Australian Broker Call

Morgan Stanley rates 360 as Overweight (1) -

Morgan Stanley revisits its investment thesis for Life360 and believes market expectations are achievable. Management has a track record of leveraging its existing business to create additional revenue streams, highlight the analysts.

The broker feels its own assumptions are conservative for Life360 compared to long-term trends for users, subscribers and pricing.

The $20.50 target and Overweight rating are maintained. Industry view: In-Line.

Target price is $20.50 Current Price is $20.56 Difference: minus $0.06 (current price is over target).
If 360 meets the Morgan Stanley target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.76, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Shaw and Partners rates ANG as Buy (1) -

Shaw and Partners remains positive on Austin Engineering, highlighting the company's tray was showcased by Liebherr at the MineXpo in Las Vegas from Sept 20-24.

The Liebherr long haul truck is expected to be supplied to Fortescue ((FMG)) under a US$2.8bn green partnership with the company. In FY24 Fortescue's diesel consumption accounted for 51% of scope 1 emissions.

The new contract expands the fleet of zero emission machines to 475 from 120 haul trucks currently. Shaw and Partners notes the Austin Engineering tray is up to 5 tonnes lighter than original trays.

Buy rating retained. High risk. Unchanged target price of 70c.

Target price is $0.70 Current Price is $0.48 Difference: $0.22
If ANG meets the Shaw and Partners target it will return approximately 46% (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

Morgans rates ANZ as Hold (3) -

Morgans retains an Underweight view on the major banks due to stretched valuation metrics with the following order of preference: Westpac, ANZ Bank, National Australia Bank and CommBank.

Interestingly, when it comes to quality,the broker's preference changes to CommBank, NAB, Westpac and ANZ. Outside of the big four, the analysts remain attracted to Judo Capital's outstanding growth potential.

For ANZ Bank, the Hold rating is kept, and the target rises to $25.95 from $25.73.

Target price is $25.95 Current Price is $30.23 Difference: minus $4.28 (current price is over target).
If ANZ meets the Morgans target it will return approximately minus 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.41, suggesting downside of -9.7% (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

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

In a positive for investment sentiment around APA Group, according to Morgan Stanley, it's likely the Australian Energy Regulator (AER) will leave the current form of regulation for the group's East Coast Grid unchanged for the next five years.

The broker's opinion follows the AER's draft decision to keep APA Group's South West Queensland Pipeline a non-scheme (lighter regulation) pipeline.

The Equal-weight rating and $8.58 target are retained. Industry view: Cautious.

Target price is $8.58 Current Price is $7.59 Difference: $0.99
If APA meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting upside of 4.0% (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

Morgans rates APA as Hold (3) -

Morgans raises its target for APA Group to $7.66 from $7.40 after the Australian Energy Regulator released a draft decision. It was recommended existing light price regulation should remain in place for the group's South West Queensland Pipeline.

Separately, the broker has concerns over APA Group's key assets facing value decay. Inflation is also expected to outpace DPS growth.

While the Hold rating is maintained, the overall narrative for the group is skewed to the negative, highlights Morgans.

Target price is $7.66 Current Price is $7.59 Difference: $0.07
If APA meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $7.93, suggesting upside of 4.0% (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

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

UBS has downgraded APA Group to Sell with a sharply reduced price target of $6.60 from $8.05 prior. The broker's review of growing commercial and funding pressures has resulted in a sharp reduction in long-term earnings forecasts.

UBS sees APA Group's ambitions constrained by the balance sheet. A combination of new equity (up to $1bn), hybrids and/or cutting the dividend may be required to fund management's growth ambitions, the broker suggests.

The pipeline owner does have options available, such as selling off assets, in full or partially, the broker acknowledges.

