Australian Broker Call

Ord Minnett rates ACL as Accumulate (2) -

The three main pathology companies on the ASX are significantly undervalued, suggests Ord Minnett, which cites potential for increased pricing, stabilising costs and scale benefits.

The broker anticipates margin improvements on operating leverage and improved productivity via digitising samples and newer AI tools to speed-up diagnoses.

For Australian Clinical Labs, the Accumulate rating and target price of $3.50 are retained.

The other two main players are Sonic Healthcare and Helius.

Target price is $3.50 Current Price is $2.47 Difference: $1.03
If ACL meets the Ord Minnett target it will return approximately 42% (excluding dividends, fees and charges).

Current consensus price target is $3.13, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates ALL as Outperform (1) -

Aristocrat Leisure is due to report 1H24 results on May 16, notes Macquarie's analyst and expects 6% year-on-year net profit after tax growth, which is in line with consensus.

The company retains a strong prospective earnings profile, which supports an estimated 10% growth in EPS through to FY26, in contrast to the substantial market devaluation that has occurred.

Competitive pressures, especially in North America and Australia, should be offset by Aristocrat's diverse portfolio, including its Pixel United and Interactive segments; resilience with strategic cost management, and potential upside from a new $1bn share buy-back program. 

No change in forecasts ahead of the results. The Outperform rating and $48.50 target are retained for Aristocrat Leisure.

Target price is $48.50 Current Price is $39.47 Difference: $9.03
If ALL meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $47.60, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Morgans rates ALQ as Upgrade to Add from Hold (1) -

ALS Ltd is set to report the FY24 result on May 21, 2024 which the analyst at Morgans views as a fairly straight forward event due to the recent trading update.

The broker expects net profit after tax at the lower end of the $310-$325m range with a recovery in margins in its Life Sciences segment and a cyclical volume recovery in Commodities exploration, although the timing of the latter remains uncertain.

The company anticipates near-term growth driven by favorable gold and copper prices, which are key indicators for exploration activity.

ALS Ltd also plans to introduce 'building blocks guidance' which will outline expected revenue growth and EBITA margin directions, aligning with industry trends towards improved profitability margins.

The rating is upgraded to Add from Hold and the target raised to $15 from $13.70.

Target price is $15.00 Current Price is $13.30 Difference: $1.7
If ALQ meets the Morgans target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $12.78, suggesting downside of -6.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates BGL as Neutral (3) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

The broker reports, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Bellevue Gold highlighted commercial production at its Bellevue mine and is undertaking studies to potentially expand the plant's capacity beyond the current 1.0Mtpa.

The company is also pursuing a green strategy, aiming for Net Zero by 2026 and exploring opportunities for a green premium on its gold product.

Neutral rating. Target price $2.

Target price is $2.00 Current Price is $1.86 Difference: $0.145
If BGL meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates BOE as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

The broker reports, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Boss Energy Boss Energy is progressing with its 100% owned Honeymoon operation with has a 30% owned Alta Mesa project due to start production 1H24.

This positions the company as a multinational, multi-mine uranium producer with a projected combined output of about 3.0 million pounds annually. 

Outperform rating and preferred exposure in the uranium sector. $6 target.

Target price is $6.00 Current Price is $5.69 Difference: $0.31
If BOE meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $5.43, suggesting downside of -4.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Macquarie rates CCP as Upgrade to Outperform from Neutral (1) -

Macquarie upgrades Credit Corp on the back of strong 1Q24 performance in the US market, supported by a favorable credit environment, leading to record purchase volumes and effective collection strategies.

Both PRA and Encore, key indicators for the company's US operations, reported significant increases in purchase volumes and collection effectiveness, supporting a stong revenue outlook.

The analyst makes no changes to EPS forecasts. Credit Corp is trading at a -24% discount to its long-term PE valuation, with the broker suggesting this makes for an attractive entry point.

Unchanged target price at $18.32. The stock is upgraded to Outperform from Neutral.

