Australian Broker Call

Morgan Stanley rates APT as Overweight (1) -

Underlying sales in November were ahead of Morgan Stanley's forecasts by 15%. The broker forecasts $9.6bn in first half sales, or growth of 102%.

The beat to estimates in November was partly helped by the favourable timing of Cyber Monday.

The broker also notes the company's move into the US is demonstrating consistent growth, with 1m active customers added since the end of the September quarter.

Overweight rating. Target is $120. Industry view: In-line.

Target price is $120.00 Current Price is $98.56 Difference: $21.44
If APT meets the Morgan Stanley target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $94.09, suggesting downside of -2.2% (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

Credit Suisse rates AUB as Outperform (1) -

AUB Group's acquisition of 360 Underwriting Solutions is another step in addressing the shortcomings of AUB’s underwriting division, comments Credit Suisse.

Even as the earnings impact of the acquisition is minimal, the broker is more interested in the opportunity for the group to monetise more agency gross written premium within its broker network.

Outperform retained. Target rises to $18.40 from $18.25.

Target price is $18.40 Current Price is $17.00 Difference: $1.4
If AUB meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.99, suggesting upside of 10.4% (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

Ord Minnett rates AUB as Buy (1) -

AUB Group has acquired 360 Underwriting Solutions while restructuring its agency business into three divisions, expected to be marginally accretive in FY21.

Ord Minnett is lukewarm on the deal, noting the inclusion of some businesses where profitability is affected by the pandemic, and suspects AUB Group is using 360 Underwriting Solutions to turn these portfolios around.

The acquisition is also likely to put pressure on the debt ratios, in the broker's view. Buy rating and $20 target retained.

Target price is $20.00 Current Price is $17.00 Difference: $3
If AUB meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $18.99, suggesting upside of 10.4% (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

Credit Suisse rates AWC as Outperform (1) -

Credit Suisse observes China's demand for base metals continues to exceed expectations.

The broker assumes global aluminium consumption growth of 6.3% and 4.4% in 2021-22 while acknowledging there is a risk to metals demand from a second-wave of lock-downs.

Seeing Alumina Ltd's capital management was above consensus expectations in August and the recent share price rally in November (with room to rise further), Credit Suisse believes the company can perform well over the next 12 months.

Outperform rating retained with the target rising to $2.10 from $2.

Target price is $2.10 Current Price is $1.82 Difference: $0.28
If AWC meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $1.89, suggesting upside of 0.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Credit Suisse rates BHP as Outperform (1) -

With both iron ore and copper, two of the key earnings drivers for BHP Group, continuing to press higher, Credit Suisse expects the group's half-year financials to be very strong.

The broker expects 2021 will likely see BHP Group progress its plans to exit Bass Strait, BHP Mitsui Coal and/or Energy Coal although the broker believes finding a suitable counterparty may be the biggest challenge given the increasing lack of appeal for coal and petroleum.

BHP remains Credit Suisse's top pick and preferred over Rio Tinto ((RIO)) despite investors likely being attracted to better forecast short term yields from Rio Tinto and Fortescue Metals Group ((FMG)).

Credit Suisse retains its Outperform rating with the target rising to $40 from $39.

Target price is $40.00 Current Price is $39.31 Difference: $0.69
If BHP meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $40.86, suggesting downside of -1.2% (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: 0.9

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

Credit Suisse rates CSR as Outperform (1) -

Credit Suisse is of the opinion the extension to the Homebuilder scheme will enhance the effects of the scheme, compounded further by low rates.

Dwelling approvals in October increased to 195k (annualised). The broker expects approvals to continue at this level until March 2021 before tapering to circa 150k by December 2021.

This may also mean record building products operating income in FY22 of around $220m, suggests Credit Suisse.

Outperform rating is retained with the target rising to $5.60 from $5.35.

Target price is $5.60 Current Price is $4.92 Difference: $0.68
If CSR meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $5.13, suggesting upside of 3.7% (ex-dividends)

The company's fiscal year ends in March.

