Australian Broker Call

Morgans rates AGL as Hold (3) -

Electricity prices have surged in Queensland and dragged NSW along for the ride, Morgans notes. AGL Energy is well leveraged to rising prices, but the broker sees AGL's subsequent rally as but a temporary reprieve.

The broker suspects the electricity rally will be its own undoing with higher energy and carbon prices incentivising faster investment into more renewables. A change of government could also speed up this process.

Target rises to $7.48 from $7.38, Hold retained.

Target price is $7.48 Current Price is $7.33 Difference: $0.15
If AGL meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $7.39, suggesting downside of -1.6% (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

Citi rates APX as Buy (1) -

Citi says January website traffic to Appen's two largest customer rating websites was mixed, Google's rating website accelerating and Facebook's sharply slowing.

Facebook (Meta) is Appen's largest customers, suggesting a slow start for 2022, notes Citi, but the broker doesn't place too much weight on the data from the seasonally quiet January.

Buy rating retained. Target price $14.80.

Target price is $14.80 Current Price is $8.25 Difference: $6.55
If APX meets the Citi target it will return approximately 79% (excluding dividends, fees and charges).

Current consensus price target is $12.20, suggesting upside of 40.9% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

Market Sentiment: 0.3

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

Ord Minnett rates BEN as Hold (3) -

First half results for Bendigo and Adelaide Bank are due on February 14. Ord Minnett forecasts a cash net profit of $249m, up 5% half-
on-half, including a very low impairment charge.

The Hold rating and $9.60 target price are maintained.

Target price is $9.60 Current Price is $9.05 Difference: $0.55
If BEN meets the Ord Minnett target it will return approximately 6% (excluding dividends, fees and charges).

Current consensus price target is $9.92, suggesting upside of 7.1% (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

Citi rates CBA as Sell (5) -

CommBank released interim financials and Citi, upon first glance, spotted a "solid core earnings beat", though the broker also believes management's commentary around the net interest margin (NIM) is likely to disappoint.

Insofar that, near-term guidance on NIMs is now clouding the earning growth outlook, argues the broker, explaining this is important given CBA’s (always present) premium valuation.

The result itself seems to have outperformed expectations because revenue grew faster and costs remained contained. Sell. Target $87.

Target price is $97.00 Current Price is $94.30 Difference: $2.7
If CBA meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $89.57, suggesting downside of -10.1% (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 CBA as Underperform (5) -

Macquarie's initial assessment of today's interim report is bright and clear: "They did it again". CBA's bottom line showed up some 7% above the broker's forecast, pre-provisions.

An argument could be made, says the broker, that today's beat was helped by lower quality items, but overall the conclusion needs to be: CBA is performing better than its peers.

Macquarie continues to struggle with the premium valuation but also argues after a result like this one, any de-rating for the shares will need to happen at a later stage.

While the anticipated de-rating is yet again delayed, Macquarie sticks with its Underperform rating and $88.50 target price.

Target price is $88.50 Current Price is $94.30 Difference: minus $5.8 (current price is over target).
If CBA meets the Macquarie target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $89.57, suggesting downside of -10.1% (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

Citi rates CCX as Neutral (3) -

Citi has analysed City Chic Collective's website visits, which accounted for 71% of revenue in FY21.

Visits rose 9% after acquisitions, suggesting a slow start, but conversion rates and average transaction value have yet to be determined, notes the broker.

Australia outperformed global operations - up 21% in January, compared with 28% in December and 32% in November. Citi attributes the slowing to decreased consumer confidence. 

Despite its strong net cash position, Citi Chic has a degree of operating leverage to retail spending, notes the broker, given large fixed costs.

Neutral rating and $5.30 target price retained.

Target price is $5.30 Current Price is $5.45 Difference: minus $0.15 (current price is over target).
If CCX meets the Citi target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.09, suggesting upside of 10.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates CLW as Buy (1) -

Charter Hall Long WALE REIT's December-half EPS met Citi and consensus forecasts. Guidance was steady (-1% below the broker's forecast).

But Citi notes CPI growth has outpaced Charter Hall's August estimates; guidance doesn't include potential acquisitions (which the broker expects may require a capital raising); and the result reinforces the security of the REIT's long lease income and tenant quality.