Target price is $18.32 Current Price is $14.88 Difference: $3.44
If CCP meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $18.24, suggesting upside of 19.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Morgan Stanley rates CHC as Overweight (1) -

Morgan Stanley lowers its FY25 EPS estimate for Charter Hall after reviewing seven Charter Hall funds for likely performance fees in FY25. It's thought three of the funds are unlikely to meet performance hurdles and total performance fees will be as low as $2m.

Despite this forecast, the broker likes Charter Hall on a 12-18 month view given the REIT is well positioned to benefit fastest/earliest than peers in the sector when the property/rate cycle turns.

Overweight rating and $14.99 target. Industry view: In-Line. 

Target price is $14.99 Current Price is $12.08 Difference: $2.91
If CHC meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $14.29, suggesting upside of 19.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates CHN as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

The broker reports, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Chalice Mining  is advancing its Gonneville PGE-nickel-copper-cobalt project, providing palladium exposure on the ASX.

The company has refined its Gonneville resource for higher-grade mining and is also progressing a strategic partnering process that may lead to selling a minority stake in Gonneville, involving various companies including automakers and metals traders. 

Developments are expected by the end of FY24. The $2.00 target and Outperform rating are unchanged.

Target price is $2.00 Current Price is $1.37 Difference: $0.635
If CHN meets the Macquarie target it will return approximately 47% (excluding dividends, fees and charges).

Current consensus price target is $2.82, suggesting upside of 92.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Macquarie rates CMM as Underperform (5) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

The broker reports, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Capricorn Metals is focused on its Karlawinda and Mt Gibson projects, with Karlawinda already operational and cash-generative despite recent rainfall challenges.

Mt Gibson project is expected to produce over 150koz per annum once developed which depends on approval.

Some $346m in pre-production capital is being invested for Mt Gibson, leveraging the management team's track record of successful project delivery.

Underperform and $4.70 target retained.

Target price is $4.70 Current Price is $4.71 Difference: minus $0.01 (current price is over target).
If CMM meets the Macquarie target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

Morgan Stanley rates DDR as Overweight (1) -

As Dicker Data pays out around 100% of EPS in dividends, yesterday's 1Q dividend guidance is a high-level indicator of internal earnings expectations, explains Morgan Stanley.

The broker believes management's 11cps dividend guidance is a relatively neutral for earnings expectations, but still suggests earnings are on track for FY24. The FY24 result will likely be 2H-weighted, driven by the analysts' expectation for a rebound in PC sales.

The $13 target and Overweight rating are maintained. Industry View: In-Line.

Target price is $13.00 Current Price is $10.56 Difference: $2.44
If DDR meets the Morgan Stanley target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $12.80, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates EVN as Neutral (3) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

The broker reports, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Evolution Mining highlighted its increased copper revenue exposure following the Northparkes acquisition and its focus on copper-gold ore-bodies that offer significant scale and productive mining methods, suggests the broker.

As per Macquarie, recent drilling successes, particularly at Ernest Henry, have the potential to substantially increase the mining inventory.

Neutral rating and $4 target unchanged.

Target price is $4.00 Current Price is $3.84 Difference: $0.16
If EVN meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $4.26, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates FBU as Underperform (5) -

Fletcher Building announced an -11% reduction in FY24 EBIT guidance, exacerbated by a challenging April and May, particularly in the Australian market, which constitutes 40% of Fletcher's core revenue.

The revised EBIT forecast now stands -7% below consensus and -3% below the Macquarie analyst's previous estimate.

Macquarie views the company as facing structural issues, including contingent liabilities related to product liability claims. This could deter quality leadership hires and impact the firm's attractiveness for acquisition.

Earnings forecasts are adjusted for the profit warning with FY24 EPS down -13% and FY25 EPS falling by -36%.

Strategic changes and restructuring efforts, aimed at addressing these operational challenges, are yet to reflect a positive turnaround in the company’s financial outlook, the broker suggests.

Underperform rating unchanged and the target is revised to NZ$2.56 from NZ$3.23.

Current Price is $2.87. Target price not assessed.