Target price is $6.60 Current Price is $7.59 Difference: minus $0.99 (current price is over target).
If APA meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.93, suggesting upside of 4.0% (ex-dividends)

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

Citi rates BLX as Buy (1) -

Citi believes the "acceleration" in REA Group's ((REA)) listing data in September, rising 10% against 7% in 1Q25 on the previous year, is a good indicator the housing market is experiencing an improving trend.

The broker believes this is a potential tailwind for Beacon Lighting. Citi's earnings forecasts for the company assume growth in like-for-like sales of 2.5% in 2H25, up from 1.5% growth in 1H25.

Buy rating with a $3.12 target.

Target price is $3.12 Current Price is $3.02 Difference: $0.1
If BLX meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.21, suggesting upside of 6.2% (ex-dividends)

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 BOQ as Sell (5) -

Bank of Queensland is scheduled to report FY24 results on Wednesday 16th October. Citi's cash earnings forecast of $333m is slightly ahead of consensus ($328m), showing a -25% retreat versus a year ago.

As the broker explains, the sharp fall in profitability over the last 12 months has been driven by falling NIMs, as deposit costs rose due to the RBA cash rate hikes, as well as heightened competitive pricing pressures.

With NIMs flattening across the industry, the broker believes investors are focused on potentially better times ahead.

There remains a degree of uncertainty, the broker cautions, as the depth of business restructuring, and continued risk and compliance spend may see cost growth remain elevated, keeping near-term profit growth elusive.

The Sell rating and $5.05 target are maintained.

Target price is $5.05 Current Price is $6.20 Difference: minus $1.15 (current price is over target).
If BOQ meets the Citi target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.38, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Morgans rates BOQ as Hold (3) -

Morgans retains an Underweight view on the major banks due to stretched valuation metrics with the following order of preference: Westpac, ANZ Bank, National Australia Bank and CommBank.

Interestingly, when it comes to quality the broker's preference changes to CommBank, NAB, Westpac and ANZ. Outside of the big four, the analysts remain attracted to Judo Capital's outstanding growth potential.

For Bank of Queensland, the Hold rating is kept, and the target falls to $6.01 from $6.18.

FY24 results are due on Wednesday, October 16. The broker expects 2H pre-provision and tax earnings to decline by -9% and cash earnings to fall by -6%.

The analyst predicts a 16c final dividend (fully franked), in line with the consensus estimate.

Target price is $6.01 Current Price is $6.20 Difference: minus $0.19 (current price is over target).
If BOQ meets the Morgans target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.38, suggesting downside of -11.7% (ex-dividends)

The company's fiscal year ends in August.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.8

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

Morgans rates CBA as Reduce (5) -

Morgans retains an Underweight view on the major banks due to stretched valuation metrics with the following order of preference: Westpac, ANZ Bank, National Australia Bank and CommBank.

Interestingly, when it comes to quality the broker's preference changes to CommBank, NAB, Westpac and ANZ. Outside of the big four, the analysts remain attracted to Judo Capital's outstanding growth potential.

For CommBank, the Reduce rating is kept, and the target falls to $96.13 from $97.38.

Target price is $96.13 Current Price is $135.63 Difference: minus $39.5 (current price is over target).
If CBA meets the Morgans target it will return approximately minus 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $101.02, suggesting downside of -25.7% (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

Shaw and Partners rates CLG as Buy (1) -

Shaw and Partners explains the potential for Close the Loop to refinance its high-cost, senior secured debt facility would support the view the international banking syndicates have confidence in the company's IT refurbishment business.

The broker notes the refinancing is unlikely to lower short-term interest costs due to fees from retiring existing debt. It would impact from FY27.

At the upcoming Nov 21 AGM, the analyst anticipates a trading update from management and quantitative earnings guidance for FY25.

Buy rating. High risk, with a 60c target.

Target price is $0.60 Current Price is $0.20 Difference: $0.405
If CLG meets the Shaw and Partners target it will return approximately 208% (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

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

Increasing downside risk to Bell Potter's 2024 revenue forecast for DroneShield forces the analysts to lower the SaaS revenue forecast over 2025 and 2026.