The REIT reported an 8% rise in asset values in the December half, resulting in a 13% increase in net tangible assets (NTA), above the historical 10% premium, and Citi says feedback from management and agents suggest this will rise further, increasing the disparity with the share price.

Buy rating retained, the broker citing the REIT's 6% yield and -17% discount to NTA. Target price rises to $5.71 from $5.59.

Target price is $5.71 Current Price is $4.91 Difference: $0.8
If CLW meets the Citi target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting upside of 10.9% (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 CLW as Outperform (1) -

Charter Hall Long WALE REIT's December-half earnings broadly met Macquarie's forecasts and management reiterated guidance for 4.5%-plus growth.

The broker cites strong operational metrics, thanks to transactions and expects the balance sheet may offer opportunities for capital management should the REIT's share price trade below net tangible assets (NTA).

Charter Hall Long WALE REIT offers an FY23 forecast dividend yield in excess of 6% and is trading at a -17% discount to NTA. 

Macquarie hopes the REIT can pull forward (acquired) ALE's 2028 rent reviews given inefficiency in the portfolio. EPS forecasts are steady for FY22; and rise 1% for FY23 and 4% for FY24.

Outperform rating retained. Target price eases to $5.23 from $5.31.

Target price is $5.23 Current Price is $4.91 Difference: $0.32
If CLW meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting upside of 10.9% (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

Morgan Stanley rates CLW as Overweight (1) -

High operating income and low overheads saw Charter Hall Long Wale REIT beat Morgan Stanley's first half earnings per share forecast, delivering 15.3 cents compared to the expected 14.4 cents. Full year guidance suggests a slight backwards trend in the second half. 

Morgan Stanley expects 4.5% earnings per share growth in the near term is achievable despite limited acquisition scope. The company currently trades at the deepest discount to net tangible assets in the broker's coverage and will likely appeal to investors. 

The Overweight rating and target price of $5.85 are retained. Industry view: In-Line. 

Target price is $5.85 Current Price is $4.91 Difference: $0.94
If CLW meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting upside of 10.9% (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 CLW as Accumulate (2) -

Ord Minnett assesses an in-line 1H result for Charter Hall Long WALE REIT and retains its Accumulate rating and $5.46 target price.

While the broker sees earnings upside, this may be partially offset by a rising debt cost as the REIT rolls overs hedges and the floating rate increases. There's $300m in available cash and undrawn debt facilities for acquisitions, points out the analyst.

Target price is $5.46 Current Price is $4.91 Difference: $0.55
If CLW meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $5.51, suggesting upside of 10.9% (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

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

Centuria Office REIT reported fist half funds from operations of 9.8c which, Morgans notes, included surrender lease payments that would otherwise have contributed to the second half.

The result nonetheless highlighted stable metrics, the broker suggests, and FY22 guidance is reiterated. Investor demand remains strong for a pure-play office REIT despite omicron, so at a -10% discount to net tangible asset value the broker upgrades to Add from Hold.

Target unchanged at $2.50.

Target price is $2.50 Current Price is $2.14 Difference: $0.36
If COF meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $2.44, suggesting upside of 13.6% (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

Citi rates CPU as Sell (5) -

At a glance, Computershare's December-half EPS outpaced Citi's forecasts by 8% but was broadly in line with consensus, thanks to the recent Computershare Corporate Trust acquisition; and a beat on fee income struck on higher rates and strong volumes.

Excluding these factors, revenue and costs proved a miss. The December-half dividend is up 1c to 23c.

Management guides to an increase in EPS of roughly 9%, compared with 2% previously. The company is sensitive to rising interest rates, every 1% increase translating to a US$120m rise in earnings (EBIT), notes Citi.

The broker expects the market may respond positively to this. 

Citi expects the company may be close to selling its UK Mortgage servicing business, and sees few signs of life in the US mortgage-servicing business.

Sell rating and $15.80 target price retained but Citi reviews these tomorrow.

