Australian Broker Call
Produced and copyrighted by at www.fnarena.com
June 08, 2022
Access Broker Call Report Archives here
COMPANIES DISCUSSED IN THIS ISSUE
Click on symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1).
Last Updated: 05:00 PM
Your daily news report on the latest recommendation, valuation, forecast and opinion changes.
This report includes concise but limited reviews of research recently published by Stockbrokers, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end.
For more info about the different terms used by stockbrokers, as well as the different methodologies behind similar sounding ratings, download our guide HERE
Today's Upgrades and Downgrades
ARF - | Arena REIT | Upgrade to Outperform from Neutral | Macquarie |
BST - | Best & Less | Downgrade to Neutral from Outperform | Macquarie |
CLW - | Charter Hall Long WALE REIT | Downgrade to Neutral from Outperform | Macquarie |
GPT - | GPT Group | Downgrade to Neutral from Outperform | Macquarie |
NSR - | National Storage REIT | Upgrade to Neutral from Underperform | Macquarie |
SCG - | Scentre Group | Upgrade to Neutral from Underperform | Macquarie |
UNI - | Universal Store | Downgrade to Neutral from Outperform | Macquarie |
VCX - | Vicinity Centres | Upgrade to Outperform from Neutral | Macquarie |
AIZ AIR NEW ZEALAND LIMITED
Transportation & Logistics
More Research Tools In Stock Analysis - click HERE
Overnight Price: $0.57
Macquarie rates AIZ as Underperform (5) -
Macquarie reviews the capacity outlook and updates forecasts for elevated fuel prices. The main positives for Air New Zealand are domestic dominance and partnerships which positions the business well for the re-opening of travel.
Nevertheless, jet fuel prices are a material headwind and require a balancing of pricing versus demand. The broker considers the stock closer to fair value but managing the fuel and macro risks remains a challenge.
Underperform retained. Target is reduced to NZ$0.60 from NZ$0.75.
Current Price is $0.57. Target price not assessed.
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 27.80 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.94 cents. |
This company reports in NZD. 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
Overnight Price: $7.10
Credit Suisse rates ALX as Outperform (1) -
Credit Suisse raises its target price for Atlas Arteria to $8.60 from $7.10 after media reports that IFM Investors is seeking to increase its shareholding to 15% from 7.94% at an $8.10 offer price. The suitor intends to seek access for due diligence for a full bid.
The broker applies a 10% control premium to its underlying valuation to arrive at an $8.60 target price, up from $7.10. The raised target also factors-in higher earnings and dividends related to increasing tolls on the APPR network.
Target price is $8.60 Current Price is $7.10 Difference: $1.5
If ALX meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $7.50, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Credit Suisse forecasts a full year FY22 dividend of 41.00 cents and EPS of 31.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.6, implying annual growth of 208.1%. Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY23:
Credit Suisse forecasts a full year FY23 dividend of 55.60 cents and EPS of 35.76 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.1, implying annual growth of 10.5%. Current consensus DPS estimate is 48.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 14.2. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates ALX as Neutral (3) -
Macquarie notes the trend to privatise infrastructure continues which would mean a material savings for Atlas Arteria on overheads. The value creation examples are the resolution of Greenway restructure and some clarity around the French concession.
Tthe broker assesses the private sector appears willing to value the trend ahead of execution. The two options provide swing factors for the business while the timing of realisation is hard to quantify, the broker adds.
In other news, IFM Investors is attempting to build a stake at $8.10, now holding a 7% stake and seeking another 8% before considering a potential offer.
Neutral maintained. Target is raised to the tender price of $8.10 from $6.66.
Target price is $8.10 Current Price is $7.10 Difference: $1
If ALX meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $7.50, suggesting downside of -9.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 41.50 cents and EPS of 83.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 52.6, implying annual growth of 208.1%. Current consensus DPS estimate is 41.4, implying a prospective dividend yield of 5.0%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 46.00 cents and EPS of 92.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 58.1, implying annual growth of 10.5%. Current consensus DPS estimate is 48.6, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 14.2. |
Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
ANZ AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
Banks
More Research Tools In Stock Analysis - click HERE
Overnight Price: $24.45
Morgan Stanley rates ANZ as Equal-weight (3) -
Following the larger-than-expected cash rate increase by the RBA, Morgan Stanley sees more challenges for the major banks from a quick and aggressive tightening cycle compared to a gradual and measured tightening cycle.
