Australian Broker Call

Macquarie rates AKE as Outperform (1) -

Allkem has secured a nine-year US$200m financing facility for the Sal de Vida project, expected to finalise before the end of 2022. With reported net cash of US$351.9m and strong free cash flow, Macquarie expects Allkem could have funded the project itself.

The debt has minimal impacts on Macquarie's forecasts driving a less than -1% reduction in earnings per share estimates from 2023, but allows for balance sheet flexibility according to the broker.

The Outperform rating and target price of $21.00 are retained.

Target price is $21.00 Current Price is $14.74 Difference: $6.26
If AKE meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $16.80, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

UBS rates ANZ as Buy (1) -

UBS reviews the banking sector after recent interest rate hikes and ahead of the maturation of $500bn in fixed rate mortgages (25% of the system residential total) by December 2024.

While the broker believes consumers are fairly resilient to rate rises (rates are at their highest since 2013), based on the latest UBS Mortgages Survey, a keen eye will need to be kept to the SME sector.

The maturation of mortgages is another matter, the broker expecting a pricing war as 25% of the market comes up for grabs.

On the upside, deposit pricing has been lagging, which in the short term should improve net interest margins, says the broker.

UBS retains a Buy rating and $30 target price for ANZ.

Target price is $30.00 Current Price is $24.29 Difference: $5.71
If ANZ meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $26.58, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates ASX as Neutral (3) -

Credit Suisse found ASX trading activity in the first quarter to be weak, with listings, cash equities and derivatives all down year-on-year. The broker has made downgrades to its forecasts, accounting for a continuation of weak trends into the second quarter.

While Credit Suisse continues to view ASX as a high quality business, it does find the stock is starting to look expensive despite de-rating.

The Neutral rating is retained and the target price decreases to $75.00 from $80.00.

Target price is $75.00 Current Price is $70.73 Difference: $4.27
If ASX meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $79.79, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates ASX as Outperform (1) -

ASX's futures volumes per day were up 1.5% on the previous comparable period, demonstrating recovery is ongoing although slower than Macquarie had anticipated. Given the speed of recovery, the broker now estimates pre-covid levels by the first half of FY24.

Equities trading volumes were weak, with average daily volumes down -8.0% on the previous comparable period, but remain 13.2% above pre-covid volumes. The broker continues to find ASX's earnings defensive against a weakening macro outlook. 

The Outperform rating is retained and the target price decreases to $90.00 from $93.00.

Target price is $90.00 Current Price is $70.73 Difference: $19.27
If ASX meets the Macquarie target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $79.79, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Ord Minnett rates ASX as Hold (3) -

ASX has reported largely flat derivatives volumes in September, while cash market value traded and capital raisings decreased year-on-year in line with Ord Minnett's expectations, down -14% and -49% respectively. 

The broker considers long-term prospects remain strong and that ASX offers relative earnings certainty in economic downturns. 

The Hold rating and target price of $80.00 are retained.

Target price is $80.00 Current Price is $70.73 Difference: $9.27
If ASX meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $79.79, suggesting upside of 18.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

UBS rates BEN as Buy (1) -

UBS reviews the banking sector after recent interest rate hikes and ahead of the maturation of $500bn in fixed rate mortgages (25% of the system residential total) by December 2024.

While the broker believes consumers are fairly resilient to rate rises (rates are at their highest since 2013), based on the latest UBS Mortgages Survey, a keen eye will need to be kept to the SME sector.

The maturation of mortgages is another matter, the broker expecting a pricing war as 25% of the market comes up for grabs.

On the upside, deposit pricing has been lagging, which in the short term should improve net interest margins, says the broker.

UBS retains a Buy rating for Bendigo & Adelaide Bank. Target price falls to $10 from $11.

Target price is $10.00 Current Price is $8.18 Difference: $1.82
If BEN meets the UBS target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $9.66, suggesting upside of 18.2% (ex-dividends)

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

Macquarie rates BHP as Outperform (1) -

Revenue from New South Wales Energy Coal now accounts for 5% of BHP Group's total revenue given elevated thermal coal prices, and Macquarie expects this will lift to 10% in the coming year and 8% in FY24. 

