Australian Broker Call

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

Abacus Property intends to de-staple its storage business by August. Macquarie estimates the stock is currently trading at a -19% discount to listed peers and the de-stapling will result in a neutral outcome for current shareholders.

The key to a re-rating will be the market pricing of the new entity. While market pricing is uncertain the broker believes the current valuation of Abacus Property is attractive.

As Macquarie is comfortable about the financial outcomes from de-stapling the rating is upgraded to Outperform from Neutral. Target is $2.90.

Target price is $2.90 Current Price is $2.58 Difference: $0.32
If ABP meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $3.19, suggesting upside of 23.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.9

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

Ord Minnett rates ACL as Initiation of coverage with Hold (3) -

Ord Minnett initiates coverage on Australian Clinical Labs with a Hold rating and $3.50 target. The broker suspects the market is underestimating the extent of the recovery in doctor visits and subsequently the company's pathology volumes.

Through new bulk billing incentives Medicare is set to cover more general practitioner appointments, particularly for children, pensioners and people in rural areas.

This should in turn improve volumes for diagnostic testing and, as the country's third-largest private pathology provider, the business is positioned to benefit.

Target price is $3.50 Current Price is $3.30 Difference: $0.2
If ACL meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

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

Ord Minnett rates ANN as Upgrade to Accumulate from Hold (2) -

The share price of Ansell has moved through Ord Minnett's trigger level and the rating is upgraded to Accumulate from Hold. Target is $30.

Target price is $30.00 Current Price is $25.91 Difference: $4.09
If ANN meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $26.93, suggesting upside of 3.5% (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: 0.1

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

Citi rates ANZ as Buy (1) -

The Citi Economics team now expects two additional 25bpts cash rate rises for a terminal rate of 4.6% by August, based on more hawkish RBA commentary of recent months.

As a result of this view, the broker revises its net interest margin (NIM) assumptions for a number of factors including the benefit to ANZ of a repricing of at-call deposits. Elevated at-call to term deposit switching is considered a slight offset.

Citi adjusts its FY23-25 cash earnings forecasts by 2%, 1% and -2%, respectively, to allow for revised NIM assumptions and the removal of the impact of a ANZ/Suncorp Group ((SUN)) merger from forecasts on likely ACCC opposition. 

The Buy rating is maintained and the target rises to $27.00 from $26.50. Citi forecasts rate cuts will begin early next year and reach 3.35% by June 2024.

Target price is $27.00 Current Price is $23.13 Difference: $3.87
If ANZ meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $26.49, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates APE as Overweight (1) -

Eagers Automotive has announced an around 5.7% stake in McMillan Shakespeare which could lead to greater alignment for both companies, though Morgan Stanley highlights the announcement is merely a disclosure at this stage.

Potential advantages for Eagers Automotive include less cyclical earnings from novated leases and the opportunity to gain incremental volumes across new, used as well as parts & service.

Overweight. Target $15.00. Industry view: In-Line.

Target price is $15.00 Current Price is $12.47 Difference: $2.53
If APE meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $14.41, suggesting upside of 12.5% (ex-dividends)

The company's fiscal year ends in December.

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

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

As the share price of AUB Group has moved through the trigger level Ord Minnett downgrades to Hold from Accumulate. Target is $29.

Target price is $29.00 Current Price is $27.51 Difference: $1.49
If AUB meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $29.59, suggesting upside of 8.4% (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

Bell Potter rates AVG as Hold (3) -

Australian Vintage's FY23 revenue and earnings guidance are broadly in line with Bell Potter's expectations. Revenue is expected to fall into the range of $255-260m with EBITDAS of $26-28m. This excludes the impact of a $9m fixed cost write-off taken below the line.

Growing conditions worsened during key yield months earlier this year and the crush came in materially below forecasts. Yet Bell Potter notes the business continues to win market share in premium products segments.

EPS estimates are reduced by -10-20% across FY23-25. Hold maintained. Target is reduced to $0.50 from $0.65.

