Australian Broker Call

Bell Potter rates A2M as Upgrade to Hold from Sell (3) -

Bell Potter upgrades its rating for a2 Milk Co to Hold from Sell after a recent share price slide. The broker also cautions year-to-date trade flows for China label products have been tracking below expectations, with September China destined shipments at a 24-month low.

Further, management is in discussions regarding a potential acquisition of a manufacturing facility in New Zealand, which the broker estimates could initially be high-single digit to low double-digit EPS dilutive on a pro forma basis.

The $6.10 target price is unchanged.

Target price is $6.10 Current Price is $5.83 Difference: $0.27
If A2M meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.28, suggesting upside of 9.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.4

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

Bell Potter rates BDM as Buy (1) -

Burgundy Diamond Mines has downgraded 2024 production guidance to 4.7-5.0mct from 4.9-5.3mct due to lower grades and recoveries, explains Bell Potter. Also, revenue guidance has been lowered to US$430-460m from US$460-500m on diamond market weakness.

On the positive side of the ledger for Q3, the net debt position improved to US$23m from US$63m and progress on mine extension activities has been promising, according to the analysts.

The target falls to 22c from 28c. Buy.

Target price is $0.22 Current Price is $0.11 Difference: $0.11
If BDM meets the Bell Potter target it will return approximately 100% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Macquarie rates BOE as Outperform (1) -

Boss Energy's 1Q production of 89,516lbs U3O8 was broadly in line with Macquarie's forecast and management maintained FY25 guidance of 850,000lbs.

Contracted sales rose to 3.5Mlbs for the 2024-2033 period after management signed more committed offtake during the quarter.

Outperform rating. The target falls by -8% to $4.60 on higher forecasts for capex and opex.

Target price is $4.60 Current Price is $3.42 Difference: $1.18
If BOE meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $4.20, suggesting upside of 23.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Citi rates BSL as Neutral (3) -

BlueScope Steel announced a reduction in FY25 guidance for 1H25 with revised EBIT down to $270m-$310m from previous guidance of $350m-$420m with North America expected to report slightly half of 2H24 results and Australia at circa two-thirds of 2H24.

Citi lowers earnings forecasts for the company by -20% in FY25 and -19% for FY26 at EBIT level, noting high levels of Chinese exports continue to depress Asian steel prices.

The analyst observes North America's North Star will report below one third of 2H24; Buidling & Coated products have experienced a deferral of orders with Coated products down in the heavy gauge business.

Target price falls to $21.50 from $23. No change to Neutral rating.

Target price is $21.50 Current Price is $21.08 Difference: $0.42
If BSL meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Macquarie rates BSL as Outperform (1) -

Macquarie feels negative impacts from the US election, weak steel prices and ongoing challenges at Coated Products in the US were behind lower earnings guidance by BlueScope Steel. Guidance is now $270-310m, down from $350-420m.

While believing the market is approaching a nadir, the broker lowers its earnings forecasts and cautions spot commodity prices imply further downside risk to these forecasts.

Outperform. Target is reduced to $23.10 from $24.00.

Target price is $23.10 Current Price is $21.08 Difference: $2.02
If BSL meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

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

Evoking a Superman analogy, Morgan Stanley's snappy title for BlueScope Steel's 1H25 guidance downgrade is "Tough as steel".

The analyst explains while the lower guidance for 1H25 earnings is a fall of -25% at the midpoint, and disappointing, the new earnings expectations reflect a trough with the stock's risk/reward "more balanced".

The weakness in operations is across the board. Uncertainty around US election and China stimulus creates a softer macro backdrop.

Management announced a $200m cost out with little details, the broker notes. Morgan Stanley lowers EPS estimates by -10% for FY25 and -8% for FY26. 

The stock is upgraded to Equal-weight with a lift in target price to $22 from $18. Industry View: In-Line.

Target price is $22.00 Current Price is $21.08 Difference: $0.92
If BSL meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Ord Minnett rates BSL as Accumulate (2) -

Ord Minnett believes poor performance from Coated Products North America, an inventory adjustment in Australian Steel Products, and challenges in the Asian and New Zealand segments were behind management's -25% downgrade to 1H earnings (EBIT) guidance.