Target price is $15.80 Current Price is $19.93 Difference: minus $4.13 (current price is over target).
If CPU meets the Citi target it will return approximately minus 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.44, suggesting downside of -8.8% (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: 0.3

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

Morgan Stanley rates CPU as Overweight (1) -

Morgan Stanley is expecting a positive share price reaction to Computershare's 7% full year guidance upgrade, which came following a strong first half performance that saw the company deliver a 14% beat to the broker's forecasts. 

The broker notes execution of the cost-out program and expansion of operating margins drove first half results, with lower than expected costs driving a slight earnings beat despite revenue being -2% below consensus forecasts. 

The Overweight rating and target price of $21.50 are retained. Industry view: Attractive. 

Target price is $21.50 Current Price is $19.93 Difference: $1.57
If CPU meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $20.44, suggesting downside of -8.8% (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: 0.3

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

Ord Minnett rates CPU as Lighten (4) -

Computershare's 1H earnings were in-line with Ord Minnett's forecast. However, management upgraded FY22 guidance, which implies to the analyst a substantial second-half skew for earnings.

The increased guidance is based upon rising margin income expectations (assuming a US interest rate rise in April), and an improved performance from the Computershare Corporate Trust (CCT).

Ord Minnett maintains its Lighten rating and $17.24 target price.

Target price is $17.24 Current Price is $19.93 Difference: minus $2.69 (current price is over target).
If CPU meets the Ord Minnett target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $20.44, suggesting downside of -8.8% (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: 0.3

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

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

Following market updates from Haemonetics, Morgan Stanley notes it is modeling 29% collection growth for CSL in FY22, highlighting that December quarter growth of 18% may be optimistic compared to competitor results. 

The broker also expects CSL collections to reach pre-pandemic levels in the March quarter, but acknowledges that data does suggest some risk to forecasts.

The Equal-Weight rating and target price of $280.00 are retained. Industry view: In-Line.

Target price is $280.00 Current Price is $256.98 Difference: $23.02
If CSL meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $312.94, suggesting upside of 22.4% (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

Morgans rates DXC as Add (1) -

Dexus Convenience Retail REIT just recently upgraded guidance hence its first half result held no surprises for Morgans. FY22 funds from operations are guided to be 5.5% up on last year.

Portfolio metrics remain solid, the broker suggests, the REIT trades at a 6% yield, a buyback is underway and management is considering divestments and asset recycling.

Add and $4.11 target retained.

Target price is $4.11 Current Price is $3.47 Difference: $0.64
If DXC meets the Morgans target it will return approximately 18% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Citi rates GUD as Buy (1) -

GUD Holdings' December-half result outpaced Citi and consensus forecasts by 6% and 4%, thanks to strong auto sales and margins, and lower net interest.

Citi largely sheets this back to GUD's big balance sheet, which allowed it to invest in inventory while smaller competitors struggled.

But guidance fell a touch shy of Citi's forecasts, despite management advising conditions improved in January and early February.

On the downside, management guided to higher costs in the December half thanks to a higher headcount, ESG, depreciation and operational expenses. Davey's delivered a -34% miss on Citi's estimate due to inventory write-downs.

Buy rating retained. Target price is $15.15.

Target price is $15.15 Current Price is $12.94 Difference: $2.21
If GUD meets the Citi target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $15.56, suggesting upside of 20.3% (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

Credit Suisse rates GUD as Outperform (1) -

First half earnings (EBIT) for G.U.D. Holdings were a beat versus the estimates of Credit Suisse and consensus. While the analyst trims EPS estimates, the target price rises to $17 from $14.30 on higher expected multiples and improved cash flow. Outperform.

The broker believes acquisitions have lifted operations and feels the investor day, set for April 8, may be the platform for a guidance upgrade.

Target price is $17.00 Current Price is $12.94 Difference: $4.06
If GUD meets the Credit Suisse target it will return approximately 31% (excluding dividends, fees and charges).

Current consensus price target is $15.56, suggesting upside of 20.3% (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

Macquarie rates GUD as Outperform (1) -

GUD Holdings' December-half result outpaced Macquarie's forecasts by roughly 5% and 13%, thanks to organic auto growth which was struck on higher margins.

The broker considers guidance conservative given management expects another round of price rises in February but acknowledges market volatility and rising costs.

The company recorded lower cash conversion courtesy a strategic inventory build but the broker expects this will recover in the second half. Macquarie also expects the company will divest Water.