Target price is $0.50 Current Price is $0.45 Difference: $0.05
If AVG meets the Bell Potter target it will return approximately 11% (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

Citi rates CBA as Sell (5) -

The Citi Economics team now expects two additional 25bpts cash rate rises for a terminal rate of 4.6% by August, based on more hawkish RBA commentary of recent months.

As a result of this view, the broker revises its net interest margin (NIM) assumptions for a number of factors including the benefit to CommBank of a repricing of at-call deposits.

This benefit has slight offsets including elevated at-call to term deposit switching, explains the analyst.

The target rises to $82.50 from $80. Sell. Citi forecasts rate cuts will begin early next year and reach 3.35% by June 2024.

Target price is $82.50 Current Price is $96.52 Difference: minus $14.02 (current price is over target).
If CBA 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 $89.60, suggesting downside of -8.6% (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

Citi rates CHC as Buy (1) -

June 2023 revaluations across Charter Hall's funds platform highlights to Citi pressures upon the long WALE retail and Office portfolios, which recorded valuation declines of -8% and -4%, respectively, over the last six months.

More positively, Industrial was flat and Social Infrastructure gained 0.8%. The latter includes healthcare and childcare assets.

The analysts point out cap rates have expanded across the board by 18-41bps, with income growth offsetting for some property types.

As for other recent peer revaluation updates, Citi suggests valuation declines were slower than the market anticipated.

The Buy rating and $14.60 target are unchanged.

Target price is $14.60 Current Price is $10.79 Difference: $3.81
If CHC meets the Citi target it will return approximately 35% (excluding dividends, fees and charges).

Current consensus price target is $14.79, suggesting upside of 37.6% (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

Macquarie rates CHC as Outperform (1) -

Macquarie attended a development briefing from Charter Hall. The development pipeline has grown to $14m, driven by office and industrial.

The company has highlighted the importance of this business as a means of accessing prime product at lower pricing, rather than acquiring it in established markets.

Development margins, in terms of expected returns, begin at 10% for core industrial and are higher for office, the broker observes. Macquarie lauds the strong track record in raising and deploying capital and retains an Outperform rating and $14.75 target.

Target price is $14.75 Current Price is $10.79 Difference: $3.96
If CHC meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $14.79, suggesting upside of 37.6% (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

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

Following external valuations of 98% of Charter Hall's assets for June 2023 revaluations, Morgan Stanley notes Industrial is robust with a 35bps cap rate expansion having no impact on valuation.

However, there may be more asset declines in store for Office, suggest the analysts, who feel the -3.7% devaluation was conservative.

Total Property asset under management (AUM) is expected to be around $72bn at the end of FY23, down from $73bn in December 2022, and the cap rate uplift across the portfolio was 32bps.

Target price is steady at $14.40. Equal-weight. Industry view: In Line.

Target price is $14.40 Current Price is $10.79 Difference: $3.61
If CHC meets the Morgan Stanley target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $14.79, suggesting upside of 37.6% (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

UBS rates CHN as Initiation of coverage with Sell (5) -

UBS initiates coverage on Chalice Mining with a Sell rating and $6 target. While the Julimar project in Western Australia is significant there are challenges around optimising the large but lower-grade resource.

The broker models a 10mtpa base case producing 350,000 ozpa of PGE. A staged approach should help reduce the risks but the ongoing optimisation process and subsequent delays to initial scoping studies show the pathway to monetising the inventory remains complicated.

Target price is $6.00 Current Price is $6.90 Difference: minus $0.9 (current price is over target).
If CHN meets the UBS target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.73, suggesting upside of 23.6% (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 CLW as Equal-weight (3) -

Morgan Stanley determines shares of Charter Hall Long WALE REIT are now trading around a -28% discount to net tangible assets (NTA) following June 2023 valuations. Pro forma NTA is expected to decline by -9.3% to $5.65.

The overall cap rate expanded by 36bps to 4.77%, representing a net decline of -5.8% from December 2022 valuations.

Looking at valuations across segments, the broker notes the biggest impact is on long-duration assets with fixed rental increases (not linked to CPI). Sectors with strong rental growth, like Industrial, proved more resilient.

The Equal-weight rating and $4.85 target are unchanged. Industry View: In-Line.

