Australian Broker Call

Bell Potter rates AVJ as Downgrade to Hold from Buy (3) -

Bell Potter reports that Proprium Capital Partners and AVID Property Group have submitted an unsolicited, incomplete, and non-binding proposal to acquire all shares in AV Jennings for 67c per share.

The AV Jennings Board has granted exclusivity until the end of January and intends to recommend and vote in favour of the offer, observes the broker. 

Bell Potter raises its target price to 67c from 45c to reflect the offer price but downgrades its rating to Hold from Buy following a substantial share price rally.

Target price is $0.67 Current Price is $0.62 Difference: $0.05
If AVJ meets the Bell Potter target it will return approximately 8% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.0

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

Shaw and Partners rates BVS as Buy (1) -

Shaw and Partners notes Bravura Solutions reiterated FY25 earnings guidance at the AGM.

Management highlighted the ongoing development of products sought by customers to support sustainable returns on investment. The broker is eager to observe progress with Midwinter and verticals into the workplace for enhanced earnings growth.

Bravura Solutions' return to profitability includes a capital return of $73.2m to shareholders and a $20m share buyback, starting on 2 September for 12 months.

The Buy rating and $1.70 target are retained. No changes to earnings forecasts.

Target price is $1.70 Current Price is $1.55 Difference: $0.15
If BVS meets the Shaw and Partners target it will return approximately 10% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

Bell Potter rates CAT as Buy (1) -

Given the ongoing rally in the ASX Technology sector and rising multiples for similar companies, Bell Potter raises its valuation multiple for Catapult International.

The terminal growth assumption is also increased to 5% from 4% to be consistent with other SaaS companies the broker covers like WiseTech Global ((WTC)) and TechnologyOne ((TNE)).

In common with these companies, Catapult has a large total addressable market (TAM) and a strong competitive position in its market, explain the analysts.

The target rises to $4.00 from $3.30. Buy.

Target price is $4.00 Current Price is $3.54 Difference: $0.46
If CAT meets the Bell Potter target it will return approximately 13% (excluding dividends, fees and charges).

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Bell Potter rates CU6 as Speculative Buy (1) -

The Clarity Pharmaceuticals' AGM provided various updates including the start of recruitment for the Co-PSMA trial, notes Bell Potter. Data from previous trials strongly suggested 64Cu SAR-bisPSMA will outperform 68Ga-PSMA11 in the detection of early-stage tumours.

Management also noted the last patient in the Disco trial evaluating the 64Cu SARTATE asset for the imaging of Neuroendocrine tumours has completed his/her final assessment. Next step is release of final results in the 1H of 2025, highlights the broker.

The Speculative Buy rating is maintained with $10 target price.

Target price is $10.00 Current Price is $6.36 Difference: $3.64
If CU6 meets the Bell Potter target it will return approximately 57% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Citi rates FPH as Sell (5) -

Fisher & Paykel Healthcare reported 1H25 revenue and earnings slightly above consensus estimates, Citi notes. Reported net profit after tax was -3% below consensus due to FX impacts.

The broker identifies a boost from flu activity and higher post-COVID hospitalisations as drivers for 1H25 results.

Management retained FY25 guidance, including expectations for a more "moderate" flu season, which may limit earnings upgrades.

Citi reduces EPS forecasts by -2.2% and -0.9% for FY25 and FY26, respectively.

No change to the Sell rating with a NZ$33.50 target price.

Current Price is $33.85. Target price not assessed.

Current consensus price target is $23.06, suggesting downside of -33.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.0

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

Macquarie rates FPH as Outperform (1) -

Fisher & Paykel Healthcare's 1H earnings (EBIT) exceeded Macquarie's forecast due to higher new applications revenue, strong Hardware sales, and lower operating expenses. Higher-than-expected interest costs and a higher tax rate led to a -1% profit miss.

The broker expects new applications to drive increased penetration in the addressable market over the next ten years, supporting long-term growth opportunities.

Management has reiterated its FY25 guidance.

Macquarie slightly lowers its target price to NZ$41.70 from NZ$41.80 but retains an Outperform rating, citing a favourable growth trajectory for Hospitals and Homecare alongside anticipated margin expansion.

Current Price is $33.85. Target price not assessed.