The quicker tightening path (implied by the RBA) could lead to headwinds including more expensive wholesale funding, a weaker housing and mortgage market, and greater risk of recession, explains the analysts.
Morgan Stanley retains its Equal-weight rating and $28.90 target price for ANZ Bank. Industry view: Attractive.
Target price is $28.90 Current Price is $24.45 Difference: $4.45
If ANZ meets the Morgan Stanley target it will return approximately 18% (excluding dividends, fees and charges).
Current consensus price target is $29.46, suggesting upside of 23.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 144.00 cents and EPS of 219.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 207.9, implying annual growth of -4.2%. Current consensus DPS estimate is 141.7, implying a prospective dividend yield of 5.9%. Current consensus EPS estimate suggests the PER is 11.5. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 148.00 cents and EPS of 228.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 224.8, implying annual growth of 8.1%. Current consensus DPS estimate is 154.8, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 10.6. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates ARF as Upgrade to Outperform from Neutral (1) -
Arena REIT is upgraded to Outperform from Neutral, as Macquarie considers the stock defensive from an income and cost perspective amid solid fundamentals.
The tenant base continues to benefit from buoyant operating conditions and additional support is now expected for the early learning sub-sector via the Labor Government policy to lift the maximum child care subsidy rate to 90% for families for the first child in care. Target is reduced to $4.61 from $4.90.
Target price is $4.61 Current Price is $4.19 Difference: $0.42
If ARF meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $4.38, suggesting upside of 1.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 16.00 cents and EPS of 16.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 16.6, implying annual growth of -60.4%. Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 3.7%. Current consensus EPS estimate suggests the PER is 26.0. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 17.30 cents and EPS of 17.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 17.3, implying annual growth of 4.2%. Current consensus DPS estimate is 17.1, implying a prospective dividend yield of 4.0%. Current consensus EPS estimate suggests the PER is 24.9. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $0.86
Macquarie rates BGL as Outperform (1) -
The update on the Bellevue gold project in Western Australia signals to Macquarie the company is delivering on its dual-track strategy, growing the reserve and resource base in parallel with developing the project.
Optimisation work appears to be offsetting the current inflationary environment and the company does not expect any material changes to its most recent capital estimates.
Outperform and $1.50 target retained.
Target price is $1.50 Current Price is $0.86 Difference: $0.64
If BGL meets the Macquarie target it will return approximately 74% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.90 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.80 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.86
Macquarie rates BLD as Outperform (1) -
Boral has appointed Vik Bansal as CEO and MD from early December 2022 and Macquarie analysts, in an initial response, refer to roles at Infrabuild and Cleanaway Waste Management ((CWY)) to highlight experience with "managing large, fleet-based industrial businesses".
As Boral is lagging peers in key metrics, Macquarie suggests Bansal seems like the right choice.
Outperform. Target $4.05.
Target price is $4.05 Current Price is $2.86 Difference: $1.19
If BLD meets the Macquarie target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $3.24, suggesting downside of -1.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 9.00 cents and EPS of 14.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 5.5, implying annual growth of -65.5%. Current consensus DPS estimate is 7.5, implying a prospective dividend yield of 2.3%. Current consensus EPS estimate suggests the PER is 59.6. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 10.00 cents and EPS of 16.50 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.4, implying annual growth of 107.3%. Current consensus DPS estimate is 7.8, implying a prospective dividend yield of 2.4%. Current consensus EPS estimate suggests the PER is 28.8. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
BST BEST & LESS GROUP HOLDINGS LIMITED
Apparel & Footwear
More Research Tools In Stock Analysis - click HERE
Overnight Price: $2.55
Macquarie rates BST as Downgrade to Neutral from Outperform (3) -
Macquarie assesses increased macro uncertainty and the impact on the consumer apparel segment, noting Best & Less is exposed in a positive way to low prices and repeat purchasing in childrenswear yet has limited trading liquidity and a vulnerability to low income earners.
All up, the broker chooses to move to Neutral from Outperform and lowers the target to $2.40 from $4.10. Risks to the rating include a change in the macro outlook, sales and/or margins that lag or exceed expectations.
Target price is $2.40 Current Price is $2.55 Difference: minus $0.15 (current price is over target).
