Australian Broker Call

Ord Minnett rates ACF as Buy (1) -

Acrow Formwork and Construction Services will acquire of MI Scaffolding at a cost of -$26.4m, and an additional -$9.9m in deferred consideration. Ord Minnett feels the acquisition has strong strategic merit, allowing Acrow to generate greater recurring revenue.

The purchase also increases Acrow's exposure to the Queensland market, and leaves it well placed to take advantage of a strong pipeline of work in the state, the broker suggests.

The But rating is retained and the target price increases to $1.25 from $1.20.

Target price is $1.25 Current Price is $0.88 Difference: $0.37
If ACF meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $1.18, suggesting upside of 34.5% (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

Ord Minnett rates AOF as Hold (3) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

The Hold rating and target price of $1.44 are retained. 

Target price is $1.44 Current Price is $0.98 Difference: $0.46
If AOF meets the Ord Minnett target it will return approximately 47% (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 APA as Accumulate (2) -

Despite APA Group continuing to pursue, in Ord Minnett's opinion, low-quality and low-returning renewable energy acquisitions and developments, the broker considers the stock undervalued. 

The company recieved its first strike against its remuneraton report, which Ord Minnett believes comes from management targets being overly focused on the renewable transition rather than shareholder returns. The broker would like to see more discipline from management.

The Accumulate rating is retained and the target price decreases to $9.30 from $9.50.

Target price is $9.30 Current Price is $8.33 Difference: $0.97
If APA meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $9.10, suggesting upside of 9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Ord Minnett rates ARB as Buy (1) -

ARB Corp continues to be a beneficiary of strong new vehicle sales with new vehicle sales increasing 22.3% industry-wide in October, while sales within ARB Corp's key segments lifted 28.1%. 

Ord Minnett expects this to prove positive for ARB Corp's order book, already at record levels. The broker feels ARB Corp's longer-term prospects, beyond stabilisation of supply chain issues, remain favourable. 

The Buy rating and target price of $36.00 are retained.

Target price is $36.00 Current Price is $31.03 Difference: $4.97
If ARB meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $31.01, suggesting downside of -1.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

UBS rates ASX as Sell (5) -

Cash volumes remain "very soft", UBS comments upon release of October activity data on the ASX, with a sustained recovery in futures volumes towards pre-covid levels.

UBS has reduced forecasts, which has pulled down the price target to $53 from $59. In light of earnings disappointments (might be more to come, the broker suggests) and competitive threats, the broker doesn't think the shares look "cheap".

IPO markets are not yet recovering, and the broker sees no recovery happening soon. UBS doesn't dare to predict a better environment for cash trading volumes even if the RBA starts cutting rates next year.

The broker believes the growth outlook for the exchange remains "weak".

Target price is $53.00 Current Price is $57.22 Difference: minus $4.22 (current price is over target).
If ASX meets the UBS target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $60.62, suggesting upside of 6.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Bell Potter rates CBO as Buy (1) -

While Bell Potter's $1.70 target for Cobram Estate Olives is unchanged, earnings (EBITDA) forecasts are increased across FY24-26 due to price increases, offset in part by higher water cost assumptions in FY24-25.

The broker notes management commentary at the AGM was generally upbeat in relation to selling prices, market demand and product supply.

The Buy rating is unchanged.

Target price is $1.70 Current Price is $1.31 Difference: $0.39
If CBO meets the Bell Potter target it will return approximately 30% (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

Ord Minnett rates CLW as Hold (3) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

The Hold rating and target price of $4.16 are retained. 

Target price is $4.16 Current Price is $3.29 Difference: $0.87
If CLW meets the Ord Minnett target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $3.90, suggesting upside of 19.4% (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

Ord Minnett rates CQR as Accumulate (2) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

The Accumulate rating and target price of $3.96 are retained. 

Target price is $3.96 Current Price is $3.21 Difference: $0.75
If CQR meets the Ord Minnett target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.78, suggesting upside of 19.4% (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

Ord Minnett rates DXC as Accumulate (2) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

Dexus Convenience Retail REIT remains a top pick, with the broker seeing significant value at current prices. 

The Buy rating is retained and the target price decreases to $2.79 from $3.00.

Target price is $2.79 Current Price is $2.35 Difference: $0.44
If DXC meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Market Sentiment: 0.8

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

Ord Minnett rates ECF as Hold (3) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

The Hold rating and target price of 83 cents are retained.