BHP Group has indicated it will retain New South Wales Energy Coal in its portfolio, and while value accretive Macquarie raised concerns that thermal coal revenue being over 5% could pose risk to meeting investors' ESG mandates. 

The Outperform rating and target price of $45.00 are retained.

Target price is $45.00 Current Price is $40.06 Difference: $4.94
If BHP meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $41.35

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Morgans rates BHP as Add (1) -

Morgans increases unit cost assumptions across iron ore and aluminium exposed miners and lowers forecast prices to allow for a rising US dollar and fears of a US/global recession.

However, the broker feels share prices have largely factored-in these variables and sees good buying opportunities for some stocks under its Mining sector coverage.

BHP Group and South32 are Morgans top two picks among diversified miners.

In addition to BHP's move on OZ Minerals ((OZL)), the analyst expects the group to remain aggressive on M&A, particularly relating to copper assets.

The target price falls to $47.40 from $48.40. Add.

Target price is $47.40 Current Price is $40.06 Difference: $7.34
If BHP meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $41.35

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.3

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

Morgan Stanley rates BOQ as Overweight (1) -

Morgan Stanley expects upcoming 2H results for Bank of Queensland on Wednesday will reveal pre-provision profit of $389m and cash profit of $253m. This compares to consensus forecasts of $383m and $247m, respectively.

The analyst feels the 2H benefit from higher interest rates has likely been offset by increased mortgage competition, which suggests deposit pricing will be a highly anticipated metric on results day.

The Overweight rating and $8.10 target are maintained. Industry view: Attractive.

Target price is $8.10 Current Price is $6.87 Difference: $1.23
If BOQ meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 27.0% (ex-dividends)

The company's fiscal year ends in August.

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 BOQ as Hold (3) -

Ahead of Bank of Queensland releasing its full year result this week, Ord Minnett is anticipating the bank to deliver a miss to guidance with flat revenue, while expecting costs to decline -1.6% year-on-year. 

Bank of Queensland is less leveraged to the net interest margin benefits of rising rates than the majors, which remains a concern for the broker which looks for commentary as to how management will approach a margin vs growth trade off and impact from competition. 

The Hold rating and target price of $7.80 are retained.

Target price is $7.80 Current Price is $6.87 Difference: $0.93
If BOQ meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 27.0% (ex-dividends)

The company's fiscal year ends in August.

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 BOQ as Buy (1) -

UBS reviews the banking sector after recent interest rate hikes and ahead of the maturation of $500bn in fixed rate mortgages (25% of the system residential total) by December 2024.

While the broker believes consumers are fairly resilient to rate rises (rates are at their highest since 2013), based on the latest UBS Mortgages Survey, a keen eye will need to be kept to the SME sector.

The maturation of mortgages is another matter, the broker expecting a pricing war as 25% of the market comes up for grabs.

On the upside, deposit pricing has been lagging, which in the short term should improve net interest margins, says the broker.

UBS retains a Buy rating and $8 target price for Bank of Queensland.

Target price is $8.00 Current Price is $6.87 Difference: $1.13
If BOQ meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $8.66, suggesting upside of 27.0% (ex-dividends)

The company's fiscal year ends in August.

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 BSL as Buy (1) -

BlueScope Steel's spread for Australian steel products has held steady at around US$250 per tonne, while North Star's spread declined to US$400 per tonne, and Ord Minnett remains concerned about a weak global production outlook. 

Current spot prices support an earnings forecast of $1.76bn from Ord Minnett, 6% above consensus median. 

The Buy rating and target price of $21.00 are retained.

Target price is $21.00 Current Price is $16.20 Difference: $4.8
If BSL meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $20.83, suggesting upside of 27.0% (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 CBA as Neutral (3) -

UBS reviews the banking sector after recent interest rate hikes and ahead of the maturation of $500bn in fixed rate mortgages (25% of the system residential total) by December 2024.

While the broker believes consumers are fairly resilient to rate rises (rates are at their highest since 2013), based on the latest UBS Mortgages Survey, a keen eye will need to be kept to the SME sector.

The maturation of mortgages is another matter, the broker expecting a pricing war as 25% of the market comes up for grabs.

On the upside, deposit pricing has been lagging, which in the short term should improve net interest margins, says the broker.

