Australian Broker Call

Ord Minnett rates A1M as Speculative Buy (1) -

Ord Minnett witnessed how AIC Mines still managed to beat forecasts in a quarter heavily affected by the weather (rain). Management has upgraded FY24 guidance and the broker agrees this miner is positioned for a strong finish to the financial year.

Ord Minnett points at the leveraged copper exposure the stock offers, plus the fact the stock is seen as trading "cheaply". The recent Swagman discovery is seen as offering more upside potential.

The Speculative Buy rating retained while the target lifts to 85c from 80c on increased estimates.

Target price is $0.85 Current Price is $0.41 Difference: $0.44
If A1M meets the Ord Minnett target it will return approximately 107% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 A1M as Buy (1) -

AIC Mines' March quarter results featured Eloise reporting another consistent quarter of production, despite being impeded by rain, Shaw and Partners notes. The operation is on track to exceed full year production and cost targets.

AIC also reported a 13% increase in copper and a 14% increase in gold contained in resources, and a 10% increase in copper and a 9% increase in gold contained in reserves.

Shaw upgraded its copper price deck by 10% in 2025 and 20% in 2026 during the quarter. The broker suggests AIC offers investors one of few ways to invest in leveraged exposure to copper production on the ASX, and has it as a key pick.

Buy and 90c target retained.

Target price is $0.90 Current Price is $0.41 Difference: $0.49
If A1M meets the Shaw and Partners target it will return approximately 120% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates ACF as Add (1) -

As management at Acrow have been quoted as saying the Industrial Services division to be a key earnings driver going forward, Morgans takes a deeper dive into the segment.

Unlike the residential and commercial scaffold markets, industrial services is not price driven and requires strong accreditation and engineering expertise, explains the broker.

The division provides scaffold hire and sales to complement a specialised industrial labour service to the energy, mining and industrial sectors, explains the broker.

Industrial Services has a more recurring revenue stream given the need for periodic maintenance shutdown work for industrial companies. This gravitation by management to more stable earnings is a longer-term positive, suggests Morgans.

The Add rating and $1.43 target are maintained.

Target price is $1.43 Current Price is $1.16 Difference: $0.27
If ACF meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.34, suggesting upside of 16.8% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates ALC as Hold (3) -

Alcidion Group's March Q update was largely in line with Bell Potter's expectations. The modest revenue growth in the first 9 months
was largely due to an under-resourced NHS delaying UK tender timelines, causing persistent delays in awarding competitive contracts to vendors.

The broker expects Alcidion will achieve its guidance of positive cash flow in the second half, driven by increased cash receipts in Q4, historically the best performing quarter. The cash balance is $6.5m as of end-March with no debt.

Recent cost-cutting has been prudent in response to delayed revenue expectations, Bell Potter suggests, and the broker remains cautious on the timing for UK tenders considering the multiple delays that have persisted over the last 12-18 months.

Hold and 5c target retained.

Target price is $0.05 Current Price is $0.05 Difference: $0.003
If ALC meets the Bell Potter target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates AOF as Upgrade to Buy from Hold (1) -

Australian Unity Office Fund is selling the property on 150 Charlotte Street in Brisbane for $54m, a 4% premium to the last update on its book value.

Ord Minnett has quickly established the REIT, also selling 96 York Street in Beenleigh, will be net cash positive to the tune of $45m, once also taken into account ongoing capex requirements.

Combine the above with the shares trading at a -24% discount to net tangible assets (NTA) valuation and Ord Minnett shows no hesitation in upgrading to Buy from Hold.

The target price lifts to $1.45 from $1.13.

Target price is $1.45 Current Price is $1.32 Difference: $0.135
If AOF meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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) -

The contract counterparty, Qenos, for APA Group's unregulated Ethane Pipleline (which runs from Moomba to Botany) has entered into voluntary administration (according to a media report) and may close its Botany facility in NSW.

Morgan Stanley conveys this news but makes no further comment, other than to mention the Ethane Pipeline generates around $22m of earnings (EBITDA) for APA Group, or around 1% of FY24 guidance.

The Equal-weight rating and target price of $9.18 are retained. Industry view: Cautious.