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

Macquarie rates DOW as Outperform (1) -

Downer EDI is selling 70% of its laundries business to Adamantem for $155m. The sale should be completed by the end of March 2021.

Macquarie observes the sale improves the balance sheet and, while not a complete exit, removes a highly capital-intensive business, delivering a significant step up in the company's urban services strategy.

The main catalysts are further asset sales such as the mining division, delivery on FY21 earnings growth and improved cash flow conversion. Outperform rating retained. Target rises to $5.75 from $5.29.

Target price is $5.75 Current Price is $5.33 Difference: $0.42
If DOW meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.25, suggesting downside of -2.7% (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 DOW as Hold (3) -

Downer EDI has sold 70% of its laundries business and will receive total proceeds of around $155m.

Ord Minnett believes this is a reasonable price but finds the retention of a minority stake a negative, as this is one of the most capital-intensive of the company's businesses, and non-core.

Ord Minnett maintains a Hold rating and raises the target to $5.10 from $4.70. Downer EDI has now sold its blasting services business and joint venture in Earthworks and RTL Mining while the sizeable part of that division, contract mining, remains unsold.

Target price is $5.10 Current Price is $5.33 Difference: minus $0.23 (current price is over target).
If DOW meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.25, suggesting downside of -2.7% (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

Macquarie rates IAP as Resume Coverage with Outperform (1) -

Macquarie resumes coverage of Irongate Group (formerly Investec Australia) following the completion of internalisation of management and acquisition of management rights.

The internalisation provides some financial benefits and aligns management/shareholder interests, the broker points out.

Macquarie calculates the internalisation is 0.5% accretive to FY21 free funds from operations. The broker finds the distribution yield attractive, at 7.3% for FY22, and resumes with an Outperform rating and $1.37 target.

Target price is $1.37 Current Price is $1.29 Difference: $0.08
If IAP meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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 IGO as Neutral (3) -

Led by higher valuation, Credit Suisse raises its target price for IGO to $4.90 from $4.35 with a Neutral rating.

With the sale of IGO's 30% interest in the Tropicana gold mine (currently underway) valued at $890m, the total value of the company comes to circa $1.2bn. Other catalysts include M&A activity and exploration success at the company's Nova operations.

Target price is $4.90 Current Price is $4.85 Difference: $0.05
If IGO meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting upside of 0.0% (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

Morgans rates NCM as Hold (3) -

Morgans lowers the target price for Newcrest Mining to $29.88 from $32.38, largely due to increased production cost estimates for Cadia.

The broker’s long-term forecasts for the gold price of US$1,450 and the Australian dollar at $0.74 are unchanged.

The company announced it has signed a joint venture agreement with UK-based Greatland Gold for the Havieron Project. The analyst sees this as positive news as the project is critical for extending the life of the ageing nearby Telfer operation.

The Hold rating is unchanged.

Target price is $29.88 Current Price is $27.85 Difference: $2.03
If NCM meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $33.87, suggesting upside of 22.5% (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 NCZ as Outperform (1) -

Credit Suisse suggests the "stars appear to be aligning" for New Century Resources with higher zinc price combined with a material drop in treatment charges and increasing production rates.

The broker pegs the company's operating income at around $30-$40m over each of the next few quarters.

In order for potential investors to become buyers, Credit Suisse thinks New Century needs to prove its cash generation capacity. This point may be approaching in the form of the December quarter result and may be the next catalyst, suspects Credit Suisse.

Outperform retained with the target price unchanged at $0.45.

Target price is $0.45 Current Price is $0.22 Difference: $0.23
If NCZ meets the Credit Suisse target it will return approximately 105% (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 NIC as Buy (1) -

Nickel Mines announced a fully underwritten 2:11 entitlement offer of US$268m to institutional and retail shareholders. With the company looking to maintain a strong balance sheet, the raise is circa US$90m higher than Citi's prior estimate.

The funds will be used for acquiring a 30% stake in ANI at Weda Bay with the rest going to the balance sheet post-fees. First production from ANI is expected by the third quarter of FY22. Citi expects Nickel Mines to become a top 10 global nickel producer by around 2023.

