Australian Broker Call

Citi rates AMC as Neutral (3) -

Amcor's March quarter earnings (EBIT) were better than Citi anticipated. Hence, Amcor raises guidance for earnings per share growth to 14-15%.

The broker notes that guidance assumes a -1% dilutive impact from divestments. The main question Citi has is in regard to the impact of resin inflation on the earnings for both the March and June quarters and just how much cost recovery will be pushed into FY22.

Neutral rating and $16.40 target maintained.

Target price is $16.40 Current Price is $15.81 Difference: $0.59
If AMC meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Credit Suisse rates AMC as Neutral (3) -

Amcor has narrowed its FY21 guidance to US73.2c-73.8c. As a result, Credit Suisse reduces its earnings forecast by -1.4% for FY21. Amcor expects at least US$180m in cumulative Bemis synergy by FY22 and the broker incorporates US$200m in synergy.

For Amcor’s flexibles division, Credit Suisse has modelled US$90m or a growth of 6% in FY22 of which US$40m is expected to be organic.

Neutral rating. Target rises to $16 from $15.70. 

Target price is $16.00 Current Price is $15.81 Difference: $0.19
If AMC meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $17.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Macquarie rates AMC as Neutral (3) -

Macquarie assesses Amcor is managing raw materials well and executing on Bemis. The company reported nine-month net profit of US$805m which is up 12% and represents 70% of Macquarie's full year forecasts.

The broker notes the top line is yet to reveal the flow-through of higher raw materials costs which is likely to come in the fourth quarter. Also, the company will start to lap stronger comparables over the next 12 months.

Neutral maintained. Target rises to $16.42 from $16.09.

Target price is $16.42 Current Price is $15.81 Difference: $0.61
If AMC meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgan Stanley rates AMC as Overweight (1) -

Amcor's third quarter was another solid performance, observes Morgan Stanley with operating income exceeding the broker's estimates by 5% along with a good margin performance.

Morgan Stanley is of the view concerns around resin cost inflation appear to be over-played and Amcor, in fact, is managing well. The company remains a standout defensive exposure for the broker.

Morgan Stanley has increased its earnings forecasts over FY21-23. With strong cashflow, the broker expects Amcor will be able to conduct further buybacks in FY22-23. 

Overweight rating with a target of $19. Industry view: In-Line. 

Target price is $19.00 Current Price is $15.81 Difference: $3.19
If AMC meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $17.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Morgans rates AMC as Add (1) -

The third quarter result was above Morgans expectations. Year-to-date underlying EPS (constant currency) rose 16%, with higher volumes and margins in both Flexibles and Rigid Plastics.

Management issued another earnings upgrade with FY21 underlying earnings growth now expected to be 14-15% from 10-14% previously. The broker highlights Bemis synergy benefits continue to track well with around US$55m delivered year-to-date.

Morgans maintains the Add rating and increases the target price to $17.70 from $17.10, due largely to a roll-forward of the financial model to FY22 forecasts.

Target price is $17.70 Current Price is $15.81 Difference: $1.89
If AMC meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $17.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Ord Minnett rates AMC as Accumulate (2) -

The third quarter result provided further evidence to Ord Minnett the integration of Bemis was tracking well and costs were being well controlled. This was evidenced by the group’s earnings before interest and tax (EBIT) margin being 1% above the broker's forecast.

Management increased constant-currency EPS growth guidance for FY21 to 14-15% from 10-14%. A  fall in volumes in the flexibles business of -1% versus the broker's forecast of a 1% gain was a disappointment, as less demand for healthcare packaging weighed.

The Buy rating is unchanged and the target rises to $17 from $16.75.

Target price is $17.00 Current Price is $15.81 Difference: $1.19
If AMC meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $17.02, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.5

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

Citi rates ANZ as Neutral (3) -

Citi observes the market has reacted to the first half results negatively despite a clear outline of the strategy to reduce costs and the material write-back of provisions.

The broker suspects this reflects the soft revenue outlook. While ANZ Bank will continue to benefit from improvements in asset quality, without core profit momentum Citi retains a Neutral rating. Target is reduced to $29.50 from $30.25.