UBS retains a Neutral Rating and $100 target price for CommBank.

Target price is $100.00 Current Price is $96.42 Difference: $3.58
If CBA meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $89.90

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Macquarie rates DCN as Neutral (3) -

Preliminary first quarter results from Dacian Gold show production for the period exceeded Macquarie's expectations by 17%, driven by stronger than expected grades in the last of the underground ore.

The underground mine was closed during the period, signaling completion of Dacian Gold's transition to low-grade stockpile processor and explorer. The unexpectedly strong first quarter drove a -6% reduction to the broker's per share loss estimates for FY23.

The Neutral rating and target price of $0.10 are retained.

Target price is $0.10 Current Price is $0.10 Difference: $0
If DCN meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Macquarie rates DEG as Outperform (1) -

De Grey Mining has completed the bookbuild for a $130m institutional placement, with the company aiming to raise a total $150m combined with a $20m share purchase plan. Macquarie expects the company to have $167m in available funding following the placement.

Representing an -8% discount to the stock's closing price before launch, both the placement and purchase plan are priced at $1.00 per share. The broker expects this will provide adequate funding through to a final investment decision on the Mallina project in mid-2023.

The Outperform rating and target price of $1.65 are retained.

Target price is $1.65 Current Price is $1.06 Difference: $0.59
If DEG meets the Macquarie target it will return approximately 56% (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

Morgans rates FDV as Add (1) -

Morgans points out a potential Nasdaq listing of LATAM (not new news) highlights that Frontier Digital Ventures sees this business as significantly undervalued by the Australian market.

This view lends colour around the company's announced LATAM strategy update, which includes a more integrated management team. Infocass and E24 (both key stakeholders) will also receive a minimum share of expected business earn-out payments as equity in LATAM.

The broker makes minor changes to its earnings forecasts and lowers its target to $1.25 from $1.32.

Target price is $1.25 Current Price is $0.68 Difference: $0.57
If FDV meets the Morgans target it will return approximately 84% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Macquarie rates FMG as Underperform (5) -

Having toured Fortescue Metals' Western Hub, Macquarie found the Eliwana project ramp up impressive with the facility reaching nameplate capacity in seven months.

The broker sees remaining capacity potential in the dry ore process facility, which it expects could increase from 30m tonnes per annum to 32m tonnes in the near-term and 34m tonnes by FY25. Macquarie expects improving product mix to be key to price realisation for the company.

The Underperform rating and target price of $14.50 are retained.

Target price is $14.50 Current Price is $17.31 Difference: minus $2.81 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.72

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.6

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

Morgans rates FMG as Downgrade to Reduce from Hold (5) -

Morgans increases unit cost assumptions across iron ore and aluminium exposed miners and lowers forecast prices to allow for a rising US dollar and fears of a US/global recession.

However, the broker feels share prices have largely factored-in these variables and sees good buying opportunities for some stocks under its Mining sector coverage.

BHP Group and South32 are Morgans top two picks among diversified miners.

The broker expects greater volatility ahead for iron ore than for base metals and sees a vastly diminished long-term free cash profile for Fortescue Metals due to the capital intensive nature of its decarbonisation push.

The rating is lowered to Reduce from Hold and the target falls to $15.00 from $17.30.

Target price is $15.00 Current Price is $17.31 Difference: minus $2.31 (current price is over target).
If FMG meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.72

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.6

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

Morgans rates GQG as Add (1) -

Despite volatile near-term flows, Morgans assesses a currently attractive valuation for GQG Partners and feels increased flows will return once financial markets stabilise.

For the September quarter, funds under management (FUM) fell -8.7% and decreased by -9.4% for the month of September.

The broker points out the company's investment performance remains solid across periods of more than one year.

The Add rating is maintained, while the target falls to $1.93 from $2.02.

Target price is $1.93 Current Price is $1.55 Difference: $0.38
If GQG meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Ord Minnett rates GQG as Buy (1) -

GQG Partners has delivered flows of US$0.8bn in the third quarter despite a -9.5% drawdown in global equity markets in September, a result Ord Minnett described as a credible effort in a difficult environment. 

