Australian Broker Call

UBS rates APT as Sell (5) -

In a lightning-fast response to today's announced $800m capital raising, including a -$250m sell-down by Afterpay's co-founders, UBS analysts see vindication of their own view that investors have been underestimating the capital intensity of the business model.

UBS does acknowledge this raising de-risks the Afterpay operating model. The broker irrespectively sticks with its $25 price target/valuation for the shares, and thus also its Sell rating.

The analysts equally note the trading update yet again revealed a strong performance, in line with their own projections.

Target price is $25.00 Current Price is $68.00 Difference: minus $43 (current price is over target).
If APT meets the UBS target it will return approximately minus 63% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.33, suggesting downside of -33.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Citi rates ASX as Sell (5) -

Citi expects a solid second half but FY21 is likely to be tougher, with derivatives trading likely to ease further.

The broker also notes IPO volumes in the second half were, unsurprisingly, subdued while secondary raisings more than doubled to $35bn.

The broker retains a Sell rating, believing the valuation is full. Target is reduced to $65.00 from $71.70.

Target price is $65.00 Current Price is $87.39 Difference: minus $22.39 (current price is over target).
If ASX meets the Citi target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.20, suggesting downside of -16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Credit Suisse rates ASX as Underperform (5) -

Credit Suisse notes cash equity volumes were strong in June as were listings. However, derivatives were soft.

The broker still expects strong revenue trends in the second half, as ASX benefits from buoyant cash equities activity.

Credit Suisse reiterates an Underperform rating as, looking into FY21, revenue growth is likely to slow and the fall in the BBSW rate will create further headwinds. Target is $73.

Target price is $73.00 Current Price is $87.39 Difference: minus $14.39 (current price is over target).
If ASX meets the Credit Suisse target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.20, suggesting downside of -16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Macquarie rates ASX as Underperform (5) -

ASX enjoyed strong equities volumes in the fourth quarter, as well as secondary raisings driven by the virus and IPOs, however futures and over-the-counter volumes declined materially and fixed income continues to face headwinds from low rates, the broker notes.

Futures volumes are down as the RBA applies yield curve control, diminishing the need to hedge, and the broker sees this as ongoing.

On a PE of 37x, 48% above the stock's five-year average and a 74% premium to the all industrials, the broker continues to see ASX as overvalued.

Target falls to $69.50 from $71.50, Underperform retained.

Target price is $69.50 Current Price is $87.39 Difference: minus $17.89 (current price is over target).
If ASX meets the Macquarie target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.20, suggesting downside of -16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

Morgan Stanley rates ASX as Underweight (5) -

Futures trading volumes were down -24% for June (year on year) and since they form about 25% of ASX’s revenue, Morgan Stanley considers this a net negative.

Cash equities were buoyant along with the highest capital raisings seen since November 2018 ($16bn). There was also a 72% rise in secondary raisings to $9.4bn.

The broker expects FY21 earnings to decline -7% year on year driven by a -12.5% reduction expected in FY21 futures revenues.

Morgan Stanley rates the stock as Underweight with a target price of $70. Industry view: In-line.

Target price is $70.00 Current Price is $87.39 Difference: minus $17.39 (current price is over target).
If ASX meets the Morgan Stanley target it will return approximately minus 20% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.20, suggesting downside of -16.5% (ex-dividends)

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

UBS rates ASX as Downgrade to Sell from Neutral (5) -

UBS notes heightened market volatility has benefited ASX in two main areas in the second half, cash equity turnover and capital raisings.

Trends elsewhere have been softer, with reduced activity across futures volumes and equity derivatives.

Given delays to the CHESS replacement, now slated for April 2022, project expenditure remains elevated over the near term.

With a more moderate medium-term growth outlook, UBS downgrades to Sell from Neutral. Target is raised to $75.00 from $68.50.

Target price is $75.00 Current Price is $87.39 Difference: minus $12.39 (current price is over target).
If ASX meets the UBS target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $72.20, suggesting downside of -16.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -1.0

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

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

Credit Suisse believes the recent appreciation in the share price means the risk/reward is balanced and downgrades to Neutral from Outperform.

The broker still regards the balance sheet as robust and envisages little risk to dividends.

However, yields are considered no longer attractive enough to serve as a trigger to push the stock higher. Target is reduced to $37 from $39.