Year-to-date, the broker had expected more than $40m in contract wins instead of $31.3m after the recent $13.5m contract from a repeat US Government customer.

The target remains at $1.35, but the rating is downgraded to Hold from Buy.

Target price is $1.35 Current Price is $1.31 Difference: $0.045
If DRO meets the Bell Potter target it will return approximately 3% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

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

Morgans rates EGH as Initiation of coverage with Add (1) -

Morgans initiates coverage on the provider of affordable rental accommodation for independent seniors, Eureka Group, with an Add rating as the group is set to benefit from government support.

The number of Australians over 65 is forecast by the ABS to increase by 24% between 2024 and 2031, notes the broker, while superannuation remains insufficient to provide support for many.

Eureka owns or manages over 2,800 units across Australia, with more than 95% of residents receiving full entitlement to government support payments such as age pension and rent assistance.

A 76 cent target is set.

Target price is $0.76 Current Price is $0.65 Difference: $0.108
If EGH meets the Morgans target it will return approximately 17% (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

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

Bell Potter removes around -1mt of grain from its FY25 estimate to reflect the potential impact of crop losses after reports of 50-60% frosting in some parts of the Wimmera-Mallee.

For GrainCorp, the broker reduces FY25 and FY26 profit forecasts by -6% and -1%, respectively, on a lower FY25 winter crop forecast.

The broker lowers the target to $9.80 from $10.20 and downgrades to Hold from Buy.

Target price is $9.80 Current Price is $9.14 Difference: $0.66
If GNC meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $9.83, suggesting upside of 9.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Morgans rates JDO as Add (1) -

Morgans retains an Underweight view on the major banks due to stretched valuation metrics with the following order of preference: Westpac, ANZ Bank, National Australia Bank and CommBank.

Interestingly, when it comes to quality the broker's preference changes to CommBank, NAB, Westpac and ANZ. Outside of the big four, the analysts remain attracted to Judo Capital's outstanding growth potential.

For Judo Capital, the Add rating is kept, and the target rises to $1.92 from $1.65.

Target price is $1.92 Current Price is $1.71 Difference: $0.21
If JDO meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 2.5% (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

Citi rates LLC as Buy (1) -

In an agreement whereby Nippon Steel Kowa Real Estate will assume a 40% stake, Lendlease Group is developing a waterfront  buy-to-rent apartment development valued at around $500m at the Victoria Harbour precinct in Docklands, Melbourne.

Citi observes Lendlease Group is also looking to attract further capital partners as the development evolves. The completion date is slated for 2026.

The broker estimates the project will add around $25m to $30m to 2026 pre-tax earnings, providing better clarity around the earnings scope for the group in that year.

Buy rating retained. Target price lifts to $8 from $7.10.

Target price is $8.00 Current Price is $6.97 Difference: $1.03
If LLC meets the Citi target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $6.95, suggesting downside of -0.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Citi rates LTM as Buy (1) -

Citi highlights the revised bid price for Arcadium Lithium from Rio Tinto ((RIO)) is in line with the analyst's risk adjusted valuation of US$5.46 per share. 

The broker lifts the target price to $8.60 (US$5.85) from $6.50 to meet the cash bid of US$6.7bn for the company. The takeover has support from both companies.

Citi believes shareholders will also support the deal as it offers the best value in terms of "cheaper to buy vs build thesis".

Buy rated with $8.60 target.

Target price is $8.60 Current Price is $5.91 Difference: $2.69
If LTM meets the Citi target it will return approximately 46% (excluding dividends, fees and charges).

Current consensus price target is $6.00, suggesting downside of -26.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgans rates NAB as Downgrade to Reduce from Hold (5) -

Morgans retains an Underweight view on the major banks due to stretched valuation metrics with the following order of preference: Westpac, ANZ Bank, National Australia Bank and CommBank.

