Australian Broker Call

Macquarie rates ALX as Neutral (3) -

Macquarie observes a number of legislative issues in the US have potential to impact on Greenway.

The outcome could mean price approval at Greenway could be just one year away and there is an opportunity to negotiate a price path that is amenable to the company.

The main constraint is the new default regulation limits the upside. Target edges down to $6.08 from $6.10. Neutral maintained.

Target price is $6.08 Current Price is $6.33 Difference: minus $0.25 (current price is over target).
If ALX 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 $6.70, suggesting upside of 9.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.4

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

Ord Minnett rates AMI as Buy (1) -

Ord Minnett found the second quarter results messy albeit beating most of its estimates. A Buy rating is reiterated with the broker believing the stock is undervalued relative to fundamentals.

The broker reminds investors the market is currently pricing in zero for what could be one of the highest-grade gold deposits in the country. Target is raised to $0.95 from $0.90.

Target price is $0.95 Current Price is $0.41 Difference: $0.54
If AMI meets the Ord Minnett target it will return approximately 132% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates BSL as Outperform (1) -

BlueScope Steel gave a strong trading update, observes Credit Suisse, updating its first-half operating income guidance by 12% on the back of stronger performance by all of its divisions.

As a result, the broker has increased its FY21 operating income and net profit forecasts by 4-5% on stronger expected volumes. Steel spreads and steel demand in key markets remain robust, providing strong tailwinds to second-half earnings.

Outperform rating. Target rises to $20.00 from $19.80.

Target price is $20.00 Current Price is $16.59 Difference: $3.41
If BSL meets the Credit Suisse target it will return approximately 21% (excluding dividends, fees and charges).

Current consensus price target is $20.48, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates BSL as Outperform (1) -

First half EBIT guidance has been upgraded to $530m. The company has experienced high steel spreads and robust demand across all major areas of the business.

Macquarie notes high spot steel spreads in Asia and North America are moderated by the uncertainty around the impact of the pandemic. Outperform maintained. Target rises to $21.60 from $21.20.

Target price is $21.60 Current Price is $16.59 Difference: $5.01
If BSL meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $20.48, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

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

BlueScope Steel expects to report first half earnings (EBIT) of $530m, which is 12% above prior guidance, and 7% above Morgan Stanley's estimate. Strength is considered driven by stronger earnings across all segments.

The Building Products division and NZ/Pacific appear to have performed significantly above the broker's forecasts, while North Star is below expectations.

While demand remains robust, the analyst is uncertain whether strong demand and high steel spreads will be sustained.

The broker's forecasts still sit 21% above consensus. The rating of Equal-weight is unchanged. Target is $21. Industry view: Cautious.

Target price is $21.00 Current Price is $16.59 Difference: $4.41
If BSL meets the Morgan Stanley target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $20.48, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates BSL as Accumulate (2) -

BlueScope Steel has raised EBIT expectations to $530m for the first half. Full financial results are expected on February 22.

Despite higher free cash flow, Ord Minnett expects management will be conservative regarding capital management. A share buyback is considered likely with the full year results in August.

Accumulate maintained. Target is raised to $23.00 from $22.80.

Target price is $23.00 Current Price is $16.59 Difference: $6.41
If BSL meets the Ord Minnett target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $20.48, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates BSL as Neutral (3) -

BlueScope Steel has upwardly revised first half earnings (EBIT) guidance by 12% to $530m. UBS suspects building products in North America and Asia were the major contributors to the enhanced view.

Australian Steel Products also have enjoyed the strongest domestic mill sales volumes in a decade, the company reported.

UBS remains cautious as US steel spreads are well above long-term averages, also noting China has re-entered the scrap trade and new US capacity is scrap intensive.

The broker retains a Neutral rating and raises the target to $18.25 from $17.90.

Target price is $18.25 Current Price is $16.59 Difference: $1.66
If BSL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $20.48, suggesting upside of 23.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates BTH as Initiation of coverage with Overweight (1) -

Morgan Stanley initiates on sales enablement and productivity software-as-a-service (SaaS) provider Bigtincan Holdings with an Overweight rating and a $1.40 price target. 

The broker sees industry tailwinds from rapid adoption of specialised productivity solutions for high-cost sales teams. I the product is considered to offer compelling customer return on investment (ROI).

Industry analysis suggests to the analysts an industry-leading position. It's considered this may translate to sustained elevated growth rates and earnings power, not fully factored into the current share price.

Morgan Stanley notes upcoming catalysts including the January quarterly and first half results in February, and further potential M&A activity.

Target price is $1.40 Current Price is $1.09 Difference: $0.31
If BTH meets the Morgan Stanley target it will return approximately 28% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgans rates COE as Add (1) -

Cooper Energy posted a softer second quarter than Morgans expected, as Sole gas volumes were below management's expectations.

The broker was disappointed to see the foaming issue still impeding gas volumes at Orbost.

