Australian Broker Call

Citi rates ABC as Upgrade to Neutral from Sell (3) -

Following a sustained period of underperformance, Citi is lifting its rating on Adbri. The broker continues to expect softer residential volumes, it points out industry pricing appears incrementally more positive. 

The rating is upgraded to Neutral from Sell and the target price of $2.25 is retained.

Target price is $2.25 Current Price is $2.06 Difference: $0.19
If ABC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $2.17, suggesting upside of 5.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

Ord Minnett rates ACL as Accumulate (2) -

Australian Clinical Labs has confirmed its takeover offer for Healius ((HLS)) does not extend to new shares issued by Healius. The Accumulate rating and $3.50 target for Australian Clinical Labs are maintained.

Healius will raise $187m via an underwritten institutional and retail entitlement offer at $1.20/share.

Target price is $3.50 Current Price is $2.55 Difference: $0.95
If ACL meets the Ord Minnett target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $3.37, suggesting upside of 32.0% (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

Morgans rates AHL as Add (1) -

Adrad's 1Q revenue and earnings were in line with Morgans expectations, yet FY24 guidance at the AGM for revenue and earnings growth were slight misses.

The broker assumes lower guidance is due to a tougher consumer environment (which would potentially impact Aftermarket sales), and uncertainty related to Heat Transfer Solutions (HTS) sales.

Both the Aftermarket and HTS segments delivered improved performance in the 1Q on the previous corresponding period, notes the analyst.

The broker lowers FY24-26 earnings (EBITDA) forecasts by -3% and the target falls to $1.40 from $1.50. Add rating. 

Target price is $1.40 Current Price is $0.88 Difference: $0.525
If AHL meets the Morgans target it will return approximately 60% (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 AVH as Buy (1) -

Avita Medical has downgraded FY23 revenue guidance -US$2m (-4%) at the midpoint to US$49.5m-US$50.5m from US$51m-US$53m.

Management attributed the downgrade to slower than expected movement in its new customer Value Analysis Committee (VAC) processes in relation to the full thickness defects label.

Bell Potter says this is a short-term issue that is required for all new technologies and label expansions, and is outside the company's control.

The broker says the revision implies full-year revenue growth between 45% and 48% and implies December-quarter revenues of US$14m from the broker's forecast of US$16m, down -US$2m.

The news also follows the delay to Recell Go approval. Buy rating retained. Target price falls to $6.35 from $6.85.

Target price is $6.35 Current Price is $3.48 Difference: $2.87
If AVH meets the Bell Potter target it will return approximately 82% (excluding dividends, fees and charges).

Current consensus price target is $5.88, suggesting upside of 87.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Morgans rates AVH as Add (1) -

Avita Medical has lowered FY23 sales guidance by -3% as US hospital Value Analysis Committees (VACs) now require input from a broader range of clinicians, due to Recell Go's expanded approval for use across more specialties.

After allowing for new guidance and a higher assumed risk-free rate, the broker's target falls to $5.90 from $6.74. 

Morgans is disappointed by the lower guidance, as management reconfirmed guidance less than two weeks ago following the 3Q cash flow report, but reminds investors sales growth of 45%-48% for FY23 is still impressive. Add.

Target price is $5.90 Current Price is $3.48 Difference: $2.42
If AVH meets the Morgans target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $5.88, suggesting upside of 87.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates AVH as Accumulate (2) -

During a trading update, management at Avita Medical downgraded 2023 commercial revenue guidance by -4% to US$49.5-50.5m as the uptake for Recell will be slowed after the recent label expansion for full-thickness skin defects.

Ord Minnett explains processes at the value analysis committee will take longer-than-expected for certain customers. It's felt the longer-term opportunity is unaffected.

The target falls to $5.40 from $5.60. Accumulate.

Target price is $5.40 Current Price is $3.48 Difference: $1.92
If AVH meets the Ord Minnett target it will return approximately 55% (excluding dividends, fees and charges).

Current consensus price target is $5.88, suggesting upside of 87.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Macquarie rates BKW as Neutral (3) -

Brickworks noted at its AGM margins improved in the Sep Q as a result of real price improvement. The group also benefited from a smaller footprint in both regions.