Interestingly, when it comes to quality the broker's preference changes to CommBank, NAB, Westpac and ANZ. Outside of the big four, the analysts remain attracted to Judo Capital's outstanding growth potential.

For National Australia Bank, the Hold rating is kept, and the target falls to $31.61 from $32.61.

Target price is $31.61 Current Price is $37.46 Difference: minus $5.85 (current price is over target).
If NAB meets the Morgans target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $32.77, suggesting downside of -12.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.7

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

Citi rates NCK as Buy (1) -

Citi believes the "acceleration" in REA Group's ((REA)) listing data in September, rising 10% against 7% in 1Q25 on the previous year, is a good indicator the housing market is experiencing an improving trend.

This is expected to be a positive tailwind for Nick Scali. The analyst highlights forecasts include better like-for-like sales for both Plush and Nick Scali in 2H25 of 2% and 3% growth, respectively against flat outcomes in 1H25.

The broker retains a Buy rating and $16.53 target price.

Target price is $16.53 Current Price is $16.05 Difference: $0.48
If NCK meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $16.26, suggesting upside of 1.1% (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

Macquarie rates NEM as Outperform (1) -

Newmont Corp has now completed US$1.958bn of its over US$2bn divestiture program, notes Macquarie, following the sale of its 100%-owned Akyem project for up to US$1.0bn in cash.

The broker leaves the $90 target and Outperform rating unchanged.

Upcoming share price catalysts, suggests the broker, are further divestments to meet management's US$5bn net debt target and potentially go beyond the current US$1bn buyback.

Target price is $90.00 Current Price is $78.79 Difference: $11.21
If NEM meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Ord Minnett rates NEM as Accumulate (2) -

Materially beating expectations, notes Ord Minnett , Newmont Corp's Akyem gold operation in Ghana has been sold for US$1.0bn compared to a book value of US$426m.

The analyst leaves the $80 target unchanged, explaining Akyem was a minor earnings contributor.

The Accumulate rating is retained.

Target price is $80.00 Current Price is $78.79 Difference: $1.21
If NEM meets the Ord Minnett target it will return approximately 2% (excluding dividends, fees and charges).

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.9

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

Citi rates NWL as Neutral (3) -

Netwealth Group reported another strong quarter of inflows, with custody net flows up 92% year-on-year to $3.9bn which came in 9% above Citi's expectation.

The results infer momentum has been maintained since the July net flows of $1.2bn, the broker highlights. Gross inflows for the quarter were another record, up 51% on the previous year, and 12% better than the analyst's forecast.

Citi views the acquisition of Fluz, a mobile app and digital content provider for $2.5m which targets "Emerging Mass and Emerging Affluent" market segments as "interesting" and reflects a greater emphasis on direct-to-consumer.

The company is presenting at the broker's conference on Oct 15. 

Stock is Neutral rated on valuation grounds with a $20.45 target price. The broker sees upside potential to FY25 earnings due to strong markets and better than expected net flows.

Target price is $20.45 Current Price is $26.16 Difference: minus $5.71 (current price is over target).
If NWL meets the Citi target it will return approximately minus 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.19, suggesting downside of -18.6% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Shaw and Partners rates QOR as Buy (1) -

Qoria announced the acquisition of OctopusBI for $5m in cash and up to 11.6m in performance rights at around $4m, if the company achieves annual recurring revenue of around $8m within 30 months, or FY27, Shaw and Partners highlights.

The company also raised $30m to improve the balance sheet. The broker believes this is a "sensible" and earnings positive acquisition with opportunities to cross-sell from the substantial student base it offers.

Shaw and Partners raises EBITDA forecasts for FY25 to FY27 between 1-3% and 5-10%. The Buy rating, High risk and 52c target are retained.