Current consensus price target is $23.06, suggesting downside of -33.2% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

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

Market Sentiment: 0.0

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

Citi rates HUB as Neutral (3) -

Citi's observations from Hub24's Investor Day reveal approximately 50% of the flows into the Discover menu are generated by industry funds. The analyst believes this indicates the size of the total addressable market for the company.

Management reiterated FY26 funds under administration guidance of $115bn-$123bn and is currently tracking ahead. FY25 guidance on capex was lower than expected, while depreciation/amortisation was higher by approximately 4%, implying downgrades to consensus FY25 net profit estimates.

Citi highlighted Hub24 focused on discussing the long-term strategy and drivers, with comparatively little detail on short-term financials.

Neutral. Target $56.70.

Target price is $56.70 Current Price is $75.95 Difference: minus $19.25 (current price is over target).
If HUB meets the Citi target it will return approximately minus 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $60.39, suggesting downside of -19.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

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

Despite lower EPS forecasts due to higher-than-expected D&A charges revealed at Hub24's investor day, Ord Minnett raises its target to $73 from $68 and downgrades to Hold from Accumulate after recent share price strength.

The broker's key takeaway from the investor day is the upside potential from the company's low account balance platform, Discover, as the target market is substantial and incumbent providers lack product features and flexibility.

Target price is $73.00 Current Price is $75.95 Difference: minus $2.95 (current price is over target).
If HUB meets the Ord Minnett target it will return approximately minus 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $60.39, suggesting downside of -19.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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 HUM as Initiation of coverage with Buy (1) -

haw and Partners initiates coverage of Humm Group with a Buy rating and a $1 target price.

The broker considers the stock to be trading at an attractive valuation of 4x FY26 earnings, with potential for double-digit earnings growth from restructuring benefits in FY27.

Humm's Flexicommercial accounts for 65% of profit before tax and is the leading non-bank asset financier to SMEs in A&NZ, according to the broker.

An easing interest rate environment is expected to slightly improve the net interest margin. Australian consumer finance is anticipated to become profitable in FY25, with the international segment breaking even.

Buy rating maintained. Target $1.

Target price is $1.00 Current Price is $0.68 Difference: $0.32
If HUM meets the Shaw and Partners target it will return approximately 47% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.5

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

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

Morgan Stanley raises its target for Insurance Australia Group to $7.55 from $7.10 following a proposed RACQ deal offering potential for around 4% EPS accretion.

IAG is acquiring 90% of RACQ Insurance and a 25-year distribution agreement with RACQ motor club for -$855m in cash, funded from excess capital. Management at IAG is targeting reinsurance as the source of synergies, explains the broker.

Buying RACQ would help address IAG's low market share in the fast-growing Queensland market, note the analysts.

Equal-weight rating maintained. Industry view: In-line.

Target price is $7.55 Current Price is $8.47 Difference: minus $0.92 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.04, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Morgans rates IAG as Hold (3) -

Insurance Australia Group will acquire 90% of RACQ's insurance underwriting business for -$855m with an option to purchase the remaining 10% within two years on the same terms.

In an overall positive transaction, according to Morgans, IAG has entered into a 25-year distribution agreement to provide insurance products through this brand. It's noted the deal will be value accretive and add scale in Queensland.

The target rises to $8.46 from $7.52. Hold.

Target price is $8.46 Current Price is $8.47 Difference: minus $0.01 (current price is over target).
If IAG meets the Morgans target it will return approximately minus 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $8.04, suggesting downside of -5.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Ord Minnett rates IAG as Accumulate (2) -

In a sound strategic move increasing Queensland exposure, notes Ord Minnett, Insurance Australia Group will pay -$855m to buy 90% of Queensland-based motoring organisation RACQ’s insurance business.

Funded from surplus capital, the transaction will be EPS accretive by between by 5-10%, a superior outcome to a 2-3% boost from a share buyback of the same size, highlights the broker.

For now, Ord Minnett's earnings forecasts are unchanged, and the Accumulate rating and $8.90 target are retained.

Target price is $8.90 Current Price is $8.47 Difference: $0.43
If IAG meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $8.04, suggesting downside of -5.5% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.4

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

Shaw and Partners rates LM8 as Buy (1) -

Lunnon Metals reported its first results at the Lady Herial gold target at Kambalda, Shaw and Partners notes, with 16m at 2.94g/t of gold in the upper structure.