Current consensus price target is $4.27, suggesting upside of 54.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.3

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

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

Yesterday's trading update by Fletcher Building provided evidence to Morgan Stanley that softening macroeconomic conditions in both Australia and New Zealand are materially impacting the company's earnings.

While a backlog has helped support construction activity, the update highlighted a -10% decline compared to the 2Q in market volumes in Australia (-5% for NZ), suggesting to the analysts the backlog is finally starting to erode.

Management lowered FY24 EBIT guidance by -13% at the mid point to NZ$500-530m from NZ$540m-640m.

Morgan Stanley's target drops to $2.84 from $3.67 and the Equal-weight rating is maintained as the broker sees further macro risk in both of the company's key construction markets. Industry View: In-Line.

Target price is $2.84 Current Price is $2.87 Difference: minus $0.03 (current price is over target).
If FBU meets the Morgan Stanley target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.27, suggesting upside of 54.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.3

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

Ord Minnett rates FBU as Buy (1) -

Ord Minnett is disappointed by another trading downgrade by Fletcher Building and places its current Buy rating and $5.70 target under review. It's felt the  balance sheet is under pressure with potential for a capital raise.

The broker forecasts net debt/EBITDA of around 2.2 times by June 30, exceeding management's 2 times target. Sale of the Australian Tradelink plumbing business could help out debt levels, suggests the analyst.

Management blamed lower sales volumes and prices across most businesses for the downgrade.

Target price is $5.70 Current Price is $2.87 Difference: $2.83
If FBU meets the Ord Minnett target it will return approximately 99% (excluding dividends, fees and charges).

Current consensus price target is $4.27, suggesting upside of 54.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.3

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

Macquarie rates FMG as Underperform (5) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

The broker reports, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Fortescue highlighted its strategic and operational challenges and advancements, notably recovering from a derailment incident impacting recent performance.

As per the broker, the company emphasised its unique corporate culture and ambitious targets, particularly in green energy, with a joint venture aimed at supplying green hydrogen, ammonia and integrating sustainable practices, including exploring opportunities in lithium and magnetite to support the energy transition.

Underperform rating and $13.50 target price.

Target price is $13.50 Current Price is $26.05 Difference: minus $12.55 (current price is over target).
If FMG meets the Macquarie target it will return approximately minus 48% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.03, suggesting downside of -22.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: -0.7

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

Citi rates FPR as Buy (1) -

FleetPartners Group's 1H net operating income (NOI) of $110m slightly missed the Citi forecast for $112m, while end-of-lease (EOL) income beat forecasts by the broker and consensus by 5% and 28%, respectively.

This greater EOL income was offset by lower NOI pre-EOL and provisions, explain the analysts.

Management increased FY24 opex guidance to $89-90m, largely due to increased new business writings (NBW) activity. NBW of $448m was -7% below Citi's estimate of $479m, though order activity is considered positive, given a seasonally soft January.

The Buy rating and $4.20 target are maintained.

Target price is $4.20 Current Price is $3.45 Difference: $0.75
If FPR meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

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

FleetPartners Group reported 1H24 earnings proved a 12.2% beat on forecast profits from Macquarie.

The analyst notes a 39% increase in new business volumes year-over-year, supported by strong used car prices. Margin pressures due to a shift towards lower-margin novated leases and timing of profitability on new leases only resulted in a 1% increase in net operating income.

The analyst lifts FY24 EPS forecast by 18.9%, attributed to higher end-of-lease income, although offset by a -5% reduction in net operating income before end-of-lease and impairment.

A share buy-back of $27m was announced and the broker finds the company retains a strong balance sheet with $10.8m in net cash.

The target price is lifted 19.5% to $3.60. Downgrade to Neutral from Outperform due to share price appreciation.

Target price is $3.60 Current Price is $3.45 Difference: $0.15
If FPR meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Morgan Stanley rates FPR as Overweight (1) -

Despite recent share price gains, Morgan Stanley retains its Overweight rating for FleetPartners Group on new business writings (NBW) momentum following 1H results, and feels risk to the broker's forecasts is to the upside.