Building product order intake is softening locally and Brickworks expects conditions to remain challenging for the remainder of FY24.

Ahead of slower trading, the group will take a number of plants offline in Australia and North America to manage stock levels and conduct plant maintenance. Macquarie notes. Property valuations are expected fall by some -10% due to higher rates.

Target falls to $24.75 from $25.00, Neutral retained.

Target price is $24.75 Current Price is $25.70 Difference: minus $0.95 (current price is over target).
If BKW meets the Macquarie target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $27.38, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in July.

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 BKW as Hold (3) -

Morgans suggests outlook commentary by Brickworks is arguably the weakest among building product peers and stays with a Hold recommendation. A share price closer to $20 (currently $26.20) would likely prompt a rating upgrade to Add.

While 1Q Building Product earnings (EBIT) beat the previous corresponding period, the company pointed to a softening outlook for Building Products, broadly in line with prior guidance, notes the analyst.

Management also flagged an increase in cap rates for the Property division, which should result in net asset price falls of around -10%.

Morgans' target falls to $25.30 from $25.90.

Target price is $25.30 Current Price is $25.70 Difference: minus $0.4 (current price is over target).
If BKW 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 $27.38, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in July.

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 BKW as Hold (3) -

First quarter sales for Building Products Australia were flat as higher prices were offset by weaker volumes, explains Ord Minnett, following the trading update at Brickworks' AGM.

FY24 is unfolding as the analysts expected with a more challenging construction outlook and cap rate expansion impacting the company's property valuations. 

Management expects an increase in the average cap rate across the Property portfolio to 5.2% from 4.1% at June 30.

The Hold rating is maintained and the target rises to $28 from $26.20.

Target price is $28.00 Current Price is $25.70 Difference: $2.3
If BKW meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $27.38, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in July.

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

UBS rates BKW as Buy (1) -

Brickworks has been hit by a -10% devaluation of its poperty trust portfolio in the first half of the financial year, with cap rate moves driving the -$230m dip. 

More positively, margins in building products, both domestically and in the US, improved in the period as cost inflation began to subside. Despite the strong start, management does warn of a softening environment in the second half. 

The Buy rating is retained and the target price increases to $29.00 from $28.10.

Target price is $29.00 Current Price is $25.70 Difference: $3.3
If BKW meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $27.38, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in July.

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

Macquarie rates BSL as Neutral (3) -

BlueScope Steel has refined first half guidance, pointing to the upper end of the prior earnings range owing to recent US HRC steel price moves. Macquarie expects steel price support to be temporary, despite material spot-based earnings upside potential.

Mill lead times have extended as service centres have restocked. However, given softening demand expectations, the broker expects momentum to fade.

Target rises to $19.00 from $18.20, Neutral retained.

Target price is $19.00 Current Price is $20.58 Difference: minus $1.58 (current price is over target).
If BSL 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 $18.96, suggesting downside of -8.0% (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 BSL as Underweight (5) -

Morgan Stanley expects a mildly positive reaction at best to BlueScope Steel's trading update, and still anticipates a significantly tougher 2H. US spreads improved, but the East Asian spread remains well below historical averages.

Management reiterated 1H earnings (EBIT) guidance of $620-670m, though expects the top end of the range will be achieved, which compares to forecasts by the broker and consensus of $647m and $645m, respectively.

The Underweight rating and $18 target are unchanged. Industry view: In-line.

Target price is $18.00 Current Price is $20.58 Difference: minus $2.58 (current price is over target).
If BSL meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $18.96, suggesting downside of -8.0% (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

Bell Potter rates COG as Buy (1) -

COG Financial Services has purchased 39.6m shares in Centrepoint Alliance ((CAF)) for $13.1m, representing 33c a share using cash and debt.

This takes COG Financial's stake in Centrepoint to 20%. Clearview Wealth ((CVW)) was the seller.

Bell Potter estimates the deal will be 8% accretive, based on the share of results from EarlyPay ((EPY)), which is forecast to return to profitability and in which COG Financial holds 19.5%, and Clearview.