If BST meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 27.00 cents and EPS of 35.40 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 28.00 cents and EPS of 37.50 cents. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $101.96
Morgan Stanley rates CBA as Underweight (5) -
Following the larger-than-expected cash rate increase by the RBA, Morgan Stanley sees more challenges for the major banks from a quick and aggressive tightening cycle compared to a gradual and measured tightening cycle.
The quicker tightening path (implied by the RBA) could lead to headwinds including more expensive wholesale funding, a weaker housing and mortgage market, and greater risk of recession, explains the analysts.
Morgan Stanley maintains its Underweight rating and $91.00 target price for CommBank. Industry view: Attractive.
Target price is $91.00 Current Price is $101.96 Difference: minus $10.96 (current price is over target).
If CBA meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $92.08, suggesting downside of -5.5% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 375.00 cents and EPS of 546.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 533.5, implying annual growth of -7.2%. Current consensus DPS estimate is 369.9, implying a prospective dividend yield of 3.8%. Current consensus EPS estimate suggests the PER is 18.3. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 420.00 cents and EPS of 566.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 561.7, implying annual growth of 5.3%. Current consensus DPS estimate is 413.3, implying a prospective dividend yield of 4.2%. Current consensus EPS estimate suggests the PER is 17.4. |
Market Sentiment: -0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.82
Macquarie rates CLW as Downgrade to Neutral from Outperform (3) -
Charter Hall Long WALE REIT has outperformed the sector 2022 to date by 17%, Macquarie observes. The proportion of the leases with CPI-linked escalators has increased to 46% and while this appears resilient the offset is an expected increase in interest costs, the broker adds.
Macquarie expects asset values to increase as of June 2022 as book valuations catch up with transactions in late 2021 and early 2022. Beyond this, caution prevails on the outlook for asset values.
The end result is a downgrade to Neutral from Outperform with the target reduced to $5.11 from $5.23.
Target price is $5.11 Current Price is $4.82 Difference: $0.29
If CLW meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $5.53, suggesting upside of 18.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 30.40 cents and EPS of 31.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.9, implying annual growth of -72.8%. Current consensus DPS estimate is 30.5, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 15.1. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 28.60 cents and EPS of 29.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 30.5, implying annual growth of -1.3%. Current consensus DPS estimate is 30.1, implying a prospective dividend yield of 6.5%. Current consensus EPS estimate suggests the PER is 15.3. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
CSL CSL LIMITED
Pharmaceuticals & Biotech/Lifesciences
More Research Tools In Stock Analysis - click HERE
Overnight Price: $267.68
Morgan Stanley rates CSL as Overweight (1) -
Recent results from CSL's overseas peers indicate signs of increasing plasma collections and revenue growth.
Meanwhile, data also show CSL's collections centre rollouts remain strong.
The Overweight rating and $310 target are retained. Industry View: In-line.
Target price is $310.00 Current Price is $267.68 Difference: $42.32
If CSL meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).
Current consensus price target is $319.02, suggesting upside of 17.8% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 285.07 cents and EPS of 678.08 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 684.1, implying annual growth of N/A. Current consensus DPS estimate is 295.3, implying a prospective dividend yield of 1.1%. Current consensus EPS estimate suggests the PER is 39.6. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 365.89 cents and EPS of 760.27 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 820.7, implying annual growth of 20.0%. Current consensus DPS estimate is 350.5, implying a prospective dividend yield of 1.3%. Current consensus EPS estimate suggests the PER is 33.0. |
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
CWY CLEANAWAY WASTE MANAGEMENT LIMITED
Industrial Sector Contractors & Engineers
More Research Tools In Stock Analysis - click HERE
Overnight Price: $2.91
Macquarie rates CWY as Outperform (1) -
The company has focused on the waste infrastructure opportunities at its strategy briefing, the largest of which are the two EfW projects in Victoria and Queensland.
Macquarie suggests the stock has been resilient in a volatile market and this should continue. Cleanaway Waste Management has flagged incremental annual overhead costs of -$15m and envisages a pay-off in efficiency and system improvements over time.
Outperform rating maintained. Target is $3.65.
Target price is $3.65 Current Price is $2.91 Difference: $0.74
If CWY meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges).
Current consensus price target is $3.15, suggesting upside of 9.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 4.60 cents and EPS of 8.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.2, implying annual growth of 2.0%. Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 40.1. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 5.40 cents and EPS of 10.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.7, implying annual growth of 34.7%. Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 29.8. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Morgan Stanley rates CWY as Overweight (1) -
Morgan Stanley believes the importance of a well-rounded ESG performance to Cleanaway Waste Management's business prospects is under-appreciated. This view follows the June 7 investor presentation by management highlighting environmental initiatives.