The Add rating is maintained and the target price decreased to $0.415 from $0.43, as FY21 production forecasts and unit cost assumptions for Sole were trimmed.

Target price is $0.42 Current Price is $0.33 Difference: $0.085
If COE meets the Morgans target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $0.40, suggesting upside of 21.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Macquarie rates FCL as Outperform (1) -

The second quarter was consistent with Macquarie's expectations. There were no new client gains in the first half.

The timing of new deals continues to push out as a result of the impact on insurance carriers from economic uncertainty created by the pandemic.

Guidance is unchanged and is yet to incorporate the Limelight Health contribution, the broker notes. Outperform rating retained. Target is $5.22.

Target price is $5.22 Current Price is $3.60 Difference: $1.62
If FCL meets the Macquarie target it will return approximately 45% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in EUR. 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

UBS rates FCL as Buy (1) -

The second quarter business update indicates cash receipts of EUR28m, down -6% on the prior quarter. The company has noted the timing of new deals is being pushed out as the pandemic affects insurance carriers globally.

FY21 guidance was not reiterated but UBS notes this is consistent with previous quarterlies. The broker remains positive about the long-term growth opportunity. Buy rating retained Target is $5.10.

Target price is $5.10 Current Price is $3.60 Difference: $1.5
If FCL meets the UBS target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $4.86, suggesting upside of 36.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

This company reports in EUR. 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 FCT as Downgrade to Hold from Add (3) -

Second quarter results for Firstwave Cloud Technology shows to Morgans continued sales progress, albeit at a slower rate than initially expected.

Growth in international annual recurring revenue (IARR) continues, and the broker expects things are largely on-track, despite slight delays from covid lock downs.

The Speculative Buy rating is reduced to a Hold following a share price re-rating, while the target price of $0.179 is unchanged.

Target price is $0.18 Current Price is $0.17 Difference: $0.009
If FCT meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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

Morgan Stanley rates GXY as Underweight (5) -

After the December quarter report, Morgan Stanley updates forecasts for production, shipments and costs. The 2020 EPS forecast falls -2.8 cents, while the estimate for 2021 EPS rises 2.3 cents. This is considered due to a delay in revenue for a December shipment.

The 2023 forecast for EPS rises as the broker assumes a return to reserve Lithium Grade for mining Mt Cattlin.

Morgan Stanley is Underweight. Target is increased to $1.45 from $1.35. Industry view: Attractive.

Target price is $1.45 Current Price is $2.69 Difference: minus $1.24 (current price is over target).
If GXY meets the Morgan Stanley target it will return approximately minus 46% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $2.21, suggesting downside of -23.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: -0.2

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

Morgans rates HDN as Initiation of coverage with Add (1) -

Morgans initiates coverage of HomeCo Daily Needs REIT with an Add rating and $1.44 target.

The REIT is focused on the ownership, development and management of convenience based assets. Key tenants are focused around consumer convenience/daily needs as well as services.

It listed on 23 November 2020 with assets under management (AUM) of $844m, after being successfully spun out of Home Consortium ((HMC)), which manages the REIT and owns a 27% stake.

Current AUM is around $950m, and management is targeting AUM of $3bn over the medium term via organic growth, development projects and acquisitions.

Target price is $1.44 Current Price is $1.25 Difference: $0.19
If HDN meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates HUM as Outperform (1) -

First half cash net profit is expected to be $43.4m, 26% ahead of the prior corresponding half, amid lower impairment expenses. While the contrast to prior consensus expectations is material, Macquarie points out this beat does not flow through to outer years.

Upside risk comes from provision write-backs although the broker observes management appears to be taking a prudent approach in releasing this provision.

Outperform rating retained. Target is unchanged at $1.40.

Target price is $1.40 Current Price is $1.14 Difference: $0.26
If HUM meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

UBS rates HUM as Buy (1) -

First half cash net profit guidance beat UBS estimates substantially. Lower impairment expenses appear to have driven the difference. The company highlighted the profitability in commercial & leasing and cards as well as momentum in BNPL.

The broker lifts FY21 net profit estimates by 17% but keeps FY22 broadly unchanged. Buy retained. Target is raised to $1.60 from $1.55.

Target price is $1.60 Current Price is $1.14 Difference: $0.46
If HUM meets the UBS target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $1.47, suggesting upside of 25.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Ord Minnett rates IAP as Hold (3) -

360 Capital ((TOT)) has acquired Investec Australia's 9.18% interest in Irongate Group. The purchase was struck at a 15.7% premium to the current share price.

Ord Minnett envisages the move will shake out interest from third parties. Irongate currently manages one unlisted vehicle with $140m of equity commitments. Hold rating maintained. Target rises to $1.40 from $1.30.

Target price is $1.40 Current Price is $1.31 Difference: $0.09
If IAP meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgans rates ICQ as Hold (3) -

Despite being below Morgans expectations, a fourth quarter update by iCar Asia showed the broker signs of an improving growth trajectory, particularly in December.