Buy rating retained. Target price rises to $1.81 from $1.73.

Target price is $1.81 Current Price is $1.34 Difference: $0.475
If COG meets the Bell Potter target it will return approximately 36% (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 COH as Underweight (5) -

First half earnings by Advanced Bionics, a subsidiary of Sonova, suggests to Morgan Stanley Cochlear is gaining market share.

Advance Bionics' sales for upgrades and accessories fell by -7.8% in local currency, yet the broker anticipates sales growth for Cochlear due to the ongoing benefit from the launch of the Nucleus 8 speech processor.

The Underweight rating and $240 target are unchanged. Industry view: In-line.

Target price is $240.00 Current Price is $260.72 Difference: minus $20.72 (current price is over target).
If COH meets the Morgan Stanley target it will return approximately minus 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $236.90, suggesting downside of -9.8% (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 DEG as Buy (1) -

De Grey Mining has increased its Mineral Resource Estimate at its Hemi Gold project in Western Australia to 10.5Moz from 9.5Moz, of which 65% is in the higher confidence Indicated category and available for conversion to Reserves.

Bell Potter considers the recommencement of drilling at Hemi following the DFS to be highly successful and says the results reinforce Hemi as a world-class gold discovery, which represents an attractive target for any of the world's top gold production companies.

Buy rating retained. Target price rises to $1.90 from $1.80.

Target price is $1.90 Current Price is $1.25 Difference: $0.65
If DEG meets the Bell Potter target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $1.75, suggesting upside of 33.6% (ex-dividends)

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 EGL as Buy (1) -

Environmental Group reaffirmed FY24 guidance of greater than 30% earnings (EBITDA) growth and management advised anecdotal trading commentary was slightly positive .

Baltac contracts rose sharply to $26.9m in October from $17.6m in August; EGL Energy advised Tomlinson was "significantly up"; EGL Clean Air is finalising the commission of emissions control systems and advises demand from lithium and rare earths remains strong and that its pipeline is growing; EGL Waste's tender pipeline has grown to $155m from $140m in at June 30; and EGL expects PFAS regulatory approvals to conclude soon.

EPS forecasts rise 3% in FY24; 4% in FY25; and 1% in FY26, Buy rating retained. Target price rises to 34c from 33c.

Target price is $0.34 Current Price is $0.26 Difference: $0.085
If EGL meets the Bell Potter target it will return approximately 33% (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 EM2 as Buy (1) -

The mineral resource estimate at Eagle Mountain Mining's Oracle Ridge project has received a substantial increase, to 28.2m tonnes copper at 1.35%, or a 27% increase in contained copper. The update represents a 20% increase in tonnes, and a 6% increase in grade.

Shaw and Partners points out measured and indicated resources now account for 54% of the resource estimate. It is expected this expanded resource will underpin technical studies, including metallurgical, processing and mining evaluations. 

The Buy rating and target price of 30 cents are retained.

Target price is $0.30 Current Price is $0.06 Difference: $0.242
If EM2 meets the Shaw and Partners target it will return approximately 417% (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 FMG as Underperform (5) -

Fortescue Metals has approved two green energy projects and one green Iron pilot plant in Western Australia with a nameplate capacity of 1.5ktpa. Incorporating the higher capex for Fortescue Energy has resulted in minor changes to Macquarie's earnings forecasts

Iron ore prices have been rising with the benchmark (Fe 62%) trading above US$125/t since the start of November. Macquarie notes iron ore quality differentials have also retracted recently, benefiting price realisation for Fortescue's products.

Underperform and $16.80 target retained.

Target price is $16.80 Current Price is $25.47 Difference: minus $8.67 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 34% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.79, suggesting downside of -30.2% (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: -0.9

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

Morgan Stanley rates FMG as Underweight (5) -

Fortescue Metals expects to incur around -US$750m in investment over the next three years after announcing the final investment decision (FID) for three green energy/metals projects.

Underweight-rated Morgan Stanley highlights risk factors including the lack of offtake agreements and how resulting cash outflows will impact on shareholder returns for the metals business.