Target price is $0.83 Current Price is $0.71 Difference: $0.125
If ECF meets the Ord Minnett target it will return approximately 18% (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

Macquarie rates ELD as Neutral (3) -

Elders is set to report FY23 earnings next week and Macquarie forecasts a $166.5m earnings result for the year, following a lowering of guidance from the company in late August on cautious customer sentiment. 

Macquarie expects to see a focus on inventory clearing progress and remaining high cost inventory, alongside the FY24 outlook with the company already flagging its targeted 5-10% earnings and earnings per share through the cycle growth. 

The Neutral rating is retained and the target price decreases to $6.72 from $6.88. 

Target price is $6.72 Current Price is $6.21 Difference: $0.51
If ELD meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $7.22, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Morgans rates EQR as Speculative Buy (1) -

The Mt Carbine mine in Queensland is now at operational cashflow breakeven. The production rate was 200 tonnes of tungsten concentrate per month, and scheduled for 400tpm, observes Morgans following 1Q production results for EQ Resources.

Open pit mining re-commenced at the mine during the quarter, resulting in a quarter-by-quarter production increase of 181% with 422 tonnes of 50% WO3 concentrate produced.

Over in Barruecopardo, Spain, operations are moving to cashflow breakeven, with monthly production 140t of 65% WO3 concentrate, and plans to move to 300tpm, explains the analyst.

The broker's Speculative Buy rating and 13c target are maintained.

Target price is $0.13 Current Price is $0.07 Difference: $0.06
If EQR meets the Morgans target it will return approximately 86% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Citi rates EVT as Neutral (3) -

Global travel demand remains strong, concludes Citi, after reviewing recent reporting by key hotel operators, including Marriott, Hyatt, and Accor, in a positive read-through for EVT Ltd.

This view is consistent with management's forecast for another record year for its Hotel division, explains the broker.

While there are risks around softening domestic leisure demand and corporate cost cutting, cautions the analyst, increased airline capacity may result in more international tourists.

The $13 target and Neutral rating are maintained.

Target price is $13.00 Current Price is $10.80 Difference: $2.2
If EVT meets the Citi target it will return approximately 20% (excluding dividends, fees and charges).

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

Morgans rates GDG as Add (1) -

Morgans assesses a "solid" 1Q result for Generation Development, with strong investment bond (IB) sales (up 10% on the previous corresponding period) and improved outflows, resulting in a near record IB net flow figure.

This outcome was partly due to normalisation of recently elevated IB redemptions, explains the analyst.

Funds under management (FUM) also grew by 21% on the previous corresponding period, and sales of variable annuity (LifeIncome) are running at $1-$2m/month. FUM for Lonsec’s Investment Solutions (LIS) also increased by $300m over Q1.

The broker increases its target to $1.70 from $1.52 and the Add rating is maintained. It's felt the Lonsec business (particularly LIS) and the roll-out of the new Lifetime annuity product could accelerate growth.

Target price is $1.70 Current Price is $1.55 Difference: $0.15
If GDG meets the Morgans 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

Citi rates GMG as Buy (1) -

Following Goodman Group's "strong" 1Q results, Citi highlights a raft of positives including 99% occupancy, rising like-for-like rental growth and growing assets under management (AUM).

Additionally, the broker liked the stable development production rate with elevated margins 

The broker expects medium-term earnings growth given ongoing tight industrial demand supply dynamics and the large development pipeline, along with data centre opportunities.

Buy. Target $24.50.

Target price is $24.50 Current Price is $21.95 Difference: $2.55
If GMG meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $23.73, suggesting upside of 8.3% (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

Macquarie rates GMG as Outperform (1) -

A softer first quarter saw Goodman Group report commencements totalling $0.7bn, but Macquarie expects the quarter is not indicative of potential full year earnings. The broker forecasts production of $6.5bn over the year, with a number of projects pushed from the quarter.

Macquarie feels Goodman Group is well positioned to take advantage of a challenging macro that could see poorly capitalised developers exit the market, with the company already voicing that competition has fallen away dramatically.  

The Outperform rating is retained and the target price decreases to $23.50 from $23.52.

Target price is $23.50 Current Price is $21.95 Difference: $1.55
If GMG meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $23.73, suggesting upside of 8.3% (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

Morgan Stanley rates GMG as Overweight (1) -

Morgan Stanley spotted a "steady" Q1 operational update by Goodman Group, with no outstandingly positive or negative revelations.

Management maintained FY24 EPS guidance of 9%, which implies to the broker 102.8cps compared to the consensus forecast of 105.2cps.