The broker highlights revenue growth in the fourth quarter appears to have outpaced traffic growth to the company's sites. This is considered to provide some evidence that increased visitation is resulting in improved monetisation.

The elephant in the room for the analyst remains the indicative bid from Autohome, with the company adamant discussions remain on schedule. Given the elongated nature of discussions, Morgans lowers the target price to $0.40 from $0.445.

The Hold rating is unchanged.

Target price is $0.40 Current Price is $0.35 Difference: $0.05
If ICQ meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgans rates IPD as Add (1) -

Morgans was pleased with the second quarter performance by ImpediMed, noting key performance indicators continue to trend higher.

The broker highlights a key catalyst will be the publication of the PREVENT trial data. Should it be positive, it will encourage private payor adoption and National Comprehensive Cancer Network (NCCN) guideline inclusion, explains the broker.

The Speculative Buy rating is unchanged and the target price is marginally decreased to $0.198 from $0.20.

Target price is $0.20 Current Price is $0.12 Difference: $0.078
If IPD meets the Morgans target it will return approximately 65% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Morgan Stanley rates IPL as Overweight (1) -

An improvement in ammonia prices supports Morgan Stanley's recent upgrade to Overweight, on the back of strength across the soft commodity and fertiliser complex.

The broker highlights current prices for DAP and ammonia are ahead of the analyst's second half forecasts.

Rating is Overweight. The target is $3.15. Industry view: Cautious.

Target price is $3.15 Current Price is $2.64 Difference: $0.51
If IPL meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.68, suggesting downside of -2.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.7

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

Credit Suisse rates KGN as Outperform (1) -

Credit Suisse notes Kogan's first-half update was strong and in line with the broker's forecast.

In the broker's view, the company remains well-positioned to gain from the tilt towards online spending. Also, an expanding product range along with the acquisition of Mighty Ape are supportive of earnings growth. 

The target price is increased to $21.08 from $20.60. Outperform rating.

Target price is $21.08 Current Price is $17.99 Difference: $3.09
If KGN meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

UBS rates KGN as Neutral (3) -

The first half update was ahead of UBS estimates. The broker calculates the results imply $8m in operating earnings per month in November and December, largely similar to the July-October 2020 average.

UBS is cautious on a 12-month view, given gross margin normalisation and considers the lift in second half margins in FY20 was unsustainable.

There is also increasing competition via omni-channel peers and better-funded online competitors. Neutral. Target is reduced to $17.90 from $18.80.

Target price is $17.90 Current Price is $17.99 Difference: minus $0.09 (current price is over target).
If KGN meets the UBS target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates KLL as Outperform (1) -

Macquarie notes Beyondie is now 80% complete and on schedule. Realising budget and timing is key to the long-term value the broker believes is inherent in the project.

The broker increases loss estimates for the sensitive pre-production year of FY21 and makes no changes thereafter. Outperform rating and $0.40 target maintained.

Target price is $0.40 Current Price is $0.22 Difference: $0.18
If KLL meets the Macquarie target it will return approximately 82% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

UBS rates LYC as Neutral (3) -

The main positive in the December quarter was record revenue of $119m, 14% above UBS estimates. Pricing was higher than anticipated. The main negative is the plant is still running at 75% capacity.

The broker makes few changes to forecasts, with better pricing offset by lower volumes. Positive momentum appears priced in and a Neutral rating is retained. Target is $4.30.

Target price is $4.30 Current Price is $4.78 Difference: minus $0.48 (current price is over target).
If LYC meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Ord Minnett rates MCA as Buy (1) -

The company has made significant progress since the onset of the pandemic, Ord Minnett observes. Cash receipts have rebounded strongly which signals the company has been able to shift income streams away from exports and into fresh and live domestic sales.

A strong spawning season and additional nursery capacity have also improved fish stocks. Ord Minnett highlights domestic retail and restaurant relationships are driving demand and offering compelling medium-term revenue.

Buy rating retained. Target rises to $0.32 from $0.30.

Target price is $0.32 Current Price is $0.19 Difference: $0.13
If MCA meets the Ord Minnett target it will return approximately 68% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

Second quarter results were strong, with iron ore and spodumene production 16% and 11% higher than forecast, respectively.

Macquarie upgrades its earnings outlook to reflect an increase in iron ore price realisations and a stronger volume in mining services. The Wonmunna iron ore mine is expected to come on line in the second half of FY21 and this should underpin the volume growth in iron ore.

Outperform retained. Target rises to $45.80 from $42.00.

Target price is $45.80 Current Price is $34.35 Difference: $11.45
If MIN meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $38.83, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Morgan Stanley rates MIN as Underweight (5) -

Second quarter iron ore production was 14% better than Morgan Stanley's estimate at Iron Valley, and in-line at Koolyanobbing. However, iron ore shipments were considered soft, due to logistics issues at Kooly.

The company is expecting a second-half-weighted iron ore production result.

Lithium production was 3% higher than the analyst expected, however, shipments came in -32% lower, driven by a shipment being delayed into the next quarter.