EPS forecasts rise 3% for FY22 and fall -1% for FY23. Outperform rating retained. Target price rises 3% to $16.85 from $16.40.

Target price is $16.85 Current Price is $12.94 Difference: $3.91
If GUD meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $15.56, suggesting upside of 20.3% (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

Ord Minnett rates GUD as Buy (1) -

Ord Minnet maintains its Buy rating on G.U.D. Holdings and increases its target price to $14.40 from $14 following 1H results. Earnings (EBIT) post AASB-16 accounting of $59m were a beat compared to the analyst's $56.5m estimate.

The broker feels management guidance is conservative. Despite needing to digest the recent large acquisition of AutoPacific Group (and the resultant debt balance), the company is thought to have a strong suite of brands and now, more diversified distribution channels.

The Buy rating is unchanged.

Target price is $14.40 Current Price is $12.94 Difference: $1.46
If GUD meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $15.56, suggesting upside of 20.3% (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

UBS rates GUD as Buy (1) -

G.U.D. Holdings undertook significant inventory build in the first half in a bid to navigate supply chain constraints, with inventories up $41m half-on-half and largely offsetting any earnings beat as noted by UBS.

While strong performance from the automotive segment drove a 5% beat on group first half earnings UBS expects the company will be impacted by headwinds and increased costs in the fourth quarter but company guidance was retained.

The Buy rating is retained and the target price increases to $14.40 from $13.80.

Target price is $14.40 Current Price is $12.94 Difference: $1.46
If GUD meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $15.56, suggesting upside of 20.3% (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

Macquarie rates IEL as Outperform (1) -

Upon first glance, Macquarie comments interim financials have come out below expectations. The broker has retained its positive view on IDP Education believing today's "miss" is due to select border closures.

Macquarie adds forward looking indicators appear positive particularly in the Northern Hemisphere.

Outperform. Target $32.00.

Target price is $32.00 Current Price is $31.65 Difference: $0.35
If IEL meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $36.61, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Morgan Stanley rates IGO as Underweight (5) -

Alongside a December quarter update, IGO has provided the first FY22 guidance for its Greenbushes and Kwinana projects. Morgan Stanley notes a highlight was Greenbushes' mineral resource and ore reserve estimate increases of 52% and 20%.

Also of note was company commentary on bringing spending forward for Greenbushes. December quarter results were a mixed bag, with performance at Nova largely in line with Morgan Stanley's expectations while Greenbushes production was -11% below forecast.

The Underweight rating is retained and the target price increases to $10.05 from $9.70.

Target price is $10.05 Current Price is $12.10 Difference: minus $2.05 (current price is over target).
If IGO meets the Morgan Stanley target it will return approximately minus 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $10.79, suggesting downside of -12.3% (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

Macquarie rates KMD as Neutral (3) -

Kathmandu's December-quarter results broadly met Macquarie's forecasts as supply chain pressures dampened wholesale and footwear sales.

Both Columbia Sportswear and North Face are now clocking materially ahead of pre-pandemic levels. Gross margins rose for both businesses but Macquarie expects margin pressure to emerge this half.

Neutral rating and $1.50 target price retained.

Target price is $1.50 Current Price is $1.28 Difference: $0.22
If KMD meets the Macquarie target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $1.65, suggesting upside of 27.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY22:

Forecast for FY23:

This company reports in NZD. 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 KPG as Hold (3) -

Kelly Partners reported an 18% year on year increase in first half profit, driven by strong revenue growth. Management's FY24 profit target has been maintained, which Morgans believes looks achievable.

Given market size and fragmentation, ongoing consolidation provides longevity and consistency to the company’s growth profile, the broker notes. Five "tuck-in" and one marquee acquisition were completed in the half and the pipeline appears stronger post-covid.

Target rises to $4.30 from $3.44, Hold retained.

Target price is $4.30 Current Price is $4.97 Difference: minus $0.67 (current price is over target).
If KPG meets the Morgans target it will return approximately minus 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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

Macquarie rates MIN as Outperform (1) -

Upon initial assessment, Macquarie is of the view that today's interim result release has revealed a weak performance from Mineral Resources.

