Australian Broker Call

Shaw and Partners rates 3DA as Buy, High Risk (1) -

Shaw and Partners partly attributes the in-house technical expertise at Amaero International for achieving qualification within four months of commissioning. Management successfully qualified its C103 powder according to ADDMAN Group’s specifications.

Following qualification, the company announced ADDMAN as the counterparty to the 2.25t C-103 offtake agreement.

While making no changes to forecasts, the broker sees upside to its C-103 volume estimates, given ADDMAN’s M&A ambitions and recent takeover of Keselowski Advanced Manufacturing.

Shaw and Partners retains a Buy, High Risk rating and $0.60 target.

Target price is $0.60 Current Price is $0.39 Difference: $0.21
If 3DA meets the Shaw and Partners target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates ABY as Buy (1) -

Temple & Webster is Citi's top pick among Australian Online Retailers on the ASX, followed by City Chic Collective, Adore Beauty and Sell-rated Kogan.com.

The broker sees limited risk of softening top-line growth in FY25 for Temple & Webster given market share gains, encouraging signs in B2B, and growing app usage.

The analysts highlight growing app usage by customers of Adore Beauty, as well as margin uplift from iKOU stores, and growing brand
awareness via entry into physical retailing.

Buy, High Risk rating. Target 1.50.

Target price is $1.50 Current Price is $1.12 Difference: $0.385
If ABY meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $1.37, suggesting upside of 26.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Bell Potter rates ADA as Buy (1) -

Bell Potter observes Adacel Technologies retained the FAA contract for Tower Simulation System post a reconsideration by the FAA and an unsuccessful tenderer.

The broker highlights the contract's value at US$59m over five years including maintenance and hardware support.

No changes to the broker's earnings forecasts.

Due to an increase in the valuation multiple, Bell Potter lifts target price to 70c from 65c. Buy rating remains.

Target price is $0.70 Current Price is $0.51 Difference: $0.195
If ADA meets the Bell Potter target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 ANZ as Underweight (5) -

Morgan Stanley increases its cash EPS forecast for ANZ Bank by circa 1% in FY24 and by 3% in FY25 and FY26 due to lower near-term loan losses, the inclusion of Suncorp Bank earnings, and changes to capital requirements.

The analysts believe the bank's trading multiples will remain at a discount to big four peers due to a range of factors including retail banking platform ANZ Plus execution risk and weak growth trends in New Zealand.

Underweight. The target rises to $27.50 from $26.20. Industry view: In-Line.

Target price is $27.50 Current Price is $31.52 Difference: minus $4.02 (current price is over target).
If ANZ meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.37, suggesting downside of -13.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.3

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

Macquarie rates APA as Outperform (1) -

The draft decision from the Australian Energy Regulator on the South West Queensland pipeline could impact APA Group's earnings by around -$60m from FY28, according to Macquarie.

Offsetting the increased regulation on the Qld pipeline where the group has been "over-collecting" is under collection at Moomba Sydney pipeline, the broker suggests.

No major changes to the broker's EPS forecasts. The broker believes the regulatory changes and threat to earnings is largely priced into the stock.

Outperform rating. Target is cut to $8.23 from $8.47.

Target price is $8.23 Current Price is $7.37 Difference: $0.86
If APA meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $8.56, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Citi rates ARB as Buy (1) -

Providing greater control of US-based distribution in ARB Corp's key growth market, suggests Citi, management aims to acquire 4 Wheel Parts (4WP) for -US$30m.

If successful, ARB would gain a 50% interest in 53 aftermarket stores in the US, up from a 30% interest in 11 Off-Road Warehouse (ORW) stores prior to the deal, notes the broker.

ORW is paying -US$30m for 4WP, but ARB only owns 30% of ORW and its stake is increasing to 50% given it is providing funding for the deal, explain the analysts.

The $48 target and Buy rating are maintained.

Target price is $48.00 Current Price is $42.35 Difference: $5.65
If ARB meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $41.88, suggesting downside of -0.9% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

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

Yesterday, ARB Corp announced two conditional transactions to acquire 4 Wheel Parts for -US$30m via the US-based Off-Road Warehouse and a -US$1m outlay for Jeep specialist Poison Spyder brand.

Regarding 4 Wheel Parts, Morgan Stanley observes the acquisition funding arrangement will see ARB lift its Off-Road Warehouse stake to 50% from 30%.

Equal weight. Target $40.50. Industry view: In-Line. 