Morgans is Underweight on valuation grounds. Target is $30.20. Industry view: Attractive.

Target price is $30.20 Current Price is $34.35 Difference: minus $4.15 (current price is over target).
If MIN meets the Morgan Stanley target it will return approximately minus 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $38.83, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates MIN as Hold (3) -

The main change to Ord Minnett's financial models is an improvement in first-half realised iron ore prices at US$119/t and a reduction in the expected discount to the second half to -12% from -15%.

The broker raises FY21 earnings estimates by 9% which leads to an increase in the target to $37.40 from $36.00. Hold maintained.

Target price is $37.40 Current Price is $34.35 Difference: $3.05
If MIN meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $38.83, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Credit Suisse rates MMS as Outperform (1) -

McMillan Shakespeare's latest update cites higher recovery in novated lease sales and growth in Plan Partners as reasons for experiencing better than expected conditions.

The company expects higher than forecast first-half net profit after tax, with performance in the second half expected to be along similar lines.

The outlook for FY22 is positive, suggests Credit Suisse, and assumes a more normalised vehicle supply that will help in volume growth.

Outperform with target rising to $14 from $12.85.

Target price is $14.00 Current Price is $12.68 Difference: $1.32
If MMS meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $12.61, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Macquarie rates MMS as Neutral (3) -

First half preliminary results show McMillan Shakespeare has benefited from a faster recovery in novated lease sales and stronger returns in re-marketing values of used vehicles.

The company expects underlying net profit of $42.7m, materially ahead of the prior corresponding half. Yet the outlook for the second half is notably cautious and Macquarie suspects a cautious tone was adopted to avoid risk expectations for FY21 being triggered by annualising the first half result.

Macquarie upgrades FY21 estimates for earnings per share by 11.5%. Target is raised to $12.93 from $9.11. Neutral rating retained.

Target price is $12.93 Current Price is $12.68 Difference: $0.25
If MMS meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.61, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Morgan Stanley rates MMS as Overweight (1) -

McMillan Shakespeare has pre-posted first half profit 14% ahead of Morgan Stanley's estimate. This was considered due to Group Remuneration Services (GRS) generally performing well, with novated and Plan Partners growth.

The broker considers management's outlook appears conservative, implying 50/50 first half/second half skew ex JobKeeper. The analyst prefers a 48/52 skew and raises FY21 profit estimates by 6%.

Despite the recent share price rally, Morgan Stanley still finds the valuation undemanding.

The broker maintains an Overweight rating and lifts the target price to $14.30 from $12. Industry view: In-line.

Target price is $14.30 Current Price is $12.68 Difference: $1.62
If MMS meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.61, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates NAB as Neutral (3) -

National Australia Bank will be acquiring the local neo-bank 86 400 for $220m. The bank took a circa 18% stake in late 2020 and has now proposed to acquire the remaining shares.

The bank also wants to adopt UBank as the primary vehicle for broadening its digital strategy. Citi notes this acquisition will provide UBank with mobile banking solutions and a team of experienced neo-bank professionals.

Neutral rating with a target of $24.75. 

Target price is $24.75 Current Price is $23.54 Difference: $1.21
If NAB meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $24.68, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates NAB as Accumulate (2) -

National Australia Bank will acquire the remainder of 86 400 Holding. This is a mobile-centred digital bank that was granted a licence in July 2019.

Ord Minnett believes NAB's digital bank differentiates it from major peers, although the others are expected to re-set ambitions in this regard. Accumulate rating and $26.50 target retained.

Target price is $26.50 Current Price is $23.54 Difference: $2.96
If NAB meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $24.68, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

UBS rates NAB as Buy (1) -

National Australia Bank will acquire 86 400 Holding, an Australian "neobank" in which it already has an 18.3% stake.

UBS notes a key strategy lies with expanding the digital banking offer via UBank. The traditional customer base is skewed to higher net worth entities and business and UBank is considered critical to longer-term growth.

While the acquisition does not stack up as a stand-alone entity, UBS can understand the rationale for the acquisition as NAB attempts to scale up the digital offering. Buy retained. Target is $25.

Target price is $25.00 Current Price is $23.54 Difference: $1.46
If NAB meets the UBS target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $24.68, suggesting upside of 3.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates ORA as Hold (3) -

Ord Minnett forecasts net profit of $87m in the first half results, due in February 18. The broker assesses the Australasian business outlook is subdued, particularly as the wine export market is challenged because of recently implemented tariffs in China.

Meanwhile, the North American business has stabilised and the broker suspects this could be at a turning point after years of underwhelming performance.

The stock is considered good value at current levels and a Hold rating is retained. Target rises to $2.85 from $2.60.

Target price is $2.85 Current Price is $2.51 Difference: $0.34
If ORA meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $2.73, suggesting upside of 8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

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

Morgan Stanley has upgraded forecasts in the wake of Orocobre's second quarter production figures. The changes by the broker include  forecast acceleration of profitable Olaroz Stage 2 production to the second half 2024 from FY26. 