The broker points out higher transport and shipping costs in the iron-ore business (plus price discounting) have more than offset a better result in Mining Services. And no interim dividend was declared.

Outperform and $75.00 target. Macquarie points out buoyant iron-ore and lithium prices generate 23% and 92% higher earnings than the broker's base case for FY22 and FY23 at present spot prices, respectively.

Target price is $75.00 Current Price is $57.88 Difference: $17.12
If MIN meets the Macquarie target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $57.54, suggesting upside of 9.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates MP1 as Hold (3) -

At first glance, Ord Minnett doesn't think Megaport's interim report contained any surprises, albeit "normalised" EBITDA was below expectation.

The company announced Mexico as a new region plus a new Megaport ONE product and the broker expects both will require further investment over 2H22.

No quantitative guidance was provided and given the "miss" and the need for higher investments, Ord Minnett anticipates market consensus forecasts will be pared back post today's results release.

Target price is $15.50 Current Price is $13.25 Difference: $2.25
If MP1 meets the Ord Minnett target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $19.01, suggesting upside of 39.7% (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 MQG as Buy (1) -

Macquarie's December-quarter update impressed Citi, the broker describing it as a bumper quarter and the broker revises profit and earnings forecasts upward.

Markets facing operations were the key driver for Macquarie during the quarter, while base fee disappointed the broker.

Citi notes Macquarie's trading outpaced the broker's positive expectations in volatile energy markets, and management has upgraded guidance from in-line to materially higher (Citi interprets this as meaning 30% growth).

Transactional forecasts were also upgraded as were investment realisations. Advisory fee revenue rose.

Buy rating and target price of $226.00 are retained.

Target price is $226.00 Current Price is $201.57 Difference: $24.43
If MQG meets the Citi target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $220.20, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in March.

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

Credit Suisse rates MQG as Neutral (3) -

Following an operational briefing and business update, Credit Suisse upgrades Macquarie Group's earnings estimates by 14-16%, driven by an improved earnings outlook for Macquarie Capital and Commodities and Global Markets.

The December quarter performance of the Macquarie Asset Management division also boosted the analyst's outer years earnings forecasts. The division is considered to have strong deal flow in digital infrastructure, transport and decarbonisation.

The Neutral rating is retained as earnings may be approaching peak levels, estimates the broker. The target price rises to $210 from $195.

Target price is $210.00 Current Price is $201.57 Difference: $8.43
If MQG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $220.20, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in March.

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

Morgan Stanley rates MQG as Overweight (1) -

Significant guidance upgrades have been issued for Macquarie Capital and the Commodities and Global Markets segment following a record quarter from Macquarie Group. Morgan Stanley notes around 10% upside risk to the $3.9bn full year profit consensus forecast.

Morgan Stanley is looking to 45% earnings growth in FY22 given company guidance that commodity pricing volatility should benefit. The result will likely be hard to beat in FY23 but the broker has confidence in Macquarie Group's medium-term earnings outlook.

Profit after tax forecasts increase 11% in FY22, and 3.5%-5% in FY23 and FY24.

The Overweight rating is retained and target price increases to $242.00 from $235.00. Industry view: Attractive.

Target price is $242.00 Current Price is $201.57 Difference: $40.43
If MQG meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges).

Current consensus price target is $220.20, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in March.

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

Ord Minnett rates MQG as Accumulate (2) -

Macquarie Group delivered a record December quarter, with the commodities and global markets (CGM) division showing benefits from elevated energy price volatility, explains Ord Minnett.

Management also noted “exceptionally strong” investment realisations for Macquarie Capital.

The broker lifts its target price to $223 from $214 after raising its net profit forecasts by 18% for FY22 and 6% for the FY23–24 period. No guidance was provided. Accumulate.

Target price is $223.00 Current Price is $201.57 Difference: $21.43
If MQG meets the Ord Minnett target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $220.20, suggesting upside of 11.4% (ex-dividends)

The company's fiscal year ends in March.

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

Citi rates NAN as Sell (5) -

Nanosonics will scale up its direct sales and distribution of Trophon in North America, migrating customers from GE Healthcare who will cease to be its major distributor.