Target price is $4.85 Current Price is $4.06 Difference: $0.79
If CLW meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $4.76, suggesting upside of 16.9% (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

Citi rates CQR as Buy (1) -

Citi points out Charter Hall Retail REIT shares are trading at an around -27.5% share price discount to disclosed net tangible assets (NTA) following June revaluations.

The portfolio cap rate increased by 29bps to 5.57% and the overall portfolio value for the REIT decreased by -5.6% on the December 2022 NTA level.

The Buy rating and $4.50 target are unchanged.

Target price is $4.50 Current Price is $3.61 Difference: $0.89
If CQR meets the Citi target it will return approximately 25% (excluding dividends, fees and charges).

Current consensus price target is $4.31, suggesting upside of 18.3% (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

Macquarie rates DEG as Outperform (1) -

De Grey Mining has updated on the Mallina gold project. The overall resource has grown 10% with key areas of growth including a 1m resource increase at Hemi. All deposits are open at depth. Measured and indicated resources are up 18%.

The updated resource estimate will be used to inform the definitive feasibility study.

Macquarie does not include the potential of an underground operation in its base case but accepts an underground at Hemi could both extend the mine life for Mallina and incrementally boost production via higher-grade ore feed.

Outperform rating and $1.90 target retained.

Target price is $1.90 Current Price is $1.27 Difference: $0.625
If DEG meets the Macquarie target it will return approximately 49% (excluding dividends, fees and charges).

Current consensus price target is $1.82, suggesting upside of 33.6% (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

UBS rates DEG as Buy (1) -

De Grey Mining has added to the Mallina resource and, significantly, increased the measured and indicated category by 1.1m ozs. Hence, a larger and higher-confidence inventory forms the basis of the definitive feasibility study due in the September quarter.

UBS continues to model a 20-year mine life producing 500,000 ozpa. A large gold inventory is underpinning an increasingly scarce and valuable long-life project, the broker adds. Buy rating retained. Target edges down to $1.75 from $1.80.

Target price is $1.75 Current Price is $1.27 Difference: $0.475
If DEG meets the UBS target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $1.82, suggesting upside of 33.6% (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

Bell Potter rates DGL as Buy (1) -

DGL Group's trading update was below expectations and prior guidance, with FY23 EBITDA now expected to be in the range of $64-66m. The main driver of the downgrade was cost increases in the environmental division.

The company has indicated that cash conversion is close to 100% and inventory levels have normalised. Strong demand continues for the products and services.

Bell Potter's longer-term view on the industry consolidation strategy remains constructive, with recent cash flow generation and deleveraging, if sustained, providing the potential for further M&A.

Buy rating unchanged. Target is reduced to $1.25 from $2.15.

Target price is $1.25 Current Price is $0.96 Difference: $0.29
If DGL meets the Bell Potter target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 36.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

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

Implied 2H earnings have been cut by -17-18%, explains Morgans, after DGL Group lowered underlying earnings (EBITDA) guidance by -10% to a range of $64-66m.

Cost increases across the board and particularly in the Environmental division were responsible for the lower guidance, explains the analyst. Management also cited the impacts of rising wages, some raw material costs and increased dumping charges.

The broker decides to downgrade its rating to Hold from Add and lowers its target to $1.00 from $2.10 on lower earnings forecasts and after applying a -20% discount to reflect increased earnings uncertainty.

Target price is $1.00 Current Price is $0.96 Difference: $0.04
If DGL meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 36.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

UBS rates DGL as Neutral (3) -

DGL Group has downgraded FY23 EBITDA guidance to $64-66m with the primary driver being broad-based cost inflation. UBS notes this impacts all lines of the business, including labour, consumables, insurance and transport.

The broker also estimates organic earnings growth in the chemical segment has dramatically slowed and the outlook for growth in FY24 is uncertain. Estimates for the medium term are reduced and the broker retains a Neutral rating. Target is reduced to $1.15 from $2.10.