Target price is $29.50 Current Price is $27.90 Difference: $1.6
If ANZ meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $29.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Credit Suisse rates ANZ as Downgrade to Neutral from Outperform (3) -

Following ANZ Bank's first half result, Credit Suisse has upgraded FY21 earnings estimate by 1% while also downgrading earnings forecasts by -1-3% in outer years due to lower expected markets income.

The broker notes the bank has been ahead on many aspects like portfolio re-positioning, remediation and share price rise but most of this is already factored into Credit Suisse's forecasts.

While expecting ANZ Bank to deliver, the broker believes outsized upgrades in the near term are less likely and downgrades to Neutral from Outperform. Target drops to $28.50 from $29.50.

Target price is $28.50 Current Price is $27.90 Difference: $0.6
If ANZ meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $29.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates ANZ as Outperform (1) -

Macquarie found the first half results "respectable", supported by a provision release and the lift in capital as well as a higher dividend. Results were again affected by significant notable items but at a pre-provision level it was largely in line with expectations.

ANZ Bank also reiterated a $8bn expense target for FY23. Based on the current trajectory, Macquarie estimates the bank will need to deliver around $1.1bn of productivity benefits to achieve the target, which will be challenging.

Outperform maintained. Target rises to $30.50 from $30.00.

Target price is $30.50 Current Price is $27.90 Difference: $2.6
If ANZ meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $29.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates ANZ as Downgrade to Equal-weight from Overweight (3) -

While acknowledging ANZ Bank's leverage to recovery and better capital management has driven share price outperformance over the last year, Morgan Stanley expects a pause in the upgrade cycle to limit further upside.

The broker was pleased with the bank's margin expansion but thinks revenue growth prospects will be constrained by the loss of Australian mortgage momentum and lower institutional lending.

Morgan Stanley downgrades to Equal-weight from Overweight led by revenue headwinds and a higher near-term cost growth outlook. The target drops to $28 from $28.50. Industry view: In-Line.

Target price is $28.00 Current Price is $27.90 Difference: $0.1
If ANZ meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $29.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates ANZ as Add (1) -

First half cash profit (NPAT) from continuing operations was 13.7% better than Morgans’ relatively optimistic expectation. A fully franked interim dividend of 70cps also exceeded the 60cps forecast.

The broker highlights the bad debt charge and net interest margin outcomes were significantly better than consensus expectations. 

Additionally, the bank is providing the market with increasing confidence of achieving the $8bn cost base target, explains the analyst. The Add rating is maintained and the target price is increased to $34.50 from $33.50.

Target price is $34.50 Current Price is $27.90 Difference: $6.6
If ANZ meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $29.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates ANZ as Accumulate (2) -

The first half cash net profit from continuing operations of 2.94bn was 11% above Ord Minnett’s forecast due mainly large net
provision write-backs. A fully franked interim dividend of 70 cents was in-line with the forecast.

The broker highlights Australian home loan growth has lost momentum, while New Zealand lending was strong. Also, the net interest income (NII) to average capital risk weighted assets ratio improved in all divisions half-on-half, excluding Markets, explains the analyst.

Ord Minnett makes immaterial changes to revenue and expense forecasts, and expects solid pre-provision profit growth of 2% in FY22 and 4% in FY23. The Accumulate rating is unchanged and the target falls to $30 from $30.40.

Target price is $30.00 Current Price is $27.90 Difference: $2.1
If ANZ meets the Ord Minnett target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $29.93, suggesting upside of 8.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates APA as Outperform (1) -

APA Group has reached a final investment decision on the expansion of the east coast grid, adding 25% for a capital investment of $270m. Expansion was expected as a result of the failure to gain approval for the Crib Point LNG terminal.

Macquarie finds it a positive turn that the company is signing shippers for additional capacity, having extended its contract with Origin Energy ((ORG)). Pricing is relatively flat.

Further contracts are expected with AGL Energy ((AGL)) and Energy Australia. Outperform maintained. Target is reduced to $10.40 from $10.50.

Target price is $10.40 Current Price is $10.00 Difference: $0.4
If APA meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Ord Minnett rates APA as Buy (1) -

The group has reached a final investment decision (FID) to expand transport capacity on the East Coast Grid pipeline linking Queensland to the southern market. This is expected to increase the capacity by 25% and cost -$270m. 

