Australian Broker Call

Citi rates 29M as Buy (1) -

Citi retains its $3.20 target and Buy rating after 29Metals met revised guidance for FY21 via 4Q results. Copper production was a 10% beat versus the broker's estimates though Zinc production of 12.1kt was an around -4kt miss. All in sustaining costs (AISC) were in-line.

The analyst expects valuation support in the near term from strong zinc prices, and consistent operational results should provide medium-term support.

Target price is $3.20 Current Price is $2.83 Difference: $0.37
If 29M meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Credit Suisse rates 29M as Downgrade to Neutral from Outperform (3) -

Following December quarter results, Credit Suisse downgrades its rating for 29Metals to Neutral from Outperform and lowers its target price to $2.75 from $3.40.

Production was a beat for the quarter versus the analyst's estimate for Capricorn Copper. However, there was disappointing overall FY22 guidance due to permit delays, wet weather and production challenges. The broker also incorporates higher FY23 costs into the forecast.

Target price is $2.75 Current Price is $2.83 Difference: minus $0.08 (current price is over target).
If 29M meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $3.15, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Macquarie rates 29M as Outperform (1) -

Macquarie reports 29Metals' fourth quarter was a mixed bag, with copper production as predicted and a slight revenue beat largely offset by increased costs, but eyes are on a weaker than expected 2022 forecast.

With the outlook for the year ahead not as expected, impacted by higher operating costs and lower by-product output, the broker decreases copper and zinc production forecasts -6% and -13% and increases operating costs 12%, in line with company guidance. 

The Outperform rating is retained and the target price decreases to $3.50 from $3.60.

Target price is $3.50 Current Price is $2.83 Difference: $0.67
If 29M meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgan Stanley rates 29M as Overweight (1) -

29Metals' December quarter copper output was a 21% beat versus Morgan Stanley's estimate, while zinc, gold and silver also outperformed. However, management's absolute cost base guidance was an around -10% miss.

The broker lowers its target price to $3.15 from $3.25 and retains its Overweight rating. The industry view is In-Line.

Target price is $3.15 Current Price is $2.83 Difference: $0.32
If 29M meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $3.15, suggesting upside of 16.2% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.8

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

Morgans rates ADH as Add (1) -

Distribution centre costs were largely responsible for a greater impact upon Adair's margins than Morgans had anticipated. Also, management's amended 1H earnings (forecast) was an -8-10% miss versus the analyst's prior forecast.

The broker lowers its target price to $3.70 from $4.80 though highlights the trading update was more disappointing than disastrous. It's thought the estimated FY23 price earnings ratio of 7.6x and currently attractive dividend yield are enough to retain an Add rating.

Target price is $3.70 Current Price is $2.99 Difference: $0.71
If ADH meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting upside of 45.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

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

Adairs interim financials update showed a company impacted by store closures, in the view of Ord Minnett. Plus there was negative impact from supply chain costs and higher advertising spend.

The first impact might be one-off, the latter two are not, in the broker's view.

Given higher uncertainty also including a possible moderation in customer traffic to stores in the second half, Ord Minnett has decided to downgrade to Hold from Accumulate.

Price target falls to $3.90 from $4.10 on reduced forecasts.

Target price is $3.90 Current Price is $2.99 Difference: $0.91
If ADH meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting upside of 45.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

UBS rates ADH as Buy (1) -

Adairs' soft market update proved softer-than-expected with UBS's analysis suggesting the miss might be in the order of -10% underlying.

The broker zooms in on the greater-than-expected slow down in online sales. Supply chains related delays have been affecting online sales over the Christmas period, according to the analysts.

UBS says it is not concerned about what likely will prove a temporary set-back. The general assessment is that the shares have been sold off too far. Target price only declines by -3% to $5.70.

Target price is $5.70 Current Price is $2.99 Difference: $2.71
If ADH meets the UBS target it will return approximately 91% (excluding dividends, fees and charges).

Current consensus price target is $4.43, suggesting upside of 45.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.7

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

Macquarie rates AMC as Outperform (1) -

Macquarie expects Amcor will report a solid first half result, anticipating a profit after tax increase of 9% on the previous corresponding period, representing 45.6% of the full year forecast and leaving the company on track for the full year forecast given a second half profit weighting.

The broker highlights raw material and supply chain issues in the last year were well managed by Amcor, but pressure is expected to persist. Up to 15% price rises for products, announced in December, reflect these cost pressures and are in line with global peers. 

The Outperform rating is retained and the target price increases to $18.24 from $18.00.

Target price is $18.24 Current Price is $16.84 Difference: $1.4
If AMC meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $18.30, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.6

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

Citi rates BWX as Buy (1) -

Cit reiterates its Buy rating for BWX in advance of February 25 1H results despite elevated covid uncertainty in its business markets. The analyst anticipates 'strong' sales and earnings growth.