Target price is $9.18 Current Price is $8.37 Difference: $0.81
If APA meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $8.81, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates APM as Buy (1) -

Bell Potter is at a loss as to why the APM Human Services International board has not rejected the new $1.40 takeover offer on the table after having rejected the earlier $1.60 offer (down from an initial $2.00), since pulled, as not reflecting fundamental value.

What is not in doubt is the Independent directors described this as “disappointing”, and the broker is not sure how the board can accept or recommend this, even if the alternative is to stay listed.

The company has issued its third profit warning in six months, noting that current trading has been weak due to: continued low unemployment, a change in the type of clients (to those more difficult to place) and problems associated with implementation of a customer relationship management system.

The initial $2.00 offer had Bell Potter setting a target of $1.93 but the broker now pulls that back to $1.40. Buy retained.

Target price is $1.40 Current Price is $1.18 Difference: $0.225
If APM meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $1.60, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

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

Shaw and Partners rates AVL as Initiation of coverage with Buy (1) -

Shaw and Partners initiates coverage of Australian Vanadium with a Buy recommendation and $0.08 price target. Australian Vanadium is a WA vanadium developer that aspires to provide battery storage for power grids in Australia and around the world.

The company recently merged with Technology Metals Australia, which held an adjoining project on the same ore body. The combination of the two will realise operational synergies through creating a single integrated project, the broker notes.

Shaw points out that following merger completion, Australian Vanadium is the leading Australian vanadium developer with a world-class asset of scale, located in a tier-1 mining jurisdiction.

Target price is $0.08 Current Price is $0.02 Difference: $0.064
If AVL meets the Shaw and Partners target it will return approximately 400% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates AWC as Neutral (3) -

Alumina Ltd's first quarter bauxite production of 9.6m tonnes and alumina production of 2.5m tonnes were in line with Macquarie's expectations, while cash costs were higher than the broker's forecast.

Meanwhile, the company's acquisition by Alcoa continues; the aim is for transaction completion by the third quarter. Relevant regulatory and government approvals are expected in the coming quarter.

The Neutral rating is retained and the target price increases to $1.40 from $1.30.

Target price is $1.40 Current Price is $1.55 Difference: minus $0.15 (current price is over target).
If AWC meets the Macquarie target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.29, suggesting downside of -14.6% (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: 0.0

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

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

During the presentation of 1Q operational results, management at Alumina Ltd noted Alcoa continues to work with relevant parties to find a solution for operations at Kwinana, where full curtailment is expected during the 2Q. 

As a result of the curtailment, the company expects a tight alumina market in the 2Q, providing pricing support.

The company's 1Q production and costs were in line with the analysts estimates, while realised pricing of US$362/t compared with the broker's US$364/t forecast.

The Equal-weight rating and $1.30 target are maintained. Industry View: Attractive.

Target price is $1.30 Current Price is $1.55 Difference: minus $0.25 (current price is over target).
If AWC meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.29, suggesting downside of -14.6% (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: 0.0

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

Macquarie rates BGL as Downgrade to Neutral from Outperform (3) -

While Bellevue Gold's third quarter production of 37,300 ounces of gold left Macquarie a little disappointed, the broker remains optimistic that strong development grades in March bode well for the fourth quarter.

The broker now assumes a long-term mining and milling rate of 1.2m tonnes per annum, subsequently lifting the long-term production outlook by 9%. 

The broker looks forward to FY25 guidance for a better indication of Bellevue Gold's long-term cost base.

The rating is downgraded to Neutral from Outperform and the target price increases to $2.00 from $1.90.

Target price is $2.00 Current Price is $1.97 Difference: $0.035
If BGL meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Citi rates BHP as Buy (1) -

While weather impacts were evident in the March quarter for iron ore and Queensland met coal, BHP Group's production was largely as Citi expected.

FY24 production guidance for BMA was lowered and cost guidance raised, but ex-BMA unit cost guidance for FY24 is unchanged.

Management expects to announce a decision on the future of its WA nickel business in the coming months. The broker believes care and maintenance and then closure are the most likely outcomes.

The Buy rating and $48 target are unchanged.

Target price is $48.00 Current Price is $45.09 Difference: $2.91
If BHP meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $45.13, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Macquarie rates BHP as Neutral (3) -

An as-expected third quarter result for Macquarie from BHP Group, with copper and iron ore in line with market expectations while met coal was a -9% miss.

As per the broker, the recovery rate at Spence, as well as Escondida grades, were key to the quarterly result. Macquarie notes rectification works to address plant design failures are almost completed, and recoveries are improved to 79%. 