Given the annualised production target of $7bn, Morgan Stanley felt commencements of $0.7bn for the quarter were a little low.

Assets under management (AUM) were $82.9bn compared to $81bn in the prior quarter, and the analysts note the cap rate appears to be broadly flat at 4.53% overall.

Target $25.50. Overweight. Industry view: In-Line. 

Target price is $25.50 Current Price is $21.95 Difference: $3.55
If GMG meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $23.73, suggesting upside of 8.3% (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

Morgans rates GMG as Add (1) -

In the wake of 1Q results, Morgans makes little changes to earnings forecasts for Goodman Group and maintains a Buy rating with a $24.50 target, up from $23.50.

Management reaffirmed FY24 guidance and confirmed $7bn of annualised production for FY24 is on track, in-line with forecasts by the broker and consensus. Demand is supporting work-in-progress of $12.7bn at September 30, notes the analyst.

While the company's growth will likely ease due to a slower industrial market, recent market rent increases will see net property income (NPI) increase for years to come, suggests Morgans.

Target price is $24.50 Current Price is $21.95 Difference: $2.55
If GMG meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $23.73, suggesting upside of 8.3% (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

Ord Minnett rates HDN as Hold (3) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

The Hold rating and target price of $1.26 are retained. 

Target price is $1.26 Current Price is $1.13 Difference: $0.135
If HDN meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.33, suggesting upside of 17.5% (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

Morgan Stanley rates IDX as Upgrade to Equal-weight from Underweight (3) -

In reaction to 1Q results, the stock price for Integral Diagnostics fell sharply and Morgan Stanley now upgrades its rating to Equal-weight from Underweight on valuation. Since July, shares have declined by around -39%.

Staff shortages and cost inflation continue to pressure margins and were greater than the analysts anticipated. As a result, FY24-26 EPS forecasts are reduced by -40%, -34% and -32%, respectively, and the target is slashed to $1.95 from $2.75. Industry view: In-Line.

While Morgan Stanley expects a margin recovery will arrive, cost pressures are currently outweighing rising indexation and the near-term outlook is described as hard to predict.

Target price is $1.95 Current Price is $1.96 Difference: minus $0.005 (current price is over target).
If IDX 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 $2.24, suggesting upside of 15.3% (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 IDX as Upgrade to Buy from Accumulate (1) -

A disappointing first quarter update from Integral Diagnostics, says Ord Minnett, with the company unable to deliver improved operating leverage amid clinical staff shortages and cost inflation. 

Domestic revenue growth of 8.4% missed market expectations, as did weak earnings margins. The broker expects a more comprehensive cost-out program can help in the near-term, and does consider the share price decline overdone. 

The rating is upgraded to Buy from Accumulate and the target price decreases to $2.50 from $3.35.

Target price is $2.50 Current Price is $1.96 Difference: $0.545
If IDX meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.24, suggesting upside of 15.3% (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 JHX as Buy (1) -

Tomorrow, Citi is expecting a solid 2Q beat against consensus forecasts for James Hardie Industries due a resilient new housing market, which is showing even greater strength than expectations provided by the company in August.

This view is supported by recent US homebuilder/competitor results, explain the analysts.

The broker also sees potential for a new cost-out initiative/announcement, which could result in around 5-10% upward revisions by consensus.

The Buy rating and $50.50 target are retained.

Target price is $50.50 Current Price is $41.50 Difference: $9
If JHX meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $50.28, suggesting upside of 22.3% (ex-dividends)

The company's fiscal year ends in March.

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

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

Citi initiates coverage on Karoon Energy with a Buy rating, noting an advantage relative to ASX-listed Oil and Gas peers because of Brazil’s relatively friendly regulatory environment.

The broker is more optimistic than consensus on production from Bauna and has a higher (75%) risk weighting for the Neon field development.

Neon is fully appraised and likely to be developed via a standalone floating production storage and offloading (FPSO), note the analysts. A target price of $3.00 is set.

Target price is $3.00 Current Price is $2.44 Difference: $0.56
If KAR meets the Citi target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $3.01, suggesting upside of 25.4% (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 MAP as Speculative Buy (1) -

Bell Potter notes revenues for Microba Life Sciences will more than double following the "transformative" acquisition of private UK company, Invivo Clinical, in a revenue synergy play around microbiome testing.

The company will raise $20m at $0.23/share to fund the acquisition, and pay up to -$21.1m in both cash and scrip, through a -$12.5m upfront payment with potential for two -$4.3m earn-out payments.