Funds under management declined -9.4% over September, and -8.7% over the quarter. While issuing downgrades to earnings per share forecasts, Ord Minnett notes GQG Partners remains one of a few listed asset managers generating positive net flows.

The Buy rating and target price of $2.20 are retained.

Target price is $2.20 Current Price is $1.55 Difference: $0.65
If GQG meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Macquarie rates JRV as Outperform (1) -

The official opening of Jervois Global's ICO mine is a significant derisking event according to Macquarie, with the company moving from a single- to dual-asset producer, and with a third asset expected to come online in 2023.

Macquarie  expects ICO to deliver Jervois Global strategic advantages as the only primary cobalt mine in the US. The broker has adjusted forecasts for a quicker than expected ramp up, with ICO expected to achieve full production by the second quarter of 2023.

The Outperform rating is retained and the target price increases to $0.70 from $0.60.

Target price is $0.70 Current Price is $0.59 Difference: $0.11
If JRV meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Macquarie rates KAR as Outperform (1) -

A royalty rate reduction granted to Karoon Energy by the Brazilian oil regulator has driven a 4% increase to Macquarie's earnings per share forecasts through to FY25. The broker expects the new structure to reduce royalties by -$15m and -$21m in FY23 and FY24 respectively.

The broker also finds the rate reduction to represent strong support for the energy industry in Brazil.  The Outperform rating is retained and the target price increases to $3.00 from $2.90.

Target price is $3.00 Current Price is $2.26 Difference: $0.74
If KAR meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 36.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

Morgans rates KAR as Add (1) -

Morgans has increased confidence in Karoon Energy's Brazilian operations now that the national petroleum regulator has offered a discount on royalties for the Bauna project. The move is thought to demonstrate support for the industry.

The discount (partially offset by a corporate tax rise) increases the company's free cash flow profile and the broker lifts its target price to $3.95 from $3.60. Add.

Target price is $3.95 Current Price is $2.26 Difference: $1.69
If KAR meets the Morgans target it will return approximately 75% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting upside of 36.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.7

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

UBS rates MQG as Upgrade to Buy from Neutral (1) -

UBS reviews the banking sector after recent interest rate hikes and ahead of the maturation of $500bn in fixed rate mortgages (25% of the system residential total) by December 2024.

While the broker believes consumers are fairly resilient to rate rises (rates are at their highest since 2013), based on the latest UBS Mortgages Survey, a keen eye will need to be kept to the SME sector.

The maturation of mortgages is another matter, the broker expecting a pricing war as 25% of the market comes up for grabs.

On the upside, deposit pricing has been lagging, which in the short term should improve net interest margins, says the broker.

UBS upgrades Macquarie Group to Buy from Neutral, believing Macquarie Bank is better positioned to attract mortgages given it has (along with Westpac ((WBC)) the most competitive refinancing SVR rate among the top seven banks.

Target price falls to to $185.00 from $200.00.

Target price is $185.00 Current Price is $161.36 Difference: $23.64
If MQG meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $192.50, suggesting upside of 20.7% (ex-dividends)

The company's fiscal year ends in March.

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 NAB as Neutral (3) -

UBS reviews the banking sector after recent interest rate hikes and ahead of the maturation of $500bn in fixed rate mortgages (25% of the system residential total) by December 2024.

While the broker believes consumers are fairly resilient to rate rises (rates are at their highest since 2013), based on the latest UBS Mortgages Survey, a keen eye will need to be kept to the SME sector.

The maturation of mortgages is another matter, the broker expecting a pricing war as 25% of the market comes up for grabs.

On the upside, deposit pricing has been lagging, which in the short term should improve net interest margins, says the broker.

UBS retains a Neutral rating and $33 target price for National Australia Bank.

Target price is $33.00 Current Price is $30.14 Difference: $2.86
If NAB meets the UBS target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $31.76, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates RIO as Add (1) -

Morgans increases unit cost assumptions across iron ore and aluminium exposed miners and lowers forecast prices to allow for a rising US dollar and fears of a US/global recession.

However, the broker feels share prices have largely factored-in these variables and sees good buying opportunities for some stocks under its Mining sector coverage.

BHP Group and South32 are Morgans top two picks among diversified miners.