The analyst highlights that Lady Herial continues to show "significant, near-surface, high-grade intercepts" from the infill program.

At the end of September, the company had cash of $21.1m and remains well-funded for future development.

The Buy, High Risk rating, and 60c target remain unchanged.

Target price is $0.60 Current Price is $0.24 Difference: $0.365
If LM8 meets the Shaw and Partners target it will return approximately 155% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

Citi rates MIN as Neutral (3) -

Citi questions Mineral Resources' estimated mine life for Onslow at around 50 years but confirms management's target of 35mtpa delivery in 2025 with a break-even price of US$70/t compared to the current iron ore price of approximately US$102/t.

The broker highlights Onslow, including mining services, represents around 50% of the net asset value at $34.40 per share, with the model most sensitive to mining cost assumptions. The analyst assumes a mine life for Onslow of circa 17 years.

Adjusting for changes in assumptions for Onslow, Citi reduces earnings estimates by -1% and -5% for FY25 and FY26.

The target price is lowered to $33 from $35 due to a higher discount rate to account for governance issues. Neutral rating remains unchanged.

Target price is $33.00 Current Price is $33.30 Difference: minus $0.3 (current price is over target).
If MIN meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $43.57, suggesting upside of 29.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Shaw and Partners rates MMI as Buy (1) -

Shaw and Partners highlights Metro Mining's debt restructuring with Nebari, noting the company chose to remain with the lender due to the absence of costs associated with changing lenders and the competitive terms offered.

The broker explains debt due has been reduced to $23m from $39m. Interest payments have decreased to $9m from $13m, inclusive of royalty payments in FY25.

Metro Mining remains one of Shaw and Partners' "best ideas," with a Buy rating and a 14c target price retained.

Target price is $0.14 Current Price is $0.06 Difference: $0.081
If MMI meets the Shaw and Partners target it will return approximately 137% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

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

Supporting growth for Medibank Private, in Morgan Stanley's view, hospital-insured persons growth picked up to 2.5% compared to the previous corresponding period in September versus 2.4% in June 2024 and 2.3% in September 2023.

Participation among the Australian population rose to a two-year high of 45%, highlights the analyst.

The Equal-Weight rating and $3.80 target are retained. Industry view is In-Line.

Target price is $3.80 Current Price is $3.78 Difference: $0.02
If MPL meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.03, suggesting upside of 5.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Citi rates MTS as Neutral (3) -

Metcash is set to report 1H25 results on 2 December, and Citi anticipates a net profit after tax of $134m, representing a -5% year-on-year decline.

Hardware and liquor are expected to remain under pressure, with slowing price growth in supermarkets and hardware making revenue growth more challenging.

Citi maintains a Neutral rating and a $3.40 target price, noting Coles Group ((COL)) is the only Buy-rated stock in the sector.

Target price is $3.40 Current Price is $3.12 Difference: $0.28
If MTS meets the Citi target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.60, suggesting upside of 15.4% (ex-dividends)

The company's fiscal year ends in April.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.2

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

Ord Minnett rates MYS as Buy (1) -

Ord Minnett believes there are no issues negatively impacting on potential merger synergies for Mystate from Auswide Bank announcing the shareholder merger scheme vote will now be rescheduled to February 3, 2025 from December 2, 2024.

Management at Austwide stated the delay will allow sufficient time for merger approvals to be gained from the Treasurer and APRA.

The Buy rating and $4.74 target are maintained.

Target price is $4.74 Current Price is $4.08 Difference: $0.66
If MYS meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 1.0

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

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

Supporting growth for nib Holdings, in Morgan Stanley's view, hospital-insured persons growth picked up to 2.5% compared to the previous corresponding period in September versus 2.4% in June 2024 and 2.3% in September 2023.

Participation among the Australian population rose to a two-year high of 45%, highlights the analyst.

Target $6.40. Equal-weight. Industry View: In-Line.

Target price is $6.40 Current Price is $5.70 Difference: $0.7
If NHF meets the Morgan Stanley target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $6.84, suggesting upside of 20.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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

Morgans rates OCL as Hold (3) -

Positive momentum across each of Objective Corp's key verticals was evident to Morgans from management commentary at the AGM, supporting the broker's forecast 13.5% acceleration in ARR Growth in FY25, up from 11% in FY24.