Target price is $37.00 Current Price is $35.65 Difference: $1.35
If BHP meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $38.59, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.8

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

Morgan Stanley rates CBA as Underweight (5) -

Morgan Stanley does not expect a material rise in Commonwealth Bank’s loans which have been due for more than 90 days. Rather, it believes investors should focus more on new impaired loans which stand at about $1.8bn in the second half, up from the first half’s circa $1.3bn.

A Common Equity Tier 1 (CET1) ratio of about 11.2% is forecasted with risk weighed assets growing by about 5.5% on a half-yearly basis. This is more than the expected loan growth of about 2.5%. 

The broker expects a second-half dividend of $1.30, implying a decline of about -45% year on year.

The bank should go for a new approach in 2021, comments the broker, noting a step change is needed in its medium-term strategy.

Morgan Stanley retains its Underweight rating with the target price increasing to $63.50 from $61.50. Industry view: In-line.

Target price is $63.50 Current Price is $71.42 Difference: minus $7.92 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $65.22, suggesting downside of -8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Macquarie rates CCP as Outperform (1) -

After analysing comparative US purchase debt ledger data, the broker notes PDL pricing in Australia appears to be adjusting materially when US pricing has been slower to respond, and Wallet Wizard book contraction should be an earnings headwind.

However the broker sees the opportunity for Credit Corp to acquire debt at attractive prices domestically, given competition is constrained due to issues over access to capital, which would be attractive for future earnings. Outperform and $19.30 target retained.

Target price is $19.30 Current Price is $17.20 Difference: $2.1
If CCP meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $18.90, suggesting upside of 13.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Citi rates CCX as Neutral (3) -

City Chic intends to grow its international apparel business outside the US as well as expand its plus-size to segments such as lingerie, footwear and sleepwear.

Citi believes the company is well-placed to make complimentary acquisitions but anything of size may be distracting.

Still, a well-priced acquisition could present upside. Neutral rating and $2.85 target maintained.

Target price is $2.85 Current Price is $3.06 Difference: minus $0.21 (current price is over target).
If CCX 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 $2.91, suggesting downside of -7.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Morgan Stanley rates COH as Overweight (1) -

Morgan Stanley notes an update by competitor Sonova Holdings AG might suggest upside risk to Cochlear’s recovery rate and forecasts.

Sonova Holdings notes there has been a faster than expected recovery in the global hearing care market with its business reaching 59% of previous year levels (up from 35% in April) for the June quarter although downside risk remains in the form of an increase in infections.

The broker currently expects Cochlear implant (CI) units to decline by -45% in the second half with the September quarter CI units expected to reduce by circa -50%.

The update by Sonova Holdings makes the broker more confident about recovery and provides upside risk to its estimates.

Morgan Stanley rates the stock as Overweight with a target price of $208. Industry view: In-line.

Target price is $208.00 Current Price is $200.68 Difference: $7.32
If COH meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $186.61, suggesting downside of -6.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates CRN as Outperform (1) -

Credit Suisse has materially downgraded the outlook for coal prices. The broker is cautious about Chinese demand in the third quarter as port quotas are exhausted and steel production is seasonally softer.

Until economic activity globally returns to more normal levels, Credit Suisse believes margins for coal producers will remain under significant pressure.

Outperform rating maintained. Target is reduced to $1.90 from $2.30.

Target price is $1.90 Current Price is $1.07 Difference: $0.83
If CRN meets the Credit Suisse target it will return approximately 78% (excluding dividends, fees and charges).

Current consensus price target is $1.90, suggesting upside of 84.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 1.0

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

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

Citi believes the outlook for domestic casinos is robust as they re-open on schedule with limited restrictions.

The broker forecasts JobKeeper will boost first half margins as wages are subsidised during the early stages of the re-opening.

Crown Resorts is downgraded to Neutral from Buy because of relative valuation and the risk of further delays in the re-opening of Melbourne. Target is raised to $10.00 from $8.20.

Target price is $10.00 Current Price is $9.49 Difference: $0.51
If CWN meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $10.51, suggesting upside of 14.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.7

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

Credit Suisse rates FMG as Neutral (3) -

Credit Suisse upgrades the outlook for iron ore as the market is tighter than previously expected and Chinese steel output is strong.

The broker expects the market will remain tight for most of 2021.

Neutral maintained and, while the broker believes Fortescue Metals is hard to fault, the valuation does not warrant an Outperform rating.

Target is raised to $12.50 from $11.00.