The analyst expects future production will continue to benefit from improved brine quality.

Equal-weight rating. Industry view: Attractive. Target is increased to $4.05 from $3.35.

Target price is $4.05 Current Price is $5.00 Difference: minus $0.95 (current price is over target).
If ORE 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 $4.96, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

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

Lithium carbonate production at Olaroz was 3,727t of lithium carbonate (LCE), up 58% from the previous quarter, and 4% above the December 2019 quarter.

The analyst highlights that with increased output (around 85% of nameplate) costs declined -9%.

Morgans retains a long-term price of US$10,500/t for LCE. The broker also shortens the projected period of weaker prices and lowers short-term costs to generate a valuation and target price of $5.15.

The rating is lowered to Hold from Add due to recent share price strength, and the target price is increased to $5.15 from $3.36.

Target price is $5.15 Current Price is $5.00 Difference: $0.15
If ORE meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $4.96, suggesting downside of -2.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.1

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

Citi rates ORG as Buy (1) -

Commodity revenue at $398m was a 10% beat to Citi's estimate of $363m in the second quarter. The result was driven by 6% higher APLNG production along with a beat of 4% in realized LNG price.

Energy markets volumes were all largely in-line across electricity and gas for the first half, highlights Citi. Origin Energy expects softer demand in the near term from La Nina related weather but FY21 net profit forecast is 5% higher due to the strong quarter.

Target rises to $6.61 from $6.55 with a Buy rating.

Target price is $6.61 Current Price is $4.74 Difference: $1.87
If ORG meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $6.02, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Credit Suisse rates ORG as Neutral (3) -

Higher commodity revenue and LNG production were offset by a lower realised price in Origin's second quarter. Credit Suisse's LNG production forecast for FY21 increases by 2%.

In energy markets, weaker retail volumes were partially offset by stronger commercial and industrial (C&I) gas. The broker expects FY21 operating income to be in the bottom half of guidance and has reduced its FY21 operating income forecast by -2.7%.

Credit Suisse retains its Neutral rating with the target price decreasing to $5.10 from $5.70. 

Target price is $5.10 Current Price is $4.74 Difference: $0.36
If ORG meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.02, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates ORG as Neutral (3) -

APLNG production has ramped up in the second quarter in line with expectations. Revenue was ahead of Macquarie's expectations amid stronger domestic gas prices.

In the energy market, soft retail volumes curtailed electricity and part of the decline is structural, the broker notes, although the drag from the pandemic and milder weather should be temporary.

Target is raised to $5.69 from $5.58. Neutral maintained.

Target price is $5.69 Current Price is $4.74 Difference: $0.95
If ORG meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $6.02, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Morgans rates ORG as Add (1) -

APLNG achieved a new upstream production record in the second quarter, as LNG demand picked up. There was a transfer of $265m to Origin Energy in the first half, in-line with guidance.

Despite commodity prices being softer than Morgans had hoped for, it's considered this quarter will mark the low point.

While wholesale prices remain weak, electricity and natural gas volumes in the Energy Markets business exceeded the analyst's  expectations.

The Add rating and the target price is decreased to $6.04 from $6.29.

Target price is $6.04 Current Price is $4.74 Difference: $1.3
If ORG meets the Morgans target it will return approximately 27% (excluding dividends, fees and charges).

Current consensus price target is $6.02, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Ord Minnett rates ORG as Buy (1) -

December quarter production and sales volumes were ahead of Ord Minnett's expectations. Gains from hedging contracts are expected in the first half, representing a $165m pre-tax turnaround from the prior corresponding half.

The main risk Ord Minnett envisages is lower wholesale prices in energy markets. The broker retains a Buy rating and raises the target to $6.20 from $6.16.

Target price is $6.20 Current Price is $4.74 Difference: $1.46
If ORG meets the Ord Minnett target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $6.02, suggesting upside of 23.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Citi rates OZL as Neutral (3) -

FY20 was a strong year, observes Citi, with production and costs either meeting or beating OZ Minerals' upgraded guidance. The company also delivered an unexpected final investment decision (FID) for the Carrapateena block cave, well ahead of its 2023 deadline. 

Some near term catalysts include progress at Carrapateena operations and FID at Prominent Hill by mid-2021. Citi believes copper prices could pull back by circa -US$1k/t in the near term with China's monetary policy slowing down.

Citi retains its Neutral rating with a target of $19.40.

Target price is $19.40 Current Price is $18.65 Difference: $0.75
If OZL meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.88, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Macquarie rates OZL as Outperform (1) -

2020 production guidance has been met while cost guidance beat Macquarie's expectations. Guidance for 2021 production is mixed, with copper in line and gold lower. Production at Carrapateena has been brought forward six months to mid 2024.

Macquarie finds numerous catalysts heading into 2021, including early works at Carrapateena and the final investment decisions on the Prominent Hill expansion.

