Australian Broker Call

Morgan Stanley rates AD8 as Overweight (1) -

Morgan Stanley hosted Audinate at its emerging company conference and notes Dante has a 95% share of new networked audio products.

Some user behaviour needs to shift in terms of lower end-use cases and the company expects cheaper implementation such as Dante in software form could potentially address the issue.

The rating is Overweight with a target of $10. Industry view: In-line.

Target price is $10.00 Current Price is $7.45 Difference: $2.55
If AD8 meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $10.03, suggesting upside of 34.1% (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 ALL as Buy (1) -

Now the final first half result is out UBS assesses March quarter outright sales were down -40% on 2019 levels which compares favourably to market declines of -45%.

This confirms Aristocrat Leisure is taking market share. By manufacturer, the broker calculates ship share of 29%. The company also continues to outspend the opposition with more than $500m per annum on R&D. Buy rating and $44.40 target retained.

Target price is $44.40 Current Price is $41.13 Difference: $3.27
If ALL meets the UBS target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $42.28, suggesting upside of 2.7% (ex-dividends)

The company's fiscal year ends in September.

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 ALQ as Outperform (1) -

In an initial response to today's release of FY21 financials, Macquarie analysts remark the $186m in underlying profit was better than market consensus, better than Macquarie's forecast and better than last year's performance.

The final dividend of 14.6c was equally better than expected. The broker observes strong cash conversion at 102%.

Macquarie expects operational momentum to continue into FY22. The shares are still seen trading at a relative discount versus global peers.

Outperform. Target $10.55.

Target price is $10.55 Current Price is $10.90 Difference: minus $0.35 (current price is over target).
If ALQ meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.28, suggesting downside of -16.6% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates ANN as Buy (1) -

Citi summarises some key themes from the industry and competitors and expects higher use of PPE for the remainder of 2022, likely to decrease towards the end of the year. While prices are still rising, Citi notes the industry is less confident about further prices rises.

The broker forecasts Ansell’s FY23 revenue at $1,967m, -6% lower than FY21 peak sales but implying a revenue CAGR of 5% from FY19. 

Buy retained with a target of $46.

Target price is $46.00 Current Price is $41.35 Difference: $4.65
If ANN meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $45.42, suggesting upside of 9.8% (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: 0.6

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

UBS rates APT as Sell (5) -

UBS emphasises competition is a key element in its rating of Afterpay and believes the market has mispriced or ignored the amount of capital required to fund growth.

The broker reiterates the Sell rating and raises the target to $37 from $36, acknowledging the product has resonated strongly but success was always going to attract competition.

Target price is $37.00 Current Price is $92.73 Difference: minus $55.73 (current price is over target).
If APT meets the UBS target it will return approximately minus 60% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $121.47, suggesting upside of 29.5% (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 AQR as Add (1) -

The portfolio is now valued at $655m across 103 assets, after the acquisition of a portfolio of six properties in South Australia for $35.5m. The acquisition was debt funded and pro-forma gearing currently sits around 35%.

FY21 guidance is unchanged and Morgans makes minor changes to forecasts, given acquisitions under due diligence were already factored-in. The Add rating is retained and the target price is increased to $4.15 from $4.10.

Target price is $4.15 Current Price is $3.67 Difference: $0.48
If AQR meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

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 BHP as Outperform (1) -

Macquarie observes the iron ore index price rallied to a new high of US$230/t in mid-May but has fallen back to US$188/t currently. It's believed the continued correction has an element of market sentiment shift.

This comes after a meeting held by five Chinese central government institutions with major participants from the iron ore, steel, copper and aluminium markets, to discuss commodity prices. Recent strong supply from Brazil may have been another factor in weakness.

The analyst remains positive on stocks with iron-ore exposure due to strong cash flow yields and earnings upgrade momentum. While Rio Tinto ((RIO)) is the preferred large-cap exposure, Macquarie also remains positive on BHP Group.

Outperform rating and $57 target. 

Target price is $57.00 Current Price is $47.48 Difference: $9.52
If BHP meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $48.42, suggesting upside of 4.2% (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: 0.4

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

Ord Minnett rates BSL as Buy (1) -

Ord Minnett has reviewed the phase 2 expansion at the North Star operation, noting this is set to grow output by 64% with the new plant commissioning during the first half of 2022.

Returns appear solid to the broker. From an environmental perspective, the project is expected to further dilute the company's emissions intensity per tonne. Buy rating and $26 target retained.

