Australian Broker Call

Bell Potter rates A4N as Speculative Buy (1) -

Alpha HPA has a non-binding letter of intent for a larger-scale roll-out of Famatec's synthetic sapphire growth technology. Bell Potter notes the partnership could mean the initial 100 unit agreement is expanded by an additional 1000 units at an Australian-based facility.

The two companies will also work on research and market outreach activity. A successful roll-out to 1000 units could mean up to one third of Alpha HPA's production is dedicated to sapphire production with the potential for a significant lift in project margins, Bell Potter adds.

Speculative Buy rating maintained. Target price rises to $1.53 from $1.31.

Target price is $1.53 Current Price is $1.02 Difference: $0.51
If A4N meets the Bell Potter target it will return approximately 50% (excluding dividends, fees and charges).

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

Bell Potter rates ADA as Buy (1) -

Adacel Technologies has gained two new contracts but has downgraded FY23 guidance as one of the contracts was awarded later than expected, and to reflect a delay in finalising a renewal.

Bell Potter reduces its FY23 pre-tax profit forecast by -53%, to be consistent with the top end of the revised guidance range. The broker also downgrades FY24 and FY25 forecasts by -12% and -13%, respectively, taking a conservative standpoint.

The company has indicated there is another five material contracts it had is tendered for that should be decided within a year. Buy rating maintained. Target price is reduced to $0.80 from $0.85.

Target price is $0.80 Current Price is $0.59 Difference: $0.21
If ADA meets the Bell Potter target it will return approximately 36% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for 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

Morgans rates AKE as Hold (3) -

Unless demand growth accelerates rapidly, lithium prices will struggle and may soften further as production capacity increases in FY24, suggests Morgans. It's noted spot prices for lithium chemicals have stabilised after rebounding. 

Morgans expects prices will continue to progressively moderate downwards towards the broker's long-term price assumptions.

For Allkem, the analysts believe its merger will proceed and cost synergies will improve overall value. It's thought the application of the Direct Lithium Extraction (DLE) technology to the company's assets may take time but offers promise.

Hold rating and $14.40 target price are unchanged.

Target price is $14.40 Current Price is $15.09 Difference: minus $0.69 (current price is over target).
If AKE meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.93, suggesting upside of 11.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

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

Ord Minnett rates ARB as Buy (1) -

The Federal Chamber of Automotive Industries reported new vehicle sales increased 12% in May. This represents the strongest month of sales so far in 2023 and follows a lacklustre period.

For ARB Corp, new vehicle sales in key segments (SUVs and LCVs) increased at double-digit rates and Ord Minnett believes this will be positive for the order book, albeit staff shortages in the national network continue to present challenges in meeting demand.

Buy rating and $34 target price maintained.

Target price is $34.00 Current Price is $29.21 Difference: $4.79
If ARB meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $31.64, suggesting upside of 11.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Bell Potter rates BGA as Buy (1) -

Bell Potter reviews the opening farmgate agreements across all geographies. Bega Cheese has 12 farmgate agreements and the broker estimates that key regions have experienced a weighted average increase of 3% year-on-year in farmgate rates.

Forecasts are updated to reflect the changes to commodity prices although there are no material net changes, a reflection of the broker's expectations for lower export premiums.

Buy rating retained. Target price is $4.10.

Target price is $4.10 Current Price is $3.59 Difference: $0.51
If BGA meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $3.79, suggesting upside of 6.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Macquarie rates BVS as Neutral (3) -

In February, Bravura Solutions received directions to pause work from two potential major clients, which was the main driver of a -$30m FY23 revenue guidance downgrade. Bravura was expecting an update 6-8 weeks post its result, but more than 12 weeks have passed.

Macquarie suggests it's unlikely these prospective new clients will be signing long-term contracts. Management previously confirmed it had additional cost levers at its disposal in the event these contracts didn't materialise.

The broker has returned from restriction with a Neutral rating, the company's improved balance sheet and cost-out program being offset by an uncertain revenue outlook. Target price 48c.