The broker came away feeling the company's environmental goals and customer value proposition are in alignment.
The Overweight rating and $3.30 target are retained. Industry view: Cautious.
Target price is $3.30 Current Price is $2.91 Difference: $0.39
If CWY meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).
Current consensus price target is $3.15, suggesting upside of 9.0% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 5.10 cents and EPS of 7.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 7.2, implying annual growth of 2.0%. Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 1.6%. Current consensus EPS estimate suggests the PER is 40.1. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 5.80 cents and EPS of 9.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.7, implying annual growth of 34.7%. Current consensus DPS estimate is 5.8, implying a prospective dividend yield of 2.0%. Current consensus EPS estimate suggests the PER is 29.8. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $10.09
Morgans rates GNC as Hold (3) -
While Morgans maintains its $10.40 target price for GrainCorp, the broker increases its FY23 earnings (EBITDA) forecast by 5.9%, following the release of an above-average east coast winter crop forecast by ABARES.
As ABARES is typically conservative, and harvest is not until November/December, the analyst notes the potential for upside to FY22 guidance.
The Hold rating is maintained as the broker expects near perfect conditions (big east coast grain crops and high grain/oil prices) will eventually revert.
Target price is $10.40 Current Price is $10.09 Difference: $0.31
If GNC meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $10.23, suggesting downside of -2.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
Morgans forecasts a full year FY22 dividend of 50.00 cents and EPS of 159.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 157.9, implying annual growth of 159.0%. Current consensus DPS estimate is 84.8, implying a prospective dividend yield of 8.1%. Current consensus EPS estimate suggests the PER is 6.6. |
Forecast for FY23:
Morgans forecasts a full year FY23 dividend of 50.00 cents and EPS of 118.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 102.6, implying annual growth of -35.0%. Current consensus DPS estimate is 52.9, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 10.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UBS rates GNC as Neutral (3) -
ABARES' initial estimate of the FY23 east coast winter crop is slightly above the forecast by UBS, driving the broker's 12% earnings (EBITDA) upgrade for GrainCorp in FY23. Forecasts could prove conservative should the harvest be boosted by rainfall in the interim.
Apart from the 12cps special dividend declared in the 1H and the $50m buyback in the 2H, the analyst predicts further special dividends over at least 2H22-FY23.
The Neutral rating and $10.05 target are retained.
Target price is $10.05 Current Price is $10.09 Difference: minus $0.04 (current price is over target).
If GNC meets the UBS target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).
Current consensus price target is $10.23, suggesting downside of -2.3% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
UBS forecasts a full year FY22 EPS of 150.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 157.9, implying annual growth of 159.0%. Current consensus DPS estimate is 84.8, implying a prospective dividend yield of 8.1%. Current consensus EPS estimate suggests the PER is 6.6. |
Forecast for FY23:
UBS forecasts a full year FY23 EPS of 93.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 102.6, implying annual growth of -35.0%. Current consensus DPS estimate is 52.9, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 10.2. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $4.60
Macquarie rates GPT as Downgrade to Neutral from Outperform (3) -
Macquarie remains attracted to the diversity and defensive nature of GPT Group, anticipating a retail recovery and strong industrial rental growth. Yet the sources of upside are primarily offset by the hedging profile and the rating is downgraded to Neutral from Outperform.
Given potential interest expense headwinds the broker considers the overall outlook has become more challenging on a fundamental basis. Target is reduced to $4.89 from $5.47.
Target price is $4.89 Current Price is $4.60 Difference: $0.29
If GPT meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $5.20, suggesting upside of 12.8% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 25.00 cents and EPS of 29.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 31.5, implying annual growth of -57.4%. Current consensus DPS estimate is 25.0, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 14.6. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 25.70 cents and EPS of 30.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 32.6, implying annual growth of 3.5%. Current consensus DPS estimate is 25.8, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 14.1. |
Market Sentiment: -0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
HAS HASTINGS TECHNOLOGY METALS LIMITED
Rare Earth Minerals
More Research Tools In Stock Analysis - click HERE
Overnight Price: $0.24
Macquarie rates HAS as Outperform (1) -
The first blast has now been completed at Yangibana with site development underway. The main risk to Macquarie's base valuation is the securing of the remaining debt and equity funding.