Target price is $26.00 Current Price is $20.74 Difference: $5.26
If BSL meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $22.82, suggesting upside of 11.5% (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 CIA as Outperform (1) -

Macquarie observes the iron ore index price rallied to a new high of US$230/t in mid-May but has fallen back to US$188/t currently. It's believed the continued correction has an element of market sentiment shift.

This comes after a meeting held by five Chinese central government institutions with major participants from the iron ore, steel, copper and aluminium markets, to discuss commodity prices. Recent strong supply from Brazil may have been another factor in weakness.

The analyst remains positive on stocks with iron-ore exposure due to strong cash flow yields and earnings upgrade momentum. It's considered Champion Iron is one of the key mid-cap picks and offers unique leverage to both the iron-ore price and capex cycle.

The Outperform rating and $8 target are retained.

Target price is $8.00 Current Price is $6.82 Difference: $1.18
If CIA meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

This company reports in CAD. 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 COE as Buy (1) -

Cooper Energy has updated FY21 guidance. Sales volumes are tracking at the mid point of prior guidance ranges while, because of variable production from Orbost, production is tracking towards the lower end of the 2.7-2.9 mmboe guidance range.

Capital expenditure guidance has been lowered by -$10m to $35-45m. As a result, Ord Minnett increases net profit estimates marginally for FY21. Buy rating and $0.46 target maintained.

Target price is $0.46 Current Price is $0.27 Difference: $0.19
If COE meets the Ord Minnett target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $0.37, suggesting upside of 31.4% (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 CTP as Hold (3) -

Central Petroleum has announced the sale of half of its producing interests in the Amadeus Basin for $85m, which compares to Morgans valuation of $73m. The company intends to pay down -$30m of its debt facility.

Given the modest earnings profile from current Amadeus operations, the broker sees the deal as better positioning the company ahead of its next phase of investment. Funds will be required for both the Amadeus Basin and the Range CSG project in the Surat Basin.

In adjusting forward earnings estimates for the halving of equity production and strengthening of the balance sheet, the analyst lowers the target price to $0.13 from $0.15. The Hold rating is maintained.

Target price is $0.13 Current Price is $0.12 Difference: $0.01
If CTP meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

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

Macquarie rates DRR as Outperform (1) -

Macquarie observes the iron ore index price rallied to a new high of US$230/t in mid-May but has fallen back to US$188/t currently. It's believed the continued correction has an element of market sentiment shift.

This comes after a meeting held by five Chinese central government institutions with major participants from the iron ore, steel, copper and aluminium markets, to discuss commodity prices. Recent strong supply from Brazil may have been another factor in weakness.

The analyst remains positive on stocks with iron-ore exposure due to strong cash flow yields and earnings upgrade momentum. It's considered Deterra Royalties offers low volatility exposure to iron-ore via the royalty from BHP Group's ((BHP)) production at Mining Area C.

Outperform maintained. Target is $4.80.

Target price is $4.80 Current Price is $4.20 Difference: $0.6
If DRR meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 15.6% (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 ELO as Overweight (1) -

Elmo Software has indicated a significant strengthening of its sales pipeline and expects the UK business will return to pre-pandemic growth rates.

Management expects recurring revenue and revenue growth will scale faster than it can invest proactively, which the broker concludes implies a significant operating leverage into FY22.

Overweight rating. Target is $9.70. Industry view: In-line.

Target price is $9.70 Current Price is $4.63 Difference: $5.07
If ELO meets the Morgan Stanley target it will return approximately 110% (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 FBU as Neutral (3) -

Fletcher Building has used its Investor Day to tighten FY21 guidance to NZ$650m-NZ$660m from NZ$610m-NZ$660m and Macquarie analysts, in an initial response, note the midpoint is only 1% above their own forecast and in-line with market consensus.

The analysts also report management provided no explicit target for FY22 EBIT but noted supply chain constraints and input cost pressures in 2H21 cost it -NZ$10-15m in EBIT (operational earnings).

Fletcher Building will be buying back shares up to NZ$300m over the year post June. Neutral. Price target to NZ$6.78.

Current Price is $6.71. Target price not assessed.

Current consensus price target is $7.20, suggesting upside of 3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in NZD. 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

Macquarie rates FMG as Outperform (1) -

Macquarie observes the iron ore index price rallied to a new high of US$230/t in mid-May but has fallen back to US$188/t currently. It's believed the continued correction has an element of market sentiment shift.

This comes after a meeting held by five Chinese central government institutions with major participants from the iron ore, steel, copper and aluminium markets, to discuss commodity prices. Recent strong supply from Brazil may have been another factor in weakness.