Target price is $0.48 Current Price is $0.46 Difference: $0.025
If BVS meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Ord Minnett rates CNU as Lighten (4) -

Chorus has unveiled a new operating model and, under the reorganisation, there will be a new infrastructure unit, established to leverage assets and generate new revenue. Ord Minnett presumes this business will begin with the legacy copper network.

Yet these earnings are on a structural decline and, as withdrawal from the copper network continues, management is likely to focus on leveraging fibre.

A third unit, named fibre frontier, will canvass ways to extend the fibre network into regional and rural areas. Ord Minnett retains a Lighten rating and $7 target price.

Target price is $7.00 Current Price is $7.83 Difference: minus $0.83 (current price is over target).
If CNU meets the Ord Minnett target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: -0.5

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

UBS rates CSL as Buy (1) -

UBS expects a neutral to modestly positive share price reaction to news CSL has received FDA approval for an update to the US
label for high-dose IV iron product Injectafer, sold by American Regent.

The update now includes treatment of iron deficiency anemia in patients with NYHA class II/III heart failure.

The broker's Buy rating and $350 target price are retained.

Target price is $350.00 Current Price is $310.73 Difference: $39.27
If CSL meets the UBS target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $339.32, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Macquarie rates CVN as Neutral (3) -

Santos' decision to delay a final investment decision on Dorado last year, of which Carnarvon Energy owns 10%, was the right one in Macquarie's view, given the types of cost and supply chain risks it would have needed to take on.

The broker has delay its assumed Dorado final investment decision to the December quarter 2024, with Santos now less incentivised to accelerate the project.

A key change for Carnarvon is a reduction to FY26 forecast earnings from 2.99cps profit to -0.64cps loss, driven by a delay in the Dorado start-up to late-2027. Neutral rating retained, target price falls to 14c from 16c.

Target price is $0.14 Current Price is $0.13 Difference: $0.01
If CVN meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates CXO as Hold (3) -

Unless demand growth accelerates rapidly, lithium prices will struggle for gains and may soften further as production capacity increases in FY24, suggests Morgans. It's noted spot prices for lithium chemicals have stabilised after rebounding. 

Morgans expects prices will continue to progressively moderate downwards towards the broker's long-term price assumptions.

For Core Lithium, the analysts believe the dispersed nature of its deposits will make it a higher-cost operation than its peers. The company is also considered an unlikely takeover target given its small resource.

Hold rating is unchanged. Target price climbs to $1.05 from $1.00.

Target price is $1.05 Current Price is $1.11 Difference: minus $0.055 (current price is over target).
If CXO meets the Morgans target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.03, suggesting downside of -4.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Citi rates DHG as Buy (1) -

Clearance rates continue to be strong, house prices have returned to growth and lending commitments experienced a month-on-month improvement in April, observes Citi.

Despite these improvements, the broker perceives downside risk to FY23 margin guidance for Domain Holdings Australia, though concedes consensus has already adjusted for this outcome.

The broker expects yield growth will be the key driver of Residential depth revenue, and forecasts 19% year-on-year growth for the company.

While the analysts perceive risk to the listings outlook in 2023 from additional interest rate rises, the company has options to reduce the cost base which could offset any revenue headwinds in FY24.

Buy rating and $4 target price are retained on an attractive valuation.

Target price is $4.00 Current Price is $3.55 Difference: $0.45
If DHG meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.38, suggesting upside of 0.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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

Citi rates EVN as Sell (5) -

Shares of Evolution Mining outperformed the Gold Index by 4% yesterday following the company's investor day. Citi believes mine life extensions at Ernest Henry and Mungari outweighed negative sentiment regarding medium-term production downgrades.

Management's FY24 outlook was broadly in line with expectations, note the analysts. Guidance is for 770kozpa at an all-in sustaining cost (ASIC) of $1370/oz with about 50ktpa copper assuming $12,500/t.

Sustaining capex expectations of roughly $190-$230m were unchanged.

Sell rating and $3.10 target price are retained. Management will continue to focus on margin over volumes, and its strategy of buying unloved assets, observes Citi.