A further $160m in debt and $200m in equity is required to complete construction and achieve first production by late 2024.
Outperform rating and 40c target price retained.
Target price is $0.40 Current Price is $0.24 Difference: $0.16
If HAS meets the Macquarie target it will return approximately 67% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.50 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 0.30 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.72
Morgan Stanley rates HCW as Overweight (1) -
Morgan Stanley estimates HealthCo Healthcare & Wellness REIT is now trading broadly in-line with other passive REITs under the broker's coverage, following a June portfolio revaluation.
The analyst highlights around $17m of the $25m net valuation increase came from development projects, driven by pre-commits.
The Overweight rating and $2.45 target price are maintained. Industry View: In-line.
Target price is $2.45 Current Price is $1.72 Difference: $0.73
If HCW meets the Morgan Stanley target it will return approximately 42% (excluding dividends, fees and charges).
Current consensus price target is $2.35, suggesting upside of 34.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 7.40 cents and EPS of 5.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 6.8, implying annual growth of N/A. Current consensus DPS estimate is 7.9, implying a prospective dividend yield of 4.5%. Current consensus EPS estimate suggests the PER is 25.7. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 9.30 cents and EPS of 9.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 9.4, implying annual growth of 38.2%. Current consensus DPS estimate is 9.2, implying a prospective dividend yield of 5.3%. Current consensus EPS estimate suggests the PER is 18.6. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $3.73
Macquarie rates HLS as Outperform (1) -
In reviewing consensus forecasts for base pathology Macquarie assesses this implies subdued trends into the first half of FY23 before recovery from the second half and into FY24.
EBIT is implied at around $150m for FY23 and $154m for FY24, albeit below original planned targets of $180-190m by FY23.
The broker remains positive on the medium to longer term outlook and finds valuation appeal at current levels, retaining an Outperform rating. Target is steady at $5.10.
Target price is $5.10 Current Price is $3.73 Difference: $1.37
If HLS meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).
Current consensus price target is $4.47, suggesting upside of 19.1% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 16.20 cents and EPS of 55.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 53.6, implying annual growth of 538.1%. Current consensus DPS estimate is 16.0, implying a prospective dividend yield of 4.3%. Current consensus EPS estimate suggests the PER is 7.0. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 17.00 cents and EPS of 29.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 24.3, implying annual growth of -54.7%. Current consensus DPS estimate is 14.8, implying a prospective dividend yield of 3.9%. Current consensus EPS estimate suggests the PER is 15.4. |
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $30.10
Morgan Stanley rates NAB as Equal-weight (3) -
Following the larger-than-expected cash rate increase by the RBA, Morgan Stanley sees more challenges for the major banks from a quick and aggressive tightening cycle compared to a gradual and measured tightening cycle.
The quicker tightening path (implied by the RBA) could lead to headwinds including more expensive wholesale funding, a weaker housing and mortgage market, and greater risk of recession, explains the analysts.
Morgan Stanley retains its Equal-weight rating and $31.80 target price for National Australia Bank. Industry View: Attractive.
Target price is $31.80 Current Price is $30.10 Difference: $1.7
If NAB meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $33.42, suggesting upside of 15.6% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 149.00 cents and EPS of 213.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 211.2, implying annual growth of 9.4%. Current consensus DPS estimate is 148.0, implying a prospective dividend yield of 5.1%. Current consensus EPS estimate suggests the PER is 13.7. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 161.00 cents and EPS of 231.60 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 233.9, implying annual growth of 10.7%. Current consensus DPS estimate is 163.1, implying a prospective dividend yield of 5.6%. Current consensus EPS estimate suggests the PER is 12.4. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $2.37
Macquarie rates NSR as Upgrade to Neutral from Underperform (3) -
Macquarie reviews the investment outlook, assessing the storage fundamentals remain solid. Downside risks include cost inflation in construction, which may affect returns from developments and refurbishments. Also interest expenses are increasing.
Given the current valuation, Macquarie considers the risks are balanced and upgrades to Neutral from Underperform. Target is reduced to $2.39 from $2.47.
Target price is $2.39 Current Price is $2.37 Difference: $0.02
If NSR meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).