The analyst remains positive on stocks with iron-ore exposure due to strong cash flow yields and earnings upgrade momentum. While Rio Tinto ((RIO)) is the preferred large-cap exposure, Macquarie also remains positive on Fortescue Metals Group.

The Outperform rating and $23 target are retained.

Target price is $23.00 Current Price is $21.72 Difference: $1.28
If FMG meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $21.43, suggesting upside of 0.9% (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: 0.3

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

Citi rates JHX as Neutral (3) -

James Hardie Industries’ Investor Day showed more focus on driving uptake of higher value products and a higher importance on generating demand at the consumer level.

Citi expects new product innovation to underpin the ASP mix shift. While strategically sound, the broker thinks these initiatives will take time to implement and gain traction.

Citi notes the initiatives position the company for growth but at almost 25x FY22 P/E ratio, the broker prefers to remain Neutral.

Neutral rating with the target price rising to $42.30 from $41.10.

Target price is $42.30 Current Price is $41.29 Difference: $1.01
If JHX meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

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

Macquarie rates JHX as Outperform (1) -

The company held a strategy day, highlighting new products, marketing plans and more Lean benefits. Macquarie likes the plan to capture more of the value potential in an enlarged addressable market, including stucco and brick. 

Management expanded the cumulative LEAN savings target to US$340m in FY22-FY24 from US$139m by FY22. Macquarie retains an Outperform rating and lowers the target to $49.55 from $50.00.

Target price is $49.55 Current Price is $41.29 Difference: $8.26
If JHX meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates JHX as Overweight (1) -

James Hardie has provided increased confidence in its targets for FY22 and outlined medium-term growth initiatives at the investor briefing.

Morgan Stanley notes success to date has been the combination of growth above market and attractive margins and expects this to continue.

Management is focused on innovation as a driver of future growth and has officially launched its Hardie Textured Panel in the US.

Overweight rating reiterated. Target is $50. Industry view is In-Line.

Target price is $50.00 Current Price is $41.29 Difference: $8.71
If JHX meets the Morgan Stanley target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates JHX as Accumulate (2) -

After the investor briefing Ord Minnett remains comfortable with its FY22 net profit estimate of US$551m and envisages potential upside to guidance of US$520-570m.

Management has renewed its focus on becoming a brand for homeowners, planning to hire a national social media "influencer", and believes its consumer strategy will help it become a strong product provider in the retail channel.

Accumulate rating and $47 target maintained.

Target price is $47.00 Current Price is $41.29 Difference: $5.71
If JHX meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

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 JHX as Buy (1) -

The investor briefing has provided further detail on how James Hardie will build a consumer brand. Marketing is being increased to homeowners to stimulate demand and penetrate new areas of the cladding market.

The company has explained there are 44m homes in the US over 40 years old that could use some renovation, and gaining 5% share of this market would translate to refurbishing around 2.2m homes.

The broker was pleased the commitment to the prior 35/90 strategy has been maintained. Buy rating and $47 target retained.

Target price is $47.00 Current Price is $41.29 Difference: $5.71
If JHX meets the UBS target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $45.94, suggesting upside of 7.6% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates JIN as Overweight (1) -

The company has highlighted re-seller strength in its presentation at Morgan Stanley's Australian emerging company conference.

In terms of the renewal scenario in 2030 with Tabcorp ((TAH)), Jumbo Interactive believes an extension is extremely compelling for both sides but has contingency plans.

The company is also optimistic about accelerating UK growth via M&A. Overweight rating. Target is $15.20. Industry view: In-line.

Target price is $15.20 Current Price is $13.65 Difference: $1.55
If JIN meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $14.73, suggesting upside of 0.7% (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

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

Lendlease could still be short of Morgan Stanley's FY21 net profit forecast FY21 as the broker is yet to have the sell-down for Melbourne Quarter and Barangaroo confirmed.

The broker also notes there are 16 residential rental projects and 34 commercial buildings that could be converted by FY25.

Equal-weight rating and $13.98 target retained. Industry view: In-line.

Target price is $13.98 Current Price is $12.13 Difference: $1.85
If LLC meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $13.84, suggesting upside of 13.1% (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 LNK as Hold (3) -

Forecasts for PEXA into FY22 were broadly in line with Ord Minnett's estimates. The broker envisages potential upside for Link Administration investors from PEXA if they are willing to back the possibility of a successful overseas expansion in the business.

PEXA has highlighted growth ventures, with its UK expansion possibly leading to re-mortgaging transactions. Successful overseas expansion could boost valuations.

Hold rating retained with a target of $5.20.