Target price is $1.15 Current Price is $0.96 Difference: $0.19
If DGL meets the UBS target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $1.13, suggesting upside of 36.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Morgans rates EVN as Hold (3) -

Evolution Mining reiterated FY24 guidance of 770koz at an all-in sustaining cost (AISC) of $1,370 at its investor day. Also discussed was the expansion at Mungari, the Ernest Henry mine extension and optimisation works ar Red Lake and Cowal.

The broker notes Cowal and Red Lake are key drivers of the around 17% production lift implied by FY24 guidance compared to FY23. Alternatively, Cowal and Ernest Henry are considered key contributors to maintaining competitive costs.

Morgans target falls to $3.40 from $3.70 on conservative capex assumptions and the Hold rating is unchanged.

Target price is $3.40 Current Price is $3.30 Difference: $0.1
If EVN meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $3.31, suggesting downside of -1.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Bell Potter rates ING as Hold (3) -

Bell Potter reviews its estimates for Inghams Group in FY23-25, noting Australian industry production was down -3% in the third quarter after being flat throughout the first half.

Poultry price inflation in Australia was up 7% in the third quarter while NZ poultry price inflation was up 17%. The broker updates indicators for volume, pricing, feed cost futures and interest rates and the Hold rating is unchanged. Target is reduced to $2.80 from $2.90.

Target price is $2.80 Current Price is $2.70 Difference: $0.1
If ING meets the Bell Potter target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $3.08, suggesting upside of 14.6% (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 LGI as Hold (3) -

The trading update from LGI shows the business running ahead of prospectus forecasts on both revenue and EBITDA. This has been underpinned by higher biogas flows, improved margins on site infrastructure construction and better-than-expected pricing.

FY23 unaudited underlying revenue is now expected in a range of  $32.3-8m. EBITDA is now expected to be between $13.9-14.5m, which would represent growth of 10.2-15.3%.

A new landfill gas management contract has been announced with the Somerset Council in Queensland, sourced through a new channel to market which Bell Potter assesses is a pleasing development for future growth.

Hold maintained. Target rises to $2.77 from $2.56.

Target price is $2.77 Current Price is $2.51 Difference: $0.26
If LGI meets the Bell Potter target it will return approximately 10% (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

Citi rates LOV as Downgrade to Sell from Neutral (5) -

Citi downgrades its rating for Lovisa Holdings to Sell from Neutral on concerns declining foot traffic in general and weaker sales trends revealed by other retailers may impact.

More specifically, the analysts feel site selection criteria in the store rollout may be less stringent than before, and margins may reduce on staffing issues.

Moreover, the company has relatively less staff-per-store compared to other retailers and less flexibility to optimise store rosters to offset minimum wage headwinds, explains Citi. 

There is no indication the $25.75 target price has changed.

Target price is $25.75 Current Price is $18.55 Difference: $7.2
If LOV meets the Citi target it will return approximately 39% (excluding dividends, fees and charges).

Current consensus price target is $27.56, suggesting upside of 46.5% (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

Morgan Stanley rates MMS as Overweight (1) -

Eagers Automotive has announced an around 5.7% stake in McMillan Shakespeare which could lead to greater alignment for both companies, though Morgan Stanley highlights the announcement is merely a disclosure at this stage.

Potential advantages for McMillan Shakespeare of closer alignment, according to the analysts, include a greater certainty of supply, particularly relating to the shift toward electric vehicles and Eagers' exposure in that space.

Moreover, McMillan would retain brand choice for customers as Eagers represents the majority of brands.

Overweight rating and $17.50 target price retained. Industry view: In-line.

Target price is $17.50 Current Price is $17.50 Difference: $0
If MMS meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $15.72, suggesting downside of -6.6% (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

Citi rates NAB as Neutral (3) -

The Citi Economics team now expects two additional 25bpts cash rate rises for a terminal rate of 4.6% by August, based on more hawkish RBA commentary of recent months.

As a result of this view, the broker revises its net interest margin (NIM) assumptions for a number of factors including the benefit to National Australia Bank of a repricing of at-call deposits. Elevated at-call to term deposit switching is considered a slight offset.

Citi raises its FY23-25 cash earnings forecasts by 1-2% to allow for revised NIM assumptions.

The Neutral rating is maintained and $27.50 target are maintained. Citi forecasts rate cuts will begin early next year and reach 3.35% by June 2024.