Target price is $0.52 Current Price is $0.40 Difference: $0.12
If QOR meets the Shaw and Partners target it will return approximately 30% (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

Bell Potter rates REA as Buy (1) -

National new listings have experienced the highest monthly volume for a September since 2015 with a 7% year-on-year increase last month.

At the REA Group AGM yesterday, Bell Potter reports management outlined ongoing strength in underlying conditions to start FY25.

The broker highlights the company's core Australian market is currently returning over 30% on invested capital. Forecasts are left unchanged, but more favourable assumptions for both multiples and WACC result in a $239 target, up from $226. Buy.

Target price is $239.00 Current Price is $216.50 Difference: $22.5
If REA meets the Bell Potter target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $226.17, suggesting upside of 4.0% (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 RIO as Neutral (3) -

Citi notes the revised takeover price for Arcadium Lithium ((LTM)) at US$5.85 per share or a total of US$6.7bn, inclusive of convertible notes.

The company stated there is "compelling value" with Arcadium's growth in capex expected to be around 5% of Rio Tinto's total capital expenditure of US$10bn in 2025 and 2026.

Longer term, Rio Tinto is forecasting over a 10% annual compound growth rate in lithium demand to 2040 with impending supply deficits.

Neutral rating and $123 target price maintained. No changes to Citi's earnings forecasts at this stage.

Target price is $123.00 Current Price is $118.24 Difference: $4.76
If RIO meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $127.42, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Morgan Stanley rates RIO as Overweight (1) -

Rio Tinto will acquire Arcadium Lithium ((LTM)) for a total cash consideration of around -US$6.7bn, which includes the conversion of outstanding senior notes, explains Morgan Stanley.

The deal valuation will be accretive to Rio Tinto's net income by 2027 and free cash flow (FCF) by 2028, according to the analysts' forecasts.

Rio is financially well placed to speed up expansions that could bring forward an additional circa 50ktpa LCE, points out the broker.

Rio management reiterated the dividend policy of a 40-60% EPS pay-out will be honoured.

Overweight rating is maintained. The target is $135.50. Industry view is Attractive.

Target price is $135.50 Current Price is $118.24 Difference: $17.26
If RIO meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $127.42, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

UBS rates RIO as Neutral (3) -

Rio Tinto's acquisition of Arcadium Lithium ((LTM)) for -$6.7bn is expected to complete by mid-2025, observes UBS, after both boards unanimously approved the transaction.

Management at Rio expressed confidence in the long-term lithium cycle and highlighted its balance sheet and project execution will align with Arcadium's technical skills and capabilities across the resource hubs in Argentinia and Quebec.

The broker's target price remains at $125, and a Neutral rating is maintained.

Target price is $125.00 Current Price is $118.24 Difference: $6.76
If RIO meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $127.42, suggesting upside of 6.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.7

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

Citi rates TLC as Buy (1) -

Citi observes Lottery Corp provided no new targets or capital management alterations at the Investor Day.

The broker reports, with 64% of FY24 customers aged between 18-43 years, management is looking to further engage the younger demographic via digital offerings.

Changes from the 2018 Powerball restructure are expected to represent a guideline to future "improvements".

The Buy rating and $5.60 target price remain unchanged with scope for upgrades to FY26/FY27 earnings forecasts.

Target price is $5.60 Current Price is $5.05 Difference: $0.55
If TLC meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.53, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Morgans rates WBC as Hold (3) -

Morgans retains an Underweight view on the major banks due to stretched valuation metrics with the following order of preference: Westpac, ANZ Bank, National Australia Bank and CommBank.

Interestingly, when it comes to quality the broker's preference changes to CommBank, NAB, Westpac and ANZ. Outside of the big four, the analysts remain attracted to Judo Capital's outstanding growth potential.

For Westpac, the Hold rating is kept, and the target rises to $27.05 from $26.11.

Target price is $27.05 Current Price is $31.02 Difference: minus $3.97 (current price is over target).
If WBC meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.92, suggesting downside of -9.6% (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