The broker's FY25 earnings forecast also falls by -15% due to a lower 2H expectation resulting from ongoing pressure on Asian hot rolled coil prices and cost inflation.

Management is aiming to lower annualised earnings by -$200m through cost and productivity improvements, primarily in the Australian Steel Products division.

The target rises to $22.60 from $22.55. Accumulate.

Target price is $22.60 Current Price is $21.08 Difference: $1.52
If BSL meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $22.54, suggesting upside of 10.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Morgans rates CCP as Add (1) -

Credit Corp reported a "solid" 1Q25 update which Morgans highlights is on track to achieve management's FY25 guidance.

The US operations continue to experience better results with cash collections up 12% year-on-year, flat on 4Q24, and the debt ledger purchasing pipeline is flat from August at $106m. Australia cash collections fell -5% on a year earlier but rose 10% on 4Q24.

Australian buying pipeline rose to around $55m, the analyst notes.

Morgans makes very minor changes to EPS estimates. No change to Add rating.

Target price rises to $20.65 from $20.50.

Target price is $20.65 Current Price is $17.25 Difference: $3.4
If CCP meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $19.33, suggesting upside of 11.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Bell Potter rates CMM as Buy (1) -

Management at gold exploration and development company Capricorn Metals has approved expansion of the Karlawinda Gold Project, which will be affected via increased capacity at the processing plant. The aim is to lift gold production to circa 150kozpa from 115kozpa.

Bell Potter believes the expansion is both economically and strategically attractive, especially given the latest reserve update extended the mine life towards 14 years on reserves alone.

Buy rating unchanged. The target rises to $7.50 from $7.20.

Target price is $7.50 Current Price is $6.31 Difference: $1.19
If CMM meets the Bell Potter target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Macquarie rates CMM as Outperform (1) -

In line with Macquarie's expectation, the board at Capricorn Metals has approved the expansion of the Karlawinda processing plant to 6.5Mtpa.

Costs (AISC) are expected to be "in the order of" $1,700/oz which is -10% worse than the broker forecast, but the expansion will cost around -$10m less-than-expected.

Capricorn Metals is rated Outperform. The target falls to $7.10 from $7.20.  

Target price is $7.10 Current Price is $6.31 Difference: $0.79
If CMM meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $6.90, suggesting upside of 9.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Bell Potter rates CRN as Buy (1) -

Both saleable coal production and sales in Q3 for Coronado Global Resources aligned with Bell Potter's forecasts, while mining costs missed largely due to mechanical and geological issues and bad weather at Curragh.

Realised metallurgical coal pricing came in at US$180/t, ahead of the broker's US$163/t estimate.

The analysts see risk of a 2024 production shortfall against reaffirmed guidance as saleable production of 4.1-4.7Mt will be required in Q4 when the company hasn't generated above 4.1Mt in a quarter since June 2023.

Target price falls to $1.60 from $1.65. Buy rating unchanged.

Target price is $1.60 Current Price is $0.99 Difference: $0.615
If CRN meets the Bell Potter target it will return approximately 62% (excluding dividends, fees and charges).

Current consensus price target is $1.53, suggesting upside of 53.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Morgans rates CRN as Speculative Buy (1) -

Morgans explains softer 3Q2024 production should not be a "surprise" given the September downgrade, although poor net cash flow which is expected to continue is impacting on the company's share price.

Ongoing downgrades at Curragh are explained by the complexity of the project with a fragile cost structure, the broker highlights.

Net debt advanced to US$94m over the quarter against US$5m at the end of 2Q24. Debt restructuring of senior secured notes is expected to raise an additional US$150m of cash which Morgans' forecasts to fund cash outflows for the next six-to-nine months.

Speculative Buy retained. Target price falls to $1.40 from $1.85.

Target price is $1.40 Current Price is $0.99 Difference: $0.415
If CRN meets the Morgans target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $1.53, suggesting upside of 53.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Ord Minnett rates CRN as Downgrade to Hold from Accumulate (3) -

Ord Minnett lowers its target for Coronado Global Resources to $1.10 from $1.25 after 3Q saleable production missed the broker's forecast by -8% due to Curragh geological/mechanical issues. A potential delay at the Mammoth underground mine also weighed.

