Australian Broker Call

Citi rates ANZ as Neutral (3) -

Citi believes revisions of net interest margins (NIM) have been a key driver of relative bank price outperformance this year. A slowdown in NIM expansion and revisions is expected to slow share price performance going forward.

Mortgage credit growth may not be high enough to push the revenue line forward in isolation, suggests the broker. With the sector having traded back to healthy valuations, returns are expected to underpin valuations, and not growth.

Regarding NIM's in the short term, ANZ Bank looks the most vulnerable as the sugar hit from institutional asset spreads could only reverse, as long as volumes remain stuck in reverse. The Neutral rating and $29.50 target are retained.

Target price is $29.50 Current Price is $28.86 Difference: $0.64
If ANZ meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $30.17, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in September.

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 APT as Overweight (1) -

Morgan Stanley considers the preliminary conclusions from the Reserve Bank's retail payments review are incrementally positive for Afterpay and other BNPL providers.

The central bank is proposing to reduce the debit interchange cap to 10c from 15c. the broker suspects this will cut processing costs by around -17 basis points for some Australian transactions.

The bank has also reiterated there is no clear case for BNPL providers to remove the no-surcharge rules at this stage.

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

Target price is $149.00 Current Price is $93.93 Difference: $55.07
If APT meets the Morgan Stanley target it will return approximately 59% (excluding dividends, fees and charges).

Current consensus price target is $121.47, suggesting upside of 31.1% (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

Citi rates CBA as Neutral (3) -

Citi believes revisions of net interest margins (NIM) have been a key driver of relative bank price outperformance this year. A slowdown in NIM expansion and revisions is expected to slow share price performance going forward.

Mortgage credit growth may not be high enough to push the revenue line forward in isolation, suggests the broker. With the sector having traded back to healthy valuations, returns are expected to underpin valuations, and not growth.

The rapid catch-up in share price performance to peers by Commonwealth Bank of Australia in recent weeks, may be explained by NIM revisions post the third quarter update, explains the analyst. The Neutral rating and $89.75 target are unchanged.

Target price is $89.75 Current Price is $100.56 Difference: minus $10.81 (current price is over target).
If CBA meets the Citi target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $87.75, suggesting downside of -12.1% (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

Citi rates CTD as Initiation of coverage with Buy (1) -

Citi initiates coverage on Corporate Travel Management with a Buy rating and $23.65 target price. By comparison to peers, the company is considered to have the fewest headwinds, as well as a net cash balance sheet and an attractive relative valuation.

Additionally, earnings are likely to come back the quickest, as the automated, booking fee business model suits the current environment, explains the broker.

Finally, the analyst points out the company has used the pandemic to make an accretive acquisition in the US, which is one of the fastest recovering geographic regions globally.

Target price is $23.65 Current Price is $21.55 Difference: $2.1
If CTD meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $21.94, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Citi rates FLT as Neutral (3) -

Citi expects Flight Centre's leisure exposure to lag. It's considered domestic travel and single destination international bubble travel are low margin as it reduces attachment rates, global distribution segments, tickets size and overrides. 

Nevertheless, the broker sees the recent sell-off as capturing this in the valuation. Also, the analyst is optimistic on the company’s corporate travel segment. The Neutral rating is maintained and the target is lowered to $16.55 from $17.30.

Target price is $16.55 Current Price is $15.35 Difference: $1.2
If FLT meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $16.75, suggesting upside of 10.2% (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

Credit Suisse rates FMG as Outperform (1) -

Capital expenditure at Iron Bridge has been revised up to US$3.3-3.5bn. The plan has reverted back to the original 135km slurry pipeline. New guidance now includes construction of an offload facility at Lumsden Point.

Credit Suisse was surprised and somewhat disappointed with the increase to sustaining capex, given there is no change to the scale of the project. Yet, incorporating adjustments causes minimal earnings impact and the broker retains an Outperform rating and $23 target.

Target price is $23.00 Current Price is $22.12 Difference: $0.88
If FMG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $21.62, suggesting downside of -3.8% (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: 0.3

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

Macquarie rates FMG as Outperform (1) -

Capital expenditure for Iron Bridge has increased to US$3.3-3.5bn, which Macquarie had already suspected would be the case.

The broker has delayed assumptions for first production but speeds up its forecasts for the ramp up. Macquarie believes the business will continue to benefit from volume growth and buoyant iron ore prices.

The Outperform rating and $23 target are retained.

Target price is $23.00 Current Price is $22.12 Difference: $0.88
If FMG meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $21.62, suggesting downside of -3.8% (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: 0.3

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

Morgan Stanley rates FMG as Underweight (5) -

Morgan Stanley believes increases in operating and sustaining capital are likely to be a further negative impact on valuation for the Iron Bridge project.