The broker sees a significant distribution growth opportunity in the US and Europe and potential growth for the direct-to-customer (DTC) platforms. The $5.70 target price and Buy rating are unchanged.

Target price is $5.70 Current Price is $3.63 Difference: $2.07
If BWX meets the Citi target it will return approximately 57% (excluding dividends, fees and charges).

Current consensus price target is $5.73, suggesting upside of 62.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgan Stanley rates CHC as Downgrade to Equal-weight from Overweight (3) -

Morgan Stanley downgrades its rating for Charter Hall Group to Equal-weight from Overweight as record inflows and strong upward revaluations may subside as global bond yields continue to rise.

The company's price earnings multiple traditionally has a strong correlation with the 10-year Australian bond yield, explains the analyst.

 Overweight rating. Target lowered to $19.88 from $23.15. Industry view is In-Line.

Target price is $19.88 Current Price is $17.68 Difference: $2.2
If CHC meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $21.96, suggesting upside of 32.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Credit Suisse rates COH as Upgrade to Outperform from Neutral (1) -

Credit Suisse upgrades its rating for Cochlear to Outperform from Neutral on valuation grounds. While the stock is back trading at pre-covid levels, the company's market share of 60% is expected to be maintained in FY22, up from 53% in FY19.

Ahead of 1H results, the analyst sees a low risk to FY22 earnings guidance and conservatively forecasts FY22 profit of $270m versus guidance for $265m-$285m. The $235 target price is unchanged.

Target price is $235.00 Current Price is $193.10 Difference: $41.9
If COH meets the Credit Suisse target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $216.50, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates CPU as Outperform (1) -

Credit Suisse feels Computershare is more likely to reconfirm FY22 guidance at 1H results (rather than an upgrade) given mixed activity trends.

Nonetheless, the broker feels there is 2H upside bias from a higher rate of M&A completions, rate rises or a faster-than-expected mortgage servicing recovery. The target price is therefore raised to $25.20 from $23.20, while the Outperform rating is unchanged.

Target price is $25.20 Current Price is $19.72 Difference: $5.48
If CPU meets the Credit Suisse target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $19.74, suggesting upside of 3.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.1

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

Macquarie rates DHG as Neutral (3) -

Macquarie expects Domain Holdings Australia to report solid listing growth within first half results. Web tracking suggests continued market strength has driven 9% volume growth in the half in an already record listing volume calendar year. 

Looking past the first half, the broker highlights an expected decline in building commencements likely suggests a similar deceleration of media ad revenue over the coming years which presents downside risk to earnings per share forecasts. 

The broker looks to commentary on sustainable growth strategy for improved confidence. Earnings per share forecasts decrease -7%, -10%, -10% and -11% through to FY25.

The Neutral rating is retained and the target price increases to $4.90 from $4.80.

Target price is $4.90 Current Price is $4.77 Difference: $0.13
If DHG meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $5.54, suggesting upside of 16.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

Morgan Stanley rates IAG as Underweight (5) -

Consumer Data Right (CDR) is broadening to "Open Finance" from Open Banking, with targeted datasets from general insurance, super, non-bank lending and merchant acquiring.

Morgan Stanley had previously pointed to this risk (for Insurance Australia Group) of allowing consumers to compare and save, not only in the banking sphere.

The broker's Underweight rating and target price of $3.80 are retained as "Open Finance" will initially focus on limited data types from these new segments. Industry view: In-Line.

Target price is $3.80 Current Price is $4.38 Difference: minus $0.58 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.06, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

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

UBS rates IPL as Buy (1) -

UBS retains its Buy rating following a positive market update by Incitec Pivot that saw the company reiterating its guidance for the two key divisions of fertiliser and explosives.

With fertiliser prices on the rise, UBS has lifted its price forecast with follow-through impact on forecasts. FY22 EPS estimate has been lifted by 25%.

The broker sees ongoing strong growth from fertiliser pricing and projects the company might be able to consider capital management options by the end of FY22.

Price target lifts to $3.95 from $3.60.

Target price is $3.95 Current Price is $3.35 Difference: $0.6
If IPL meets the UBS target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $3.92, suggesting upside of 19.0% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgans rates LVH as Add (1) -

Livehire's 2Q trading update was in-line with Morgans expectations and highlighted the improving trajectory in the domestic SaaS business, with a net gain of 14 clients (versus three in the 1Q).

The analyst also highlights the North American Direct Sourcing business (DS) is on-track to meet its targeted client base by the end of FY22.

The Add rating and $0.53 target price are unchanged.