The Neutral rating and target price of $42.00 are retained.

Target price is $42.00 Current Price is $45.09 Difference: minus $3.09 (current price is over target).
If BHP meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $45.13, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

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

Morgan Stanley assesses a weak 3Q operationally for BHP Group. Management lowered met coal production guidance by -8%, while cost guidance worsened by -8% to US$122/t due to higher rainfall and suspension of production due to a fatality.

WA iron ore production missed forecasts by the broker and consensus by -3.3% and -1.9%, respectively, partly due to heavy rain and ramping-up of operations, note the analysts.

Morgan Stanley suggests a good finish to FY24 is required to meet both iron ore and copper guidance.

The Equal-weight rating and $47 target are maintained. Industry view is Attractive. Rio Tinto ((RIO)) is preferred by the broker because of better growth, a superior balance sheet and an improving operational performance.

Target price is $47.00 Current Price is $45.09 Difference: $1.91
If BHP meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $45.13, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Morgans rates BHP as Add (1) -

BHP Group continues to post an excellent operational performance for its global assets, notes Morgans, apart from the weather-impacted operations at the BHP Mitsubishi Alliance (BMA) assets in the Bowen Basin.

The copper assets are performing strongly, highlights the broker, in particular at Escondida, Pampa Norte and Antamina.

The Add rating is maintained and the broker's target rises to $48.30 from $47.60 after updating for the operational result and adjusting commodity price forecasts.

BHP remains one of Morgans' top picks among large-cap resources given its operational standard, earnings quality, near-term growth, and dividend profile.

Target price is $48.30 Current Price is $45.09 Difference: $3.21
If BHP meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $45.13, suggesting upside of 1.1% (ex-dividends)

The company's fiscal year ends in June.

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: 0.3

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

Macquarie rates CGF as Neutral (3) -

Following its third quarter, Challenger has narrowed full year profits before tax guidance to the top end of its $555-605m guidance range.

Macquarie points out the Life book grew 0.9% quarter-on-quarter with total sales of $1.7bn, a result the broker believes speaks to a continued focus on growing a longer duration and more valuable business.

The Neutral rating is retained and the target price increases to $7.20 from $7.00.

Target price is $7.20 Current Price is $6.82 Difference: $0.38
If CGF meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.23, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

As part of a 3Q update, Challenger upgraded guidance for FY24 normalised profit (NPBT) to the top end of the prior $555-605m range, yet Morgan Stanley and consensus were already forecasting $592m.

Management is prioritising longer-tenor sales, notes the broker, with Lifetime sales rising by 37% year-on-year. Total annuity sales fell by -21% compared to the -13% expected by the analyst.

Favourable markets and around $1bn of total net inflows across all asset classes resulted in funds under management (FUM) rising by 9.2% quarter-on-quarter, explains Morgan Stanley.

The Equal-weight rating and $7.20 target are maintained. Industry view: In-Line.

Target price is $7.20 Current Price is $6.82 Difference: $0.38
If CGF meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $7.23, suggesting upside of 9.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Macquarie rates CNU as Outperform (1) -

The Commerce Commission has released a draft decision limiting Chorus' total expenditure allowance to NZ$1.59bn over the next four years, and is now seeking feedback on the decision.

As per Macquarie, the draft decision is -16%, or NZ$302, below the company's proposed expenditure, with the Commission stating Chorus has not demonstrated its proposed expenditure is prudent and efficient. 

There is, notes the broker, scope for Chorus to come back with further evidence to support its proposed expenditure ahead of a final decision.

The Outperform rating and target price of NZ$8.32 are retained.

Current Price is $6.74. Target price not assessed.

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Macquarie rates DRR as Neutral (3) -

Some disappointment for Macquarie in Deterra Royalties' third quarter report, but the broker notes a strong ramp up is expected in the coming period.

As per Macquarie, production from the Mining Area C operation of 29.3m tonnes was not only a -9% miss to its forecast but also a -4% decline on the previous period, attributed to scheduled works, heavy rainfall and tie-in activity for the rail technology program.

The broker notes the ramp up to full production of 80m tonnes per annum at the South Flank by the end of the financial year remains on track.

The Neutral rating and target price of $4.50 are retained.