The broker suspects the risk of low-grade discounts will increase significantly. Fortescue Metals has announced upwardly revised capital expenditure of US$3.3-3.5bn for the project.

Underweight and $17.45 target retained. Industry view: Attractive.

Target price is $17.45 Current Price is $22.12 Difference: minus $4.67 (current price is over target).
If FMG meets the Morgan Stanley target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.62, suggesting downside of -3.8% (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: 0.3

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

Ord Minnett rates FMG as Buy (1) -

After a release of final metrics for the 22Mtpa Iron Bridge magnetite project, Ord Minnett notes the revised metrics have deteriorated again. While disappointing, it's believed the project makes strategic sense from a growth and product-quality point of view.

The broker believes iron ore markets will remain buoyant on a multi-year view, and that the stock can re-rate to reflect the company’s outstanding free cash flow generation. The Buy rating and $28 target are retained.

Target price is $28.00 Current Price is $22.12 Difference: $5.88
If FMG meets the Ord Minnett target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $21.62, suggesting downside of -3.8% (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: 0.3

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

Morgans rates HMC as Add (1) -

Morgans believes Home Consortium is advancing on its strategy to transition to a capital light fund manager. Asset recycling continues following the disposal of a portfolio of seven large format retail assets to HomeCo Daily Needs REIT ((HDN)).

Also, $133.2m of medical and childcare related assets will be acquired to seed to HealthCo, which is on track to be established in the first half of FY22.  FY21 guidance is unchanged.

Morgans believes there is a high probability of further dealflow/new funds launched in the near/medium term, which provides upside risk to forecasts. The Add rating is maintained and the target lifts to $5.01 from $4.17.

Target price is $5.01 Current Price is $4.78 Difference: $0.23
If HMC meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $4.64, suggesting downside of -2.5% (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

Ord Minnett rates IDX as Downgrade to Accumulate from Buy (2) -

Ord Minnett reviews the investment thesis for Integral Diagnostics. It's believed the company is positioned for above-industry growth, driven by a portfolio inclusive of circa 36% comprehensive sites and a skew towards high end modalities.

Additionally, there are tailwinds from recent acquisitions (including Ascot Radiology) and favourable demographics in key catchments. 

On a transfer of coverage to a new analyst, an Accumulate rating is set, with the price target lowered to $5.09 from $5.16. The trajectory of the recovery remains strong in the key states for the company, as indicated by April statistics, explains the analyst.

Still, the fresh Accumulate rating compares with Buy from the previous analyst. Hence, while not necessarily communicated as such by the broker, today's fresh update represents a mild downgrade from Buy.

Target price is $5.09 Current Price is $4.85 Difference: $0.24
If IDX meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.19, suggesting upside of 5.3% (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 IFL as Outperform (1) -

IOOF Holdings has made enhancements to its Smart Choice product, which is expected to add value for the consumer but also for shareholders, as the company has raised fees which could benefit underlying net profit by 5-10%, Credit Suisse explains.

Given the closure of the MLC deal at the end of May likely to act as a catalyst for consensus earnings upgrades and the positive developments underway, Credit Suisse reiterates an Outperform rating. Target is raised to $5.25 from $5.00.

Target price is $5.25 Current Price is $3.92 Difference: $1.33
If IFL meets the Credit Suisse target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $4.68, suggesting upside of 18.4% (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

Macquarie rates ING as Outperform (1) -

Macquarie finds the outlook positive, supported by an improvement in higher-margin channels amid a benefit from lower feed prices. The company has provided underlying EBITDA guidance of $203-213m and underlying net profit is expected to be $96-103m.

Macquarie finds relative value in the stock, which it calculates is trading at a -27% discount to peers. Outperform rating maintained. Target rises to $3.98 from $3.95.

Target price is $3.98 Current Price is $3.41 Difference: $0.57
If ING meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting upside of 12.5% (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

Morgans rates ING as Add (1) -

FY21 underlying earnings (EBITDA) guidance (pre AASB-16) of $203-213m was 4.1-9.2% ahead of Morgans previous forecast. Profit is expected to be further assisted by an R&D tax credit.

The company is benefiting from operational improvements which are reducing the cost base, explains the broker. Also, the fourth quarter is expected to have benefited from lower grain costs. 

The analyst upgrades FY21-23 earnings forecasts by 6.7%, 4.5% and 4.1%, respectively. The target price is increased to $4.27 from $4.10 and the Add rating is maintained.

Target price is $4.27 Current Price is $3.41 Difference: $0.86
If ING meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $3.95, suggesting upside of 12.5% (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 IVC as Equal-weight (3) -

InvoCare, at its AGM, has signalled another year of below-trend death rates in 2021 and another mild flu season. The company continues to emphasise revenue and customer experience instead of market share.

The first quarter has revealed improving case averages but at pre-pandemic levels, with stronger memorialisation revenue in both cemetery and crematorium business.