Citi perceives this to be a natural evolution. While the transition will affect revenue (a one-off impact) and operational costs (thanks to expansion), the broker believes the company will be able to generate higher revenue and profit on increased margins thereafter.

Sell rating and $5 target price retained.

Target price is $5.00 Current Price is $4.80 Difference: $0.2
If NAN meets the Citi target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 11.3% (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

Morgans rates NAN as Add (1) -

Nanosonics has revised its sales model with General Electric resulting in FY22 earnings downgrades and less certainty around FY23 earnings growth, Morgans notes.

The move is nevertheless consistent with the company’s strategy of a direct approach to market, moving away from the distributor model. The broker has cut FY22 forecasts and become more cautious over FY23 which leads to a target cut to $5.97 from $6.97.

Add retained.

Target price is $5.97 Current Price is $4.80 Difference: $1.17
If NAN meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $5.01, suggesting upside of 11.3% (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

Ord Minnett rates NAN as Downgrade to Lighten from Hold (4) -

Ord Minnett has tempered its growth expectations for both Nanosonics’ current business and the yet-to-be-launched Coris device.

The broker cuts its profit forecast to breakeven, largely from lost sales to GE Healthcare, after the announced changes to distributor arrangements. These changes are thought to offer both greater opportunity and risk, as the company takes greater control over its destiny.

EPS estimates are also lowered by -30% to reflect slower sales penetration assumptions and higher costs, explains the analyst.

The Lighten rating is unchanged and the target falls to $4.05 from $6.40.

Target price is $4.05 Current Price is $4.80 Difference: minus $0.75 (current price is over target).
If NAN meets the Ord Minnett target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $5.01, suggesting upside of 11.3% (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 ORG as Outperform (1) -

Macquarie posits that strong oil futures point to further upside for Origin Energy; and adds that rising gas prices could have a knock-on effect to electricity prices.

EPS forecasts rise 1.5% in FY22, 4.8% for FY23 and 1.5% in FY24.

Outperform rating and $6.37 target price retained.

Target price is $6.37 Current Price is $6.09 Difference: $0.28
If ORG meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 0.7% (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

Morgans rates ORG as Add (1) -

Electricity prices have surged in Queensland and dragged NSW along for the ride, Morgans notes. The broker prefers Origin Energy over AGL Energy ((AGL)) given diversifcation through APLNG ownership and lower carbon intensity generation fleet.

Origin is less sensitive to electricity prices and while Eraring (coal-fired) could potentially close earlier than the broker anticipates, its operating flexibility to ramp output quickly will allow it to extract value across its remaining useful life in a variety of different electricity price scenarios.

Target rises to $6.57, Add retained.

Target price is $6.57 Current Price is $6.09 Difference: $0.48
If ORG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $6.18, suggesting upside of 0.7% (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 PNI as Outperform (1) -

Pinnacle Investment Management Group's December-half result met Macquarie's forecasts.

The broker says the company's base fee margin performance (thanks to a funds-flow shift to higher margin business) augurs well for earnings and expects increased stakes in the company's affilitates Coolabah and Solaris could be 30% accretive.

Outperform rating and $16.89 target price are retained.

Target price is $16.89 Current Price is $11.09 Difference: $5.8
If PNI meets the Macquarie target it will return approximately 52% (excluding dividends, fees and charges).

Current consensus price target is $15.45, suggesting upside of 35.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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

Credit Suisse rates SCP as Neutral (3) -

Following a better 1H result than Credit Suisse expected, largely driven by net acquisitions, SCA Property Group upgraded full year guidance. The adjusted funds from operations (AFFO) guidance moved to at least 15.2cps from 15.0cps.

This guidance assumes a further $1m of rent relief and no unannounced acquisitions in the 2H. The broker raises its target price to $2.94 from $2.83.

Credit Suisse points out earnings are highly predictable and expects upcoming modest organic FFO growth. The Neutral rating is maintained.

Target price is $2.94 Current Price is $2.89 Difference: $0.05
If SCP meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $3.05, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Macquarie rates SCP as Neutral (3) -

Shopping Centres Australasia's December-half result proved a 2.5% beat on Macquarie's forecasts and management has upgraded adjusted funds from operations (AFFO) guidance by 1.3% to 15.2c per share.