Target price is $40.50 Current Price is $42.35 Difference: minus $1.85 (current price is over target).
If ARB meets the Morgan Stanley target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $41.88, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Ord Minnett rates ARB as Buy (1) -

ARB Corp announced an increased investment in US Off Road Warehouse to 50%, 30% was acquired in Oct 2023.

This is a US retail business which specialises in sale/fitting of 4WD accessories with an expanded 53 outlets, Ord Minnett notes, via an agreement to acquire 4 Wheel Parts for US$30m which brings forth 42 stores.

The acquisition is subject to court approval with the increased stake in Off Road Warehouse of circa $25-$30m providing part of the transaction consideration.

Buy rating remains with a $46 target price.

Target price is $46.00 Current Price is $42.35 Difference: $3.65
If ARB meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $41.88, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

UBS rates BGL as Buy (1) -

UBS updates its earnings models for the equity raising as well as the production and cost guidance with a site visit, now post restriction.

Accounting for lower short term production and higher costs with -$40m annual capex over the next three years, the broker cuts EPS forecasts by -18% and -26% for FY25/FY26. The equity raising has taken pressure off the company's cashflows.

Over a -40% decline in the share price in the last two months, UBS envisages "upside" to the lower target price of $1.45 from $2.25. Buy.

Target price is $1.45 Current Price is $1.14 Difference: $0.31
If BGL meets the UBS target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 32.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Citi rates CCX as Buy, High Risk (1) -

Temple & Webster is Citi's top pick among Australian Online Retailers on the ASX, followed by City Chic Collective, Adore Beauty and Sell-rated Kogan.com.

The broker sees limited risk of softening top-line growth in FY25 for Temple & Webster given market share gains, encouraging signs in B2B, and growing app usage.

The analysts see deep value in City Chic Collective and believes the current turnaround is sustainable, partly due to a rapid gross profit margin recovery, product improvements, plus positive industry feedback.

Buy, High Risk rating. Target 25c.

Target price is $0.25 Current Price is $0.13 Difference: $0.12
If CCX meets the Citi target it will return approximately 92% (excluding dividends, fees and charges).

Current consensus price target is $0.21, suggesting upside of 57.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgan Stanley rates CHC as Overweight (1) -

Hostplus and Charter Hall Retail REIT ((CQR)) -each 50% owners in a Charter Hall vehicle- have made an off-market bid for Hotel Property Investments ((HPI)) at $3.65/share. The bid vehicle already has a 14.7% stake in the target.

For Charter Hall, Morgan Stanley explains the deal could generate an acquisition fee of around $12m for FY25, as well as boosting assets under management (AUM) by circa 2%.

Overweight rating. Target $15.80. Industry view: In-Line. 

Target price is $15.80 Current Price is $15.71 Difference: $0.09
If CHC meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $14.62, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

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

Hostplus and Charter Hall Retail REIT -each 50% owners in a Charter Hall vehicle- have made an off-market bid for Hotel Property Investments ((HPI)) at $3.65/share. The bid vehicle already has a 14.7% stake in the target.

For Charter Hall Retail REIT, Morgan Stanley explains the outlay will be around -$306m, funded via existing corporate debt. It's thought the deal could be around 1.5% EPS accretive for FY25.

Equal-weight. Target $3.93. Industry view: In Line.

Target price is $3.93 Current Price is $3.66 Difference: $0.27
If CQR meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates CQR as Accumulate (2) -

Ord Minnett highlights the off-market takeover offer by Charter Hall Retail REIT ((CQR)) and Hostplus for Hotel Property Investments ((HPI)) at $3.65 per share, a circa 7% premium to the one month weighted average price.

The broker believes the acquisition is strategically sound, adding exposure to convenience retail.

On current terms, the acquisition is believed to be undervaluing the assets and is unlikely to proceed at this stage, Ord Minnett suggests.

No changes to the broker's earnings forecasts. Accumulate rating and $3.81 target unchanged.

Target price is $3.81 Current Price is $3.66 Difference: $0.15
If CQR meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.76, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Macquarie rates FCL as Outperform (1) -

Macquarie assesses the outlook for Fineos Corp through the read through on Guidewire's trading update as a comparison.

The company is larger to Fineos Corp and only competes in accident segments of workers' compensation versus Fineos on Life, Accident and Health software.

Guidewire's 4Q24 results showed subscription/license growth up 10% with services down -2%. Gross profit margin increased 64% and the stock is up 24% in the last three months against a fall of -1.4% for Fineos.