Target price is $27.50 Current Price is $25.65 Difference: $1.85
If NAB meets the Citi target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $27.30, suggesting upside of 5.6% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: -0.3

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

Bell Potter rates NIC as Buy (1) -

Nickel Industries has announced a strategic partnership with a major Indonesian conglomerate, PT United Tractors and will issue 857m shares at $1.10 each for proceeds of $943m. PT United Tractors will hold 19.9% as a result.

The agreement includes a contributing 20% interest in the Excelsior nickel cobalt HPAL project. Bell Potter now believes the stock is an even more compelling opportunity with the funding overhang for the project now removed.

The company's aggressive growth outlook and undemanding valuation make it one of the broker's top picks and a Buy rating is retained. Target rises to $1.84 from $1.73.

Target price is $1.84 Current Price is $0.90 Difference: $0.94
If NIC meets the Bell Potter target it will return approximately 104% (excluding dividends, fees and charges).

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: 0.7

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

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

The analysts at Macquarie visited the Hengjaya nickel mine and the IMIP (Indonesia Morowali Industrial Park) and several RKEF, HPAL and stainless steel facilities.

The visit highlighted to the broker potential upside for Nickel Industries from a new haul road (opening soon) which will connect the Hengjaya nickel mine to IMIP. Haulage could increase by around 12mt per year.

In a positive announcement, according to Macquarie, a conditional 19.99% placement to United Tractors will help de-risk the balance sheet and result in a net cash position. The rating is upgraded to Outperform from Neutral and the target rises by 18.3% to $1.10.

Target price is $1.10 Current Price is $0.90 Difference: $0.2
If NIC meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges).

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: 0.7

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

Morgans rates PAN as Add (1) -

Panoramic Resources has missed FY23 guidance due to operational difficulties (failure of a filter press) at the Savannah Nickel Project, explains Morgans. Concentrate production is currently suspended and a replacement filter should be installed within four-six weeks.

The broker lowers its production forecasts toward the lower end of management's revised FY23 guidance and its target price falls to 20c from 23c, while the Add rating is unchanged.

Target price is $0.20 Current Price is $0.09 Difference: $0.107
If PAN meets the Morgans target it will return approximately 115% (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 PMT as Outperform (1) -

Patriot Battery Metals has recently completed a 2023 winter drilling program that focused on the CV5 pegmatite deposit. The recent assays have confirmed the eastward and westward extensions and featured high-grade intersections.

A resource estimate update is expected in July. Macquarie is encouraged by the latest drilling and maintains an Outperform rating. Target is $2.

Target price is $2.00 Current Price is $1.82 Difference: $0.185
If PMT meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY23:

Forecast for FY24:

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

Shaw and Partners rates PMV as Buy (1) -

Shaw and Partners believes, despite the "doom and gloom" across the retail sector this is the time to "get excited" about Premier Investments. The second half is likely to be in line and potentially ahead of expectations because of a solid first four months of trading.

The broker currently forecasts like-for-like sales across the majority of the company's brands to be down around -5% in FY24.

At current levels the broker believes the stock offers good value as it is back to close to the buy-back levels announced at the FY22 result. There is also a strong balance sheet,capital flexibility and special dividend potential.

Furthermore, gross margins are over 60% and the stores are smaller with short-term leases. Buy rating maintained. Target is $28.74.

Target price is $28.74 Current Price is $21.58 Difference: $7.16
If PMV meets the Shaw and Partners target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $26.92, suggesting upside of 23.4% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Shaw and Partners rates RFG as Buy (1) -

Shaw and Partners downgrades FY23 estimates for underlying EBITDA by -9%. After the trading update from Retail Food the broker notes the market reacted positively, as the business is still generating positive like-for-like sales growth even as peers are turning negative.

Earnings have now stabilised and Shaw and Partners observes the health of the network is in the best shape it has been for many years with legacy issues now behind the business.

The broker believes the stock has been significantly oversold and reiterates a Buy rating. Target is $0.12.