Target price is $3.10 Current Price is $3.64 Difference: minus $0.54 (current price is over target).
If EVN meets the Citi target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.23, suggesting downside of -7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Morgan Stanley rates EVN as Overweight (1) -

Morgan Stanley notes Evolution Mining's update on the Mungari expansion is within its bull case scenario. The company has confirmed a capital investment of $250m and has restructured its debt, providing flexibility.

The pre-feasibility on Ernest Henry has also outlined an increase in the mine's gold reserve ounces and its mine life to 2040, pegging capital expenditure of roughly $450-500m, the majority of which will fall in FY27-28.

Target price is $3.75. Overweight rating is unchanged. Industry view: Attractive. 

Target price is $3.75 Current Price is $3.64 Difference: $0.11
If EVN meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.23, suggesting downside of -7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

UBS rates EVN as Sell (5) -

Evolution Mining's investor day update provided better all-in sustaining cost (AISC) outcomes than UBS was expecting.

Ernest Henry's reserves rose more than 100%, which resulted in mine-life extensions to FY40, which compares to the broker's FY35 forecast. While total capex for the extension was higher than expected, the majority will not be required until FY27/28.

Overall, FY24 guidance of about 770koz at $1,370/oz was marginally below UBS's previous expectations.

Based on recent China feedback, the analysts are cautious about the short-term outlook for copper. Sell rating. Target price rises to $3.30 from $3.25.

Target price is $3.30 Current Price is $3.64 Difference: minus $0.34 (current price is over target).
If EVN meets the UBS target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.23, suggesting downside of -7.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.5

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

Bell Potter rates FDV as Speculative Buy (1) -

Frontier Digital Ventures has announced an amended subscription agreement for rights-holders to earn-outs regarding the acquisition of e24 and InfoCasas. Equity in its LATAM business unit is being substituted for listed shares in the ASX vehicle.

The potential for this amendment had previously been flagged. The net impact, Bell Potter assesses, is a downgrade to 2023-25 estimates for EPS. The broker also adjusts revenue multiples to better reflect the global macro environment.

Speculative Buy rating unchanged. Target price is reduced to $0.89 from $1.05.

Target price is $0.89 Current Price is $0.35 Difference: $0.54
If FDV meets the Bell Potter target it will return approximately 154% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

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

Ord Minnett rates FLT as Lighten (4) -

Flight Centre Travel shares have strengthened recently which suggests to Ord Minnett the market has locked in pre-tax profit guidance for FY25, despite uncertainty around commissions, over-riders and GDS rebates in Australia.

The bulk of earnings have historically come from the sale of leisure travel to Australian consumers, and the broker estimates that for every 1% change in the revenue margin for the leisure division this has a $150m impact in either direction on group pre-tax profit.

Ord Minnett upgrades estimates by 28% for FY23 and 19% for FY24 to reflect higher TTV, lower revenue margins and lower costs. The stock is currently trading at an equivalent multiple of 18.8x PE and, as a result, a Lighten rating is maintained. Target price is raised to $19.71 from $17.39.

Target price is $19.71 Current Price is $21.58 Difference: minus $1.87 (current price is over target).
If FLT meets the Ord Minnett target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $21.52, suggesting downside of -0.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.2

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

Macquarie rates HCW as Outperform (1) -

GenesisCare declared bankruptcy in the US last week and plans to split the business in two parts. GenesisCare comprises about 6% of HealthCo Healthcare & Wellness REIT 's portfolio by value but less than 5% of Macquarie's FY24 forecast revenue.

The REIT indicated the Australian operations of GenesisCare are profitable and continue to operate normally, with the group satisfying all lease obligations. But if things change, the tenancy should be readily "back-filled" with other operators.

Macquarie notes GenesisCare seems to be performing better here than in the US, but is confident that other operators will step up if need be. Outperform rating and $1.64 target price retained.

Target price is $1.64 Current Price is $1.41 Difference: $0.23
If HCW meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $1.69, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates IEL as Hold (3) -

Ord Minnett suspects recent changes to Canada's regulations will lead to a loss in market share for IDP Education, although this does not materially change its investment thesis.