Macquarie makes no changes to earnings forecasts. Outperform and $2.11 target price retained.

Target price is $2.11 Current Price is $1.44 Difference: $0.675
If FCL meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

This company reports in EUR. 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

Citi rates FPH as Downgrade to Sell from Neutral (5) -

In a delayed update, Citi mentions in new research it downgraded the rating for Fisher & Paykel Healthcare to Sell from Neutral (on valuation) in the wake of FY24 results.

The analysts' top picks are CSL ((CSL) in large caps and Australian Clinal Labs ((ACL)) in small caps.

Just after Fisher &Paykel's FY24 results, FNArena's summary on August 26 of the broker's latest research was as follows.

Should current favourable conditions continue, Citi believes Fisher & Paykel Healthcare (March year-end) can achieve the top end of FY25 profit guidance, which has been upgraded by around 3% on strong 1H growth across all products.

FY25 revenue guidance was maintained given the variability in 2H northern hemisphere seasonal hospitalisation rates.

Management also supplied 1H profit guidance of between NZ$150-160m, which is 10% above the consensus estimate, notes the broker.

Neutral rating. The broker's target is raised to NZ$33.50 from NZ$28.75 on higher earnings forecasts and a higher mid-term growth rate.

Current Price is $34.94. Target price not assessed.

Current consensus price target is $23.06, suggesting downside of -33.4% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.0

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

Bell Potter rates GEN as Downgrade to Speculative Hold from Speculative Buy (3) -

Genmin provided an updated funding disclosure post an ASX query, Bell Potter highlights. The company's cash position declined to US$0.648m at June 30 2024 against US$6.2m at March 31 2024

The company stressed capital requirements will fall substantially in the Sept quarter after several sizeable one-off payments are made. Management is also in advanced discussions on non-dilutive fund-raising options for working capital and project financing for Baniaka iron ore project.

The stock is downgraded to Speculative Hold from Speculative Buy. Target falls to 9c from 48c on the assumption of a doubling of shares in the next 12-months for a fund raising.

Target price is $0.09 Current Price is $0.07 Difference: $0.02
If GEN meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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

Morgan Stanley rates JIN as Overweight (1) -

Jumbo Interactive makes Morgan Stanley's list of key small/mid-cap ideas based on compelling structural growth prospects. Total ticket sales and online penetration are expected to materially increase in coming years.

Customer count is up materially, growth in average spend is remarkably resilient, and part of FY24's strong jackpot performance is structural in the broker's view.

Target $19.50. Overweight. Industry view: In Line.

Target price is $19.50 Current Price is $13.41 Difference: $6.09
If JIN meets the Morgan Stanley target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $15.93, suggesting upside of 18.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Citi rates KGN as Sell (5) -

Temple & Webster is Citi's top pick among Australian Online Retailers on the ASX, followed by City Chic Collective, Adore Beauty and Sell-rated Kogan.com.

The broker sees limited risk of softening top-line growth in FY25 for Temple & Webster given market share gains, encouraging signs in B2B, and growing app usage.

The analysts highlight negative impacts for Kogan.com from declining web traffic and app usage. It's also felt the Kogan First program fails to offer compelling value to subscribers.

Sell. Target $4.20.

Target price is $4.20 Current Price is $4.54 Difference: minus $0.34 (current price is over target).
If KGN meets the Citi target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.90, suggesting upside of 51.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.2

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

Citi rates LOV as Neutral (3) -

Lovisa Holdings' current CEO Victor Herrero does not depart until May 31, 2025, which is just as well, suggests Citi, given replacement John Cheston has been terminated from his current employer Just Group for alleged ‘serious misconduct’.

Management at Lovisa will have adequate time to find a replacement, should this be required, explains the broker. Also, it's thought Mr Herrero may be sufficiently incentivised by his current shareholding in Lovisa to extend his stay temporarily until a replacement is found.

Neutral. Target $32.16.

Target price is $32.16 Current Price is $30.99 Difference: $1.17
If LOV meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $33.29, suggesting upside of 7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.1

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

Bell Potter rates PMV as Buy (1) -

Bell Potter assesses the preliminary FY24 results which were a miss on what the analyst depicts as weakness in non-core brands.

Global sales met expectations and earnings before interest and tax were a slight miss of -1% against the broker's and consensus estimates.

The broker tweaks EPS forecasts down by -0.6% and -0.3% in FY24/FY25, respectively. The FY24 results are due on Sept 25 with Bell Potter awaiting news on the Smiggle leadership change because of the termination of the current CEO.