The analysts also point out contingency for capex has not been flagged and remains a key risk.

Target $16.45. Industry View: Attractive.

Target price is $16.45 Current Price is $25.47 Difference: minus $9.02 (current price is over target).
If FMG meets the Morgan Stanley target it will return approximately minus 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $17.79, suggesting downside of -30.2% (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: -0.9

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

Morgans rates HLS as Hold (3) -

Morgans believes Healius was pressured by its lending syndicate to raise capital at a steep discount to the currently depressed share price.

The company announced a 1 for 3.65 pro-rata fully underwritten accelerated non-renounceable entitlement offer to raise $187m at $1.20/share to both reduce debt and "reset" the balance sheet.

Morgans remains uncertain on the earnings trajectory for the business, and notes a softer-than-expected earnings outlook by the company.

The target is slashed to $1.65 from $2.89 and the Hold rating is unchanged.

Target price is $1.65 Current Price is $1.84 Difference: minus $0.185 (current price is over target).
If HLS meets the Morgans target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.25, suggesting upside of 82.9% (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 HLS as Buy (1) -

Healius will raise $187m via an underwritten institutional and retail entitlement offer at $1.20/share. Capital raised will mostly be applied against debt. Debt providers have agreed to waive the debt covenant for the 1H of FY24.

The analyst recommends investors participate in the equity raising.

Australian Clinical Labs ((ACL)) has confirmed its takeover offer for Healius does not extend to new shares issued by Healius. 

Ord Minnett attributes 20% of its -15% target price reduction for Healius to $3.00 to lower near-term earnings forecasts and the balance to the raising of new equity. Buy.

Target price is $3.00 Current Price is $1.84 Difference: $1.165
If HLS meets the Ord Minnett target it will return approximately 63% (excluding dividends, fees and charges).

Current consensus price target is $2.25, suggesting upside of 82.9% (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 HUB as Neutral (3) -

In addition to the previously flagged EQT Holdings ((EQT)) transition, Hub24 has announced an additional institutional client win, expected to deliver some $1.5-2.0bn of funds under management in December, Macquarie notes.

$2.5-3.75bn of the EQT migration is expected in the second half FY24, with the balance to follow in the first half FY25.

The revenue margin was stable at 35bps in the Sep Q, however the recent retail rate card changes increased institutional mix and usual fee-tiering impacts will affect margins in the coming periods, the broker warns.

Target falls to $33.30 from $33.40, Neutral retained.

Target price is $33.30 Current Price is $33.25 Difference: $0.05
If HUB meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 9.4% (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 HUB as Buy (1) -

A highlight of Hub24's investor day for Ord Minnett was an announced institutional client win worth up to $2bn in funds under administration (FUA).

Apart from the win, the investor day confirmed the company's broad growth opportunity over the next few years, in the broker's opinion.

The 1Q24 platform revenue margin was 35bps, in line with 2H23, but below the broker’s 35.5bps forecast for FY24.

Buy rating. The contract win and lower-than-expected platform revenue margin guidance offset each other in Ord Minnett's forecasts and the target price of $37.00 is retained.

Target price is $37.00 Current Price is $33.25 Difference: $3.75
If HUB meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 9.4% (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

UBS rates HUB as Neutral (3) -

Hub24 reaffirmed funds under administration guidance of $92-100bn in FY25, reporting funds under administration totalled $65.1bn in the first quarter. UBS points out this implies flows of $26-30bn over the coming two years, ahead of the broker's expectations. 

The broker also noted a recruitment spike is likely driving a first half cost skew, with the company executing on its intention to recruit 100 new staff over FY24. 

The Neutral rating and target price of $35.00 are retained. 

Target price is $35.00 Current Price is $33.25 Difference: $1.75
If HUB meets the UBS target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $35.66, suggesting upside of 9.4% (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

Macquarie rates IPH as Outperform (1) -

ROBIC is IPH's third Canadian acquisition, and Macquarie expects it to be underlying earnings accretive in first full year of ownership.

The cost will be split between upfront cash (62%), upfront scrip (33%) and deferred earn-out (5%). Extra gearing will fund upfront cash.