Target price is $12.50 Current Price is $13.92 Difference: minus $1.42 (current price is over target).
If FMG meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $12.69, suggesting downside of -14.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.1

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

Morgans rates HPI as Hold (3) -

Hotel Property has declared a final distribution of 9.7c for FY20, ahead of Morgans' forecast. This brings total distributions to 20c.

Morgans continues to assume FY21 distributions fall to 18.6c, incorporating recent lease renewals and assumptions about lower income because of the pandemic.

The deferment of rent previously announced in May is not expected to materially affect earnings in the forecast period.

The company will report FY20 results on August 18. Morgans retains a Hold rating and raises the target to $3.10 from $2.82.

Target price is $3.10 Current Price is $2.99 Difference: $0.11
If HPI meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Citi rates HUB as Buy (1) -

Citi expects a slowing of platform switching and the impact of cash margin reductions will affect FY21 earnings growth.

The broker expects restrictions and increased uncertainty from the pandemic will affect fourth quarter net flows and this should continue in the first half of FY21.

While lowering net flow forecasts the broker upgrades net profit estimates to reflect a positive impact from market movements.

Buy rating maintained. Target rises to $14.40 from $12.50.

Target price is $14.40 Current Price is $11.15 Difference: $3.25
If HUB meets the Citi target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $11.77, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Macquarie rates IAG as Neutral (3) -

The broker has updated its Insurance Australia Group forecasts to account for a mark to market, which leads to a 79% forecast earnings increase on market improvement since April, and for FY20 catastrophes. FY21 nevertheless remains uncertain, hence the broker awaits more information with the August result release.

That said, concerns over business interruption claims seem overdone, but the broker believes the stock is fairly priced at this level. Neutral retained, target rises to $5.70 from $5.60.

Target price is $5.70 Current Price is $5.80 Difference: minus $0.1 (current price is over target).
If IAG meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.33, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Ord Minnett rates IGO as Sell (5) -

While retaining a negative outlook, Ord Minnett acknowledges the risk is to the upside for FY21 earnings.

The broker reiterates a Sell rating and $3.70 target.

Mawson, while considered a viable extension to the mine life at Nova, is believed to be an expensive option to both buy and build.

Target price is $3.70 Current Price is $5.01 Difference: minus $1.31 (current price is over target).
If IGO meets the Ord Minnett target it will return approximately minus 26% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.09, suggesting upside of 0.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Ord Minnett rates LLC as Downgrade to Hold from Buy (3) -

Ord Minnett reduces construction EBITDA forecasts in aggregate by -$200m for FY21 and FY22. This assumes productivity has not returned to pre-pandemic levels for the US business.

The broker downgrades to Hold from Buy and lowers the target to $13.50 from $14.00.

The business is well-positioned from a capital perspective, in the broker's view, having raised equity and sold $500m in settlement revenue at One Sydney Harbour development as well as settling the sale of 25% of the project after June 30.

Target price is $13.50 Current Price is $12.66 Difference: $0.84
If LLC meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $14.16, suggesting upside of 16.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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

Morgans rates M7T as Add (1) -

The company has completed a $34.8m capital raising to acquire the enterprise viewing platform of Client Outlook.

The enterprise imaging segment is the fastest-growing part of the US software imaging market, Morgans points out.

The company is now well-placed to effectively compete for contracts as legacy systems are being replaced.

Management has identified $40m in tenders that are expected to be awarded over the next 6-12 months.

Morgans maintains an Add rating and raises the target to $1.43 from $1.17.

Target price is $1.43 Current Price is $0.96 Difference: $0.47
If M7T meets the Morgans target it will return approximately 49% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

UBS rates MYX as Neutral (3) -

Mayne Pharma has entered into a supply agreement with Chinese base manufacturer Novast Laboratories for 13 US generic oral contraceptive products, including five not previously marketed.

UBS estimates annualised cost savings of around US$3-5m per annum and assumes realisation from FY22.

While this comprehensive portfolio positions the company to compete effectively, the broker notes the market for oral contraceptives is very competitive.

Neutral rating maintained. Target rises to $0.44 from $0.42.

Target price is $0.44 Current Price is $0.43 Difference: $0.01
If MYX meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $0.42, suggesting downside of -4.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates NHC as Neutral (3) -

Credit Suisse has materially downgraded the outlook for coal prices. An LNG glut continues to be an overriding influence on thermal coal prices.