The broker notes timing risks around the Environmental Authority amendment for Mammoth and now assumes development will be delayed, with first coal forecast for the 2025 September quarter.

Due to these permitting issues and a stretched valuation, Ord Minnett downgrades its rating for Coronado to Hold from Accumulate.

Target price is $1.10 Current Price is $0.99 Difference: $0.115
If CRN meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $1.53, suggesting upside of 53.0% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Ord Minnett rates CSL as Accumulate (2) -

At yesterday's CSL AGM, management reaffirmed FY25 profit (NPATA) guidance, with a -US$50m currency headwind.

This headwind implies to Ord Minnett the consensus number for profit is 0.6% ahead of the top end of guidance.

Positively, management noted strong demand for immunoglobulin across core indications and the RIKA rollout is on schedule, with deployment in 134 centres as at the end of September.

The broker's Accumulate rating and $320 rating are retrained.

Target price is $320.00 Current Price is $292.67 Difference: $27.33
If CSL meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $335.13, suggesting upside of 16.4% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

Shaw and Partners - Cessation of coverage

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

Macquarie rates FBU as Underperform (5) -

Golden Bay Cement, a division of Fletcher Building, supplies cement nationwide from its Portland plant, and is impacted by last week's release of a draft government decision on free annual carbon unit allocation.

Macquarie suggests Golden Bay Cement's plans to invest in decarbonisation at the plant could be affected and increases potential for a transition to an import model.

Underperform rating unchanged. Target price falls to NZ$2.15 from NZ$2.22.

Current Price is $2.80. Target price not assessed.

Current consensus price target is $2.48, suggesting downside of -10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.0

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

Shaw and Partners rates FFM as Buy, High Risk (1) -

FireFly Metals' Green Bay Copper-Gold Project resource has grown to 59mt at 2% copper equivalent, up from 39.2mt at 2.07% copper equivalent previously.

Shaw and Partners anticipates a higher share price when this resource upgrade is combined with further positive results for step-
out drilling and a down hole EM survey.

The target price rises to $1.90 from $1.40 on higher peer group multiples, explain the analysts. Buy, High Risk rating retained.

Target price is $1.90 Current Price is $1.14 Difference: $0.76
If FFM meets the Shaw and Partners target it will return approximately 67% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates GOZ as Buy (1) -

September quarter results for Growthpoint Properties Australia were characterised by a reduction in gearing to 37.9% from 41.7% a year earlier, and 40.7% in the June quarter.

Citi states the de-leveraging followed a previous announcement to release funds from new industrial funds management partnerships. Portfolio occupancy declined to 93% from 95% in FY24 for both industrial and office.

Management retained guidance, including dividend per share of 18.2c, with a special 2.1c dividend per share resulting from new industrial partnerships.

The $2.60 target and Buy rating are maintained.

Target price is $2.60 Current Price is $2.59 Difference: $0.01
If GOZ meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $2.65, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Citi rates LTR as Neutral (3) -

Citi's first take on Liontown Resources' Sept quarter report focuses on higher cash outflows of -$230m which the broker notes was offset by a convertible fund raising of $372m, although the company did not receive any cash for the quarter's sales of 10.8kt.

The analyst suspects opex/capex is above consensus by $30m but stresses there are timing issues which cloud the numbers.

Production of 28kt was better than the analyst's forecast of 25kt, while lithia recovery was softer.

No guidance was offered with management reviewing capital spending plans. Neutral rated. Target price 95c.

Target price is $0.95 Current Price is $0.89 Difference: $0.06
If LTR meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $0.93, suggesting upside of 9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

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

Morgans rates PER as Speculative Buy (1) -

Percheron Therapeutics raised $13m via a heavily discounted equity issue at 8 cents per share, both institutional and a retail share purchase plan.

The institutional component is divided into two tranches with $10.8m immediately and $2.2m post AGM agreement in late Nov.

Morgans notes the funds will be employed to complete the company's Ph2b DMD trial as well as manufacturing processes, R&D and working capital.