Noting a 36% share price lift since FY24 results, arising largely from mutiple expansion in the ASX Technology space, the analyst retains a Hold rating but the broker's own increased valuation multiple results in a $17.80 target, up from $14.00.

Target price is $17.80 Current Price is $17.51 Difference: $0.29
If OCL meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $15.73, suggesting downside of -9.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Bell Potter rates ONE as Initiation of coverage with (1) -

Bell Potter initiates coverage on Oneview Healthcare which owns the fully automated, integrated and personalised Care Experience Platform, helping streamline nursing workflows and aiding safe and timely hospital discharges.

This technology connects patients, families and care teams with services, education and information, to deliver 'one view' of the patient environment, during hospital stays, explain the analysts.

Already, the platform is contracted in over 110 hospitals from 24 health systems, and installed in three of the top twenty hospitals in the US, observes the broker, resulting in 10,361 live beds out of 18,313 contracted beds.

By FY27, Bell Potter believes Oneview Healthcare can reach the cash flow breakeven point of around 23,000 average live beds.

The broker begins with a Speculative Buy rating and 40c target.

Target price is $0.40 Current Price is $0.33 Difference: $0.07
If ONE meets the Bell Potter target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

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

Morgans rates PME as Hold (3) -

Morgans raises its target for Pro Medicus to $225 from $139 following a "shockingly large" 10-year, $330m contract signed with one of the largest hospital systems in the US.

The broker suggests a contract of this size is certain to raise the company's profile even more versus competitors. It's felt the short period of time since the prior record contract win suggests such outcomes may not just be a once every five-year event.

Even though the stock should be a core growth holding, according to Morgans, a Hold rating is maintained as the analysts continue to wait for some share price weakness to add to positions in one of the highest quality businesses on the ASX.

Target price is $225.00 Current Price is $248.18 Difference: minus $23.18 (current price is over target).
If PME meets the Morgans target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $155.30, suggesting downside of -38.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.4

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

Ord Minnett rates PME as Sell (5) -

Ord Minnett keeps its Hold rating and target price of $140 for Pro Medicus pending more detail on yesterday's $330m, 10-year contract win to supply its Visage suite of products to US health care operator Trinity Health.

The contract size compares to the broker's total contract value (TCV) forecasts for Pro Medicus of $189m and $201m in FY25 and FY26, respectively, implying upgrades are likely.

Expecting to 'go live' in the September quarter of 2025, Visage will replace Trinity’s legacy picture archiving and communication systems (PACS), explains the analyst.

The broker suggests this contract may open the door to contract wins with other major players in the US health-care system.

Target price is $140.00 Current Price is $248.18 Difference: minus $108.18 (current price is over target).
If PME meets the Ord Minnett target it will return approximately minus 44% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $155.30, suggesting downside of -38.0% (ex-dividends)

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.4

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

Macquarie rates PNI as Outperform (1) -

Following a period of research restriction on Pinnacle Investment Management, Macquarie returns with higher EPS forecasts after incorporating the recent capital raise (placement $400m: SPP $25m) and deployment of proceeds.

The broker's new target price of $26.70, up from $21.25, includes $820m of net value accretion related to seed capital and investments.

Management will invest around -$143m in two new affiliates and provide -$75m to seed new strategies for existing affiliates.

The Outperform rating is maintained.

Target price is $21.25 Current Price is $23.40 Difference: minus $2.15 (current price is over target).
If PNI meets the Macquarie target it will return approximately minus 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $22.54, suggesting downside of -3.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.8

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

Ord Minnett rates RMS as Buy (1) -

Ord Minnett raises its target for Ramelius Resources to $2.70 from $2.60 after incorporating into forecasts the Eridanus open pit cut-back, the Mt Magnet Mill expansion, and the Rebecca/Roe development. Buy rating unchanged. 

Providing some offset, the broker lowers FY25 and FY26 free cash flow (FCF) forecasts on the back of higher expected capex.

Following the -16% share price fall since late-October, the broker notes a buying opportunity for investors.

Target price is $2.70 Current Price is $2.09 Difference: $0.61
If RMS meets the Ord Minnett target it will return approximately 29% (excluding dividends, fees and charges).