Target price is $0.53 Current Price is $0.38 Difference: $0.15
If LVH meets the Morgans target it will return approximately 39% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Morgans rates PTB as Add (1) -

Preliminary 1H profit (NPBTFX) results exceeded PTB Group's guidance and was a 2% beat versus Morgans estimate. Management didn't amend guidance though pointed to strong trading conditions in the US and Asia-Pacific.

Morgans raises its target price to $1.27 from $1.21 and sees a potential 12-month total shareholder return of 11%, even before potential upside from acquistions. The Add rating is maintained.

Target price is $1.27 Current Price is $1.20 Difference: $0.07
If PTB meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

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

Macquarie expects REA Group to report solid listing growth within first half results. Web tracking suggests continued market strength has driven 15% volume growth in the half in an already record listing volume calendar year. 

Looking past the first half, the broker highlights an expected decline in building commencements likely suggests a similar deceleration of media ad revenue over the coming years which presents downside risk to earnings per share forecasts. 

The broker looks to commentary on sustainable growth strategy for improved confidence. Earnings per share forecasts are updated 5%, -3%, -4% and -4% through to FY25.

The rating is downgraded to Neutral from Outperform and the target decreases to $162.00 from $192.00.

Target price is $162.00 Current Price is $151.02 Difference: $10.98
If REA meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $169.89, suggesting upside of 15.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates RMD as Outperform (1) -

Macquarie expects supply chain constraints will be a headline of ResMed's upcoming second quarter results given recent commentary on impacts of supply pressures in the December quarter. 

Results may include incremental device revenue benefits from the Philips recall. The company expects full year benefits of US$300-350m, but Macquarie expects a lower December quarter benefit given supply constraints, before rising in the June quarter. 

Looking ahead, increased capacity for new patient diagnosis and capacity for ResMed to increase manufacturing output and market share supports a strong growth thesis into FY23. 

The Outperform rating is retained and the target price decreases to $38.40 from $39.00.

Target price is $38.40 Current Price is $32.73 Difference: $5.67
If RMD meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $39.27, suggesting upside of 20.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Ord Minnett rates RMD as Upgrade to Buy from Hold (1) -

ResMed has been upgraded to Buy from Hold as Ord Minnett anticipates FY22 will mark another strong performance for the company as it takes full advantage of competitor Philips' product recall woes.

The broker anticipates supply chain limitations will be resolved and remains confident ResMed has both the product range and sales force to ensure it holds onto material market share gains once Philips gets its act together again.

Target price rises to $37.90 from $36. Small cuts have been made to forecasts in recognition of ongoing supply chain challenges in the short term.

Target price is $37.90 Current Price is $32.73 Difference: $5.17
If RMD meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $39.27, suggesting upside of 20.2% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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 RRL as Neutral (3) -

Following December quarter results, Citi lowers its target price for Regis Resources to $2.15 from $2.70. 

The lower target price and Neutral rating stem from a guidance downgrade, operational issues at Duketon and delayed progress at McPhillamys.

Target price is $2.15 Current Price is $1.80 Difference: $0.35
If RRL meets the Citi target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Credit Suisse rates RRL as Outperform (1) -

Regis Resources' December-quarter production was -9% below Credit Suisse's forecast, (driven by less ore milled and lower grades at Duketon) and -10% adrift of the consensus estimate. In addition, production guidance at Duketon was lowered.

While the analyst maintains an Outperform rating, the target price falls to $2.25 from $2.50. Earnings estimates are lowered by -11% in FY22 reflecting a -5% reduction to production estimates and a 13% increase in costs. 

Target price is $2.25 Current Price is $1.80 Difference: $0.45
If RRL meets the Credit Suisse target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates RRL as Outperform (1) -

A pit slip at Regis Resources' Rosemount Main has seen the company permanently halt activity in the open pit, and driven a reduction in full year guidance with Macquarie noting production guidance decreased to 420-475,000 ounces from 460-515,000 ounces.

Given pit activity was scheduled to conclude in FY22 the company suggests the slip does not materially impact long-term plans for the site. The company also reported a softer than expected second quarter with production -11% below Macquarie's estimate.

All eyes are now on approvals for the McPhillamys project as key to the company's longer-term outlook.

The Outperform rating is retained and the target price decreases to $2.40 from $2.50.

Target price is $2.40 Current Price is $1.80 Difference: $0.6
If RRL meets the Macquarie target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Morgan Stanley rates RRL as Overweight (1) -

December quarter gold production for Regis Resources was a -21% miss versus Morgan Stanley's estimate and all in sustaining costs were a -17% miss.

FY22 guidance at Duketon was reduced (lowering group production and increasing costs) as the result of a geotechnical incident and the broker lowers its target price to $2.15 from $2.35 as a result. Overweight maintained. Industry view: In-Line.