The broker believes the company is well positioned to deliver on its three growth priorities: acquisitions, funds management, and development. Elsewhere, speciality and supermarket sales are trading 8% ahead of pre-covid levels, suggesting an upside risk to net tangible assets, says the broker.

Macquarie spies upside should the company deploy its balance sheet fat. 

FY22 adjusted funds from operations (AFFO) forecasts rise 2% on expected lower interest expenses, and FY23 forecasts rise 4%. Neutral rating retained. Target price is $3.04.

Target price is $3.04 Current Price is $2.89 Difference: $0.15
If SCP meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $3.05, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

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

Morgan Stanley was impressed by Shopping Centres Australasia Property Group's 1H result. Rent collections of 96% were considered good and the joint venture with the Singaporean government, called the SCA Metro Fund, is set to impress.

Management has also upgraded its FY22 adjusted funds from operations (AFFO) guidance to 15.2cps from 15.0cps. However, the analyst does caution negotiations of more challenged leases were delayed, and sales growth is moderating.

The Equal-weight rating is unchanged and target price rises to $3.10 from $2.95. In-Line industry view.

Target price is $3.10 Current Price is $2.89 Difference: $0.21
If SCP meets the Morgan Stanley target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.05, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Ord Minnett rates SCP as Hold (3) -

First half funds from operations (FFO) for Shopping Centres Australasia Property Group exceeded Ord Minnett's forecast by 1%, on lower covid-related rent relief. FY22 FFO guidance of 17.5cpu was in-line though ahead of the 17.2cpu consensus estimate.

The analyst points out the groups 2.4% cost of debt would enable FFO-accretive acquisitions. The Hold rating and $3.10 target price are unchanged.

Target price is $3.10 Current Price is $2.89 Difference: $0.21
If SCP meets the Ord Minnett target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $3.05, suggesting upside of 5.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.2

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

Morgan Stanley rates STO as Overweight (1) -

In weighing feedback from investors about Santos, Morgan Stanley believes the primary concern relates to the execution of divestments and the price achieved for them.

The investment community generally agrees, according to the analyst, that lesser growth ambitions, less gearing and a higher dividend are desirable.

In the broker's opinion, a full exit of Alaska would be the best case scenario from a range of alternatives. Price target remains at $10.40. Overweight. Industry view Attractive.

Target price is $10.40 Current Price is $7.60 Difference: $2.8
If STO meets the Morgan Stanley target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $8.94, suggesting upside of 19.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

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 SUN as Buy (1) -

Suncorp Group's December-half result beat Citi and consensus forecasts.

Citi says the result points to an insurance margin target of 10% to 12% in FY23, as interest rates and premium rate-momentum rise.

The broker expects a strong capital return from the company's $500m capital surplus and that the inflation-linked bond portfolio should aid near-term earnings and raises FY22 dividend estimates to 61c per share.

Citi doubts Suncorp can retain its bank cost-to-income ratio target of less than 50% but suspects growth momentum in home lending should remove the rub. The company has witnessed claims inflation but management believes this is being mitigated.

EPS forecasts rise 2% to 3%. Buy rating retained. Target price rises to $13.60 from $12.80.

Target price is $13.60 Current Price is $12.03 Difference: $1.57
If SUN meets the Citi target it will return approximately 13% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 12.2% (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

Credit Suisse rates SUN as Outperform (1) -

Suncorp Group delivered a strong 1H result, assesses Credit Suisse, with cash earnings exceeding forecasts. A 23cps interim dividend surprised on the upside. The consensus estimate was for 17cps.

The group maintained guidance for both the FY23 insurance trading ratio (ITR) of 10-12%, and the 50% cost-to-income ratio for the bank. The broker maintains the Outperform rating.

The $14 target price would have been increased though market multiples have experienced a sharp decline since the analyst's last review.

Target price is $14.00 Current Price is $12.03 Difference: $1.97
If SUN meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 12.2% (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 SUN as Outperform (1) -

Suncorp Group's December-half result broadly met Macquarie's forecasts, save for higher falls in net interest margins and slightly foggier NIM guidance, but the broker is upbeat, noting many positives. 