Current consensus price target is $2.45, suggesting upside of 3.2% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 9.60 cents and EPS of 10.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.1, implying annual growth of -66.7%. Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 23.5. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 9.40 cents and EPS of 9.90 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 10.5, implying annual growth of 4.0%. Current consensus DPS estimate is 9.8, implying a prospective dividend yield of 4.1%. Current consensus EPS estimate suggests the PER is 22.6. |
Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
PRN PERENTI GLOBAL LIMITED
Mining Sector Contracting
More Research Tools In Stock Analysis - click HERE
Overnight Price: $0.77
Macquarie rates PRN as Outperform (1) -
Perenti Global expects stronger earnings and cash flow in FY23, targeting revenue of $2.5bn with EBIT margin of 10% in 2025. The company has also initiated an on-market buyback which Macquarie considers a positive given the strength of the balance sheet.
Furthermore, there is a significant amount of work in hand and a large order book which should support cash flow and deleveraging. Outperform rating maintained. Target is raised 20% to $1.20.
Target price is $1.20 Current Price is $0.77 Difference: $0.43
If PRN meets the Macquarie target it will return approximately 56% (excluding dividends, fees and charges).
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of 11.10 cents. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 0.00 cents and EPS of 15.20 cents. |
Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Macquarie rates SCG as Upgrade to Neutral from Underperform (3) -
Macquarie remains cautious about the balance sheet as gearing is 39% and there is an interest cost headwind over FY22-FY24. Still, with the stock trading on 14x FFO and at a -21% discount to NTA value seems to be emerging.
The broker also observes retail is relatively more defensive as an asset class in cyclical downturns and as a result upgrades to Neutral from Underperform.
Retail sales continue to surprise to the upside, supported by strong employment and elevated savings. Target is reduced to $2.79 from $2.85.
Target price is $2.79 Current Price is $2.72 Difference: $0.07
If SCG meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).
Current consensus price target is $2.98, suggesting upside of 8.1% (ex-dividends)
The company's fiscal year ends in December.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 14.70 cents and EPS of 18.80 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 19.2, implying annual growth of 12.1%. Current consensus DPS estimate is 15.0, implying a prospective dividend yield of 5.4%. Current consensus EPS estimate suggests the PER is 14.4. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 15.50 cents and EPS of 19.70 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 20.5, implying annual growth of 6.8%. Current consensus DPS estimate is 15.9, implying a prospective dividend yield of 5.8%. Current consensus EPS estimate suggests the PER is 13.5. |
Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
UNI UNIVERSAL STORE HOLDINGS LIMITED
Apparel & Footwear
More Research Tools In Stock Analysis - click HERE
Overnight Price: $4.04
Macquarie rates UNI as Downgrade to Neutral from Outperform (3) -
Macquarie downgrades its rating on Universal Store to Neutral from Outperform and lowers the target to $4.40 from $9.40. The broker attempts to capture increasing macro uncertainty and the potential impact of this on consumer apparel.
Macquarie updates its view and preferences, believing there is scope for some contraction in consumer confidence with the resulting pressure on discretionary retailers.
While the business should benefit from the relaxation of pandemic constraints, and there is a strong balance sheet, a relative lack of trading liquidity leads the broker to be more cautious.
Target price is $4.40 Current Price is $4.04 Difference: $0.36
If UNI meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $6.62, suggesting upside of 69.3% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 16.00 cents and EPS of 27.30 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 29.0, implying annual growth of -12.9%. Current consensus DPS estimate is 19.2, implying a prospective dividend yield of 4.9%. Current consensus EPS estimate suggests the PER is 13.5. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 28.00 cents and EPS of 47.20 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 42.1, implying annual growth of 45.2%. Current consensus DPS estimate is 29.0, implying a prospective dividend yield of 7.4%. Current consensus EPS estimate suggests the PER is 9.3. |
Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $1.83
Macquarie rates VCX as Upgrade to Outperform from Neutral (1) -
Macquarie remains attracted to the defensive cash flows of Vicinity Centres. Moreover, retail shopping centres perform well on a relative basis during a cyclical downturn.
The broker reviews the investment assessment and upgrades to Outperform from Neutral.
The balance sheet and hedging profile screen positively against peers, with Macquarie noting gearing is a conservative 26% and hedging 82%, and thus the group is relatively protected from higher rates. Target is raised to $2.01 from $1.87.
Target price is $2.01 Current Price is $1.83 Difference: $0.18
If VCX meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $1.94, suggesting upside of 3.7% (ex-dividends)
The company's fiscal year ends in June.