Increased earnings forecasts, net of higher gearing, drives the broker's target up to $13.50 from $12.95. Outperform retained.

Target price is $13.50 Current Price is $6.85 Difference: $6.65
If IPH meets the Macquarie target it will return approximately 97% (excluding dividends, fees and charges).

Current consensus price target is $10.31, suggesting upside of 52.1% (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

Morgan Stanley rates IPH as Overweight (1) -

While Morgan Stanley likes the EPS accretion and more dominant position in Canada following IPH's third acquisition in that country, no mention was made of synergies and gearing is now above management's targeted range.

The company has acquired Canadian IP services firm ROBIC for around -$124m with a 65% upfront cash contribution and the balance via share issuance. A deferred earn-out of around -$6m may also be paid.

Target is $10.50. Overweight. Industry view: In-Line.

Target price is $10.50 Current Price is $6.85 Difference: $3.65
If IPH meets the Morgan Stanley target it will return approximately 53% (excluding dividends, fees and charges).

Current consensus price target is $10.31, suggesting upside of 52.1% (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 IPH as Upgrade to Add from Hold (1) -

Should additional signs emerge of organic growth, Morgans sees upside risk for shares of IPH. Given the recent de-rating of shares, the rating is upgraded to Add from Hold, though any meaningful Australian dollar upside would present a headwind.

Another bolt-on Canadian acquisition for -$124m was announced, and management will now focus on bedding down the three recent Canadian purchases.

While the broker makes EPS upgrades for the acquisition, a lower assumed multiple and higher risk-free rate result in an $8.15 target, down from $8.90.

Target price is $8.15 Current Price is $6.85 Difference: $1.3
If IPH meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $10.31, suggesting upside of 52.1% (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

Citi rates MND as Buy (1) -

Monadelphous Group has provided full year revenue guidance, and while Citi was left somewhat disappointed by the numbers, it does find the company's ability to provide full year guidance encouraging, and indicative of improved topline visibility. 

The broker also points out Monadelphous Group has provided conservative guidance in recent years, but notes a beat is dependent on how quickly Monadelphous can ramp up recent contract wins. 

The Buy rating is retained and the target price increases to $16.20 from $15.30.

Target price is $16.20 Current Price is $14.40 Difference: $1.8
If MND meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 4.7% (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

Macquarie rates MND as Outperform (1) -

At its AGM, Monadelphous Group guided for first half revenue rising 5% year on year This compares to Macquarie's prior forecast of 2%. The broker notes management's revenue guidance is generally conservative.

Monadelphous has won $1.1bn in total awards in FY24 to date, including $600m in construction, versus $2bn for whole of FY23. Maintenance is 71% of revenue and should continue to show reasonable growth, Macquarie suggests.

Target rises to $15.05 from $14.50, Outperform retained.

Target price is $15.05 Current Price is $14.40 Difference: $0.65
If MND meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 4.7% (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

UBS rates MND as Neutral (3) -

Monadelphous Group has outlined a significant pipeline of prospects in the resources and energy sectors, but warns skilled labour shortages will likely prove a constraint in the short term. The company has confirmed $1.1bn in contract wins year-to-date.

The company suggests second half revenue will be similar to first half revenue, and UBS is forecasting revenue of $1.0bn and $1.1bn respectively, reflecting 14% revenue growth over the full year. 

The Neutral rating is retained and the target price increases to $15.00 from $14.50.

Target price is $15.00 Current Price is $14.40 Difference: $0.6
If MND meets the UBS target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 4.7% (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

Macquarie rates NEM as Initiation of coverage with Outperform (1) -

Macquarie has effectively initiated coverage of Newmont post its takeover of Newcrest Mining. Newmont is now, by far, the largest
gold play on the ASX and provides investors with a truly diversified, leveraged exposure to gold, the broker notes.

The company boasts generational, tier-1 asset exposure with a sizeable balance sheet that can comfortably handle the organic growth pipeline in the broker's view.

Management plans to provide group (including Newcrest) 2024 guidance in February and a longer-term outlook in mid-2024, which presents risk to Macquarie's base case. Target set at $71.00, Outperform.