Current consensus price target is $2.64, suggesting upside of 27.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Macquarie rates SGR as Downgrade to Underperform from Neutral (5) -

Macquarie lowers its target price for Star Entertainment to 20c from 24c and downgrades its rating to Underperform from Neutral following management's disclosure of an unaudited earnings (EBITDA) loss of -$27m for the first four months of FY25, excluding significant items.

At the AGM, the Chairman highlighted "near-term liquidity challenges, and the broader overall financial viability of the business, will remain the largest concerns for the Board and executive team".

Macquarie expresses doubts over management’s ability to stabilise operations and achieve near-term profitability.

Target price is $0.20 Current Price is $0.20 Difference: $0.005
If SGR meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $0.31, suggesting upside of 52.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: -0.5

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

Bell Potter rates STX as Speculative Buy (1) -

Management at Strike Energy has announced a positive final investment decision (FID) for its South Erregulla Peaking Gas Power Station.

Bell Potter notes the project is expected to generate annual revenue of $50-55m, up from prior $40-50m guidance, and plant utilisation of 30%, up from 18.8%. The power station will be supplied by the company's South Erregulla field at a rate of around 2PJpa.

The Speculative Buy rating and 29c target are retained.

Target price is $0.29 Current Price is $0.21 Difference: $0.085
If STX meets the Bell Potter target it will return approximately 41% (excluding dividends, fees and charges).

Current consensus price target is $0.27, suggesting upside of 30.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.7

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

Shaw and Partners rates SXG as Buy (1) -

Shaw and Partners maintains a Buy rating (High risk) with a $3.69 target price on Southern Cross Gold post the recent drill results from the Golden Dyke prospect at the 100%-owned Sunday Creek Gold-Antimony

The project has extended high-grade mineralisation -200m below previous drilling, with notable intercepts such as 5.5m at 26.1g/t gold equivalent and 4.1m at 9.0g/t gold equivalent.

The analyst notes the project remains a significant exploration opportunity, with ambitions to double the exploration target to 3Moz.

Southern Cross Gold is well-funded with an estimated $25m cash, supporting ongoing and future drilling campaigns across its targets, the broker highlights.

Target price is $3.69 Current Price is $3.02 Difference: $0.67
If SXG 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 FY24:

Forecast for FY25:

Market Sentiment: 1.0

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

Macquarie rates TWR as Outperform (1) -

Macquarie raises its target price for Tower by 15% to NZ$1.50 following FY24 results that aligned with guidance and a 10% upgrade to FY25 profit (UNPAT) guidance.

The broker highlights favourable trends in business-as-usual loss ratios and improving management expense ratios, signaling operational efficiencies.

Management also reaffirmed its NZ$45m buyback, planned for execution in March next year.

Macquarie emphasises Tower’s unique position as one of the few insurance companies in the region achieving organic growth. The investment case is bolstered by a strong dividend yield and planned capital return. The broker retains an Outperform rating.

Current Price is $1.22. Target price not assessed.

The company's fiscal year ends in September.

Forecast for FY25:

Forecast for FY26:

This company reports in NZD. 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 WEB as Buy (1) -

Web Travel reiterated its medium-term goals, targeting $10bn in total transaction values by FY30 and circa 50% earnings margins, excluding corporate overheads, Shaw and Partners notes.

Despite a decline of -150bps year-on-year in revenue margins to 6.6%, management expects margin stabilisation driven by operational leverage.

Structural changes in the bedbank market, including industry consolidation and rising direct bookings, present both challenges and opportunities for the company.

The $150m share buyback aligns with efforts to optimise capital structure, particularly addressing the $250m convertible note due in 2026, the broker comments.

Shaw and Partners has raised FY25/FY26 earnings forecasts by 13%/6% to reflect adjusted revenue and cost assumptions. 

Target price raised to $6.60 from $6.10. Buy rating retained.

Target price is $6.60 Current Price is $4.91 Difference: $1.69
If WEB meets the Shaw and Partners target it will return approximately 34% (excluding dividends, fees and charges).

Current consensus price target is $5.52, suggesting upside of 7.5% (ex-dividends)

The company's fiscal year ends in March.

Forecast for FY25:

Forecast for FY26:

Market Sentiment: 0.3

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