Target price is $4.50 Current Price is $4.87 Difference: minus $0.37 (current price is over target).
If DRR meets the Macquarie target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.90, suggesting upside of 1.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Ord Minnett rates DSE as Buy (High Risk) (1) -

Dropsuite’s Q1 performance fell slightly below Ord Minnett's forecasts on both annual recurring revenues (ARR) and number of users. But the broker retains a positive view.

Ord Minnett points out Dropsuite has delivered positive free cash flow for eight consecutive quarters and the share price only multiplies ARR by 4x the FY24 forecast.

One item is seen as potentially of concern, and that is management reporting increased competition is leading to an increase in customer churn; to 5% in the quarter from 3% historically.

Buy (Higher Risk) and 34c target retained.

Target price is $0.34 Current Price is $0.30 Difference: $0.045
If DSE meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates GDG as Buy (High Risk) (1) -

Ord Minnett only initiated coverage on Generation Development in March with a Buy, Higher Risk rating and $2.50 target.

The broker spotted a strong Q3 performance with investment bond funds under management (FUM) exceeding forecasts, in addition to a "robust" performance from Lonsec.

As Generation Development is getting larger, Ord Minnett believes this will deliver significant operating leverage. Buy rating retained, with a $2.50 price target.

Estimates have been lifted by 2-4%.

Target price is $2.50 Current Price is $2.20 Difference: $0.3
If GDG meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 GL1 as Buy (1) -

Global Lithium Resources' March Q results showed substantial progress has been made on the pathway to a final investment decision later in 2024, Shaw and Partners notes.

The company is seen as "extremely" well positioned to benefit from the expected turnaround in lithium market conditions over the rest of the year.

Global Lithium has two key 100% owned assets, Manna and Marble Bar, which are both are in WA and located alongside world class lithium deposits in a sector that is, the broker observes, rapidly consolidating.

The past three months have seen multiple key milestones at Manna, Shaw notes, as Global Lithium progresses along the pathway to a definitive feasibility study by the end of 2024.

Buy and $2.20 target retained.

Target price is $2.20 Current Price is $0.44 Difference: $1.76
If GL1 meets the Shaw and Partners target it will return approximately 400% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates GMD as Outperform (1) -

A disappointing third quarter result from Genesis Minerals according to Macquarie, with production declining -14% quarter-on-quarter and missing the broker's forecast by -7%. While all in sustaining costs were in line, sales also missed by -25%. 

As per the broker, processed tonnes were the key negative variance, with Genesis Minerals losing two weeks of processing time legacy toll-treating contracts.

Full year guidance of 130-140,000 ounces at a cost of $2,300-2,400 per ounce was retained.

The Outperform rating and target price of $2.00 are retained.

Target price is $2.00 Current Price is $1.83 Difference: $0.175
If GMD meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates GMD as Hold (3) -

Genesis Minerals released a slightly softer-than-anticipated Q3 performance update, but Ord Minnett highlights FY24 guidance remains intact and the five-year plan shows organic growth towards (more than) 300koz annual output.

It is Ord Minnett's view that plan is what differentiates Genesis Minerals from its peers in Australia.

The share price valuation and prospect for limited free cash flow in the near outlook is what keeps the broker's rating on Hold. The target has lost -5c to $1.85.

Target price is $1.85 Current Price is $1.83 Difference: $0.025
If GMD meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

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

Citi rates GOZ as Buy (1) -

Citi considers a better-than-anticipated 3Q leasing in office space will be positive for Growthpoint Properties Australia's FY24 earnings. The broker's FY24 funds from operations (FFO) estimates are raised by 1.6%, towards the lower end of management’s FY24 guidance.

This FFO guidance was upgraded to 23.2-23.6cps from 22.5-23.1cps largely because of higher office leasing and lease surrender fees, explain the analysts.

The Buy rating and $2.60 target are unchanged.

Target price is $2.60 Current Price is $2.39 Difference: $0.21
If GOZ meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.97, suggesting upside of 26.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Morgans rates IMR as Speculative Buy (1) -

Following the recent $15m capital raise by Imricor Medical Systems, Morgans notes there has been a flurry of positive announcements and maintains a Speculative Buy rating and 96c target.

Procedures have recommenced at a major European hospital and first orders have been received from another European hospital, notes the broker. Also, another clinical trial site is ready to participate in the clinical trial to obtain US FDA approval in atrial flutter.