Target price is $71.00 Current Price is $56.03 Difference: $14.97
If NEM meets the Macquarie target it will return approximately 27% (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

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

After including the acquisition of Newcrest Mining ((NCM)) in US-based Newmont's forecasts, Ord Minnett also initiates coverage of Newmont ASX-listed CDI's with a Buy rating and $82 target.

The acquisition extents Newmont's lead over Barrick Gold as the world's largest gold miner by sales, explains the broker. Sales and margins are expected to improve.

Attributable gold sales will increase to around 8.8moz according to the analyst's forecast, up from the annualised 7.3moz in 2023, including pro forma projections for Newcrest.

Target price is $82.00 Current Price is $56.03 Difference: $25.97
If NEM meets the Ord Minnett target it will return approximately 46% (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 NHC as Upgrade to Neutral from Sell (3) -

A big first quarter for New Hope, with the company delivering its first mined coal at New Acland Stage 3. The company mined 0.2m tonnes at the site over the quarter, producing 0.06m tonnes of saleable coal. 

Company-wide, New Hope produced 2m tonnes of saleable coal over the period, up 26% year-on-year, while total coal sold of 1.8m tonnes was down -3% year-on-year. 

With the share price retreating -19% from October hights, the rating is upgraded to Neutral from Sell and the target price of $5.20 is retained.

Target price is $5.20 Current Price is $5.19 Difference: $0.01
If NHC meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $5.20, suggesting downside of -1.9% (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

Macquarie rates PXA as Outperform (1) -

Pexa Group has maintained FY24 guidance metrics aided by cost-outs. The fully integrated Pexa UK and Optima solution is expected to go live by mid next year.

Pexa confirmed two of the top ten UK banks having committed to going live, with one of these being a major bank. Macquarie assumes the other is Virgin Money UK ((VUK)).

The objective is to develop a 24-48 hour remortgage solution, so delivery of this is now paramount, the broker suggests.

Target rises to $15.65 from $15.20, Outperform retained.

Target price is $15.65 Current Price is $12.14 Difference: $3.51
If PXA meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $14.62, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

UBS rates PXA as Buy (1) -

Pexa Group's strategy update saw the company reaffirm key guidance items for FY24, but UBS was more interested in potential upside surprise in the company's core exchange business. 

The broker higlights exhanges volumes increased 1% year-on-year in the first quarter, spurred by a 12% increase in refis. Transfers did decline -3%, but appeared to recover during the spring sales season. UBS anticipates full year revenue growth of 9%. 

The Buy rating and target price of $15.00 are retained.

Target price is $15.00 Current Price is $12.14 Difference: $2.86
If PXA meets the UBS target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $14.62, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.9

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

Macquarie rates QBE as Outperform (1) -

As QBE Insurance has streamlined its North American disclosures, its quarterly filings have begun to correlate with its half yearly financial statements, Macquarie notes.

Premium growth in most of QBE's North American licences has been stronger in the last two years than the average of the last five.

Despite this, five of QBE’s six licences experienced a worse Loss Ratio in the last two years compared with their five year average.

QBE's gross written premium growth guidance for FY24 is 10% (constant currency). Macquarie forecasts 10.2%. Outperform and $16.50 target retained.

Target price is $16.50 Current Price is $14.88 Difference: $1.62
If QBE meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $17.16, suggesting upside of 12.7% (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

Morgans rates SLH as Add (1) -

While Silk Logistics is not immune to slowing economic conditions, Morgans envisages longer-term earnings growth as incremental container capacity is added over FY24-25.

Following the recent AGM, the broker reduces its Contract Logistics forecasts due to changes to pallet storage assumptions, but leaves Port logistics forecasts unchanged.

Morgans target falls to $3.00 from $3.20 on the lower earnings forecast and due to a higher assumed risk-free rate. Add.

Target price is $3.00 Current Price is $1.69 Difference: $1.31
If SLH meets the Morgans target it will return approximately 78% (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 TNE as Buy (1) -

TechnologyOne's FY23 result fell -2% shy of Bell Potter's forecast but was above guidance, the broker sheeting the miss back to -$2m in due diligence costs on an acquisition that did not go ahead. The dividend outpaced. No guidance was provided.