The broker's target falls to 44c from 55c on the equity dilution and the Speculative Buy rating is maintained.

Target price is $0.44 Current Price is $0.23 Difference: $0.215
If MAP meets the Bell Potter target it will return approximately 96% (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

Bell Potter rates MCE as Upgrade to Speculative Buy from Speculative Hold (1) -

In good news for Matrix Composites & Engineering, Bell Potter has reviewed recent quarterly reports by global services providers to the offshore energy sector, concluding order backlogs point to ongoing robust near-term demand for subsea infrastructure.

Another medium-term earnings catalyst for the company is leverage to growing activity across the global offshore floating wind sector, explains the broker.

Bell Potter upgrades its rating to Speculative Buy from Speculative Hold and lowers its target to 32c from 34c.

Target price is $0.32 Current Price is $0.25 Difference: $0.07
If MCE meets the Bell Potter 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 QBE as Buy (1) -

Whatever happens at 3Q results for QBE Insurance due on November 27, Citi believes near-to medium-term returns should continue to improve, resulting in significant EPS growth.

The Buy rating is unchanged and the target rises to $18.00 from $17.90 on changes to the broker's currency forecasts.

Target price is $18.00 Current Price is $15.51 Difference: $2.49
If QBE meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $17.16, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Ord Minnett rates REP as Buy (1) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

RAM Essential Services Property Fund remains a top pick, noting the REIT's income is exposed to the more defensive essential services and medical sectors.

The Buy rating is retained and the target price decreases to 75 cents from 83 cents.

Target price is $0.75 Current Price is $0.64 Difference: $0.115
If REP meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Market Sentiment: 1.0

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

Bell Potter rates RPL as Buy (1) -

Bell Potter suggests Regal Partners has been transformed in terms of size, capabilities and diversification after acquiring PM Capital (Paul Moore) and 50% of global commodities financier Taurus Funds Management. It's felt the share price will rally.

PM Capital is an equities and fixed interest manager with three main strategies and $2.7bn in funds under management and came at a -$2.7bn cost. Taurus manages $2.3bn mainly from US institutions and pension funds.

The acquisitions are enhancing to EPS, note the analysts, and do not create an immediate overhang of stock.

The target falls to $3.36 from $3.40 after allowing for the transactions and funding arrangements.

Target price is $3.36 Current Price is $1.91 Difference: $1.45
If RPL meets the Bell Potter target it will return approximately 76% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Bell Potter rates UNI as Initiation of coverage with Buy (1) -

Bell Potter initiates coverage on Australian youth-focused apparel, footwear and accessories retailer Universal Store with a $4.60 target. Margins are expected to widen beyond FY25 with the roll-out of the Perfect Stranger and Thrills formats.

The broker anticipates growth via management's ability to execute on a further circa 90 stores, above the current store network of 95, and commences with a Buy recommendation.

This expansion could add $30-35m in earnings (EBITDA) and presents significant upside to the current share price, in the analyst's view.

Target price is $4.60 Current Price is $3.36 Difference: $1.24
If UNI meets the Bell Potter target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $4.11, suggesting upside of 20.9% (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

Citi rates WBC as Neutral (3) -

Following a further review of Westpac's largely in-line FY23 results, Citi raises its target price to $23.60 from $21.80 in anticipation of management's simplification agenda bearing fruit. Neutral is retained given the strategy's execution risk.

Yesterday's summary of the broker's initial take on the results is as follows:

Westpac's FY23 report narrowly missed market consensus (by between -0.5%-1.5%) but slightly beat its own forecasts.

The "surprise" seems to find its origin in Citi making a more downbeat call on operational costs, which has proved to be too bearish, on the analysts' own admission.

Bad debts of $648m were well below the estimated $900m, with asset quality continuing to be benign, the analysts highlight. They predict the post release conference call will focus on the outlook for costs.

Target price is $23.60 Current Price is $21.92 Difference: $1.68
If WBC meets the Citi target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $22.56, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Macquarie rates WBC as Neutral (3) -

A challenging revenue environment and cost inflation continue to weight on Westpac's earnings, driving Macquarie to increase its expense forecasts to $10.94bn and $11.38bn for FY24 and FY25 respectively, accounting for additional investment requirements. 

Given the material investment still required, Macquarie considers it too early to get excited about the bank's cheap valuation. The bank will undertake a $1.5bn buyback, but Macquarie expects it will need to cut future dividends -10% to support capital generation. 