The broker makes no changes to earnings forecasts.

The Speculative Buy rating and 24c target are retained.

Target price is $0.24 Current Price is $0.08 Difference: $0.159
If PER meets the Morgans target it will return approximately 196% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates PLS as Neutral (3) -

After an initial glance at today's 1Q results for Pilbara Minerals, Citi notes a positive outcome in a difficult market backdrop and anticipates a positive sharemarket reaction to lower production volumes and capex.

Management expects a $200m lift in cash flow after placing the Pilgan plant (new news) into care and maintenance from December 1. Pilgangoora's capacity will revert to P850 (versus P1000) so around -11kt LCE will be removed, explains the analyst.

Also, mid-stream project construction works will be deferred given market conditions, noted management.

Neutral rated. Target price $2.90.

Target price is $2.90 Current Price is $2.85 Difference: $0.05
If PLS meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $2.86, suggesting downside of -0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Citi rates PMV as Buy (1) -

Citi notes Myer Holdings' ((MYR)) agreement to acquire Premier Investments' apparel brands.

The broker also observes Peter Alexander and Smiggle FY24 EBIT margins were around 30% above expectations and consensus forecasts are anticipating these brands will grow at circa 6% per annum.

Citi estimates a boost to Premier Investments' earnings of $30m from Myer, including $25m from improved margins and around $10m from the replacement of underperforming Myer brands with more profitable Premier Investments' clothes brands.

The Buy rating and $36 target are maintained. 

Target price is $36.00 Current Price is $33.94 Difference: $2.06
If PMV meets the Citi target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $34.88, suggesting upside of 4.7% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Morgan Stanley rates PMV as Overweight (1) -

Morgan Stanley considers the sale of apparel businesses to Myer Holdings ((MYR)) makes good strategic sense for Premier Investments.

The agreement is for Myer to acquire apparel in exchange for 890.5m shares with $82m in cash from Premier. Completion is expected Jan 2025. In turn Premier will distribute the Myer shares to shareholders on a pro-rata basis, translating to a 67% shareholding.

Post transaction, the analyst believes Premier will be a higher quality company with an improved growth outlook, including 100% ownership of Smiggle/Peter Alexander and 26% in Breville Group ((BRG)).

Overweight rating unchanged. Target price rises to $39.50 from $35.75. Industry view: In-Line.

Target price is $39.50 Current Price is $33.94 Difference: $5.56
If PMV meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $34.88, suggesting upside of 4.7% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Ord Minnett rates PMV as No Rating (-1) -

Premier Investments will be receiving 890.5m Myer ((MYR)) shares in exchange for the sale of its Apparel Brands business.

Premier will distribute these shares to shareholders via an in-specie capital return and dividend. The company holds circa $32m of franking credits, with part of the Myer consideration including an in-specie dividend, explains the broker.

Ord Minnett is currently on research restriction for Premier Investments and offers no target or rating.

Current Price is $33.94. Target price not assessed.

Current consensus price target is $34.88, suggesting upside of 4.7% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.6

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

Citi rates REH as Neutral (3) -

Reece offered new 1H25 guidance, highlighting continuing and greater than expectations macro-economic challenges in the US market, resulting in lower like-for-like sales, Citi explains.

The company announced flat A&NZ sales for 1Q25 with US sales retreating -6.5% on the previous corresponding period from weather events, and reduced volumes. Hurricane impacted states represent 33% of US housing starts.

Citi lowers EPS estimates by -5% and -6% for FY25/FY26, respectively. Target price falls to $25.85 from $26.80. Neutral rating unchanged.

Target price is $25.85 Current Price is $23.21 Difference: $2.64
If REH meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $21.93, suggesting downside of -3.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.7

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

Ord Minnett rates RMS as Buy (1) -

FY25 production guidance is unchanged for Ramelius Resources despite a 1Q result -20% weaker-than-expected by Ord Minnett due to lower Penny (mine sequencing) and open pit material ore presenting to the Mt Magnet mill.

The broker expects the combination of $225m of free cash flow (FCF) in H2 (22% yield) and organic news flow due in December will generate positive share price momentum.