Ord Minnett feels this highlights the growing dependence on gas to travel from Queensland south to the manufacturing facilities in Victoria.

The Buy rating and $11.30 target are maintained.

Target price is $11.30 Current Price is $10.00 Difference: $1.3
If APA meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $10.68, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates APT as Overweight (1) -

Afterpay's US app downloads in April were almost twice as high as last year. While not as strong as the record March month, April was almost 20% up on January and February.

Morgan Stanley believes this suggests Afterpay's US platform is maintaining strong growth. 

Overweight rating retained. Target is $149. Industry view: In-Line.

Target price is $149.00 Current Price is $106.96 Difference: $42.04
If APT meets the Morgan Stanley target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $121.33, suggesting upside of 22.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates AUB as Outperform (1) -

March quarter earnings were strong and Macquarie notes improvement in both revenue and margin. The company did not upgrade net profit guidance for FY21 of $63-65m, having upgraded at the first half result.

Premium rate increases of 5.9% for the March quarter were at the top of the company's estimates and ahead of Macquarie's forecast.

The broker retains an Outperform rating and raises the target to $23.13 from $20.40.

Target price is $23.13 Current Price is $21.26 Difference: $1.87
If AUB meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $21.70, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates CCX as Neutral (3) -

City Chic provided a positive trading update amid improving Australian and US sales momentum. Citi observes gross margins are recovering to pre-pandemic levels and the Evans integration is ahead of expectations.

The broker envisages second half sales growth of 59%, driven by strong rebound in the US business and the cycling of store closures in Australasia. Neutral rating and $4.30 target maintained.

Target price is $4.30 Current Price is $4.30 Difference: $0
If CCX meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates CCX as Outperform (1) -

The company's trading update revealed Avenue is ahead of pre-acquisition levels and growth is returning in the US. Australasia is strong.

Macquarie had expected a recovery for City Chic in the second half with the reopening in the US yet found the even better implications from the update a positive surprise. Outperform maintained. Target rises to $5.20 from $4.60.

Target price is $5.20 Current Price is $4.30 Difference: $0.9
If CCX meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgan Stanley rates CCX as Overweight (1) -

City Chic Collective provided an update and at first look, it appears to Morgan Stanley that the retailer is on track to meet consensus expectations with strong positive comparable sales growth in the second half to date.

Gross margins have now fully recovered since mid-2020, notes the broker, although shipping/logistics costs remain elevated. Morgan Stanley highlights elevated demand with accelerating global expansion and potential for more accretive M&A.

Overweight rating with a target of $4.75. Industry view is In-line.

Target price is $4.75 Current Price is $4.30 Difference: $0.45
If CCX meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates CHN as Outperform (1) -

Macquarie notes the Julimar discovery has grown significantly over the past year and a large open cut development is now its base case scenario. A maiden resource is expected around September.

The latest round of drilling results are provided further clarity on the potential size of the deposit and the broker envisages more upside from exploration potential in the state forest. Outperform rating and $9.20 target retained.

Target price is $9.20 Current Price is $7.15 Difference: $2.05
If CHN meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates COE as Upgrade to Add from Hold (1) -

Morgans upgrades the rating to Add from Hold and lifts the target to $0.34 from $0.30. The broker views the current share price assumes a material equity raising. It's considered more likely that deals with both APA Group ((APA)) and customers will keep lenders comfortable.

This should avoid a scenario where the company's banks request fresh equity be injected, explains the analyst. On a longer term basis Morgans also sees upside potential from the progression of OP3D (Otway) and Manta (Gippsland).

Target price is $0.34 Current Price is $0.27 Difference: $0.07
If COE meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 36.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates DRR as Outperform (1) -

The company's royalty profile is increasing and Macquarie notes it also has a unique exposure to non-gold royalties.

Buoyant iron ore prices are driving momentum and South Flank will increase production from Mining Area C to 145mt from 60mt.

Deterra Royalties will receive $73m in capacity payments over the ramp up. Outperform maintained. Target is $4.80.

Target price is $4.80 Current Price is $4.40 Difference: $0.4
If DRR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

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

Citi now expects leverage from favourable trading conditions may not be as much as previously believed because of cost pressures from suppliers and freight.