Net operating income (NOI) for the 1H matched the broker's estimate but missed the consensus forecast which overestimated near-term margins.

End-of-lease (EOL) income was a material beat against the broker's forecasts due to higher disposals on improved supply.

The target rises to $3.90 from $3.20. Industry View: In-line.

Target price is $3.90 Current Price is $3.45 Difference: $0.45
If FPR meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.68, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates GMD as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Genesis Minerals is aiming to increase production from 135koz to over 300koz by restarting the Laverton mill and incorporating higher-grade ore sources, the broker explains.

The company projects sustaining this higher production rate through FY34, with potential expansion to 400koz. Genesis Minerals is set to invest about -$520m in growth from FY25 to FY29, financed through cash, operations, and new debt. 

The Outperform rating and target price of $2.00 are retained.

Target price is $2.00 Current Price is $1.83 Difference: $0.175
If GMD meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $1.98, suggesting upside of 6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Citi rates GUD as Buy (1) -

Following yesterday's trading update by G.U.D. Holdings, Citi feels original investor fears were overblown around the magnitude of downside risk from underperformance by AutoPacific (APG), along with service deferral and trade down impacting the legacy auto business.

The broker feels the main upcoming risk is to what extent key G.U.D. customer Bapcor ((BAP)) undergoes a destocking exercise to
reduce working capital.

Yesterday's summary of the broker's initial reaction to the trading update follows:

At G.U.D. Holdings investor day this Wednesday, Citi believes one issue investors will focus on is whether AutoPacific (APG) earnings have recovered following Toyota and NZ disruptions.

While manufacturing disruptions around Toyota appear to have been resolved, the broker cautions any inventory held by manufacturers or dealers could delay the APG earnings recovery.

The analysts believe its is a matter of when, not if, ASP disruptions are resolved, and sees potential for a re-rate when APG finally delivers on its acquisition case earnings.

Average dollars per service in the legacy auto workshops is also the relevant measure when reviewing upcoming investor day commentary, according to Citi.

Target price is $12.80 Current Price is $9.77 Difference: $3.03
If GUD meets the Citi target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $12.80, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Macquarie rates GUD as Outperform (1) -

G.U.D. Holdings reported a trading update and revised FY24 EBITA guidance to circa $193.5m, in line with the Macquarie estimates.

Core Automotive is performing robustly, offsetting weaker results from APG, due to significant challenges in the New Zealand market which have resulted in around a -$10m EBITA headwind.

EBITA for APG is expected to be around $63m, below expectations by about -$3m. Despite these issues, the group's diversified business strategy and solid market demand in other areas support overall resilience, suggests the broker.

The broker's EPS forecasts for FY24 and FY25, have been reduced by -1.6% and -2.3%, respectively.

Outperform rating unchanged. Target revised down by -1.65% to $12.65.

Target price is $12.65 Current Price is $9.77 Difference: $2.88
If GUD meets the Macquarie target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $12.80, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

UBS rates GUD as Buy (1) -

Yesterday's trading update by G.U.D. Holdings showed the Core Auto segment is tracking slightly ahead of expectations held by UBS, though the performance of AutoPacific (APG) was weaker-than-expected. It's felt overall expectations were low coming into the result.

Management's FY24 guidance for at least $193.5m of EBITA is only -1% shy of the analysts' forecast.

The $12.80 target and Buy rating are unchanged given only marginal changes to the broker's forecasts.

Target price is $12.80 Current Price is $9.77 Difference: $3.03
If GUD meets the UBS target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $12.80, suggesting upside of 17.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Ord Minnett rates HLS as Buy (1) -

The three main pathology companies on the ASX are significantly undervalued, suggests Ord Minnett, which cites potential for increased pricing, stabilising costs and scale benefits.

The broker anticipates margin improvements on operating leverage and improved productivity via digitising samples and newer AI tools to speed-up diagnoses.

For Healius, the Buy rating and target price of $3.00 are retained.

The other two main players are Sonic Healthcare and Australian Clinical Labs.