The company has cut its FY22 Hazard expectations after purchasing extra reinsurance, gross margins were steady as was the cost base.

EPS forecasts rise 5.3% for FY22, 3.8% for FY23 and 3.7% for FY24 to reflect stronger than forecast growth in gross written premiums, improved claims attrition and stronger investment income.

Outperform rating retained. Target price rises to $15.10.

Target price is $15.10 Current Price is $12.03 Difference: $3.07
If SUN meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 12.2% (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

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

Morgan Stanley expects a positive share market reaction following Suncorp Group's 15% beat on 1H cash profit versus expectations, driven by a better underlying result. The consensus estimate was also exceeded by 30%.

There were stronger margins and top-line growth in the insurer though margin trends in the bank surprised to the downside, explains the broker.

Meanwhile, the 23cps DPS was 20% and 35% ahead of the analyst and consensus. The Equal-weight rating is unchanged. The target rises to $12.25 from $11.90. Industry view: Attractive.

Target price is $12.25 Current Price is $12.03 Difference: $0.22
If SUN meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 12.2% (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

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

Suncorp's first half profit was down -21% year on year but 22% above consensus forecasts. The dividend of 23c beat a consensus 17c.

Morgans sees this as a solid result, highlighted by improving top line momentum and a positive trajectory being seen in the key
underlying insurance margin.

Morgans upgrades its FY22 earnings forecast and raises its target to $13.19 from $12.25. Solid business momentum and cost-outs into FY23 lead to an upgrade to Add from Hold.

Target price is $13.19 Current Price is $12.03 Difference: $1.16
If SUN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 12.2% (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 SUN as Hold (3) -

Following first-half results, including an adjusted cash net profit that exceeded the consensus and Ord Minnett's forecast, the broker still sees value though prefers Insurance Australia Group ((IAGH)) in the sector.

The analyst assesses the Australian general insurance business was strong and the underlying margin rose. While the bank benefited from provision releases, elevated expenses and net interest margin (NIM) pressure were offsets, points out Ord Minnett.

The target price rises to $13.75 from $13.50 and the Hold rating is unchanged.

Target price is $13.75 Current Price is $12.03 Difference: $1.72
If SUN meets the Ord Minnett target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 12.2% (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 SUN as Buy (1) -

Suncorp Group's first half results have driven UBS to increase earnings per share forecasts 11% and 6% in FY22 and FY23, noting despite mixed industry trends the company has a number of controls at its disposal to support earnings and return on equity into FY23.

The broker continues to see more value in the divestment of the Bank segment, but management is pursuing cost reductions in FY23 to improve profitability. Insurance continues to show momentum, and UBS expects the segment can deliver at the top end of guidance. 

The Buy rating is retained and the target price increases to $14.00 from $13.85

Target price is $14.00 Current Price is $12.03 Difference: $1.97
If SUN meets the UBS target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $13.70, suggesting upside of 12.2% (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

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

Following Syrah Resources' 4Q result, and after allowing for the recent capital raise and details from the Vidalia final investment decision (FID), Morgan Stanley raises its target price to $1.40 from $1.35. Equal-weight rating. Industry view: Attractive.

Management explained that production and sales were impacted by disrupted shipping markets in the 4Q. The result underperformed the analyst's forecasts, due to misses for graphite produced and costs. No 2022 guidance was proffered.

Target price is $1.40 Current Price is $1.65 Difference: minus $0.25 (current price is over target).
If SYR meets the Morgan Stanley target it will return approximately minus 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in December.

Forecast for FY21:

Forecast for FY22:

This company reports in USD. 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

Ord Minnett rates TYR as Buy (1) -

Ord Minnett maintains its Buy rating and $4.30 target for Tyro Payments following a 1H trading update showing a strong finish in December.

January saw a reduction in average weekly transaction value though merchants and customers were likely in holiday mode, posits the analyst.

The broker expects 2H volume improvement from a reopening economy and a waning impact from the omicron variant.

Target price is $4.30 Current Price is $2.21 Difference: $2.09
If TYR meets the Ord Minnett target it will return approximately 95% (excluding dividends, fees and charges).

Current consensus price target is $4.13, suggesting upside of 77.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

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