Outperform retained. Earnings estimates are increased by 15% for 2021 and 95% for 2022 in a spot price scenario. Target is $22.

Target price is $22.00 Current Price is $18.65 Difference: $3.35
If OZL meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $17.88, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Morgan Stanley rates OZL as Overweight (1) -

Morgan Stanley highlights FY21 management guidance is better on copper, but significantly weaker on gold production (at Prominent Hill), which has lifted forecast costs. Processing costs were calculated to be higher as a result of transferring to new power infrastructure.

The company has approved the Carra Block Cave, which the broker considers helps to crystallise the risked value for the project.

Copper production was 6% ahead of estimates by the analyst, while gold  was 11% ahead.

Overweight rating. Target price is $20.50. Industry view: Attractive.

Target price is $20.50 Current Price is $18.65 Difference: $1.85
If OZL meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $17.88, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

UBS rates OZL as Neutral (3) -

Management has guided to $150m more in capital expenditure than UBS forecast for 2021 and lifted guidance by $300m for 2021-27 at Carrapateena.

The main benefit is the belief the block cave will be commissioned six months earlier than the prior 2026 estimate. UBS notes, subsequently, free cash flow for the next five years will be diminished.

The broker believes the growth profile is priced in and with the shares trading at a 10% premium to valuation retains a Neutral rating. Target is $19.

Target price is $19.00 Current Price is $18.65 Difference: $0.35
If OZL meets the UBS target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $17.88, suggesting downside of -6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.0

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

Credit Suisse rates PBH as Neutral (3) -

Credit Suisse has always said Pointsbet will be a credible force in the US and Australia wagering markets and adds two points in support of its view.

The broker assumes the US market size will increase, looking at the experience in the UK, with New Jersey per capita sports betting expenditure rising to US$100 pa by FY25.

The second assumption is Pointsbet's Australia market share, strengthened by an improving product and a competitive yield, may reach 10% by FY25.

Neutral with the target rising to $16 from $10.50.

Target price is $16.00 Current Price is $15.61 Difference: $0.39
If PBH meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates PBH as Downgrade to Hold from Buy (3) -

PointsBet has impressed Ord Minnett, demonstrating its capabilities in the US. The broker assesses the Australian business had a "cracking" final quarter with turnover and net wins comfortably ahead of estimates.

Still, while continuing to expect longer-term goals will be achieved, Ord Minnett now considers the business is trading around fair value and downgrades to Hold from Buy. Target is raised to $15.70 from $12.80.

Target price is $15.70 Current Price is $15.61 Difference: $0.09
If PBH meets the Ord Minnett target it will return approximately 1% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Ord Minnett rates PLS as Sell (5) -

Pilbara Minerals provided a strong December quarter production outcome, including 70,000t in sales of spodumene. Production guidance for the March quarter of 67-77,000t is in line with Ord Minnett's expectations, reflecting improving demand.

The stock is trading well ahead of valuation and Ord Minnett retains a Sell rating, awaiting further details on the integration of the Altura Mining ((AJM)) operations and the stage 2 expansion. Target is raised to $0.55 from $0.50.

Target price is $0.55 Current Price is $0.93 Difference: minus $0.38 (current price is over target).
If PLS meets the Ord Minnett target it will return approximately minus 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $0.65, suggesting downside of -37.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: -0.5

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

Ord Minnett rates RHP as Accumulate (2) -

First half guidance for operating profit of $8.8m is ahead of Ord Minnett's forecasts. Operating leverage is better-than-expected as a result of cost control.

The broker considers the business well capitalised and likely to diversify its product portfolio through M&A or new partnerships. Accumulate retained. Target is raised to $2.35 from $2.30.

Target price is $2.35 Current Price is $1.94 Difference: $0.41
If RHP meets the Ord Minnett target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Citi rates RMD as Neutral (3) -

Citi's forecasts for ResMed have increased for FY21-23 led by marginal revenue and profit upgrades, partially offset by the stronger AUD. The broker notes the company is looking to resume share buybacks in the second half with tuck-in acquisitions in the SaaS space also possible.

While performing well operationally, ResMed's looks fair value to Citi. Neutral rating is maintained with a target of $28.50 target.

Target price is $28.50 Current Price is $27.22 Difference: $1.28
If RMD meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $28.08, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Credit Suisse rates RMD as Outperform (1) -

Credit Suisse continues to consider ResMed "uniquely placed" to benefit from a shift to home healthcare due to higher investment in out-of-hospital platforms over the past circa 5 years. Double-digit earnings growth is expected in the medium term.

The short term will see ResMed cycling the strong covid ventilator benefit in the coming quarters with recovery in the base business driving earnings growth, adds the broker.

Outperform rating is retained with a target price of $29.5.

Target price is $29.50 Current Price is $27.22 Difference: $2.28
If RMD meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $28.08, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Macquarie rates RMD as Neutral (3) -

Second quarter results show a continuation of the recovery in the base business activity, Macquarie notes. Earnings were slightly ahead of expectations.