Target price is $3.00 Current Price is $1.28 Difference: $1.72
If HLS meets the Ord Minnett target it will return approximately 134% (excluding dividends, fees and charges).

Current consensus price target is $1.55, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

UBS rates IEL as Downgrade to Neutral from Buy (3) -

UBS downgrades its rating for IDP Education to Neutral from Buy as Australian international student caps are extending uncertainty and adding further downward pressure to FY24 and FY25 earnings forecasts.

While it's difficult to assess the extent of the Australian student cap impact, the analysts believe linking future enrolment growth to provision of student accommodation could slow overall market growth.

The broker remains positive on the longer-term structural story and student placement market share gains opportunity from Fastlane, as well as the US opportunity.

The broker's target falls to $17.65 from $25.30 on softer forecasts and a lower valuation multiple due to a lower growth profile.

Target price is $17.65 Current Price is $16.04 Difference: $1.61
If IEL meets the UBS target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $23.06, suggesting upside of 45.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates IGO as Neutral (3) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

IGO is concentrating on adding value at Greenbushes and achieving cash generation from Kwinana, the broker points out, adding a strategic review is underway with a focus on disciplined life-of-asset planning and value extraction, particularly from its joint venture operations.

Neutral rating and $7.60 target unchanged.

Target price is $7.60 Current Price is $7.66 Difference: minus $0.06 (current price is over target).
If IGO meets the Macquarie target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.21, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.4

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

Macquarie rates ILU as Neutral (3) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Iluka Resources remains focused on rare earths despite pressures from the Chinese dominance in processing.

The broker notes the company is optimistic about demand driven by the energy transition, maintaining strategic operations like its SR1 under care.

Iluka faces challenges with its Eneabba Phase 3 project, particularly in funding and technical complexities, Macquarie explains, with capex estimates now between -$1.5-1.8bn as it seeks government support.

Neutral and $7.00 target retained.

Target price is $7.00 Current Price is $7.56 Difference: minus $0.56 (current price is over target).
If ILU meets the Macquarie target it will return approximately minus 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.84, suggesting upside of 2.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.1

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

Ord Minnett rates LLC as Buy (1) -

Ord Minnett lowers its target for Buy-rated Lendlease Group by -2% to $13 after news emerged the ATO has issued a revised income tax assessment for 2018, giving rise to a -$112.1m liability.

The broker assumes in its forecast half of the liability will need to be paid. 

Management asserts the ATO provided a written undertaking in 2020 that no penalties or interest would be applied to the 2018 year.

Target price is $13.00 Current Price is $6.10 Difference: $6.9
If LLC meets the Ord Minnett target it will return approximately 113% (excluding dividends, fees and charges).

Current consensus price target is $8.58, suggesting upside of 39.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Macquarie rates LTM as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

As per the broker, Arcadium Lithium is focusing on vertical integration, directly aligning its product offerings with Western OEM demands to secure stable returns and reduce market risks.

The company is also enhancing its value chain by converting brine into high-value lithium hydroxide in alignment with specific OEM quality requirements, Macquarie adds.

Outperform rating and $9.40 target unchanged.

Target price is $9.40 Current Price is $6.95 Difference: $2.45
If LTM meets the Macquarie target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $9.63, suggesting upside of 36.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates LTR as Neutral (3) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Liontown Resources is on track to commence production at its Kathleen Valley project by mid-2024. The broker highlights the processing plant is nearing completion and the underground operations are progressing well, with significant development completed and the first ore expected by August 2024.

The ore-sorting product (OSP) project is set to convert contaminated stockpiles into mill feed, improving processing efficiency.

The broker's target for Liontown Resources is $1.30. Neutral.

Target price is $1.30 Current Price is $1.39 Difference: minus $0.085 (current price is over target).
If LTR meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.34, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.2

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

Macquarie rates MIN as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

As per the broker, Mineral Resources discussed its strategy, emphasising asset turnover not just for debt management but as a capital recycling strategy for growth.

Macquarie highlights the company is expanding its service business into new markets such as Queensland, leveraging its low-cost delivery culture and is moving swiftly to develop gas resources in the Perth basin, pending necessary approvals and funding.