Morgan Stanley notes, while the business is lapping a soft comparable and the performance is therefore off a low base, consensus forecasts have baked in a meaningful rebound.

The Equal-weight rating and target of $11 are retained. Industry view: In-Line.

Target price is $11.00 Current Price is $10.55 Difference: $0.45
If IVC meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $11.10, suggesting upside of 5.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Macquarie rates LFG as Outperform (1) -

Macquarie assumes BBSW moves back to historical levels relative to the official cash rate over the next three years. Funding costs supporting net interest margins are expected to stay higher for longer.

Accounting for changes in the broker's interest margin estimates means forecasts for earnings per share in FY21 and FY22 rise 0.7% and 8.0%, respectively.

Macquarie retains an Outperform rating and $9.02 target.

Target price is $9.02 Current Price is $7.50 Difference: $1.52
If LFG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 19.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates LFS as Outperform (1) -

Latitude Group has issued first half guidance for cash net profit of $115-120m. Macquarie assesses cyclically-low impairments will support earnings in the near term along with cost management.

Nevertheless, with limited disclosure, the broker's suspects additional upside is less likely to come from impairment reductions in the future. Outperform rating and $3 target maintained.

Target price is $3.00 Current Price is $2.51 Difference: $0.49
If LFS meets the Macquarie target it will return approximately 20% (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

UBS rates LNK as No Rating (-1) -

Link Administration has confirmed an offer from KKR/Domain ((DGH)) for PEXA which values PEXA at an enterprise value of $3bn. This is at the upper end of press reports.

UBS notes the offer is 60% above the implied $1.95bn under the previous scrip alternative offer from PEP/Carlyle which has now expired.

UBS is currently restricted on providing a rating and target.

Current Price is $5.45. Target price not assessed.

Current consensus price target is $5.53, suggesting upside of 8.1% (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

Ord Minnett rates MWY as Buy (1) -

Updated guidance for FY21 by Midway represents a -$4.4m downgrade versus both Ord Minnett's forecast and consensus, at the midpoint. The company cited FX headwinds and a reduced bone-dry percentage in export wood chips as the primary reasons. 

The broker remains optimistic on a potential turnaround in wood chip pricing and demand dynamics beyond FY21, though cites a further increase in the Australian dollar as a risk. The target falls to $1.10 from $1.21. The Buy rating is maintained.

Target price is $1.10 Current Price is $0.94 Difference: $0.16
If MWY meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

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

Citi rates NAB as Neutral (3) -

Citi believes revisions of net interest margins (NIM) have been a key driver of relative bank price outperformance this year. A slowdown in NIM expansion and revisions is expected to slow share price performance going forward.

Mortgage credit growth may not be high enough to push the revenue line forward in isolation, suggests the broker. With the sector having traded back to healthy valuations, returns are expected to underpin valuations, and not growth.

The Neutral rating and $26.25 target are retained for National Australia Bank. Westpac Bank ((WBC)) remains Citi's sole Buy in the sector.

Target price is $26.25 Current Price is $27.09 Difference: minus $0.84 (current price is over target).
If NAB meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.58, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates PWR as Initiation of coverage with Overweight (1) -

Morgan Stanley expects sustainable growth for Peter Warren, a top domestic operator of franchise automotive dealerships in NSW and Queensland.

The broker considers the stock attractively priced, with upside potential from the cyclical rebound off multi-decade lows amid execution on strategic initiatives that will lift earning power.

There is also potential for re-rating from industry consolidation. The broker initiates coverage with an Overweight rating and $4.40 target. Industry view is In-Line.

Target price is $4.40 Current Price is $3.50 Difference: $0.9
If PWR meets the Morgan Stanley target it will return approximately 26% (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 QAN as Buy (1) -

Citi is attracted to Qantas as its domestic business has strong economics and should be profitable near term. It's considered the competitions product offering is dropping away and market share gains have been in evidence.

While the broker expects international to be delayed, this is a lower margin proportion of the business, and loyalty is expected to return to growth in the second half. The Buy rating is maintained and the target lowered to $5.89 from $6.11.

Target price is $5.89 Current Price is $4.81 Difference: $1.08
If QAN meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.66, suggesting upside of 20.1% (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

Citi rates SHV as Buy (1) -

After first half results, Citi forecasts FY21 will represent the trough in both pricing and earnings. A softer result and a softer expected FY21 average almond price drives a -40% reduction in the broker's forecast FY21 earnings (EBITDA).

The share price has historically been highly-correlated with spot almond prices, which the broker argues has priced its orchard assets at a discount to their potential market value. A current valuation by the analyst implies a $7.23 share price. 

Buy rating. The target price increases to $6.80 from $6.50.

Target price is $6.80 Current Price is $5.90 Difference: $0.9
If SHV meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in September.