The broker suspects the business may find it difficult to generate more than mid single-digit top-line growth over the medium term, without acquisitions or a significant export strategy.

The lower end of the FY21 EBIT guidance range was raised slightly, to $98m from $95m while the top end at $100m was unchanged.

Rating is downgraded to Neutral from Buy and the target lowered to $14.20 from $14.90.

Target price is $14.20 Current Price is $13.20 Difference: $1
If GUD meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $13.57, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates GUD as Hold (3) -

In a trading update, GUD Holdings noted continued strong demand for its automotive products, with third-quarter year-to-date organic sales up 15% versus a year ago. Recent demand is also tracking in-line or slightly ahead of management’s expectations.

The company narrowed the FY21 earnings before interest and tax (EBIT) guidance range to $98-100m from $95-100m. It also noted the G4CVA acquisition was performing in-line with expectations. The Hold rating and $12.50 target are retained.

Target price is $12.50 Current Price is $13.20 Difference: minus $0.7 (current price is over target).
If GUD meets the Ord Minnett target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $13.57, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates HLS as Outperform (1) -

The company has highlighted elevated testing volumes and an ongoing recovery in the base business in its March quarter update.

Macquarie envisages scope for margin improvement over the medium to longer term and assesses the balance sheet has the flexibility for growth options. Outperform rating maintained. Target is raised to $4.65 from $4.55.

Earnings estimates are upwardly revised for FY21-23 to reflect revised coronavirus testing volumes and base business assumptions.

Target price is $4.65 Current Price is $4.08 Difference: $0.57
If HLS meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.32, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates HLS as Accumulate (2) -

After a trading update, Ord Minnett concludes operating conditions are tracking broadly in-line with forecasts and covid-19 testing for the quarter matched expectations.

However, the broker lifts near-term earnings materially as the delayed vaccine rollout has led to an increase in covid-19 testing forecasts over the next 18 months. The Accumulate rating is maintained and the target price is increased to $4.60 from $4.45.

The company announced the group was exploring potential sale options for the IVF business. While at an early stage, the business
could be worth $50m, in the broker's view.

Target price is $4.60 Current Price is $4.08 Difference: $0.52
If HLS meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.32, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates IEL as Overweight (1) -

According to IDP Education's latest update, cash at March 31 was up to $299m from $293m in the first half. For IELTS, the company opened 58 new computer-delivered centres and has a further 44 scheduled for the second half.

Unsurprisingly, suggests the broker, no guidance was provided.

Overweight retained with a target of $30. Industry view: In-line.

Target price is $30.00 Current Price is $22.38 Difference: $7.62
If IEL meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $30.44, suggesting upside of 43.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates IFM as Buy (1) -

UBS believes the SimplePart acquisition complements Infomedia's core after-sales SaaS platform and will help further penetrate the parts ecosystem by offering a more complete B2B and B2C solution.

Geographically, the broker believes the acquisition should support Infomedia's presence in the Americas while providing the opportunity to leverage the company's global OEM relationships and expand SimplePart into EMEA and APAC.

Infomedia continues to assess possible complementary acquisitions and the broker remains positive on the company's growth potential from the upgraded core NextGen platform.

Buy rating retained. Target rises to $2.20 from $2.10.

Target price is $2.20 Current Price is $1.61 Difference: $0.59
If IFM meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates IGO as Outperform (1) -

IGO Ltd has been transformed by the sale of 30% interest in Tropicana an acquisition of 50% of the global lithium joint venture, Macquarie believes.

Nova continues to be the driver of earnings in the short term but the diversification to lithium underpins a longer-term outlook, the broker adds. Outperform rating and $8.50 target maintained.

Target price is $8.50 Current Price is $7.66 Difference: $0.84
If IGO meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.71, suggesting downside of -11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.2

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

Macquarie rates ILU as Neutral (3) -

Macquarie observes the outlook for the mineral sands market has improved as Iluka Resources was able to achieve zircon price increases of US$70/t from the second quarter of 2021. The company has also diversified into rare earths.

Over the medium term the outlook is somewhat uncertain, in the broker's view, as the company is assessing growth options for zircon, rutile and rare earths. Neutral maintained. Target is $7.