Positive news came in the form of an Eridanus Cut-back, Mill Expansion and the Rebecca-Roe PFS, explain the analysts.

Buy rating unchanged. Target price falls to $2.60 from $2.65.

Target price is $2.60 Current Price is $2.32 Difference: $0.28
If RMS meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $2.54, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Shaw and Partners rates RMS as Buy, High Risk (1) -

Management at Ramelius Resources has reiterated FY25 production and cost (AISC) guidance following a "solid" 1Q performance, according to Shaw and Partners.

In Q1, the company produced 62.4koz of gold at a cost of $1,965/oz. 

The broker expects increasing ounces and decreasing costs as the first Cue ore is processed and contributions from Penny increase.

Buy rating. High risk. Target price of $2.73 is unchanged.

Target price is $2.73 Current Price is $2.32 Difference: $0.41
If RMS meets the Shaw and Partners target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $2.54, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Morgan Stanley rates SCG as Overweight (1) -

Morgan Stanley assesses the Scentre Group's exposure through Westfield malls which contain both Myer Holdings ((MYR)) and Premier Investments ((PMV)) stores.

Of the 37 Westfield malls owned, 22 have a Myer store with 21 Westfield malls overlapping the two tenants. Some 17 malls have 3 or more Premier apparel brand stores.

The broker highlights Premier explained it was "too early" to announce store network changes, so no changes to earnings forecasts.

Target $4.35. Overweight. Industry view: In-Line.

Target price is $4.35 Current Price is $3.50 Difference: $0.85
If SCG meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.80, suggesting upside of 8.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates SFR as Neutral (3) -

Citi notes Sandfire Resources reported an "uneventful" 1Q25 result. Copper production at 27kt was as expected with costs higher by 5% than the broker's forecast, and 15% above consensus estimates from lower zinc and increased Matsa costs.

Net debt declined by -$51m on previous quarter with operational EBITDA meeting the analyst's estimates.

Citi remains Neutral rated and while the stock is viewed as expensive, the analyst doesn't envisage any reasons for a de-rating. Target price rises to $10.50.

Target price is $10.50 Current Price is $10.40 Difference: $0.1
If SFR meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $9.71, suggesting downside of -5.2% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.1

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

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

Macquarie describes a "mixed" 1Q result for Sandfire Resources. When compared to consensus forecasts, production of copper, zinc and silver was in line, a -5% miss, and a -12% miss, respectively.

The broker downgrades its rating to Neutral from Outperform after a 44% share price rally so far in 2024.

Management reiterated FY25 production guidance.

The target rises by 2% to $10.20.

Target price is $10.20 Current Price is $10.40 Difference: minus $0.2 (current price is over target).
If SFR meets the Macquarie target it will return approximately minus 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.71, suggesting downside of -5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.1

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

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

Morgan Stanley highlights Sandfire Resources reported production which met expectations but Motheo costs were 5% higher than consensus forecasts, but 11% better than the analyst's estimates.

Matsa costs were above Morgan Stanley's forecast by 8% and 15% higher than consensus from reduced by-product sales and euro strength which has now unwound.

There are no changes to the broker's earnings forecasts. Target price remains at $8.25 with Equal-weight. Industry view is Attractive. 

Target price is $8.25 Current Price is $10.40 Difference: minus $2.15 (current price is over target).
If SFR meets the Morgan Stanley target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $9.71, suggesting downside of -5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.1

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

Ord Minnett rates SFR as Accumulate (2) -

In-line 1Q production for Sandfire Resources but lower-than-expected realised pricing at the Matsa operations meant net debt was -$26m worse than Ord Minnett's forecast.

Management left FY25 guidance unchanged.

The broker's target rises to $10.85 from $10.35 after a model roll forward outweighs a lower earnings forecast. Accumulate.

Target price is $10.85 Current Price is $10.40 Difference: $0.45
If SFR meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $9.71, suggesting downside of -5.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.1

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

Shaw and Partners rates SXE as Buy, High Risk (1) -

At the AGM, management at Southern Cross Electrical Engineering has maintained FY25 earnings (EBITDA) guidance for a minimum of $53m, representing growth of at least 32%, highlights Shaw and Partners.