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 TAH as Hold (3) -

Tabcorp Holdings has received an offer from BetMakers Technology Group to acquire its wagering and media business for an enterprise
value (EV) of $4bn.

This implies to Ord Minnett a FY22 EV to operating earnings (EV/EBITDA) multiple of 11.9 times, a higher headline number than Entain’s revised 10.4 times offer. The company's options are to sell, demerge or do nothing, explains the analyst.

Ord Minnett has always held a spin-off as the most likely option due to principal racing authority (PRA) agreements already in place. However, it's considered clear that the wagering business has a massive technology debt burden. 

Irrespective of any outcome, the broker states this needs to be addressed by way of cash or in-kind technology spending. The Hold rating and $4.20 target are retained.

Target price is $4.20 Current Price is $5.17 Difference: minus $0.97 (current price is over target).
If TAH meets the Ord Minnett target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.08, suggesting downside 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 UWL as Initiation of coverage with Outperform (1) -

Macquarie notes Uniti Group is a diversified telecommunications provider in the early stages of growth. Financial metrics are attractive with infrastructure -like recurring revenue and robust margins.

The broker also suggests gearing could be added as this business matures. Macquarie initiates coverage with an Outperform rating and $3.36 target. New developer agreements and delivery on operating performance at the FY21 results could be potential catalysts.

Target price is $3.36 Current Price is $2.99 Difference: $0.37
If UWL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

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

Citi rates WBC as Buy (1) -

Citi believes revisions of net interest margins (NIM) have been a key driver of relative bank price outperformance this year. A slowdown in NIM expansion and revisions is expected to slow share price performance going forward.

Mortgage credit growth may not be high enough to push the revenue line forward in isolation, suggests the broker. With the sector having traded back to healthy valuations, returns are expected to underpin valuations, and not growth.

Westpac Bank remains Citi's sole Buy in the sector. With underlying return on equity (ROE) now looking priced-in, a meaningful story on costs leading to secular ROE improvement should set the bank apart from peers, the broker suggests. The $29.50 target is retained.

Target price is $29.50 Current Price is $26.46 Difference: $3.04
If WBC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $28.49, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in September.

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 WEB as Initiation of coverage with Neutral (3) -

Citi initiates coverage on Webjet with a $5.27 target price. It's considered the online travel agent segment of the business should be a key beneficiary of the current environment.

The company has a heavy domestic focus, is largely a booking fee model and should experience the tailwinds of increased adoption in e-commerce, explains the broker.

However, the analyst expects WebBeds will be slower to recover with its exposure to middle income/less developed economies. Also long lead time, low cancellation rate travel bookings are considered out of favour in this environment.

Webjet is High Risk rated, given this large section of the business is still burning cash though a Neutral recommendation is allocated. This is because management has a strong track record of pivoting a business quickly and it's believed the company has adequate liquidity.

Target price is $5.27 Current Price is $5.19 Difference: $0.08
If WEB meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $5.53, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates WEB as Initiation of coverage with Outperform (1) -

Macquarie observes the business has multiple growth drivers and initiates coverage with an Outperform rating and $6.35 target.

The broker believes this is the compelling opportunity to invest in a structural beneficiary of the recovery from the pandemic.

Top-line and margin expansion should be supported by capturing additional market share from the shift to online.

There is also opportunity to win share from an improving competitive environment, with STA Travel in voluntary administration and Flight Centre ((FLT)) closing around -50% of its store network.

Target price is $6.35 Current Price is $5.19 Difference: $1.16
If WEB meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.53, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgan Stanley rates XRO as Overweight (1) -

Morgan Stanley considers the third quarter results from Intuit have positive implications for Xero Ltd as they point to a faster recovery in the overall market for accounting software as well as strong take-up of additional products/services.

The broker lifts Xero's revenue estimates for FY22-24 although, because of higher investment in R&D, only lifts operating earnings estimates for the years beyond that.

Overweight maintained. Target is raised to $137 from $135. Industry view: Attractive.

Target price is $137.00 Current Price is $130.44 Difference: $6.56
If XRO meets the Morgan Stanley target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $119.50, suggesting downside of -10.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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

Ord Minnett rates XRO as Lighten (4) -

Ord Minnett updates its financial model to reflect an increase in average revenue per user (ARPU) from the second half of FY22, after Xero announced larger-than-expected pricing changes. 

The broker feels this is a step in the right direction to realise better yield from the subscriber base. Most of the upside is expected to be reinvested.

The analyst lifts revenue forecasts by 4% in FY22 and FY23, leading to a target price rise to $103 from $100. The Lighten rating is unchanged.

Target price is $103.00 Current Price is $130.44 Difference: minus $27.44 (current price is over target).
If XRO meets the Ord Minnett target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $119.50, suggesting downside of -10.0% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY22:

Forecast for FY23:

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