The analysts expect more news flow over the next nine months around sales orders, clinical trial updates and additional approvals.

Target price is $0.96 Current Price is $0.51 Difference: $0.455
If IMR meets the Morgans target it will return approximately 90% (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: 1.0

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

Citi rates KAR as Buy (1) -

Karoon Energy's March quarter production report, released earlier today, has included a downgrade to production guidance with deliverability at Who Dat held responsible.

Citi analysts surmise if problems at Who Dat persists, Karoon Energy might have overpaid when it acquired the asset.

Target $2.75. Buy.

Target price is $2.75 Current Price is $2.22 Difference: $0.53
If KAR meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $2.73, suggesting upside of 29.4% (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: 0.9

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

Macquarie rates MGX as Outperform (1) -

With Mount Gibson Iron's third quarter shipments in line with Macquarie's expectations, the broker considers the company still on track to achieve its full year guidance range between 3.8-4.2m wet metric tonnes.

Both quarterly production and realised price beat estimates, subsequently driving a 7% revenue beat to Macquarie's forecast.

The company closed out the period with cash and investments of $430m, up 20% quarter-on-quarter.

The Outperform rating and target price of 50 cents are retained.

Target price is $0.50 Current Price is $0.48 Difference: $0.025
If MGX meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 MRM as Hold (3) -

MMA Offshore issued a trading update indicating underlying earnings for FY24 to be in the range of $136-142m versus Shaw and Partners' forecast of $125m.

Management indicated that it’s high-value, multipurpose vessels are anticipated to operate at 95% utilisation when Shaw had 90%, and overall vessel utilisation is anticipated by management to be 90% when Shaw had 85%.

The broker retains Hold and a $2.60 target, as is the offer on the table from Cyan which the board has receommended.

Target price is $2.60 Current Price is $2.65 Difference: minus $0.05 (current price is over target).
If MRM meets the Shaw and Partners target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.60, suggesting downside of -3.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

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

Citi raises its target for Netwealth Group to $18.65 from $18.35 after 3Q net flows came in ahead of expectations, driven by record gross inflows for a March quarter and moderating outflows.

While the broker expects strong earnings growth underpinned by a recovery in flows and market share gains, the valuation is currently too full for Citi. As a result, the rating is downgraded to Sell from Neutral.

The analysts lower FY24 revenue margin forecasts by -0.5bps to 31bps partly due to lower forecast ancillary revenue.

Target price is $18.65 Current Price is $19.79 Difference: minus $1.14 (current price is over target).
If NWL meets the Citi target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.76, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgan Stanley rates ORA as Overweight (1) -

Orora's investor day presentation highlighted to Morgan Stanley management's confidence in the Saverglass business over the longer-term, and confirmed the broker's view current issues are cyclical, not structural.

In support of the acquisition, and in agreeance with the broker's thesis, management noted the trend toward premiumisation and how Saverglass is supported by barriers to entry.

A turning point for the business is uncertain, note the analysts, as destocking and demand softness persist. It's felt the market may wait for evidence before becoming more confident.

Overweight rating. Target $2.90. Industry view: In Line.

Target price is $2.90 Current Price is $2.15 Difference: $0.75
If ORA meets the Morgan Stanley target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 25.5% (ex-dividends)

The company's fiscal year ends in June.

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

Ord Minnett rates PAC as Buy (1) -

Pacific Current Group intends to spend up to -$275m in an off-market share buyback in a bid to return the cash proceeds of recent asset sales, subject to seeking shareholder approval in coming months.

Ord Minnett notes total proceeds from recent and proposed asset sales are anticipated to reach $370m, with the company identifying $275m as being surplus to operational requirements.

If approved, it is expected to buyback would be implemented by September. The Buy rating and target price of $12.50 are retained.

Target price is $12.50 Current Price is $10.11 Difference: $2.39
If PAC meets the Ord Minnett target it will return approximately 24% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates PLS as Sell (5) -

In an initial assessment, today's March quarter update for Pilbara Minerals proved in line with Citi's forecasts, despite weather and ore supply challenges. The P680 primary rejection facility achieved nameplate production capacity during the period.

Shipments missed forecasts by the broker and consensus by -8% due to timing, with two March quarter shipments sent in April. 