Buy/High Risk retained. Target rises to $1.40 from $1.30.

Target price is $1.40 Current Price is $1.05 Difference: $0.35
If NIC meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 NIC as Outperform (1) -

Nickel Mines has launched a $364m entitlement offer to fund the first payment for the Angel Nickel acquisition. The equity raising is larger than Macquarie expected and estimates are reduced to reflect increased dilution.

The US$490m acquisition should mean nickel production more than doubles to around 60,000tpa in the next three years.

The broker assesses buoyant nickel prices underpin strong earnings momentum and maintains an Outperform rating. Target is reduced to $1.20 from $1.30.

Target price is $1.20 Current Price is $1.05 Difference: $0.15
If NIC meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

Credit Suisse rates OZL as Underperform (5) -

Credit Suisse raises its target to $15.40 from $13.30. Underperform rating is retained.

Higher copper price assumptions drive the uplift although the broker has kept its operating forecasts intact.

Apart from the price of copper, a final investment decision on the expansion of the Prominent Hill operations and the ramp-up of Carrapateena operations are some other catalysts for Oz Minerals.  

Target price is $15.40 Current Price is $16.93 Difference: minus $1.53 (current price is over target).
If OZL meets the Credit Suisse target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.88, suggesting downside of -12.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Citi rates QUB as Buy (1) -

Qube Holdings' management flagged trading in the first quarter was better than expected due to higher container volumes and activity levels.

While Qube did not provide any quantitative guidance, the company expects reasonable growth in its FY21 net profit versus FY20. Citi, having taken a conservative view due to the uncertainty around the pandemic, has turned more optimistic and forecasts a net profit of $126m.

Seeing positive near term catalysts around Moorebank, Citi retains its Buy rating with the target rising to $3.50 from $3.40.

Target price is $3.50 Current Price is $2.92 Difference: $0.58
If QUB meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $3.05, suggesting upside of 3.0% (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

Credit Suisse rates RIO as Neutral (3) -

Credit Suisse expects Rio Tinto to finish 2020 with less than US$1bn of net debt and ample capacity for another strong dividend in February.

The broker assumes a 70% payout ratio in the second half but believes even if Rio were to pay 100% of earnings, the miner would be able to keep its net debt effectively flat.

Looking at the unknowns leading into 2021, Credit Suisse decides to maintain its Neutral rating. Target is steady at $95.

Target price is $95.00 Current Price is $104.99 Difference: minus $9.99 (current price is over target).
If RIO meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $107.07, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.4

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

Credit Suisse rates S32 as Outperform (1) -

Credit Suisse considers the next 12 months will be formative for South32 with the exit of South Africa Energy Coal (SAEC) and an update on the Hermosa project which is considered the miner’s key medium-term growth opportunity.

A new base metals price deck and some minor modelling adjustments put the earnings forecast for FY21 at circa 7.2%, expected to lift to 13.4% and 6.8% in FY22-23.

Target rises to $2.80 from $2.70. Outperform maintained.

Target price is $2.80 Current Price is $2.45 Difference: $0.35
If S32 meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 4.8% (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: 0.7

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

Credit Suisse rates SFR as Outperform (1) -

Credit Suisse has raised its target price on Sandfire Resources to $6.50 from $5.25.

The rise is driven by increased copper price assumptions and the update on Botswana's T3 definitive feasibility study among other things.

Outperform rating maintained. 

Target price is $6.50 Current Price is $5.40 Difference: $1.1
If SFR meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $5.60, suggesting downside of -1.3% (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

Ord Minnett rates SFR as Hold (3) -

Sandfire Resources has confirmed plans to develop the US$259m T3 copper and silver project in Botswana. Ord Minnett finds this a positive step but expects more resources will be required to justify expansion of the mill to 5.2mtpa.

The broker removes a 10% risking on the project, maintaining a Hold rating while raising the target to $4.70 from $4.60.

