consensus forecast for 1H23 sales growth of 1%.

The company declared a final dividend of 54cps and a special dividend of 25cps, along with an on-market 12-month buyback up to $50m.

The Equal-weight rating and $20.50 target are unchanged in an initial review by the broker. Industry view: In-Line.

Target price is $20.50 Current Price is $23.69 Difference: minus $3.19 (current price is over target).
If PMV 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 $25.61, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Ord Minnett rates PMV as Hold (3) -

Premier Investments' full year underlying earnings of $335m have come in broadly in line with both Ord Minnett's and consensus assumptions. A final dividend of 79 cents per share brings the total payout for the year to 125 cents per share. 

The company also announced a $50m on market share buyback, equating to around 1.5% of outstanding shares. 

Ord Minnett anticipates earnings margins to remain well above pre-covid levels, as the company continues to benefit from robust demand and strong cost management.

The Hold rating is retained and the target price increases to $23.90 from $20.50.

Target price is $23.90 Current Price is $23.69 Difference: $0.21
If PMV meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

UBS rates PMV as Buy (1) -

All key metrics in FY22 results for Premier Investments exceeded forecasts by both UBS and consensus. Management declared a special dividend of 25cps and an on-market share buyback of up to $50m.

The analyst was surprised by the strength of sales revenue in the 2H of FY22 though remains cautious on the consumer, especially for the 2H of FY23.

A trading update for the first seven weeks of FY23 revealed to the broker Smiggle in the northern hemisphere is performing strongly in the back to school period.

The target rises to $26 from $23 on better cost-of-goods-sold and cost-of-doing-business management and stronger expected FY23 sales. The Buy rating is unchanged.

Target price is $26.00 Current Price is $23.69 Difference: $2.31
If PMV meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $25.61, suggesting upside of 13.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Citi rates STO as Buy (1) -

As Santos recently received an offer for US$1.4bn from Kumul Petroleum for an additional 5% stake in PNG LNG, Citi now considers the sell-down to a 37.5% interest will likely proceed.

The implied value of the offer is 8.3% above the analyst's base case PNG LNG valuation of US$25.8bn.

The broker increases its production forecast for Santos, which increases the company's exposure to higher near-term JKM prices. The target rises to $10.00 from $9.00, while the Buy rating is unchanged.

Target price is $10.00 Current Price is $7.02 Difference: $2.98
If STO meets the Citi target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $9.70, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in December.

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: 1.0

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

Morgan Stanley rates TLS as Overweight (1) -

Following cyber attack woes at Optus, Morgan Stanley believes Telstra has received an unexpected tailwind, which will assist mobile subscriber growth over the next 1-3 years.

The analyst estimates every 5% of Optus subscription churn would add 400-500k subscribers, and revenue of between $200-250m for Telstra. This would be expected to translate to 14-30c/share in value.

The Overweight rating and $4.62 target are retained. Industry View: In-Line. 

Target price is $4.60 Current Price is $3.88 Difference: $0.72
If TLS meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Morgans rates TLS as Add (1) -

Morgans believes Telstra's current structure undervalues the infrastructure assets. This value could be partially unlocked by shareholders, who are being asked to vote on a new structure at the company's AGM on October 11.

The analyst sees no downside in shareholders voting for the changed structure, which will allow management the flexibility to create or unlock value when an opportunity arises.

The Add rating and $4.60 target are retained.

Target price is $4.60 Current Price is $3.88 Difference: $0.72
If TLS meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.41, suggesting upside of 14.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

UBS rates TWE as Buy (1) -

In commentary around 4Q results, luxury US wine company The Duckhorn Portfolio noted its core consumer has been resilient to date. However, macro uncertainty was alluded to, with luxury growth continuing albeit at a slightly slower rate.

While UBS suggests a slowing in growth for luxury has implications for peer Treasury Wine Estates, it's pleasing that overall growth still continues.

The Buy rating and $14.75 target are unchanged.

Target price is $14.75 Current Price is $12.73 Difference: $2.02
If TWE meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $14.22, suggesting upside of 13.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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