Target price is $5.20 Current Price is $5.18 Difference: $0.02
If LNK meets the Ord Minnett target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.39, suggesting upside of 5.0% (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

Macquarie rates MGX as Outperform (1) -

Macquarie observes the iron ore index price rallied to a new high of US$230/t in mid-May but has fallen back to US$188/t currently. It's believed the continued correction has an element of market sentiment shift.

This comes after a meeting held by five Chinese central government institutions with major participants from the iron ore, steel, copper and aluminium markets, to discuss commodity prices. Recent strong supply from Brazil may have been another factor in weakness.

The analyst remains positive on stocks with iron-ore exposure due to strong cash flow yields and earnings upgrade momentum.

The earnings upside into FY21 for Mount Gibson Iron is 27%. For FY22 and beyond, the earnings upside risk is close to or above 100% under a spot-price scenario. The Outperform rating and $1.00 target are retained.

Target price is $1.00 Current Price is $0.87 Difference: $0.13
If MGX meets the Macquarie target it will return approximately 15% (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 MIN as Outperform (1) -

Macquarie observes the iron ore index price rallied to a new high of US$230/t in mid-May but has fallen back to US$188/t currently. It's believed the continued correction has an element of market sentiment shift.

This comes after a meeting held by five Chinese central government institutions with major participants from the iron ore, steel, copper and aluminium markets, to discuss commodity prices. Recent strong supply from Brazil may have been another factor in weakness.

The analyst remains positive on stocks with iron-ore exposure due to strong cash flow yields and earnings upgrade momentum. Mineral Resources is considered one of the key mid-cap picks and offers unique leverage to both the iron-ore price and capex cycle.

Outperform maintained. Target is $61.

Target price is $61.00 Current Price is $43.68 Difference: $17.32
If MIN meets the Macquarie target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $45.32, suggesting upside of 4.7% (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 MNF as Overweight (1) -

MNF Group has noted its sale process is nearing completion which Morgan Stanley believes will liberate the high-growth software business.

More clarity going forward and higher growth is considered a reason for investors to return to the stock. Singapore production capability is ready and awaiting final regulatory approval.

Overweight rating. The target price is $6.30. Industry view: In-Line.

Target price is $6.30 Current Price is $5.17 Difference: $1.13
If MNF meets the Morgan Stanley target it will return approximately 22% (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

Morgan Stanley rates NEA as Overweight (1) -

The company has provided more clarity on the legal claim, noting that it centres around roof measurement techniques and several elements of the product are not subject to the claim.

Management has signalled that, beyond FY22, revenue and receipts growth will outpace costs growth. Overweight rating and $3.20 target retained. Industry view is In-Line.

Target price is $3.20 Current Price is $1.82 Difference: $1.38
If NEA meets the Morgan Stanley target it will return approximately 76% (excluding dividends, fees and charges).

Current consensus price target is $2.60, suggesting upside of 43.6% (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 NHC as Neutral (3) -

Macquarie assesses third quarter production results showed a stronger result at New Acland while Bengalla production was as expected. Average realised prices were up 20% quarter-on-quarter, and costs continued to be rationalised at the operation, observes the broker.

While the analyst remains cautious on the medium-term outlook for thermal coal, it drives earnings forecasts higher by 160% and 350%, in a spot-price scenario for FY22 and FY23, respectively. Neutral rating. Target is increased to $1.50 from $1.40.

Target price is $1.50 Current Price is $1.35 Difference: $0.15
If NHC meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.51, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in July.

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

Morgan Stanley rates NTO as Overweight (1) -

Nitro Software has reiterated guidance, noting strong demand driven by a desire for vendor consolidation and speed and ease of roll-out.

A shift into enterprise is allowing more up selling and cross selling which implies scope for improving returns.

Morgan Stanley retains an Overweight rating. Target is $3.70. Industry view: In-line.

Target price is $3.70 Current Price is $2.76 Difference: $0.94
If NTO meets the Morgan Stanley target it will return approximately 34% (excluding dividends, fees and charges).

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: 1.0

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

Morgan Stanley rates PSQ as Overweight (1) -

Morgan Stanley observes the economics for Pacific Smiles are improving, with break-even being achieved in nine months in some centres compared with the previous target of 12 months.

The company expects 20-25 new centres in FY22 and the broker believes the acceleration in the roll-out and the backing of private health insurers makes this a unique asset in the Australian market.

Overweight retained. Target is $3.20. Industry view: In-line.

Target price is $3.20 Current Price is $2.50 Difference: $0.7
If PSQ meets the Morgan Stanley target it will return approximately 28% (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 RIO as Outperform (1) -

Macquarie observes the iron ore index price rallied to a new high of US$230/t in mid-May but has fallen back to US$188/t currently. It's believed the continued correction has an element of market sentiment shift.