Forecast for FY22:
Macquarie forecasts a full year FY22 dividend of 9.40 cents and EPS of 11.10 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 11.9, implying annual growth of N/A. Current consensus DPS estimate is 9.7, implying a prospective dividend yield of 5.2%. Current consensus EPS estimate suggests the PER is 15.7. |
Forecast for FY23:
Macquarie forecasts a full year FY23 dividend of 10.90 cents and EPS of 12.40 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 13.0, implying annual growth of 9.2%. Current consensus DPS estimate is 10.6, implying a prospective dividend yield of 5.7%. Current consensus EPS estimate suggests the PER is 14.4. |
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Overnight Price: $23.41
Morgan Stanley rates WBC as Overweight (1) -
Following the larger-than-expected cash rate increase by the RBA, Morgan Stanley sees more challenges for the major banks from a quick and aggressive tightening cycle compared to a gradual and measured tightening cycle.
The quicker tightening path (implied by the RBA) could lead to headwinds including more expensive wholesale funding, a weaker housing and mortgage market, and greater risk of recession, explains the analysts.
Morgan Stanley retains its Overweight rating and $25.70 target for Westpac. Industry view: Attractive.
Target price is $25.70 Current Price is $23.41 Difference: $2.29
If WBC meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).
Current consensus price target is $25.49, suggesting upside of 15.5% (ex-dividends)
The company's fiscal year ends in September.
Forecast for FY22:
Morgan Stanley forecasts a full year FY22 dividend of 123.00 cents and EPS of 140.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 156.0, implying annual growth of 4.4%. Current consensus DPS estimate is 121.1, implying a prospective dividend yield of 5.5%. Current consensus EPS estimate suggests the PER is 14.1. |
Forecast for FY23:
Morgan Stanley forecasts a full year FY23 dividend of 132.00 cents and EPS of 176.00 cents. How do these forecasts compare to market consensus projections? Current consensus EPS estimate is 188.3, implying annual growth of 20.7%. Current consensus DPS estimate is 136.1, implying a prospective dividend yield of 6.2%. Current consensus EPS estimate suggests the PER is 11.7. |
Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Today's Price Target Changes
Company | Last Price | Broker | New Target | Prev Target | Change | |
ABP | Abacus Property | $2.89 | Macquarie | 3.59 | 3.65 | -1.64% |
ALX | Atlas Arteria | $8.25 | Credit Suisse | 8.60 | 7.15 | 20.28% |
Macquarie | 8.10 | 6.66 | 21.62% | |||
ARF | Arena REIT | $4.31 | Macquarie | 4.61 | 4.90 | -5.92% |
BST | Best & Less | $2.37 | Macquarie | 2.40 | 4.10 | -41.46% |
CHC | Charter Hall | $12.52 | Macquarie | 16.33 | 23.10 | -29.31% |
CLW | Charter Hall Long WALE REIT | $4.66 | Macquarie | 5.11 | 5.23 | -2.29% |
CQR | Charter Hall Retail REIT | $4.15 | Macquarie | 4.44 | 4.53 | -1.99% |
DXI | Dexus Industria REIT | $2.99 | Macquarie | 3.26 | 3.25 | 0.31% |
DXS | Dexus | $10.01 | Macquarie | 11.54 | 12.39 | -6.86% |
GMG | Goodman Group | $19.43 | Macquarie | 25.31 | 27.38 | -7.56% |
GPT | GPT Group | $4.61 | Macquarie | 4.89 | 5.47 | -10.60% |
HCW | HealthCo Healthcare & Wellness REIT | $1.75 | Macquarie | 2.11 | 2.52 | -16.27% |
HDN | HomeCo Daily Needs REIT | $1.32 | Macquarie | 1.58 | 1.63 | -3.07% |
LLC | Lendlease Group | $10.29 | Macquarie | 12.30 | 12.22 | 0.65% |
MGR | Mirvac Group | $2.14 | Macquarie | 2.62 | 2.89 | -9.34% |
NSR | National Storage REIT | $2.37 | Macquarie | 2.39 | 2.47 | -3.24% |
PRN | Perenti Global | $0.72 | Macquarie | 1.20 | 1.00 | 20.00% |
QAL | Qualitas | $1.90 | Macquarie | 2.46 | 2.77 | -11.19% |
SCG | Scentre Group | $2.76 | Macquarie | 2.79 | 2.85 | -2.11% |