The company sharply outpaced on cash flow, with cash flow generation landing at 102% of net profit after tax, but higher expenses took the shine off as the company pulled them forward given the strength of the result.

EPS forecasts fall -2% to -3% due to cuts to margin forecasts (although revenue forecasts rise).

Rating is downgraded to Hold from Buy on valuation. Target price falls -3% to $17.25 from $17.75 due to a rise in the risk-free rate.

Target price is $17.25 Current Price is $16.07 Difference: $1.18
If TNE meets the Bell Potter target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $15.66, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in September.

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 TNE as Neutral (3) -

TechnologyOne posted a solid result, Macquarie suggests, featuring strong operating momentum, but expectations were high. The performance has facilitated management bringing forward its FY26 annual recurring revenue target of $500m to FY25.

The SaaS transition is almost complete, with 30-50 customers remaining, hence the broker notes the key driver of recent ARR growth is abating.

Macquarie sees the key catalysts as M&A and further wins in the UK. But on current valuation, with execution risk elevated as the key driver of recent ARR growth subsides, the broker sees limited incremental upside.

Target rises to $16.80 from $15.50, Neutral retained.

Target price is $16.80 Current Price is $16.07 Difference: $0.73
If TNE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $15.66, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in September.

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 TNE as Equal-weight (3) -

Morgan Stanley describes FY23 results for TechnologyOne as "robust", with earnings (EBITDA) and profit exceeding consensus forecasts by around 3%. It's felt the share price premium of around 20% to global ERP peers and the long-run average is justified.

Management also brought forward medium term $500m annual recurring revenue (ARR) guidance to FY25 from FY26 due to stronger-than-expected customer adoption and a robust sales pipeline.

Target $13. Equal-weight. Industry view: Attractive.

Target price is $13.00 Current Price is $16.07 Difference: minus $3.07 (current price is over target).
If TNE meets the Morgan Stanley target it will return approximately minus 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.66, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in September.

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

Morgans rates TNE as Hold (3) -

Revenue momentum within TechnologyOne's largely in-line FY23 result was a highlight for Morgans. Management also brought forward the $500m annual recurring revenue (ARR) target to FY25 from FY26.

As at September 30, the cash and equivalent balance was $223m, and a 14.9cps final dividend was declared (which includes a 3cps special dividend).

While no formal guidance was provided, management reiterated the long-term goal to double earnings and revenue every five years.

The broker's target rises to $16.50 from $15.00 largely due to the valuation roll forward and an update against peer multiples. Hold.

Target price is $16.50 Current Price is $16.07 Difference: $0.43
If TNE meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $15.66, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in September.

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 TNE as Lighten (4) -

FY23 earnings for TechnologyOne were in line with Ord Minnett's forecast with slightly higher revenue offset by greater operating expenses due to accelerated 2H investment.

Annual recurring revenue (ARR) growth reflected greater uptake from existing customers, explains the broker, with net revenue retention rising to 119%, the third successive year of increase.

While impressed by the company's world-leading rate of customer retention, in the face of the transition to a SaaS business model, Ord Minnett retains its Lighten rating on valuation. The $14 target is also unchanged.

Target price is $14.00 Current Price is $16.07 Difference: minus $2.07 (current price is over target).
If TNE meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $15.66, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in September.

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

UBS rates TNE as Neutral (3) -

A strong full year result from TechnologyOne, says UBS, with the company reporting 17% year-on-year underlying profit growth. The company is also nearing completion on its software as a service transition, and its new SaaS+ product is quickly gaining traction. 

UBS sees opportunity for TechnologyOne to take share in the UK market, with annual recurring revenue for the region lifting 52% amid favourable competitive dynamics. 

The Neutral rating is retained and the target price increases to $16.40 from $16.00.

Target price is $16.40 Current Price is $16.07 Difference: $0.33
If TNE meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.66, suggesting downside of -0.2% (ex-dividends)

The company's fiscal year ends in September.