The broker forecasts EPS growth over FY25-27 of 37.1%, 9.2%, and 3.4% respectively, due to structural tailwinds associated with spending on data centres, infrastructure, and the electrification & decarbonisation theme.

The Buy, High Risk rating and $2.10 target are maintained.

Target price is $2.10 Current Price is $1.72 Difference: $0.38
If SXE meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates VCX as Neutral (3) -

Citi highlights a "strong" trading update from Vicinity Centres stressing the "surprisingly high" leasing spreads in the context of where the economic cycle currently is. 

Portfolio sales were flat for 1Q25, the broker notes, with strength in CBD sales and outlet stores. Speciality stores continued to report soft results with like-for-like sales down -1.4% year-on-year.

The recently acquired Lakeside Joondalup was integrated at a FY24 investment yield of 6.9%. Asset divestments remain in focus to realise the $250m in the sales strategy. Roselands is a potential centre up for sales, Citi explains.

Management reiterated FY25 guidance. Target price at $2.20 and Neutral rating unchanged.

Target price is $2.20 Current Price is $2.18 Difference: $0.02
If VCX meets the Citi target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $2.23, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

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

Morgan Stanley rates VCX as Underweight (5) -

Morgan Stanley observes Vicinity Centres has retained FY25 guidance at 1Q25 trading update.

Notably, leasing spreads were robust at 3% and for premium 5.2%, however the analyst points to lower lease deals at 280, compared to 1,429 comparable deals, and 2,000 total deals in FY24.

Total sales rose 0.1% which the analyst does not view as good given Mirvac Group ((MGR)) and Stockland ((SGP)) reported positive sales in 1Q25 year-on-year. Chadstone "remixing" was attributed for the miss.

Underweight. Target price unchanged at $2.35. Industry View: In-Line.

Target price is $2.35 Current Price is $2.18 Difference: $0.17
If VCX meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $2.23, suggesting upside of 2.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

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

Ord Minnett rates VCX as Accumulate (2) -

As part of the release of September quarter results, management maintained FY25 guidance for funds from operations (FFO) and retained the $250m target for asset sales. The latter will help manage gearing post-acquisition of Lakeside Joondalup, explains the analyst.

Q1 sales slowed as Chadstone was materially impacted by remixing and carpark closure. Elsewhere, rent spreads were strong at 3%, highlights the broker, and comparable sales growth was 2% excluding Chadstone.

The Accumulate rating and target of $2.40 are maintained.

Target price is $2.40 Current Price is $2.18 Difference: $0.22
If VCX meets the Ord Minnett target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $2.23, suggesting upside of 2.2% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.1

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

Citi rates WOW as Buy (1) -

Management at Woolworths Group has this morning lowered 1H earnings (EBIT) guidance for Australian Food to a range of between $1,480-1,530m, thereby missing forecasts by Citi and consensus by -9% and -7%, respectively.

After an initial review of the announcement, Citi anticipates a weaker share price today.

Greater levels of discounting (probably to improve sales momentum in the face of weakening brand perception, suggest the analysts) and higher-than-expected online sales have impacted margin mix.

Australian Food 1Q like-for-like sales of 2.3% met the consensus forecast but missed the broker's expectation by -3.3%.

Buy. Target $38.56.

Target price is $38.56 Current Price is $32.81 Difference: $5.75
If WOW meets the Citi target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $37.00, suggesting upside of 19.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Ord Minnett rates ZIP as Buy (1) -

Ord Minnett raises its target for Zip Co to $3.60 from $2.45 following an "impressive" 1Q performance with group total transaction value (TTV) growth of 23% compared to the previous corresponding period. This included US growth of 39.5% (42.8% in constant currency).

The broker also highlights a robust performance on bad debts (1.6% of TTV) resulting in a net transaction margin (NTM) of 3.9%.

As a result of beats on TTV and NTM, cash earnings (EBTDA) of $31.7m were generated, ahead of the analyst's $24.2m forecast.

The Buy rating is maintained.

Target price is $3.60 Current Price is $3.12 Difference: $0.48
If ZIP meets the Ord Minnett target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.98, suggesting downside of -0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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