Until economic activity globally returns to more normal levels, Credit Suisse believes margins for coal producers will remain under significant pressure.

The broker retains a Neutral rating and reduces the target to $1.40 from $1.50.

Target price is $1.40 Current Price is $1.46 Difference: minus $0.06 (current price is over target).
If NHC meets the Credit Suisse target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.48, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgan Stanley rates NUF as Overweight (1) -

Morgan Stanley expects Nufarm’s planted area for the winter crops to increase by 23% to 22.5mha, which is 5% above the 10-year average. Above-average rains forecasted in NSW and QLD will also imply better seasonal conditions in Australia.

North America and Europe remain challenging at the moment, with Turf and Ornamental (T&O) business margins impacted by a combination of rainfall deficit in key areas of Europe and the pandemic.

The broker notes potential upside from the Omega-3 opportunity with the FDA approval providing a positive catalyst in the months to come.

FY20 operating income estimates decreased by -11% to $331m while earnings are expected to grow at a compounded annual rate of 15% in FY21-23 with dividends resuming in FY21.

Morgan Stanley rates the stock as Overweight with the target price decreasing to $4.90 from $5.60. Industry view: Cautious.

Target price is $4.90 Current Price is $3.98 Difference: $0.92
If NUF meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 32.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Ord Minnett rates NUF as Hold (3) -

Nufarm will cease manufacturing insecticides and fungicides at Laverton. An annualised EBITDA benefit of around $5m is expected from the first half of FY22.

The company is also curtailing herbicide manufacturing at Linz in Europe which will generate a $10m benefit from the first half of FY21.

In other news, the US Department of Agriculture lowered estimates for planted acreage, which should benefit nitrogen producers, Ord Minnett points out.

The broker retains a Hold rating and lowers the target to $4.70 from $4.95.

Target price is $4.70 Current Price is $3.98 Difference: $0.72
If NUF meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $5.31, suggesting upside of 32.0% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Citi rates NWL as Buy (1) -

Citi expects a slowing of platform switching and the impact of cash margin reductions will affect FY21 earnings growth.

The broker expects restrictions and increased uncertainty from the pandemic will affect fourth quarter net flows and this should continue in the first half of FY21.

While lowering net flow forecasts the broker upgrades net profit estimates to reflect a positive impact from market movements.

Buy rating maintained. Target is raised to $10.25 from $8.45.

Target price is $10.25 Current Price is $9.09 Difference: $1.16
If NWL meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.79, suggesting downside of -15.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.2

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

Citi rates ORA as Neutral (3) -

Citi adjusts forecasts to include the divestment of Australian Fibre as well as business disruptions in the fourth quarter.

Despite the positive outlook for acquisitions, Citi considers the underlying organic growth outlook is less clear.

The broker's primary concern is about the pace of recovery in the US.

The broker assesses Orora could fund via debt an acquisition of up to $600m without exceeding gearing targets and still maintain enough capital for further distributions to shareholders.

Neutral rating retained. Target is reduced to $2.80 from $3.09.

Target price is $2.80 Current Price is $2.55 Difference: $0.25
If ORA meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.72, suggesting upside of 8.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.1

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

Macquarie rates PNI as Outperform (1) -

Pinnacle Investment Management has reported $25.8m in FY20 performance fees across all affiliates, up from $15.3m in FY19, translating to $6.7m in FY20 profit on an ownership basis, the broker calculates. Pinnacle's performance fees are typically second half weighted.

The broker has increased its performance fee expectations, leading to earnings forecast increases of 14.3% and 5.6% in FY21-22. Target rises to $4.62 from $4.48. The stock offers a quality, high beta exposure to markets, the broker suggests. Outperform retained.

Target price is $4.62 Current Price is $4.03 Difference: $0.59
If PNI meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.88, suggesting upside of 10.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates PPH as Lighten (4) -

Ord Minnett assesses Pushpay Holdings is a key beneficiary of the pandemic but after this one-time benefit there is not a lot of growth envisaged from existing customers.

Hence, the broker is puzzled as to why the FY21 enterprise value/EBITDA multiple has expanded to over 31x from 24x before the pandemic.

The broker's data analysis suggests market share in the large church grouping is likely to peak in the 35-40% range while medium church share is likely to remain in low single digits.

Lighten rating and $4.45 target maintained.