Moreover, the regulatory changes were not a major surprise as the company had flagged the risk at its interim result.

Earnings from the student placement division are largely unaffected by regulatory changes and will still contribute the majority of earnings over the next decade. Ord Minnett retains a Hold rating and $22.50 target price.

Target price is $22.50 Current Price is $22.55 Difference: minus $0.05 (current price is over target).
If IEL meets the Ord Minnett target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $26.99, suggesting upside of 22.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates MIN as Add (1) -

Unless demand growth accelerates rapidly, lithium prices will struggle for gains and may soften further as production capacity increases in FY24, suggests Morgans. It's noted spot prices for lithium chemicals have stabilised after rebounding. 

Morgans expects prices will continue to progressively moderate downwards towards the broker's long-term price assumptions.

Mineral Resources has the largest upside in valuation across Morgans coverage of the Lithium sector. It's thought many in the market are ignoring the potentially high growth from management's continuing investment in the company's lithium and gas businesses.

Add rating and $93 target price are unchanged.

Target price is $93.00 Current Price is $70.30 Difference: $22.7
If MIN meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $89.71, suggesting upside of 29.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

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

Ord Minnett rates MYR as Hold (3) -

Ord Minnett expects improvements made in the underlying business performance of Myer by current CEO John King will remain after his departure in 2024.

The broker observes the "customer-first" strategy introduced in 2018 was highly effective in turning around the department store and building a stronger online channel, offering more sought-after brands exclusive to Myer.

While continuing to expect earnings will moderate in the near term as consumer spending slows, Ord Minnett believes the shares are slightly undervalued and retains a Hold rating. Target price is steady at $0.75.

Target price is $0.75 Current Price is $0.67 Difference: $0.08
If MYR meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.0

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

Morgans rates PLS as Add (1) -

Unless demand growth accelerates rapidly, lithium prices will struggle for gains and may soften further as production capacity increases in FY24, suggests Morgans. It's noted spot prices for lithium chemicals have stabilised after rebounding. 

Morgans expects prices will continue to progressively moderate downwards towards the broker's long-term price assumptions.

The broker's $5 target price is maintained. Add rating is retained on valuation grounds and to reflect the potential for capital management. The analysts also allow for a buy back of 10% of outstanding shares.

Target price is $5.00 Current Price is $4.56 Difference: $0.44
If PLS meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $4.99, suggesting upside of 7.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.6

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

Citi rates REA as Downgrade to Neutral from Buy (3) -

Clearance rates continue to be strong, house prices have returned to growth and lending commitments saw a month-on-month improvement in April, observes Citi.

Despite these improvements, Citi downgrades its rating for REA Group to Neutral from Buy on valuation. Target price rises to $145.20 from $141.30.

The broker expects yield growth will be the key driver of Residential depth revenue, and forecasts 18% year-on-year growth for the company.

While the analysts perceive risk to the listings outlook in 2023 from additional interest rate rises, the company has options to reduce the cost base which could offset any revenue headwinds in FY24.

Target price is $145.20 Current Price is $138.08 Difference: $7.12
If REA meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $125.06, suggesting downside of -8.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.4

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

UBS rates SGR as Buy (1) -

Labour shortages and supply chain challenges have delayed the Queen's Wharf opening by roughly four months to April, 2024. 

UBS believes this delay by Star Entertainment may be partly motivated by the need to 'de-risk' the new asset's performance over the critical summer holiday period. By the 2024-25 summer, Queen's Wharf will have had more than six months to ramp up.

The broker retains its Buy rating and $1.59 target price.

Target price is $1.59 Current Price is $1.19 Difference: $0.4
If SGR meets the UBS target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $1.58, suggesting upside of 37.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.5

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

Morgans rates SLH as Add (1) -

Morgans trims its Port Logistics revenue forecast for Silk Logistics by about -4% to align with the mid-point of management guidance.

The broker makes this change after total aggregate container throughput across Australia’s four major capital city ports fell by -6.4% year-on-year to the end of April this year.