Target price is $4.70 Current Price is $5.40 Difference: minus $0.7 (current price is over target).
If SFR meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.60, suggesting downside of -1.3% (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

Morgans rates STO as Add (1) -

With plans for several projects underway, Morgans considers Santos has an attractive combination of growth and solid underlying fundamentals.

Part of the broker’s sector preference for the company is driven by a reduced (earnings/valuation) oil price exposure versus peers, despite having a comparable share price correlation to oil.

A third of the company’s business is in fixed-price gas, and a further 10% in 2021 is hedged with a floor of US$41/bbl. This means almost half of sales are protected against potential oil price volatility risk next year.

The Add rating is unchanged and the target price is increased to $7.05 from $7.00.

Target price is $7.05 Current Price is $6.24 Difference: $0.81
If STO meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.68, suggesting upside of 6.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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 UNI as Initiation of coverage with Add (1) -

Morgans initiates coverage of Universal Store Holdings with an Add rating and a target price of $6.05.

Founded in 1999, the company is a specialty retailer of youth casual apparel. It operates 65 physical stores across Australia and a fast-growing online store.

The company retails a curated range of third party branded products (approximately 70% of FY20 revenue), supported by a range of private brand products (approximately 30% of FY20 revenue).

The broker believes the company has a strong competitive advantage in the youth apparel category, benefiting from a disruptive and likely enduring shift to street wear.

The analyst feels the company remains relatively ‘young’ in terms of both footprint and brand awareness in newer markets like NSW and Victoria. It’s considered this will lead to strong sales upside in periods to come.

Morgans forecasts a three-year EPS compound annual growth rate (CAGR ) of 25%, well in excess of most retail peers.

Target price is $6.05 Current Price is $4.94 Difference: $1.11
If UNI meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges).

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Macquarie rates WBC as Outperform (1) -

Westpac Banking has announced the divestment of the general insurance business to Allianz for $725m. Macquarie finds the announcement incrementally positive but recognises there are ongoing challenges.

Still, the current discounted multiple arguably incorporates this and the broker continues to envisage relative valuation upside compared with peers. Macquarie retains a $21.50 target with an Outperform rating.

Target price is $21.50 Current Price is $20.30 Difference: $1.2
If WBC meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $21.17, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates WBC as Overweight (1) -

Westpac Banking has sold its general insurance business to Allianz for $725m. The sale was widely anticipated.

Morgan Stanley notes it will add 12 basis points to the CET1 ratio, lifting it to 11.3%. Allianz will distribute general insurance products to Westpac customers under a 20-year agreement.

Morgan Stanley believes during 2021 the mortgage market share loss will moderate and the bank will make more non-core asset sales.

Overweight rating and target of $20.40 are unchanged. Industry view: In-line.

Target price is $20.40 Current Price is $20.30 Difference: $0.1
If WBC meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $21.17, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

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

Ord Minnett rates WBC as Hold (3) -

Westpac Banking has sold its general insurance business to Allianz for $725m. The sale lifts the pro forma CET1 ratio to 11.3%, still below peers.

Ord Minnett expects further divestments will be forthcoming from the specialist division. These are likely to take time given greater integration with the broader group compared with the general insurance business.

Ord Minnett retains a Hold rating and $20.20 target.

Target price is $20.20 Current Price is $20.30 Difference: minus $0.1 (current price is over target).
If WBC meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.17, suggesting upside of 4.8% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates WOR as Buy (1) -

Citi believes Worley can successfully compete in the energy transition with its chosen sustainable segments consistent with its competencies. The broker cautions the competitive landscape is expected to become tougher than the company seems to appreciate.

Looking at the ongoing site access issues and fx headwinds, the broker has reduced its FY21 revenue by -8%, consequently reducing its earnings forecast by -8%.

The broker is optimistic and remains bullish on a rebound in activity as maintenance restarts in heavy industrial sectors in the second half and end markets begin investing again in FY22.

The broker retains a Buy rating with the target rising to $14.18 from $14.06.