Outperform and Mineral Resources remains a key pick in the lithium space at Macquarie. Target $78.

Target price is $78.00 Current Price is $76.41 Difference: $1.59
If MIN meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $74.71, suggesting downside of -1.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.4

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

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

The shackles holding back Metro Mining have been unleashed, suggests Shaw and Partners, which removes its -50% valuation discount and raises the target to 13c from 7c.

With the main aim of retiring junior debt, explain the analysts, management has completed a $40m equity raise at 4.1c via an institutional placement, and is conducting a $4m share purchase plan at the same price.

The company should now be able to refinance its senior debt on more attractive terms with traditional lenders, notes the broker, resulting in further financing cost savings.

Adding to the broker's excitement, the analysts recently sighted the company’s game changing ‘Ikamba’ transhipper at the Bauxite Hills operation, which will allow Metro Mining to potentially ship 7mt of bauxite in 2024.

The Buy, High Risk rating is maintained.

Target price is $0.13 Current Price is $0.04 Difference: $0.087
If MMI meets the Shaw and Partners target it will return approximately 202% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates NST as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

As per the broker, Northern Star Resources continues to execute its production growth strategy, aiming to increase its output to 2.0Moz p.a. by FY26.

The company also discussed using hedging as a strategic tool to mitigate risks and secure project returns, Macquarie reports, especially in the current gold price environment.

Northern Star Resources is the broker's preferred exposure in the gold sector. Outperform rating and $17 target.

Target price is $17.00 Current Price is $14.75 Difference: $2.25
If NST meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $15.13, suggesting upside of 3.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.3

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

Citi rates NUF as Buy (1) -

At upcoming 1H results on May 23, Citi forecasts Nufarm will report revenue of $1,956m, largely in line with consensus, and earnings (EBITDA) of $252m, which implies a 58% 1H earnings skew, based on the broker's FY24 earnings forecast.

However, the analysts believe the market will be more focused on management commentary around trading conditions so far in the 2H.

The $5.80 target and Buy rating are unchanged.

Target price is $5.80 Current Price is $5.21 Difference: $0.59
If NUF meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $6.13, suggesting upside of 18.7% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.5

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

Morgan Stanley rates NWS as Overweight (1) -

News Corp's recent 3Q result demonstrated the third quarter in a row of digital book revenue growth, which Morgan Stanley notes coincides with the start of the new Spotify audio books deal, launched in late 2023.

The Book division accounts for circa 21% of the broker's group FY24 revenue forecast. Morgan Stanley's latest valuation for the division is US$4.20/share.

Overweight rating. The broker's target rises to US$31 from US$29.50 due to positive earnings momentum and the potential for asset sales. Industry view: Attractive. 

Current Price is $39.06. Target price not assessed.

Current consensus price target is $40.73, suggesting upside of 2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.8

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

Macquarie rates PDN as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Macquarie highlights Paladin Energy is seeing strong performance at its Langer Heinrich operation post production restart.

As per the broker, the company is set for its first shipment in July 2024 and targets full ramp-up by FY26. Exploration at Langer Heinrich suggests potential to extend the life of mine beyond the current 17 years.

Paladin Energy is one of Macquarie's preferred uranium stocks. Outperform and $15 target retained.

Target price is $15.00 Current Price is $16.47 Difference: minus $1.47 (current price is over target).
If PDN meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.47, suggesting upside of 0.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 1.0

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

Macquarie rates PLS as Neutral (3) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Macquarie reports Pilbara Minerals provided updates on the P680 and P1000 projects, highlighting its independence from joint venture approvals and balance sheet constraints.

As per the broker's comments, the company sees only incremental growth beyond the P1000 project due to mining rate limitations but remains focused on optimizing its core capabilities in ore-body understanding and process plant customisation.

Neutral and $4.20 target retained.

Target price is $4.20 Current Price is $4.08 Difference: $0.12
If PLS meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.59, suggesting downside of -9.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.5

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

Macquarie rates PMT as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Patriot Battery Metals is advancing its Corvette project and is expected to become a significant lithium resource in the Americas, the broker highlights.