Target price is $4.45 Current Price is $8.73 Difference: minus $4.28 (current price is over target).
If PPH meets the Ord Minnett target it will return approximately minus 49% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.45, suggesting downside of -48.8% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates RIO as Underperform (5) -

Credit Suisse has upgraded the outlook for iron ore on the back of a tight market, as Chinese steel output is strong.

The broker also expects iron ore will be tight for most of 2021.

Yet, given the reputation risk centred on Juukan Gorge, where Rio Tinto destroyed an ancient Aboriginal site, and a pricing deck embedded with a rolling iron ore price, the broker envisages downside risk on a 12-month view.

Hence, Underperform retained. Target is raised to $86 from $82.

Target price is $86.00 Current Price is $95.45 Difference: minus $9.45 (current price is over target).
If RIO meets the Credit Suisse target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $101.07, suggesting upside of 4.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.2

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

Macquarie rates RMD as Underperform (5) -

The broker has reviewed near-term device growth assumption and decided the upside due to the virus is greater than originally assumed. However, ResMed and competitors have materially increased ventilator capacity which may have implications for future revenues.

There are also reimbursement risks with regard the CB21 device. On elevated multiples, the broker retains an Underperform rating. Target rises to $19.70 from $19.00.

Target price is $19.70 Current Price is $27.61 Difference: minus $7.91 (current price is over target).
If RMD meets the Macquarie target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $24.85, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.0

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

Credit Suisse rates S32 as Outperform (1) -

Credit Suisse has materially downgraded the outlook for coal prices, which now track a similar path to alumina.

South32 continues to take measures to protect its balance sheet and the broker suspects capital management in August will be conservative.

Credit Suisse reduces FY21 and FY22 forecasts by -35% and -47%, respectively.

Outperform rating maintained. Target is $2.50.

Target price is $2.50 Current Price is $2.08 Difference: $0.42
If S32 meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $2.52, suggesting upside of 22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.6

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

Citi rates SGR as Upgrade to Buy from Neutral (1) -

Citi believes the outlook for domestic casinos is robust as they re-open on schedule with limited restrictions.

The broker forecasts JobKeeper will boost first half margins as wages are subsidised during the early stages of the re-opening.

Citi upgrades Star Entertainment to Buy from Neutral, envisaging more share price upside in the near term. Target is raised to $3.50 from $3.10.

Target price is $3.50 Current Price is $2.93 Difference: $0.57
If SGR meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

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

Transurban Group confirmed the opening of the M8 tunnel in NSW along with tolling beginning on the M5 East from July 5. This is considered a positive development by Morgan Stanley who was expecting tolling to start in October.

NSW public transport usage has continued to increase and the broker hopes NSW traffic will continue to improve which will help offset the low numbers in Victoria.

Morgan Stanley retains its Equal-weight rating with a target price of $15.07. Industry view: Cautious.

Target price is $15.07 Current Price is $14.27 Difference: $0.8
If TCL meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.80, suggesting downside of -3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: -0.1

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

Ord Minnett rates TRS as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage of The Reject Shop with a Buy rating and $10.11 target.

The business has enjoyed several decades of strong growth but in recent years a lack of focus on product and customer service meant growth disappeared and earnings deteriorated.

With the change in management, Ord Minnett believes the company can stabilise earnings and build the appropriate framework to expand in future.

Target price is $10.11 Current Price is $8.12 Difference: $1.99
If TRS meets the Ord Minnett target it will return approximately 25% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 1.0

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

Ord Minnett rates TYR as Accumulate (2) -

Tyro Payments experienced 14% transaction value growth for the week ending July 3, an improvement on the prior week.

Ord Minnett expects numbers will continue to improve over the first half although there could be some short-term pressure because of the rise in coronavirus cases in Victoria.

Accumulate retained. Target is raised to $4.15 from $3.90.

Target price is $4.15 Current Price is $3.74 Difference: $0.41
If TYR meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.55, suggesting downside of -8.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.2

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

Credit Suisse rates WHC as Outperform (1) -

Credit Suisse has materially downgraded the outlook for coal prices. The LNG glut continues to be an overriding influence on thermal coal prices and soft electricity demand has added to pricing pressure.

Until economic activity globally returns to more normal levels, Credit Suisse believes margins for coal producers will remain under significant pressure.

The broker retains an Outperform rating and reduces the target to $2.25 from $3.10.

Target price is $2.25 Current Price is $1.58 Difference: $0.67
If WHC meets the Credit Suisse target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $2.34, suggesting upside of 53.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.6

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