While realised pricing of US$804/t also missed the broker's US$835/t estimate and the US$910/t expected by consensus, Citi believes the market will overlook this outcome and focus on a strong late-March quarter operational performance

Capex beat forecasts and the month of March was a new low for opex at $625/t, notes the broker. Sell. Target $3.60.

Target price is $3.60 Current Price is $3.92 Difference: minus $0.32 (current price is over target).
If PLS meets the Citi target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.58, suggesting downside of -6.7% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates PMV as Reinitiate coverage with Buy (1) -

Premier Investments is currently trading on 14x forecast FY26 PE on Bell Potter's estimates.

The broker thinks the multiple is conservative given the value emerging from the potential demerger of two key brands, Smiggle and Peter Alexander, which Bell Potter believes are "global roll-out" worthy, and highly profitable.

As the Smiggle brand looks to grow its presence in the Middle East and Indonesia via a low-risk wholesale model and Peter Alexander into the UK, the broker suggests the two brands have a long runway ahead.

Bell Potter re-initiates coverage with Buy and a $35 target.

Target price is $35.00 Current Price is $29.62 Difference: $5.38
If PMV meets the Bell Potter target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $31.08, suggesting upside of 6.6% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Bell Potter rates PNR as Hold (3) -

Pantoro's March Q gold production and costs beat Bell Potter. It was a record quarter for Norseman, but no guidance has been issued.

Norseman continues to lift its operating performance, the broker notes, delivering further improvements across a number of operating metrics during the March quarter, but production growth is beginning to slow and higher grades are needed to lift it further. 

Pantoro remains an unhedged gold producer, highly leveraged to a rising gold price, but Bell Potter sees the current improvements largely priced in and the need to demonstrate positive free cash flow remains. Hold. Target rises to 8c from 4.3c.

Target price is $0.08 Current Price is $0.09 Difference: minus $0.007 (current price is over target).
If PNR meets the Bell Potter target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

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

Ord Minnett rates PPS as Buy (1) -

Praemium demonstrated progress in the third quarter, notes Ord Minnett, with the company reporting flows and funds under administration ahead of the broker's forecasts. 

Where Ord Minnett has assumed a -$200m outflow for the quarter, Praemium delivered net inflows of $201m. As per the broker, separately managed accounts reported inflows of $254m, well ahead of the broker's expectations and supporting group inflows.

Alongside the bounce back in separately managed accounts, the broker notes losses from Powerwrap are being contained. Looking ahead, profitability is expected to improve.

The Buy rating and target price of 55 cents are retained.

Target price is $0.55 Current Price is $0.43 Difference: $0.12
If PPS meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates RMD as Buy (1) -

The consent decree for Philips has been finalised. This is a roadmap of defined actions, milestones, and deliverables to demonstrate compliance with regulatory requirements.

In a positive for ResMed, Citi anticipates it will be multiple years before Philips re-enters the US CPAP device market.

Separately, the broker highlights Eli Lilly has announced positive topline results from the Surmount-OSA Phase III clinical trials showing a decline in obstructive sleep apnea (OSA) severity.

Consistent with the broker's view, GLP-1s alone are unlikely to result in OSA remission in moderate-to-severe patients, noting a combination therapy of Zepbound and CPAP led to a better outcome.

ResMed will report Q3 FY24 results on April 26. The Buy rating and target price of $34.00 are retained.

Target price is $34.00 Current Price is $27.63 Difference: $6.37
If RMD meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $34.38, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

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

Macquarie rates RMD as Outperform (1) -

Macquarie sits ahead of market expectations for ResMed's third quarter for both earnings and net profits, although below on a gross margin of 57.2%.

With Philips reaching a final agreement with the Department of Justice and FDA that restricts the sale of its PAP devices in the US until key requirements are met, the broker has increased its expected device revenue forecasts for ResMed. 

The broker now anticipates Philips re-entering the market in 2025, rather than 2024. Further, it estimates a 10% upside to device revenue forecasts for the company should Philips remain out of the market until 2027. 

The Outperform rating is retained and the target price increases to $34.30 from $33.45.

Target price is $34.30 Current Price is $27.63 Difference: $6.67
If RMD meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $34.38, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

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

Morgan Stanley rates RMD as Overweight (1) -

Eli Lily reported positive Phase 3 topline data for its weight loss drug trial. The apnea-hypopnea index (HPI) reduction of -53-63% was in line with Morgan Stanley's forecast for a reduction of at least a -50%.