Target price is $7.00 Current Price is $8.14 Difference: minus $1.14 (current price is over target).
If ILU meets the Macquarie target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.86, suggesting downside of -16.8% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Morgan Stanley rates KAR as Overweight (1) -

Karoon Energy has guided higher production in Brazil's Bauna oil field starting in the December quarter of 2022. As a result, Morgan Stanley has reduced its capex assumptions by circa 25% in FY22.

The broker is also factoring in Karoon Energy's tax shield of around $28m, expected to for about 2.5 years and effectively reducing cash tax by -30%.

The broker thinks the next 12 months will be focused on gearing up growth – with a final investment decision for the Patola field expected over the next two months.

Overweight rating, Attractive industry view. Target is $1.80.

Target price is $1.80 Current Price is $1.26 Difference: $0.54
If KAR meets the Morgan Stanley target it will return approximately 43% (excluding dividends, fees and charges).

Current consensus price target is $1.77, suggesting upside of 41.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

Mineral Resources remains committed to growing its iron ore business to 90mtpa, which Macquarie observes is well above its 50mtpa base case.

Iron ore operations are generating strong cash flow and underpin upgrade momentum. Macquarie assesses there is significant growth potential in the lithium business and also upside from mining services.

Outperform maintained. Target is $61.

Target price is $61.00 Current Price is $48.26 Difference: $12.74
If MIN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $45.32, suggesting downside of -4.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates MME as Buy (1) -

MoneyMe has entered the auto lending market, providing a same day finance solution for consumers purchasing via car dealerships.

Ord Minnett sees the product fit as competitively priced and providing a timely solution to dealerships looking to maximise volumes and reduce sales cycle times.

Separately, the company announced record originations in April and the broker consequently upgrades the loan book forecast and gross income in FY21. The Buy rating and $1.94 target are retained.

Target price is $1.94 Current Price is $1.43 Difference: $0.51
If MME meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates MPL as Neutral (3) -

Top-line momentum is slightly better than Medibank Private previously guided, Citi observes, although broadly in line with existing forecasts.

While a drop off in telehealth income should affect Medibank Health, a reversal of pandemic-related costs borne by the shareholder along with the April price rise are likely to keep second half health insurance margins intact, suggests Citi.

The broker considers the stock fairly valued and retains a Neutral rating, raising the target to $3.10 from $3.05.

Target price is $3.10 Current Price is $3.08 Difference: $0.02
If MPL meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates MPL as Neutral (3) -

Policyholder growth for FY21 has been upgraded to 4.0% from 3.5% and the company has signalled claims have normalised in the March quarter.

Medibank Private has also highlighted reform on prosthesis continues to be discussed which could save the industry around $500m over four years.

If reforms are not announced with the federal budget, the company expects further updates in October. Macquarie assesses the pandemic environment makes claims data volatile and maintains a Neutral rating. Target is $2.80.

Target price is $2.80 Current Price is $3.08 Difference: minus $0.28 (current price is over target).
If MPL meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates MPL as Overweight (1) -

Medibank Private expects policyholder growth of 3.5%-4% in FY21 versus previous guidance of more than 3%.

The company highlighted considerably better customer retention than in the prior corresponding period despite the premium increase on April 1.

Overweight rating with a target price of $3.20. Industry view: In-line.

Target price is $3.20 Current Price is $3.08 Difference: $0.12
If MPL meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgans rates MPL as Add (1) -

Medibank Private has lifted the policyholder growth target for the third time in FY21, while claims growth trends remain broadly as Morgans expected, and as per previous guidance. The targeted growth is lifted to 3.5%-4% from greater than 3%.

Current claims trends remain supportive of first half operating margins near term, forecasts the broker. The Add rating is maintained and the target price is increased to $3.34 from $3.07. Morgans thinks covid tailwinds could linger longer than the market expects.

Target price is $3.34 Current Price is $3.08 Difference: $0.26
If MPL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates MPL as Hold (3) -

After reporting 3.9% policyholder growth in the year-to-date, Medibank Private upgraded growth expectations to 3.5-4% from greater than 3% previously. 