Buy rating maintained. Target price rises to $37 from $35.

Target price is $37.00 Current Price is $33.85 Difference: $3.15
If PMV meets the Bell Potter target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $33.25, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates PMV as Buy (1) -

Details have not been provided as yet, but Citi believes yesterday's trading update by Premier Investments implies a miss at the retail EBIT level of around -4% versus consensus.

Based on industry feedback, the broker feels heavier discounting going into June led to a miss for the gross profit margin, which raises the question whether inventory has been refreshed going into FY25.

The Buy rating and $36 target are maintained. 

Target price is $36.00 Current Price is $33.85 Difference: $2.15
If PMV meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $33.25, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates PMV as Neutral (3) -

Premier Investments' trading update revealed sales of around -2% below Macquarie's estimates and consensus, suggesting FY24 sales are down -2.6% with a decline of -2.4% in 2H24 against -2.6% in 1H24.

Earnings before interest and tax came in below forecasts and down -3.6% year-on-year with an estimated slight improvement in margin to 21.3%.

Macquarie lowers EPS forecasts by -1% and -3% in FY24/FY25, respectively. The analyst notes the Smiggle CEO was terminated due to a reported "serious breach of his employment terms". 

Neutral rating unchanged. Target price declines -7% to $33.50.

Target price is $33.50 Current Price is $33.85 Difference: minus $0.35 (current price is over target).
If PMV meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.25, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Morgan Stanley rates PMV as Overweight (1) -

Prior to FY24 results on September 25, Premier Investments provided earnings (EBIT) guidance for around $326m (pre AASB16) slightly below consensus expectations, according to Morgan Stanley.

In a positive take, the broker assumes the miss is driven by lower-rated Apparel, while the higher-rated Smiggle/Peter Alexander provided a beat. No segment details were provided by management.

The Overweight rating and $39.50 target are maintained. Industry view: In-Line.

Target price is $39.50 Current Price is $33.85 Difference: $5.65
If PMV meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $33.25, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

UBS rates PMV as Neutral (3) -

Premier Investments announced a FY24 preliminary trading update which came in lower than UBS' expectations.

The broker notes the announcement was not expected, prompted instead by an article in The Australian regarding the Apparel brands and Premier Retail's performance.

UBS cuts EPS forecasts by -3% and -4% for FY24/FY25, respectively on the back of lower sales growth and weaker margins in Premier Retail.

Neutral rating remains. Target price rises to $33 from $31.

Target price is $33.00 Current Price is $33.85 Difference: minus $0.85 (current price is over target).
If PMV meets the UBS target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $33.25, suggesting downside of -0.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Ord Minnett rates RMD as Accumulate (2) -

Ord Minnett believes the impact of GLP-1 type drugs will now have less of an effect on the longer-term outlook for ResMed, post discussions with health care experts. Referrals for sleep apnoea are being recorded at an ongoing robust rate and CPAP treatment remains industry standard.

The analyst revises the longer-term sales forecast for masks to 8% growth from 7.5% in the US market post 16% growth in FY24 and an average compound rate of 10% for FY11 through to FY24,

Target price lifted to $39 from $34.40. Accumulate rating unchanged.

Target price is $39.00 Current Price is $36.63 Difference: $2.37
If RMD meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $35.78, suggesting downside of -3.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

Bell Potter rates S2R as Downgrade to Speculative Hold from Speculative Buy (3) -

Bell Potter adjusts the outlook for S2 Resources on the back of results for eight holes at Greater Fosterville, the company's most developed gold exploration project.

The analyst notes initial results have produced economic grades and widths but insufficient data to articulate the true potential scale and opportunity of the project.

Target price cut to 10c from 24c. Rating downgraded to Speculative Hold from Speculative Buy.

Target price is $0.10 Current Price is $0.09 Difference: $0.006
If S2R meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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

Macquarie rates SDF as Outperform (1) -

On the back of ABC's investigation into the strata management sector, Macquarie acknowledges the increasing media and regulatory focus is an "unquantifiable" risk to Steadfast Group's valuation.

The company featured in ABC's expose, with the CEO admitting there are issues with renumeration sharing and transparency.

Macquarie estimates strata represents around 30% of the group's earnings, with an additional circa 5% of earnings from equity in brokers. Underwriting agencies are around 16% of net profit (FY23) and there are 5m shares owned in Johns Lyng ((JLG)) or 2.1%.