Management of ResMed will discuss trial indications at 3Q earnings results on April 26, notes the broker. Management still believes such results are good for ResMed with customers' growing awareness of sleep apnea leading to better management of health.

The Overweight rating and $31.80 target are maintained. Industry View: In-Line.

Target price is $31.80 Current Price is $27.63 Difference: $4.17
If RMD meets the Morgan Stanley target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $34.38, suggesting upside of 23.1% (ex-dividends)

The company's fiscal year ends in June.

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

Bell Potter rates SMI as Speculative Buy (1) -

Santana Minerals has announced the results of a scoping study for an initial Bendigo-Ophir gold project. Given the attractive outcomes of the study, Santana will now continue to advance the project towards construction, Bell Potter reports.

The pre-feasibility study is underway, with results guided for the September quarter. The project holds significant additional prospectivity for undiscovered gold deposits, the broker notes, and further discovery could highlight increased gold production potential.

Target rises to $2.15 from $1.90, Speculative Buy retained.

Target price is $2.15 Current Price is $1.33 Difference: $0.82
If SMI meets the Bell Potter target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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 SRG as Buy (1) -

SRG Global has secured $150m of contracts in the Energy, Resources and Transport sectors across Australia. Financial year to date contract wins now total circa $650m, Shaw and Partners notes, and follow $1.2bn of wins in FY23.

The broker forecasts SRG to deliver earnings growth of 23% in FY24 versus comparable companies which are expected to deliver growth of around 15%. Despite this, SRG trades at an enterprise multiple discount to peers.

Buy and $1.20 target retained.

Target price is $1.20 Current Price is $0.80 Difference: $0.4
If SRG meets the Shaw and Partners target it will return approximately 50% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates STO as Outperform (1) -

With Santos approaching the free cash flow inflection amid impressive progress at its Barossa and Pikka operations, as per Macquarie, the broker is anticipating shares will start to re-rate as investors gain confidence.

Pipelaying at Barossa is due to complete in the coming week, while at Pikka pipelaying is 61% complete and underpins increased possibility of an early 2025 start for oil production.

The Outperform rating is retained and the target price increases to $9.10 from $9.05.

Target price is $9.10 Current Price is $7.69 Difference: $1.41
If STO meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $9.04, suggesting upside of 15.6% (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: 0.4

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

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

March quarter production for Santos missed forecasts by Morgan Stanley and consensus by -2% and -3%, respectively, due to both planned and unplanned outages. A muted share price reaction to the result is anticipated.

The broker assesses good overall production and sales for the quarter, and highlights Barossa is 70.6% complete with first gas still targeted for the 3Q of FY25.

The Equal-weight rating and $8.00 target are maintained. Industry view: Attractive. 

Target price is $8.00 Current Price is $7.69 Difference: $0.31
If STO meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.04, suggesting upside of 15.6% (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: 0.4

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) -

Morgan Stanley expects a muted reaction by the market to Transurban Group's March quarter traffic update and looks forwards to the Investor Day on May 6 for additional company news.

Transurban's gross average daily traffic (ADT) increased by 0.9% compared to the prior December quarter, while proportional ADT fell by -0.7% on the previous corresponding period.

Target $13.68. Equal Weight. Industry View: Cautious.

Target price is $13.68 Current Price is $12.81 Difference: $0.87
If TCL meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $13.77, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates WDS as Sell (5) -

After a first glance by Citi, Woodside Energy's 1Q operational performance appears in line with consensus expectations though missed the broker's estimates due to production outages and timing of cargoes. Realised LNG prices were slightly softer-than-expected.

Total operating revenue of US$3.0bn was -8% below Citi’s estimate on lower sales volume,.

As the company is aiming to "layer in" additional long-term offtake agreements, the analyst suspects management is less hopeful around long term spot LNG pricing. It's felt the equity market prefers contracted volumes over greater earnings volatility in spot LNG.

Citi retains a Sell rating on concerns over the highly concentrated ex-growth portfolio, which may require sizable M&A activity, which would present a DPS cliff to 2026. Target $24.

Target price is $24.00 Current Price is $29.45 Difference: minus $5.45 (current price is over target).
If WDS 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 $33.70, suggesting upside of 14.7% (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: 0.3

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