Target price is $0.12 Current Price is $0.05 Difference: $0.068
If RFG meets the Shaw and Partners target it will return approximately 131% (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 SOP as Buy (1) -

Shaw and Partners highlights Synertec as a high conviction choice amid potential catalysts in further Powerhouse purchase orders from Santos ((STO)).

Discussions are underway for large-scale commercial Powerhouse roll-out to additional Santos sites during the second half. There is also expansion potential in the US.

Although further execution is required to achieve the broker's forecasts, there are a number of transactions which could prove out potential multiples if the company manages to reach scale. Buy rating maintained. Target is $0.42.

Target price is $0.42 Current Price is $0.24 Difference: $0.185
If SOP meets the Shaw and Partners target it will return approximately 79% (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) -

SRG Global has secured a contract for specialist facades at One Circular Quay, valued at $40m. This contract brings the year-to-date wins to $1.055bn, which compares favourably to $628m for FY22.

Shaw and Partners asserts there is strong evidence the company is delivering on its strategy, and it is a lower risk investment when compared to many construction and mining service peers as a large portion of revenue is recurring.

The macro outlook across infrastructure, asset services, mining and select construction remains robust and the broker retains a Buy rating. Target is $1.10.

Target price is $1.10 Current Price is $0.71 Difference: $0.395
If SRG meets the Shaw and Partners target it will return approximately 56% (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

Ord Minnett rates SVW as Hold (3) -

Seven Group recently reiterated FY23 guidance for low to mid teens EBIT growth. Ord Minnett expects 11.7% growth in underlying EBIT, to $1.2 bn. Within the businesses, 16% EBIT growth is expected from WesTrac and 18.5% from Coates.

The broker's confidence in the healthy rates of revenue and margin improvement are underpinned by the recent investor briefing at the WesTrac facility in Tomago. This facility is considered uniquely placed to undertake Caterpillar equipment rebuilds and component re-manufacturing and exchange.

Hold rating maintained. Target is raised to $26.00 from $24.60.

Target price is $26.00 Current Price is $24.96 Difference: $1.04
If SVW meets the Ord Minnett target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $26.57, suggesting upside of 4.7% (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

Macquarie rates TCL as Outperform (1) -

Macquarie believes there are opportunities for Transurban Group from the Federal Government tolling review which has just commenced and will take 12 months to complete.

The government is seeking to address tolling inconsistencies, reduce tolling inequity and improve congestion. The broker feels Transurban may benefit from removal of concession inefficiencies and better targeting of revenue.

The Outperform rating and $14.72 target are retained.

Target price is $14.72 Current Price is $14.34 Difference: $0.38
If TCL meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $14.66, suggesting upside of 1.4% (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

Citi rates WBC as Neutral (3) -

The Citi Economics team now expects two additional 25bpts cash rate rises for a terminal rate of 4.6% by August, based on more hawkish RBA commentary of recent months.

As a result of this view, the broker revises its net interest margin (NIM) assumptions for a number of factors including the benefit to Westpac of a repricing of at-call deposits. Elevated at-call to term deposit switching is considered a slight offset.

Citi raises its FY23-25 cash earnings forecasts by1-3% to allow for revised NIM assumptions.

The Neutral rating is maintained and $22.50 target are maintained. Citi forecasts rate cuts will begin early next year and reach 3.35% by June 2024.

Target price is $22.50 Current Price is $20.60 Difference: $1.9
If WBC meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $23.45, suggesting upside of 12.3% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

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

Citi rates XRO as Buy (1) -

The lack of a price increase for Xero in the UK is a surprise to Citi especially given competitor Sage’s recent increase, though Sage is now essentially in-line with Xero.

Nonetheless, the announced increase in A&NZ pricing will increase group average revenue per user (ARPU) by 5%, assumes the broker.

Moreover, the price increase highlights the strong competitive position in A&NZ, note the analysts, and should help offset any potential decline in revenue from the macroeconomic backdrop 

Citi retains its $120 target and Buy rating.

Target price is $120.00 Current Price is $113.79 Difference: $6.21
If XRO meets the Citi target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $105.95, suggesting downside of -9.7% (ex-dividends)

The company's fiscal year ends in March.

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