As per Macquarie, the company has completed an infill drilling program at CV5 to upgrade its resource classification and is awaiting assay results to potentially increase the resource estimate. A maiden resource estimate for the CV13 prospect is also expected in the third quarter of 2024.

Outperform and $2.00 target retained.

Target price is $2.00 Current Price is $0.84 Difference: $1.165
If PMT meets the Macquarie target it will return approximately 140% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY24:

Forecast for FY25:

This company reports in CAD. 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 PNI as Buy (1) -

Ord Minnett lifts its target for Pinnacle Investment Management to $16 from $13 on the back of earnings changes in the wake of an April trading update which beat expectations. The Buy rating is maintained.

Flow momentum is the best in over two years, notes the broker, while there is added longer-term potential from the addition of a global equities Affiliate of high repute - namely Royal London Asset Management.

Funds under management (FUM) at the close of April were $106bn, up 6% from the end of December 2023, and slightly ahead of the analysts' forecast.

Target price is $16.00 Current Price is $12.52 Difference: $3.48
If PNI meets the Ord Minnett target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $12.21, suggesting downside of -4.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.8

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

Bell Potter rates PTM as Buy (1) -

Platinum Asset Management reported further outflows of -$1,650m in Apri, or -10.7% of the opening funds under management (FUM), which now stands at $13,747m, a reduction of -11.1%.

The disappointing outflows follow an anticipated removal of -$1.4bn by certain clients, comments Bell Potter.

Bell Potter has revised EBITDA forecasts downwards by -2.5% for FY24 and -10.5% for FY25 reflecting updated FUM values.

The analyst expects cost-reduction measures to save $25m, or 26% of the $96m cost base, plus management actions to enhance shareholder value.

 Buy rating with a reduced price target of $1.10, down from $1.20.

Target price is $1.10 Current Price is $1.05 Difference: $0.05
If PTM meets the Bell Potter target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $1.08, suggesting upside of 2.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.2

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

UBS rates QBE as Buy (1) -

Key drivers within 1Q results for QBE Insurance appear to be ahead of 1H forecasts by UBS. Crop gross written premiums (GWPs) fell by  -11% due to lower soft commodity prices, as well as portfolio exits in the US and Australia, explain the analysts.

The broker highlights the International segment remains the standout performer, with gross-written premia (GWP) growth of 17%, driven by repricing, strong retention and new business.

Unchanged FY24 guidance is conservative, suggests UBS. The Buy rating is maintained and the target rises to $21 from $20.

Target price is $21.00 Current Price is $17.59 Difference: $3.41
If QBE meets the UBS target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $18.72, suggesting upside of 8.2% (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: 0.4

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) -

Shaw and Partners' $2.33 target are maintained for Ramelius Resources, despite an increased mineral resource estimate (MRE) for the Eridanus mining area within the Mt Magnet Gold operation. The Buy, High Risk rating is maintained.

The estimate now includes the adjacent Lone Pine and Theakston deposits as well as incorporating recent drilling and mining information, notes the broker, which maintains a positive view on the gold price.

Target price is $2.33 Current Price is $2.03 Difference: $0.3
If RMS meets the Shaw and Partners target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $2.21, suggesting upside of 11.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.7

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

Macquarie rates SFR as Outperform (1) -

At the Macquarie Conference 18 companies across the resource and mining sector presented.

As per the broker, common themes were attractive long-term fundamentals in most markets; competitiveness of Australian projects; labour costs remain an issue and permitting delays to critical minerals supplies.

Macquarie is "bullish" on copper and uranium, and the outlook for lithium is cautious but optimistic. Hedging in the gold sector was topical.

Macquarie highlights Sandfire Resources is prioritising production, efficient capital management, and expanding resource reserves, particularly at the Motheo operation to potentially double its mine life

As per the broker, the company, underpinned by strong copper prices and post-expansion cash flows from Motheo, plans rapid debt reduction from its current US$481m.