The company expects underlying claims inflation per policyholder for FY21 of 2.5% versus prior guidance of 2.6%. It appears to Ord Minnett there is still some residual weakness in hospital claims, and it's unclear if this will unwind once we come out of the pandemic.

The Hold rating and $3 target price are unchanged.

Target price is $3.00 Current Price is $3.08 Difference: minus $0.08 (current price is over target).
If MPL meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates MPL as Neutral (3) -

Medibank Private delivered 1.7% policyholder growth in the first half with growth accelerating by 1.6% in the first four months of the second half. The company has increased its guidance to 3.5-4% for FY21.

While above system growth, UBS notes Medibank Private has been consistent with higher growth across the industry and can be expected to remain elevated during the covid uncertainty. Even then, the broker does not see this as a trend in outer years.

UBS has increased its FY21 net profit forecast by 2% driven by higher policyholders and slightly higher margin assumptions.

Neutral rating with the target rising to $3.25 from $3.20.

Target price is $3.25 Current Price is $3.08 Difference: $0.17
If MPL meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates NIC as Outperform (1) -

Production of nickel is set to double with the acquisition of Angel Nickel, which Macquarie notes is underpinned by the company's 80% interest in Ranger and the Hengjaya nickel pig iron plants in Indonesia.

Nickel Mines has also signed an MOU with Shanghai Decent, moving into the nickel matte production.

The stock is trading on 2022 and 2023 free cash flow yields of 8% and 12%, respectively, which the broker calculates rises to 9% and 15% at spot prices. Outperform rating and $1.30 target maintained.

Target price is $1.30 Current Price is $1.17 Difference: $0.13
If NIC meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.43, suggesting upside of 29.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.7

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

Credit Suisse rates NWS as Outperform (1) -

Credit Suisse forecasts News Corp's key divisions - Dow Jones, book publishing and digital real estate - to deliver an operating income growth in the third quarter driven by strong increase in digital subscriptions, demand for e-books and a strong US housing market.

All of these factors lead to the broker expecting a group operating income growth of 8.4% over last year to US$267m.

Outperform rating retained with a target of $32.50.

Target price is $32.50 Current Price is $30.49 Difference: $2.01
If NWS meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $36.23, suggesting upside of 18.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 1.0

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

Macquarie rates OZL as Outperform (1) -

Work is underway to increase production from Prominent Hill and Carrapateena. Macquarie notes OZ Minerals is also benefiting from the potential in the development of West Musgrave.

Production guidance has been maintained. The broker notes material upside to earnings on buoyant copper prices, calculating on a spot price scenario earnings increase by 25% in 2021 and 75% in 2022. Outperform rating and $29.50 target maintained.

Target price is $29.50 Current Price is $24.55 Difference: $4.95
If OZL meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $20.79, suggesting downside of -16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Citi rates QBE as Buy (1) -

Following the AGM update Citi lifts estimates, noting a strong premium rate environment is continuing and attritional loss ratios and expenses appear to be better than previously anticipated.

The broker expects QBE Insurance can continue to report strong top-line growth and expanding margins. Buy rating maintained. Target rises to $12.00 from $10.95.

Target price is $12.00 Current Price is $10.45 Difference: $1.55
If QBE meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Credit Suisse rates QBE as Outperform (1) -

In its first-quarter update, QBE Insurance Group cited 28% growth in gross written premium over last year or 13% growth excluding crop. Net earned premium (NEP) grew 6% in the quarter. 

Credit Suisse found rate increases to be robust and in-line with FY20 while attritional losses seem to have improved. The insurer's first-half exit combined operating ratio (COR) was 95% and QBE Insurance expects to improve on this led by higher rates and better expense ratio.

Outperform rating and the target rises to $13.30 from $11.80.

Target price is $13.30 Current Price is $10.45 Difference: $2.85
If QBE meets the Credit Suisse target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Macquarie rates QBE as Neutral (3) -

At the AGM QBE Insurance indicated gross written premium was up 28% in the March quarter, a function of FX, premium rate rises and the US crop portfolio.

Although there was no 2021 guidance, Macquarie believes the outlook for margins, premium rates and FX are all positive and provide support for the stock over the short term.

Neutral maintained as the broker remains cautious on a 12-month view. Target is raised to $10.00 from $9.40.