Target price is $14.18 Current Price is $12.49 Difference: $1.69
If WOR meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $12.66, suggesting upside of 0.4% (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

Macquarie rates WOR as Outperform (1) -

Macquarie assesses conditions remain challenging for the short term, particularly regarding revenue. The company's extensive cost reductions should support margins while end-market demand needs to improve for margins to increase.

Worley has outlined a strategy to focus more on sustainability projects including offshore wind, hydrogen, carbon capture and storage, indicating it has long-term relationships with customers that will be critical to this area.

Macquarie believes further contract wins in renewables are required to prove the company's ability to capture a meaningful share of the emerging opportunities. Outperform retained. Target rises to $13.60 from $12.93.

Target price is $13.60 Current Price is $12.49 Difference: $1.11
If WOR meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $12.66, suggesting upside of 0.4% (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 WOR as Equal-weight (3) -

Worley has outlined a number of areas where it intends to grow revenue, namely in energy transition and sustainability.

Morgan Stanley does not believe this will be a quick process as only 3% of revenue is currently derived from energy transition, along with 3.5% for environment, social and water and 2% in transition materials.

Capital expenditure forecasts were provided that reveal the size of the broader opportunity and Worley has also provided some benchmarks in order to monitor progress, which the broker believes is helpful.

Morgan Stanley retains an Equal-weight rating and $10.50 target. Industry view is In-Line.

Target price is $10.50 Current Price is $12.49 Difference: minus $1.99 (current price is over target).
If WOR meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.66, suggesting upside of 0.4% (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 WOR as Downgrade to Lighten from Hold (4) -

Worley is well-placed to capitalise on growth in environmentally sustainable projects, Ord Minnett observes. These projects represent a small portion of current revenue and may not be a major contributor for some time, the broker points out.

Moreover, the outlook is challenging as projects are still being deferred. The stock appears expensive and consensus forecasts optimistic and Ord Minnett downgrades to Lighten from Hold.

The broker has become more cautious on the stock since the onset of the pandemic on the basis of reduced global capital expenditure. Target is raised to $11.50 from $11.00.

Target price is $11.50 Current Price is $12.49 Difference: minus $0.99 (current price is over target).
If WOR meets the Ord Minnett target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.66, suggesting upside of 0.4% (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

UBS rates WOR as Buy (1) -

Worley has emphasised how the global trend in sustainability is affecting its strategy and will leverage its expertise in designing and delivering complex technological projects to this end.

The increasing adoption of net zero carbon emissions targets is likely to drive an increase in capital investment in technologies that support such outcomes.

Meanwhile, pandemic restrictions are affecting access to some sites and some projects are still being deferred.

UBS is pleased the company is managing the cost base to reflect the current operating environment and retains a Buy rating. Target is raised to $14.45 from $12.32.

Target price is $14.45 Current Price is $12.49 Difference: $1.96
If WOR meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $12.66, suggesting upside of 0.4% (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

Credit Suisse rates WSA as Outperform (1) -

Led by an increase in valuation and earnings forecast due to higher nickel price assumptions, Credit Suisse raises its target price for Western Areas to $2.50 from $2.35 with an Outperform rating.

Upcoming catalysts include life extension of the Forrestania project and optimisation of the mine at Odysseus (production rate, cost, mine life) along with nickel price.

Target price is $2.50 Current Price is $2.33 Difference: $0.17
If WSA meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $2.42, suggesting upside of 3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates Z1P as Sell (5) -

Active customers over October and November were tracking slightly ahead of UBS estimates. The broker increases sales forecasts for FY21 and FY22 by 15% and 11%, respectively.

The main surprise for the broker in the recent trading update was the growth in US transaction frequency. Meanwhile, repayment rates in Australasia remain elevated.

UBS finds the near-term outlook uncertain as policy measures such as JobKeeper and JobSeeker are wound back and this may affect top-line growth and credit risks. Sell retained. Target rises to $5.70 from $5.50.

Target price is $5.70 Current Price is $5.95 Difference: minus $0.25 (current price is over target).
If Z1P meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.77, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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