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 TSK as Buy (1) -

Ord Minnett assesses a "solid" 1H for Task Group. Revenue grew by 36% to $36.1m and adjusted earnings (EBITDA) - excluding share-based payments - were $3.3m, compared to the broker's forecasts for $36.2m and $3m, respectively.

Revenues for the TASK segment fell by -25% versus the previous corresponding period due to declines in lower-margin hardware sales, explain the analysts.

The Buy rating is maintained and the target falls to 57c from 64c after the broker reduces the FY24 earnings forecast to $10.5m from $13.5m. High levels of seasonality are noted for the Plexure segment.

Target price is $0.57 Current Price is $0.39 Difference: $0.18
If TSK meets the Ord Minnett target it will return approximately 46% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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 UNI as Buy (1) -

Universal Store's AGM trading update on the first 20 weeks of FY24 reveals underlying earnings (EBIT) rose $2m to October 31 thanks to the CTC acquisition and as the cost of doing business eased.

All up, the like-for-like sales trend was ahead of Bell Potter's forecasts, albeit weaker than the previous corresponding period.

Buy rating retained to reflect store rollouts and forecast margin expansion as private label penetration grows, despite expected softness in like-for-like sales over FY24. Target price rises 4% to $4.80.

Target price is $4.80 Current Price is $3.40 Difference: $1.4
If UNI meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $4.17, suggesting upside of 19.5% (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

Bell Potter rates VHT as Buy (1) -

Volpara Health Technologies' September half revenue outpaced consensus (despite being half that of the previous September half) but earnings proved a small miss, observes Bell Potter.

FY24 revenue guidance was maintained. The company closed the half with $13.2m in cash.

Bell Potter observes the company has recorded four consecutive quarters of positive cash flows from operations and, while free cash remains close to zero, it is a massive improvement on the -$7.7m in the previous September half, says the broker.

The broker expects a sharp uplift in cash flow in FY25 and FY26 but downgrades revenue forecasts for those years observing many acquisition clients have not upgraded to the Volpara suite, suggesting its use is yet to go mainstream from academia.

Buy rating retained. Target price falls to 85c from $1.20.

Target price is $0.85 Current Price is $0.72 Difference: $0.135
If VHT meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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: 1.0

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

Morgans rates VHT as Add (1) -

After an in-line 1H result and reiteration of FY24 guidance, Morgans retains its Add rating for Volpara Health Technologies.

The analysts believe the company can accelerate earnings growth over coming years due to a largely scalable cost base.

The broker's target falls to $1.17 from $1.20 on a higher assumed risk-free rate.

Target price is $1.17 Current Price is $0.72 Difference: $0.455
If VHT meets the Morgans target it will return approximately 64% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

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: 1.0

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

Citi rates WEB as Buy (1) -

In an initial response to Webjet's first half result, Citi notes underlying earnings of $102m were ahead of consensus expectations, while lower depreciation drove a double digit beat at the bottom line.  

While both business-to-business and business-to-customer bookings were largely in line, its was business-to-business bookings that drove the beat, with business-to-consumer revenue soft due to lower than expected margins.

The Buy rating and target price of $8.80 are retained.

Target price is $8.80 Current Price is $6.61 Difference: $2.19
If WEB meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $8.65, suggesting upside of 29.7% (ex-dividends)

The company's fiscal year ends in March.

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

UBS rates WEB as Buy (1) -

In a first look at today's release, UBS saw a solid result from Webjet. B2B has re-accelerated since the AGM, partially offset by B2C slowing, for a net beat on earnings. The broker points out very strong cash flow was once again a highlight.

Revenue rose 39% year on year and earnings 41%, although there was no dividend declared when UBS had forecast 7c.

WebBeds continued its record performance, while Webjet Online Travel Agency and GoSee were consistent with first half results.

Buy and $9.00 target.

Target price is $9.00 Current Price is $6.61 Difference: $2.39
If WEB meets the UBS target it will return approximately 36% (excluding dividends, fees and charges).

Current consensus price target is $8.65, suggesting upside of 29.7% (ex-dividends)

The company's fiscal year ends in March.

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