The broker also adjusts its margin assumptions to reflect a modest step-up in employee costs.

Target price falls to $3.45 from $3.80 and the broker holds an Add rating. Investors are reminded the company's shares continue to trade at a discount to listed peers.

Target price is $3.45 Current Price is $2.10 Difference: $1.35
If SLH meets the Morgans target it will return approximately 64% (excluding dividends, fees and charges).

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

Shaw and Partners rates SND as Buy (1) -

Saunders International has secured a $42m contract with the BP Kwinana renewable fuels project. The scope involves 25 tanks at the energy hub being repurposed for feedstock or biofuels.

Shaw and Partners continues to forecast FY23 revenue of $190.5m and an EBIT margin of 6.8%. The broker remains impressed with the company which is well-placed to continue winning contracts and increase its return on invested capital.

Buy rating and $1.35 target price are unchanged.

Target price is $1.35 Current Price is $1.11 Difference: $0.24
If SND meets the Shaw and Partners target it will return approximately 22% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for 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

Shaw and Partners rates SRG as Buy (1) -

Shaw and Partners observes the share price of SRG Global has fallen by about -10% over the past two weeks which coincides with the announcement on May 23 that the managing director sold 2.5m shares to fund personal tax liabilities and a property purchase.

The broker finds nothing alarming in the announcement, as management of a small company is likely to have a large portion of personal wealth tied up, which can sometimes be needed for cash flow.

Hence, there is now a major buying opportunity, Shaw and Partners asserts, as the company has upgraded FY23 guidance twice and asset care is performing ahead of expectations. Moreover, contracts won in the year to date exceed $1bn.

Buy rating and $1.10 target price retained.

Target price is $1.10 Current Price is $0.67 Difference: $0.435
If SRG meets the Shaw and Partners target it will return approximately 65% (excluding dividends, fees and charges).

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 STO as Outperform (1) -

Value in Santos shares should be better recognised through the second half of 2023, Macquarie suggests. The PNG selldown (August 2023) and resumption of Barossa drilling (second half 2023) should be re-rating events, and buybacks should also expand in the second half.

The decision to delay a final investment decision on Dorado last year was prudent in the broker's view, given the unique cost and supply chain risks it would have needed to take on at that time. The deferral of the Dorado oil start-up is offset largely by the inclusion of a major Dorado gas phase.

Outperform retained. Target price rises to $10.10 from $10.05.

Target price is $10.10 Current Price is $7.52 Difference: $2.58
If STO meets the Macquarie target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $9.35, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

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

Market Sentiment: 0.8

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

Ord Minnett rates URW as Buy (1) -

Unibail-Rodamco-Westfield continues to sell assets near book value. Ord Minnett believes it does not make sense for the stock to trade at such a big discount unless it is forced into a dilutive equity raising, and its base case suggests this will not be required.

Catalysts for a re-rating could include an exit from the US and a focus on Europe along with a re-start of distributions in 2024 and debt reduction.

Ord Minnett expects such developments could put the business on the radar of REIT investors that abandoned the group in 2020 because of risks to the balance sheet, cancelled dividends and an uncertain strategy.

Ord Minnett retains a Buy rating and $7.80 target price.

Target price is $7.80 Current Price is $3.63 Difference: $4.17
If URW meets the Ord Minnett target it will return approximately 115% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY23:

Forecast for FY24:

This company reports in EUR. 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 WTC as Accumulate (2) -

WiseTech Global shares continue to screen undervalued despite a recent rally, Ord Minnett asserts. The broker believes the market is underestimating just how much CargoWise, its core product, helps customers outperform competition.

In comparing the share price performance of long-term CargoWise customers compared with the peer group, the broker has found that every customer of CargoWise outperformed.

Ord Minnett expects increased adoption of the broader product suite as network effects strengthen and maintains an Accumulate rating. Target price is $90.

Target price is $90.00 Current Price is $76.06 Difference: $13.94
If WTC meets the Ord Minnett target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $73.54, suggesting downside of -2.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.4

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