SCP | Shopping Centres Australasia Property | $2.87 | Macquarie | 2.96 | 3.04 | -2.63% |
SGP | Stockland | $3.74 | Macquarie | 3.90 | 4.02 | -2.99% |
UNI | Universal Store | $3.91 | Macquarie | 4.40 | 9.40 | -53.19% |
URW | Unibail-Rodamco-Westfield | $4.72 | Macquarie | 5.70 | 5.71 | -0.18% |
VCX | Vicinity Centres | $1.87 | Macquarie | 2.01 | 1.87 | 7.49% |
Summaries
AIZ | Air New Zealand | Underperform - Macquarie | Overnight Price $0.57 |
ALX | Atlas Arteria | Outperform - Credit Suisse | Overnight Price $7.10 |
Neutral - Macquarie | Overnight Price $7.10 | ||
ANZ | ANZ Bank | Equal-weight - Morgan Stanley | Overnight Price $24.45 |
ARF | Arena REIT | Upgrade to Outperform from Neutral - Macquarie | Overnight Price $4.19 |
BGL | Bellevue Gold | Outperform - Macquarie | Overnight Price $0.86 |
BLD | Boral | Outperform - Macquarie | Overnight Price $2.86 |
BST | Best & Less | Downgrade to Neutral from Outperform - Macquarie | Overnight Price $2.55 |
CBA | CommBank | Underweight - Morgan Stanley | Overnight Price $101.96 |
CLW | Charter Hall Long WALE REIT | Downgrade to Neutral from Outperform - Macquarie | Overnight Price $4.82 |
CSL | CSL | Overweight - Morgan Stanley | Overnight Price $267.68 |
CWY | Cleanaway Waste Management | Outperform - Macquarie | Overnight Price $2.91 |
Overweight - Morgan Stanley | Overnight Price $2.91 | ||
GNC | GrainCorp | Hold - Morgans | Overnight Price $10.09 |
Neutral - UBS | Overnight Price $10.09 | ||
GPT | GPT Group | Downgrade to Neutral from Outperform - Macquarie | Overnight Price $4.60 |
HAS | Hastings Technology Metals | Outperform - Macquarie | Overnight Price $0.24 |
HCW | HealthCo Healthcare & Wellness REIT | Overweight - Morgan Stanley | Overnight Price $1.72 |
HLS | Healius | Outperform - Macquarie | Overnight Price $3.73 |
NAB | National Australia Bank | Equal-weight - Morgan Stanley | Overnight Price $30.10 |
NSR | National Storage REIT | Upgrade to Neutral from Underperform - Macquarie | Overnight Price $2.37 |
PRN | Perenti Global | Outperform - Macquarie | Overnight Price $0.77 |
SCG | Scentre Group | Upgrade to Neutral from Underperform - Macquarie | Overnight Price $2.72 |
UNI | Universal Store | Downgrade to Neutral from Outperform - Macquarie | Overnight Price $4.04 |
VCX | Vicinity Centres | Upgrade to Outperform from Neutral - Macquarie | Overnight Price $1.83 |
WBC | Westpac | Overweight - Morgan Stanley | Overnight Price $23.41 |
RATING SUMMARY
Rating | No. Of Recommendations |
1. Buy | 13 |
3. Hold | 11 |
5. Sell | 2 |
Wednesday 08 June 2022
Access Broker Call Report Archives here
Disclaimer:
The content of this information does in no way reflect the opinions of
FNArena, or of its journalists. In fact we don't have any opinion about
the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe
and comment on. By doing so we believe we provide intelligent investors
with a valuable tool that helps them in making up their own minds, reading
market trends and getting a feel for what is happening beneath the surface.
This document is provided for informational purposes only. It does not
constitute an offer to sell or a solicitation to buy any security or other
financial instrument. FNArena employs very experienced journalists who
base their work on information believed to be reliable and accurate, though
no guarantee is given that the daily report is accurate or complete. Investors
should contact their personal adviser before making any investment decision.
Latest News
1 |
The Short Report – 05 Dec 202410:29 AM - Weekly Reports |
2 |
Collins Foods, The Earnings Comeback Kid?10:00 AM - Australia |
3 |
The Overnight Report: AI Shines Yet Again9:19 AM - Daily Market Reports |
4 |
Today’s Financial Calendar – 05-12-20248:15 AM - Daily Market Reports |
5 |
ASX Winners And Losers Of Today – 04-12-24Dec 04 2024 - Daily Market Reports |