Target price is $2.15 Current Price is $1.80 Difference: $0.35
If RRL meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

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

Morgans believes negative sentiment towards Regis Resources will outlast the operational impact (six months) from downgraded production at the Rosemount open pit, resulting from a wall slip. This follows other geotechical issues 18 months earlier.

As a result, the broker reduces its rating to Hold from Add and the target price falls to $2 from $3.03. It's thought more clarity on the medium-term production outlook, followed by execution, may unwind some of the current share price discount.

Target price is $2.00 Current Price is $1.80 Difference: $0.2
If RRL meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $2.19, suggesting upside of 25.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Citi rates S32 as Buy (1) -

Citi points out increasing inflationary pressures (higher raw material input costs) were evident in South32's December quarter production result. Metallurgical coal and manganese production were weaker than expected and manganese volume guidance was reduced.

Despite the above, the broker maintains its Buy rating and $4.45 target price as commodity prices are running ahead of forecasts.

Target price is $4.45 Current Price is $3.94 Difference: $0.51
If S32 meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Credit Suisse rates S32 as Outperform (1) -

Credit Suisse assesses a mixed December quarter for South32 with alumina and aluminium production in-line while manganese and metallurgical coal were misses due to weather.

Management lowered FY22 production guidance by -9% on weather and shortage of labour. Offsetting this in the analyst's forecasts are increased earnings estimates for FY22/23 on better realised pricing and the application of higher aluminium premiums.

The Outperform rating and $5.30 target price are unchanged.

Target price is $5.30 Current Price is $3.94 Difference: $1.36
If S32 meets the Credit Suisse target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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 S32 as Outperform (1) -

A mixed bag from South32 in the second quarter according to Macquarie, with below expectation coal and manganese production largely offset by solid production from the Cannington mine.

While South32 benefited from strong realised price increases and a guidance upgrade of around 5% for Cannington, GEMCO was downgraded -9% given weather impacts. Earnings per share forecasts decrease -10% in FY22 and -2-4% between FY23-27.

The Outperform rating is retained and the target price decreases to $4.80 from $5.00.

Target price is $4.80 Current Price is $3.94 Difference: $0.86
If S32 meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 28.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 1.0

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

Ord Minnett rates S32 as Buy (1) -

South32's Q2 update revealed cost pressures remain an ongoing challenge, observes Ord Minnett, while pricing achieved provided some offsett against a background of a mixed production report.

Earnings estimates have been lowered following the incorporation of higher costs. The broker continues to see strong valuation support with a projected free cash flow yield in excess of 20% on FY23 estimates.

Buy rating retained with a price target of $4.80 versus $4.90 prior.

Target price is $4.80 Current Price is $3.94 Difference: $0.86
If S32 meets the Ord Minnett target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $4.79, suggesting upside of 28.0% (ex-dividends)

Forecast for FY22:

Forecast for FY23:

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

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

Consumer Data Right (CDR) is broadening to "Open Finance" from Open Banking, with targeted datasets from general insurance, super, non-bank lending and merchant acquiring.

Morgan Stanley had previously pointed to this risk (for Suncorp Group) of allowing consumers to compare and save, not only in the banking sphere.

The broker's Equal-Weight rating and target price of $11.90 are retained as "Open Finance" will initially focus on limited data types from these new segments. Industry view: In-Line.

Target price is $11.90 Current Price is $11.23 Difference: $0.67
If SUN meets the Morgan Stanley target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $13.24, suggesting upside of 20.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.6

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

Macquarie rates TAH as Outperform (1) -

Ahead of Tabcorp Holding's first half results Macquarie is forecasting underlying earnings of $528m, noting the figure is a -6% year-on-year decline cycling off covid benefits in the previous comparable period. 

Lotteries and Keno offered the largest division growth, and the broker expects further information on the demerger of the division in April. Lottery prize pools look to have increased 20% in the half, driving a 7% increase to the broker's FY22 lottery revenue forecasts.

The Outperform rating is retained and the target price decreases to $6.45 from $6.55. 

Target price is $6.45 Current Price is $5.05 Difference: $1.4
If TAH meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.50, suggesting upside of 10.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

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

Macquarie rates WAF as Outperform (1) -

West African Resources closed out 2021 with production of 8,700 ounces a beat on the top end of guidance, and while all in sustaining costs were within guidance range Macquarie notes the Sanbrado project drove a 7% beat on all in sustaining costs for the fourth quarter. 

The company also completed repayment of the Taurus debt facility during the quarter and reported a closing cash balance of $183m. The broker notes 2022 guidance, a potential resource update and Kiaka project feasibility study results will be important for the company's outlook.

The Outperform rating and target price of $1.60 are retained.

Target price is $1.60 Current Price is $1.27 Difference: $0.33
If WAF meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 1.0

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