The Neutral rating and target price of $20.50 are retained.

Target price is $20.50 Current Price is $21.92 Difference: minus $1.42 (current price is over target).
If WBC meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.56, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

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

FY23 results for Westpac revealed a 2H pre-provision profit in line with consensus, but profit was better due to a low loan loss charge, explains Morgan Stanley.

The decline in the bank's core margin (which excludes treasury and markets) was in line with the broker's forecast. The lending headwind was slightly worse than expected but the deposit and funding headwind was slightly ahead of expectation.

The broker upgrades EPS forecasts for FY24 and FY25 by 5% and 2%, respectively, as better near-term loan growth and lower impairment charges are expected to offset higher expenses.

The target rises to $20.70 from $20.00 and the Equal-weight rating is unchanged. Industry View: In-Line.

Target price is $20.70 Current Price is $21.92 Difference: minus $1.22 (current price is over target).
If WBC meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.56, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Morgans rates WBC as Downgrade to Hold from Add (3) -

Westpac's -7% earnings decline (ex notables) for FY23 was close to Morgans' forecast. The broker also noted resilient asset quality and a strong capital position which allowed for an increased dividend and a new share buyback program.

The net interest margin (NIM) declined by -2bps to 194bps due to greater competition, offset by the benefit of higher interest rates, explains the analyst.

Given recent share price strength, the broker downgrades its rating to Hold from Add. The FY24-26 earnings forecasts fall by between -3-6% partly due to a lower assumed NIM and higher costs. The target falls to $21.58 from $21.61.

Target price is $21.58 Current Price is $21.92 Difference: minus $0.34 (current price is over target).
If WBC meets the Morgans target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.56, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Ord Minnett rates WBC as Accumulate (2) -

Following a disappointing few years from Westpac, things appear to be moving in the right direction for the bank according to Ord Minnett. Westpac reported 26% operating profit growth for FY23, alongside 10% return on equity. 

Home loans increased 3% in the second half, ahead of market growth, and Ord Minnett expects the bank can continue to grow loans and deposits in line with the market without heavy discounting, and expects the new mortgage origination platform to lift broker satisfaction. 

The Accumulate rating and target price of $28.00 are retained.

Target price is $28.00 Current Price is $21.92 Difference: $6.08
If WBC meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $22.56, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

UBS rates WBC as Sell (5) -

Upon further analysis of Westpac's FY23 financials, UBS has lifted forecasts (predominantly for FY24), with EPS for FY26 downgraded by -8.6%, and retained its Sell rating for the bank.

While adding up all the initiatives undertaken, the broker still projects absolute costs climbing to $10.8bn by FY26.

For the shares to re-rate, management must deliver a positive surprise on cost management, the broker predicts. Clearly, UBS is not convinced of such a scenario materialising in the medium term.

Target has gained $1 to $21.

Target price is $21.00 Current Price is $21.92 Difference: minus $0.92 (current price is over target).
If WBC meets the UBS target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.56, suggesting upside of 5.8% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

UBS rates WOR as Buy (1) -

UBS is of the view we are moving into that part of the global energy transitioning process in which contracts are being awarded, and Worley will be one key beneficiary.

The recent announcement regarding Phase 1 of Venture Global's CP2 LNG terminal is worth, potentially, $9-11bn in revenue for the contractor over 3-4 years, on the broker's guesstimate.

The LNG market's shift to reimbursable delivery models (exit fixed prices) opens up a potential US$145bn market for Worley, suggests UBS.

Target moves to $22.50 from $20.50. Buy. Estimates have lifted (and noticeably so).

Target price is $22.50 Current Price is $16.55 Difference: $5.95
If WOR meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $18.71, suggesting upside of 10.3% (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 WPR as Accumulate (2) -

According to Ord Minnett, belief in the higher for longer rates thematic triggered the sell off in A-REITs during September and October. The broker has increased its inflation forecast, noting house views assume as many as a further four rate rises.  

However, with residential property prices continuing to rise and ongoing recessionary risk, the broker believes value can be found in REITs supported by strong underlying land values and with a defensive earnings profile. 

Waypoint REIT remains a top pick, and the broker believes the market has significantly undervalued  the REIT's land bank. 

The Accumulate rating is retained and the target price decreases to $2.56 from $2.79.

Target price is $2.56 Current Price is $2.30 Difference: $0.26
If WPR meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.56, suggesting upside of 12.9% (ex-dividends)

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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