The analyst points to potential reputational damage with increased disclosure unlikely to impact on earnings forecasts.

No changes to earnings forecasts or $6.80 target price. Outperform rating remains. Steadfast Group's AGM is scheduled for Nov 1.

Target price is $6.80 Current Price is $5.96 Difference: $0.84
If SDF meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $6.75, suggesting upside of 26.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

UBS rates SDF as Buy (1) -

Post the Four Corners strata investigation, UBS observes Steadfast Group has been progressive in commissioning the Trowbridge report to assess remuneration sharing and transparency.

The ABC report outlined new potential areas of concern, the ACCC chair calling for commission ban, and conflicted interests generated via vertical integration.

UBS believes the latter is more of a concern as precedent in financial services led to structural separation post the Royal Commission into Misconduct in Financial Services.

Buy rating and $6.70 target unchanged with the possibility of forced divestment to reduce market power.

Target price is $6.70 Current Price is $5.96 Difference: $0.74
If SDF meets the UBS target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.75, suggesting upside of 26.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Macquarie rates SEK as Outperform (1) -

Macquarie believes "quality" exposures in Australian communication services performed better in reporting season.

Notably, competition has increased in mobile markets from handset discounting and trading down to prepaid or operators which don't own the network.

The top stock picks in the sector are Telstra Group ((TLS)), REA Group ((REA)), News Corp ((NWS)) and Seek ((SEK)), all Outperform rated.

The broker views interest rate cuts as a tailwind for Seek, lifting the target price 9% to $25 to an equivalent marketplace multiple of its peers.

Outperform. Target price $25.

Target price is $25.00 Current Price is $22.97 Difference: $2.03
If SEK meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $26.58, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates SGP as Buy (1) -

Management at Stockland has confirmed media speculation a sale of the company's existing community in Illawarra is being considered to appease ACCC concerns over the acquisition of Lendlease Group's ((LLC)) portfolio.

The announcement is positive, according to Stockland, as the community offered to be sold (Forest Reach) is much smaller compared to the Illawarra community.

The Buy rating and $5.30 target are maintained.

Target price is $5.30 Current Price is $5.20 Difference: $0.1
If SGP meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.00, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgan Stanley rates SGP as Overweight (1) -

Aiming to remove a hurdle for Stockland to acquire Lendlease Group's ((LLC) Calderwood Valley project, explains Morgan Stanley, management is engaging with the ACCC to potentially divest the Forest Reach community in NSW's Illawarra.

The broker suggests the divestment would be positive for Stockland given the much larger size of Calderwood and a sale of Forest Reach would have only a minor dilutionary impact for earnings.

Overweight rating. Target $5.30. In-Line Industry view.

Target price is $5.30 Current Price is $5.20 Difference: $0.1
If SGP meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.00, suggesting downside of -4.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Citi rates TPW as Buy (1) -

Temple & Webster is Citi's top pick among Australian Online Retailers on the ASX, followed by City Chic Collective, Adore Beauty and Sell-rated Kogan.com.

The broker sees limited risk of softening top-line growth in FY25 for Temple & Webster given market share gains, encouraging signs in B2B, and growing app usage.

Buy rating and $13.50 target price.

Target price is $13.50 Current Price is $11.10 Difference: $2.4
If TPW meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $12.59, suggesting upside of 13.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgan Stanley rates WBC as Underweight (5) -

As widely anticipated in the media, notes Morgan Stanley, Anthony Miller will replace Peter King as CEO at Westpac on December 16.

Immediate priorities, according to the new CEO, include completion of the CORE program and getting UNITE moving in the right direction.

Target $26.50. Underweight rating. Industry View: In-Line.

Target price is $26.50 Current Price is $31.87 Difference: minus $5.37 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.73, suggesting downside of -17.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

UBS rates WBC as Neutral (3) -

UBS views the appointment of Anthony Miller as CEO of Westpac as expected and a positive result by removing uncertainty around the stock. He will commence on Dec 16.

The broker points to a recent improvement in operational momentum for the bank with market share gains and better market growth rates.

Miller will bring forth continuity in the IT transition but lacks retail experience, UBS notes, however his turnaround in institutional provides a positive track record.

Unchanged Neutral rating and $30 target price. No change to earnings forecasts.

Target price is $30.00 Current Price is $31.87 Difference: minus $1.87 (current price is over target).
If WBC meets the UBS target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.73, suggesting downside of -17.2% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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