Target price is $10.00 Current Price is $10.45 Difference: minus $0.45 (current price is over target).
If QBE meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $11.57, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Morgan Stanley rates QBE as Overweight (1) -

QBE Insurance Group reported premium rates of 8.9% in the first quarter, up from 7.3% over last year 1Q20. Morgan Stanley notes this was consistent with global peers and lower than the rates seen in the December quarter of 2020.

The broker forecasts circa 14.5% net earned premium (NEP) growth in FY21 and 1.6ppt of combined ratio improvement (COR) in FY21.

Overweight rating. The target rises to $12 from $11.50. Industry view: In-line. 

Target price is $12.00 Current Price is $10.45 Difference: $1.55
If QBE meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Ord Minnett rates QBE as Accumulate (2) -

After a first quarter trading update, Ord Minnett assesses pricing momentum remains very strong and is translating to strong gross written premium (GWP) growth. The combined operating ratio was considered in-line with expectations.

The analyst highlights investment returns are benefiting from a slight uptick in yields, with the capital position above the midpoint of the target range.

The broker lifts the 2023 earnings forecast to reflect increased confidence that the strong rates performance will translate to earnings growth. The Accumulate rating is unchanged and the target price increases to $12.11 from $11.

Target price is $12.11 Current Price is $10.45 Difference: $1.66
If QBE meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

UBS rates QBE as Buy (1) -

QBE Insurance Group's first quarter performance shows an average premium rate increase of 8.9%, down over most of 2020. There was a 13% rise in gross written premium (GWP) growth and UBS expects the earning pattern to accelerate over 2020.

While the slowdown in premium rate increases as compared to 2020 is line with UBS's expectations, the broker notes volume growth appears ahead of expectations with crops also tracking ahead of forecast. 

Buy with the target rising to $11.50 from $10.25.

Target price is $11.50 Current Price is $10.45 Difference: $1.05
If QBE meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $11.57, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.8

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

Credit Suisse rates REA as Neutral (3) -

REA Group will release its third quarter results on May 7 and Credit Suisse expects 10% revenue growth with a decline of -1% in operating income.

The broker thinks growth will be led by the residential segment while the developer and commercial segments may lag.

Neutral rating with a target of $136.70.

Target price is $136.70 Current Price is $155.75 Difference: minus $19.05 (current price is over target).
If REA meets the Credit Suisse target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $152.40, suggesting downside of -1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Macquarie rates SDF as Outperform (1) -

Macquarie reviews forecasts following the recent upgrade by the company. Operating conditions have driven upgraded guidance, supported by the performance over the year to date.

The broker upgrades FY22-23 forecasts a further 1% following the upgrade on April 28. Target is raised to $4.70 from $4.60. Outperform maintained.

Target price is $4.70 Current Price is $4.26 Difference: $0.44
If SDF meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.61, suggesting upside of 11.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.9

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

Macquarie rates VUK as Neutral (3) -

First half results were mixed. Margin trends have improved and there has been a material reduction in bad debts, Macquarie observes.

The broker believes the company is well-placed to enjoy a further re-rating although another miss on expenses and non-interest income could offset the improved margins.

Following a strong performance in the lead up to the results, Macquarie expects the share price will consolidate at current levels and maintains a Neutral rating.

FY21 estimates are upgraded by around 79% largely because of the lower bad debts, with upgrades to FY22 and FY23 of 24% and 10%, respectively, driven by lower impairment charges and an improved margin outlook. Target is raised to $4.00 from $3.35.

Target price is $4.00 Current Price is $3.70 Difference: $0.3
If VUK meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: -0.5

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

Macquarie rates WES as Outperform (1) -

At the Macquarie conference Wesfarmers has reiterated its key priorities around its digital program, capital position and addressing areas of underperformance.

The company envisages a high degree of opportunity to invest in its diversified business such as expansion in chemicals, lithium or growing regional distribution centres for Bunnings.

Wesfarmers also remains committed to absorbing as much of the cost pressures as possible, exploring opportunities with alternative suppliers to remain competitive.

Outperform rating and $56.60 target maintained.

Target price is $56.60 Current Price is $54.20 Difference: $2.4
If WES meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $53.25, suggesting downside of -1.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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