The broker re-jigs forecast to capture a recovery in base business growth amid ongoing benefits from re-supply of masks and accessories. Neutral maintained. Target is raised to $27.80 from $27.70.

Target price is $27.80 Current Price is $27.22 Difference: $0.58
If RMD meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $28.08, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

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

Second quarter revenue was 2.9% higher than forecast by Morgan Stanley, driven by rest of world (ROW) sales. 

Morgan Stanley believes the company is exiting the pandemic in stronger shape, given the construct of the company's connected care and cloud based strategies. 

The broker thinks the uplift from ventilator sales peaked in fourth quarter 2020, and near term positive EPS revisions have largely played out. 

Equal-weight is maintained after a strong share price rally. Industry view: In-Line. Price target is decreased to $27.40 from $29.20. 

Target price is $27.40 Current Price is $27.22 Difference: $0.18
If RMD meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $28.08, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Morgans rates RMD as Add (1) -

The second quarter result for ResMed was above Morgans expectations, underpinned by high single digit revenue growth and expanding gross margins. Good cost control was also considered to drive operating leverage.

The broker derives a favourable earnings outlook from a slow improvement in new sleep patient diagnosis, coupled with ongoing strong mask resupply and a stable pricing environment.

The Add rating is unchanged and the target price decreased to $30.09 from $30.99, with only modest changes to FY21-23 earnings. forecasts and foreign exchange assumptions.

Target price is $30.09 Current Price is $27.22 Difference: $2.87
If RMD meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $28.08, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Ord Minnett rates RMD as Lighten (4) -

ResMed provided a strong December quarter with sales outside of the US particularly strong, Ord Minnett notes. The broker lifts forecast modestly.

A relatively challenging period from the ongoing pandemic and the cycling of large coronavirus-related ventilator sales is expected.

Consolidation of US durable medical equipment businesses is also expected to mean a return to historical price pressures. Lighten retained. Target rises to $25.20 from $24.60.

Target price is $25.20 Current Price is $27.22 Difference: minus $2.02 (current price is over target).
If RMD meets the Ord Minnett target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $28.08, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

UBS rates RMD as Buy (1) -

UBS makes minor adjustments to forecasts following the second quarter results which were ahead of expectations. Recovery in sleep therapy sales in certain regions was pleasing for the broker, considering the resurgence of covid-19 in these areas.

The sleep business is likely to be pressured in the short term amid lower diagnostic rates but re-supply growth is expected to remain robust.

The Buy rating is unchanged with a target of $US241.

Current Price is $27.22. Target price not assessed.

Current consensus price target is $28.08, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

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

Market Sentiment: 0.3

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

Macquarie rates SFR as Outperform (1) -

Production in the second quarter was strong and costs beat Macquarie's estimates. The T3 Motheo project is expected to deliver around 30,000tpa of copper for more than 10 years.

Hence, strong copper prices are driving upside momentum and Macquarie increases forecasts by 12% and 180% for FY21 and FY22, respectively, in a spot price scenario. Outperform rating and $6.10 target retained.

Target price is $6.10 Current Price is $4.78 Difference: $1.32
If SFR meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.91, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates SFR as Overweight (1) -

Despite assessing a good quarter of production, Morgan Stanley highlights costs were 15% above the broker's forecast.

Management still expects the upper end of copper guidance, and the lower end of costs to be achieved. 

The analyst expects all three guidance measures for copper, gold and costs to be beaten, as they are tracking ahead of guidance year-to-date.

Overweight maintained. Industry view: Attractive. Target is $6.35.

Target price is $6.35 Current Price is $4.78 Difference: $1.57
If SFR meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $5.91, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Ord Minnett rates SFR as Hold (3) -

Copper and gold output was broadly in line with Ord Minnett's forecast in the December quarter. Management appears increasingly confident about the T3 expansion but the broker awaits further details on supporting reserves and stage 1 construction before incorporating this into modelling.

For investors looking at the longer term and willing to ascribe value to early-stage projects, the broker assesses upside to the base case valuation from the Black Butte operation and/or T3 expansion. Hold maintained. Target is $5.40.

Target price is $5.40 Current Price is $4.78 Difference: $0.62
If SFR meets the Ord Minnett target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $5.91, suggesting upside of 22.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.4

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

Morgan Stanley rates SHL as Overweight (1) -

Sonic Healthcare is due to report first half FY21 earnings on February 18, 2021.

Morgan Stanley assesses the acceleration in high margin covid-19 testing will more than offset any renewed headwinds to core testing volumes in the US and EU.

While awaiting details, the analyst feels serology testing could provide further upside.

Overweight rating. The target is reduced to $40.10 from $40.40. Industry view: In-line.

Target price is $40.10 Current Price is $34.37 Difference: $5.73
If SHL meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $37.31, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.6

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

Macquarie rates SO4 as Outperform (1) -

The Lake Way process plant is now 94% complete and the company expects first salt to be fed into the plant in March. This is slightly ahead of Macquarie's previous expectations.