This comes after a meeting held by five Chinese central government institutions with major participants from the iron ore, steel, copper and aluminium markets, to discuss commodity prices. Recent strong supply from Brazil may have been another factor in weakness.

The analyst remains positive on stocks with iron-ore exposure due to strong cash flow yields and earnings upgrade momentum. Rio Tinto ((RIO)) is Macquarie's  preferred large-cap exposure. The Outperform rating and $140 target are maintained.

Target price is $140.00 Current Price is $121.45 Difference: $18.55
If RIO meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $127.14, suggesting upside of 7.4% (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: 0.6

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

Credit Suisse rates TNE as Neutral (3) -

TechnologyOne's first-half result showed strong margin expansion, observes Credit Suisse. Revenue at $145m was up 5% over last year while profit before tax at $37.3m was up 44% and ahead of Credit Suisse's expected $33.7m.

The company has guided to profit before tax of $94.3-98.6m, up 10-15% over last year while expecting expenses to be broadly in-line with last year. The broker's profit before tax forecast at $97.4m is within this range.

Neutral rating with the target rising to $9.50 from $9.10.

Target price is $9.50 Current Price is $9.18 Difference: $0.32
If TNE meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $9.46, suggesting upside of 4.8% (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 TNE as Neutral (3) -

After first half results, Macquarie observes TechnologyOne continues to transition customers from its legacy on-premise business to its SaaS product, with 37 new customers added half-on-half. The incremental ARR per customer was $570k versus $310k over FY20.

The broker considers it a solid result with good momentum in the SaaS business from existing customer transitions. Later discussions with management indicated the second half outlook is strong in the Government and Education verticals.

Guidance was for SaaS and continuing business revenue to grow at around a 15% compound annual growth rate (CAGR), once the
legacy business is totally wound down. Neutral rated and the target increases to $9.20 from $9.15.

Target price is $9.20 Current Price is $9.18 Difference: $0.02
If TNE meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $9.46, suggesting upside of 4.8% (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 TNE as Add (1) -

A strong first half result was broadly in-line with Morgans expectations, as was full year guidance for nearly $100m of profit (PBT). Strong double digit SaaS revenue growth has been muted by declining on-premise revenue.

Taking existing legacy customers (with an on-premise solution) and migrating their current offering to the company’s Cloud would grow annual recurring revenue by $180m to $414m, estimates the broker. 

As recurring revenue grows, the analyst explains, the mix improves and the double-digit revenue growth will become clearer. The Add rating is maintained and the target price is increased to $10 from $9.99.

Target price is $10.00 Current Price is $9.18 Difference: $0.82
If TNE meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $9.46, suggesting upside of 4.8% (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 VVA as Buy (1) -

Ord Minnett notes, while guidance at the operating earnings line (EBITDA) was affected by lingering pandemic-related costs it remains in line with forecasts.

The company has disclosed total revenue for April of $8.1m which was a positive surprise to the broker, given the seasonal weakness that is usually the case during school and public holidays.

The company has also reiterated expectations for 10 corporate-owned locations in FY21. Ord Minnett believes, following a pullback, the stock offers substantial upside and retains a Buy rating. Target is reduced to $3.73 from $3.81 because of increased costs.

Target price is $3.73 Current Price is $1.93 Difference: $1.8
If VVA meets the Ord Minnett target it will return approximately 93% (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 WOW as Outperform (1) -

Macquarie reviews the regulatory environment around electronic gaming machines (EGMs) and concludes most states are approaching their respective EGM limits. Stringent regulation is considered to present a material barrier to entry.

The broker highlights some potential for Endeavour Group to invest in Hotels, particularly across NSW and QLD, to refresh the EGM fleet. The Outperform rating for Woolworths and the $44.5 target are maintained.

Target price is $44.50 Current Price is $41.90 Difference: $2.6
If WOW meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $42.54, suggesting upside of 1.6% (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

UBS rates Z1P as Sell (5) -

UBS lowers the target to $5.60 from $6.75 because of a reduction in US income margin assumptions. Sell rating retained.

The broker assesses competition is emerging from similar products to Commonwealth Bank's ((CBA)) 'Pay in 4' that are a threat to Zip Co's 'QuadPay anwhere' product.

Target price is $5.60 Current Price is $7.23 Difference: minus $1.63 (current price is over target).
If Z1P meets the UBS target it will return approximately minus 23% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.90, suggesting upside of 25.0% (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