While near-term M&A is seen as unlikely due to high market valuations, Macquarie highlights Sandfire remains interested in acquiring small, strategic copper assets in the future.

Sandfire Resources is Macquarie's preferred exposure in the base metals space. Outperform rating and $10.50 target.

Target price is $10.50 Current Price is $9.79 Difference: $0.71
If SFR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $8.97, suggesting downside of -7.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

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

Market Sentiment: 0.1

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

Ord Minnett rates SHL as Accumulate (2) -

The three main pathology companies on the ASX are significantly undervalued, suggests Ord Minnett, which cites potential for increased pricing, stabilising costs and scale benefits.

The broker anticipates margin improvements on operating leverage and improved productivity via digitising samples and newer AI tools to speed-up diagnoses.

For Sonic Healthcare, the Accumulate rating and target price of $32 are retained.

The other two main players are Australian Clinical Labs and Helius.

Target price is $32.00 Current Price is $27.02 Difference: $4.98
If SHL meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $31.71, suggesting upside of 14.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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

Macquarie rates SUL as Neutral (3) -

Super Retail Super reported a year-to-date sales growth of 2% for FY24 at the Macquarie conference, slightly below the forecast of 2.8%.

The broker comments the loyalty program showed significant growth, particularly with the relaunch of the Rebel program, while Supercheap Auto and Macpac demonstrated resilience with 1% and 3% like-for-like sales growth, respectively.

As per the broker, overall performance was tempered by weaker results from Rebel and BCF. The company expects total sales growth of 2.2% for FY24, with a 1.2% growth projection for 2H24.

EPS forecasts have been adjusted down by -1.5% for FY24 and -1.4% for FY25. Neutral rating unchanged. The target price is lowered to $13.80 from $16.

Target price is $13.80 Current Price is $13.45 Difference: $0.35
If SUL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.65, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.0

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

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

Southern Cross Electrical Engineering has executed a share purchase agreement to acquire 100% of MDE Group Pty Ltd
for an enterprise value of up to $10.55m. As a result, Shaw and Partners raises its target to $1.80 from $1.70.

MDE Group provides communications, data, and electrical services for construction and fit out projects across commercial building developments, data centres, and healthcare and transport infrastructure, explains the analyst.

As per the broker, management left FY24 guidance unchanged, but increased FY25 EBITDA guidance to at least $53m from at least $48m.

The Buy, High Risk rating is maintained.

Target price is $1.80 Current Price is $1.61 Difference: $0.19
If SXE meets the Shaw and Partners target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Ord Minnett rates SXL as Accumulate (2) -

In another takeover twist, Anchorage Capital Partners has decided to withdraw from the consortium with ARN Media ((A1N)) to acquire Southern Cross Media.

Shareholders in Southern Cross Media are being asked to exchange each of their shares for 0.87 ARN media shares and, suggests the broker, take on the role of Anchorage.

That role, is to maintain an interest in a new company holding comprising 44 and 33 metropolitan and regional radio assets, respectively, as well as regional TV operations.

Ord Minnett's $1.20 target still ascribes a 75% possibility of a takeover at $1.00/share and 25% for no deal. The standalone valuation is $1.70. Accumulate.

Target price is $1.20 Current Price is $0.86 Difference: $0.34
If SXL meets the Ord Minnett target it will return approximately 40% (excluding dividends, fees and charges).

Current consensus price target is $0.96, suggesting upside of 13.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: -0.1

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

Citi rates WOR as Buy (1) -

Citi has returned from Rating Suspended with a Buy rating and $20 price target for Worley, unchanged from the prior update on April 11.

The broker does complain about the company's inconsistent data sharing, like the discrepancy between factored sales pipeline and project backlog.

Hence, there are some questions about how "strong" the company's growth actually is at the moment, but there's equally scope for margin expansion in the years ahead.

The analysts didn't spot any major surprises on the company's strategy day.

Target price is $20.00 Current Price is $15.36 Difference: $4.64
If WOR meets the Citi target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $18.27, suggesting upside of 20.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 0.6

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