The broker maintains more conservative ramp-up assumptions versus the feasibility study and, after the recent capital raising, expects a strong working capital position will be maintained. Outperform rating and $0.80 target retained.

Target price is $0.80 Current Price is $0.50 Difference: $0.3
If SO4 meets the Macquarie target it will return approximately 60% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Macquarie rates SVW as Outperform (1) -

Macquarie notes the outlook for the company's businesses continues to improve, which underpins expectations for FY22 earnings growth of 11%.

The broker asserts the WesTrac and Coates segments provide quality exposure to the infrastructure and resources sector.

NSW is the swing factor for WesTrac, with east coast coal production lower in the first half because of low prices, wet weather and damage to the Newcastle shiploader.

Outperform retained. Target rises to $25.90 from $25.00.

Target price is $25.90 Current Price is $22.40 Difference: $3.5
If SVW meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $24.60, suggesting upside of 8.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates SXL as Neutral (3) -

Macquarie finds the radio market is gradually recovering. The recovery in the metro radio market is partially offset by the regions, which are on a slower rebound.

The company is expected to continue to benefit from a cyclical recovery in advertising but the broker believes this is largely priced in.

Neutral maintained. Target is $2.50.

Target price is $2.50 Current Price is $2.16 Difference: $0.34
If SXL meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.13, suggesting downside of -2.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.0

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

Credit Suisse rates SYD as Underperform (5) -

Credit Suisse cuts its 2021 international passenger forecast to 7% of pre-covid level with reopening international borders unlikely until a significant portion of the Australian population receives the vaccine and achieves some level of herd immunity.

1.2m international passengers at Sydney Airport are forecast for 2021, down from 6.4m with operating income forecast for the year cut by -25% to $478m, circa -30% below consensus. 

Underperform rating. Target rises to $5 from $4.50.

Target price is $5.00 Current Price is $5.72 Difference: minus $0.72 (current price is over target).
If SYD meets the Credit Suisse target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.05, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

Market Sentiment: 0.3

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

Morgan Stanley rates SYR as Underweight (5) -

Morgan Stanley updates forecast models for the December quarter result, the Placement and the SPP, with no effect upon the target price.

The broker has moved the restart at Balama out to the June quarter from the March quarter, given it is yet to be announced, and will require a two-three month restart time frame.

Underweight.Target is $0.60. Industry view: Attractive.

Target price is $0.60 Current Price is $1.01 Difference: minus $0.41 (current price is over target).
If SYR meets the Morgan Stanley target it will return approximately minus 41% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.12, suggesting downside of -3.7% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Market Sentiment: 0.0

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

Ord Minnett rates SZL as Buy (1) -

Ord Minnett observes Sezzle has stood out in the ASX BNPL space for some time, demonstrating its strong network effect and rapid growth as active customers now exceed 2.2m.

Momentum has also been signalled by the rapid addition of merchants over the second half of 2020. The broker considers the stock a key Buy call in the BNPL sector. Target is reduced to $11.00 from $11.20.

Target price is $11.00 Current Price is $8.06 Difference: $2.94
If SZL meets the Ord Minnett target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY20:

Forecast for FY21:

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

Ord Minnett rates TSI as Buy (1) -

Top Shelf International has revealed 108% growth in branded sales revenue quarter on quarter. Ord Minnett considers this a positive as the first half of FY21 had minimal contribution from the Grainshaker Vodka range.

The broker believes the business is attractively priced, with forecast revenue growth of around 74%. Buy rating retained. Target rises to $3.03 from $3.00.

Target price is $3.03 Current Price is $2.06 Difference: $0.97
If TSI meets the Ord Minnett target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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

Credit Suisse rates UMG as Upgrade to Neutral from Underperform (3) -

Credit Suisse upgrades its rating on United Malt Group to Neutral from Underperform with the target falling to $4.18 from $4.23.

While expecting a below-market first-half update, the group will likely be an early beneficiary of a second-half re-opening, suggests the broker, led by a recovery in the on-premise channel.

Reducing its capital expenditure burden and increasing the returns on incremental capital will raise the company's attractiveness, adds Credit Suisse.

Target price is $4.18 Current Price is $4.01 Difference: $0.17
If UMG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 20.5% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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

Ord Minnett rates WSA as Buy (1) -

December quarter production revealed another difficult quarter for Forrestania, with reduced nickel volumes and increased costs because of lower grades and recoveries.

Ord Minnett reduces remaining reserve estimates for Flying Fox by -15% and models a limited grade recovery at Spotted Quoll. This leads to a large reduction in FY21 earnings forecasts.

Assumptions surrounding Odysseus are unchanged. While the risk profile has increased the broker retains a Buy rating, reducing the target to $3.00 from $3.20.

Target price is $3.00 Current Price is $2.34 Difference: $0.66
If WSA meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.67, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.5

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