The broker feels Rio Tinto is undervalued and is optimistic for a sharper than-expected recovery in copper and aluminium markets.

The Add rating is retained and the target slips to $108 from $113.

Target price is $108.00 Current Price is $96.67 Difference: $11.33
If RIO meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $103.36

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: 0.6

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

UBS rates RRL as Initiation of coverage with Neutral (3) -

UBS initiates coverage of Regis Resources with a Neutral rating and provides commentary on the West Australian-based projects Duketon and Tropicana. A 12-month target price of $1.80 is set.

The broker' current valuation of Tropicana suggests a slight overpayment for the company's -$903m purchase (30% interest), though it remains a quality cornerstone asset. It's thought mine life extension, most likely from the underground operations, will provide upside.

Also, underground extensions will help Duketon maintain rates of 350kozpa for longer and 500kozpa for the company, forecasts the broker.

Target price is $1.80 Current Price is $1.73 Difference: $0.07
If RRL meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.79, suggesting upside of 8.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates S32 as Add (1) -

Morgans increases unit cost assumptions across iron ore and aluminium exposed miners and lowers forecast prices to allow for a rising US dollar and fears of a US/global recession.

However, the broker feels share prices have largely factored-in these variables and sees good buying opportunities for some stocks under its Mining sector coverage.

BHP Group and South32 are Morgans top two picks among diversified miners.

The analyst believes South32's diversification will enable a swift recovery when base metal prices recover. The Add rating is kept, while the target price slips to $5.40 from $5.50.

Target price is $5.40 Current Price is $3.84 Difference: $1.56
If S32 meets the Morgans target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 31.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.9

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

Credit Suisse rates SGM as Outperform (1) -

While a fourth quarter -17% production miss from Sims' US peer Schnitzer could be consider a negative readthrough, Credit Suisse had previously noted Schnitzer's guidance looked favourable relative to scrap prices and to the broker's forecasts for Sims. 

With US ferrous prices improving 10% since August lows and non-ferrous prices performing better than expected, the broker has lifted its first half earnings forecast 20%. Credit Suisse anticipates scrap prices to strengthen in the coming six months.

The Outperform rating is retained and the target price increases to $19.40 from $17.30.

Target price is $19.40 Current Price is $12.82 Difference: $6.58
If SGM meets the Credit Suisse target it will return approximately 51% (excluding dividends, fees and charges).

Current consensus price target is $16.57, suggesting upside of 26.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgan Stanley rates SGP as Overweight (1) -

Morgan Stanley looks at potential avenues for Stockland to offset an earnings hit from weaker housing conditions, which the broker forecasts will reduce FY24 residential earnings by -23% compared to FY23.

Earnings growth into FY24 may arise from $660m worth of logistics developments and options around the land lease partnership with Mitsubishi, explains the broker. In addition, there's thought to be potential for capital deployment.

All three alternatives are under-appreciated by the market, according to the analyst.

Stockland will report its 1Q FY23 update on October 17. The Overweight rating is maintained, while the target is reduced to $4.30 from $4.55. Industry view: In-Line.

Target price is $4.30 Current Price is $3.31 Difference: $0.99
If SGP meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.11, suggesting upside of 24.9% (ex-dividends)

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

UBS rates WBC as Upgrade to Buy from Neutral (1) -

UBS reviews the banking sector after recent interest rate hikes and ahead of the maturation of $500bn in fixed rate mortgages (25% of the system residential total) by December 2024.

While the broker believes consumers are fairly resilient to rate rises (rates are at their highest since 2013), based on the latest UBS Mortgages Survey, a keen eye will need to be kept to the SME sector.

The maturation of mortgages is another matter, the broker expecting a pricing war as 25% of the market comes up for grabs.

On the upside, deposit pricing has been lagging, which in the short term should improve net interest margins, says the broker.

UBS says the Financial Rate Monitor shows Westpac is well placed to win market share due to its competitive loan pricing, and especially deposit rates.

Westpace is upgraded to Buy from Neutral. Target price rises to $27 from $26.

Target price is $27.00 Current Price is $21.88 Difference: $5.12
If WBC meets the UBS target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $24.66, suggesting upside of 14.3% (ex-dividends)

The company's fiscal year ends in September.

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