Australian Broker Call

Morgan Stanley rates BTH as Overweight (1) -

Following 4Q results, Morgan Stanley remains Overweight-rated for Bigtincan Holdings and feels the company's current low multiple is not pricing-in ongoing success. Annual recurring revenue (ARR) was in-line with the broker's forecast and guidance.

Management reiterated its target of being cash flow breakeven in FY23.

While the results contained few surprises, the analyst materially upgrades EPS forecasts, as a higher level of R&D costs are now being capitalised. The company is Morgan Stanley's top pick in terms of small-cap SaaS names.

The Overweight rating and $1.15 target are retained. Industry view: In-Line.

Target price is $1.15 Current Price is $0.71 Difference: $0.44
If BTH meets the Morgan Stanley target it will return approximately 62% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates CMM as Neutral (3) -

Capricorn Metals June-quarter result met Macquarie's forecasts, (pre-released) solid production figures from Karlawinda and 6% higher-than-forecast all-in-sustaining costs framing the result. Guidance was mixed.

The company has moved to a net cash and bullion position, and Macquarie says the company enjoys greater balance sheet and cash flow flexibility after its converted debt facility.

EPS forecasts rise 4% for FY22; but fall -1% to -4% across FY23 to FY26.

The broker upgrades the undeveloped resources value at Mt Gibson after positive drill results.

This helps drive a 3% rise in the target price to $3.60. Neutral rating retained.

Target price is $3.60 Current Price is $3.73 Difference: minus $0.13 (current price is over target).
If CMM meets the Macquarie target it will return approximately minus 3% (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

Morgans rates FCT as Hold (3) -

Morgans leaves its $0.08 target and Hold rating unchanged for FirstWave Cloud Technology, following a 4Q that showed progress towards rebasing the business.

The broker forecasts a strong outlook based on the sales pipeline.

Target price is $0.08 Current Price is $0.05 Difference: $0.03
If FCT meets the Morgans target it will return approximately 60% (excluding dividends, fees and charges).

Market Sentiment: 0.0

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

Ord Minnett rates FMG as Hold (3) -

Fortescue Metals' June-quarter production surprised through very strong shipments, comments Ord Minnett in an initial assessment. Alas, achieved pricing proved -12% lower than forecast.

Cost, on the other hand, proved better-than-expected. But then cost guidance disappointed. Guidance for production in FY23 was a positive surprise.

Reading all of the above, it should be little surprise the broker is of the view this is a rather "mixed" performance from the iron ore producer.

Target price is $18.00 Current Price is $18.18 Difference: minus $0.18 (current price is over target).
If FMG meets the Ord Minnett target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $16.73, suggesting downside of -10.4% (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: -0.3

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

Citi rates IDX as Buy (1) -

Integral Diagnostics' unaudited FY22 results fell well short of Citi and consensus forecasts and Citi downgrades FY22 to FY24 EPS forecasts -28%, -25% and -15%.

Covid remains the culprit. Revenue gained slightly on acquisitions but margins fell roughly -20% on FY21.

Target price falls to $3.90 from $4.80. Buy rating retained.

Target price is $3.90 Current Price is $2.84 Difference: $1.06
If IDX meets the Citi target it will return approximately 37% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 14.0% (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 IDX as Neutral (3) -

Integral Diagnostics's FY22 result missed consensus and Macquarie's forecasts by roughly -16% to -17%.

Macquarie now moderates revenue growth assumptions and expects sustained cost inflation.

The broker remains upbeat on the long-term view but not-so on the near-term outlook and the time-frame for recovery is obscure.

EPS forecasts fall -16% in FY22, -27% in FY23 and -31% in FY24.

Neutral rating retained. Target price slumps to $3.10 from $4.15.

Target price is $3.10 Current Price is $2.84 Difference: $0.26
If IDX meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 14.0% (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

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

While Integral Diagnostics' FY22 unaudited revenue was a 3.8% beat versus Morgan Stanley's forecast, the broker is concerned referrer-owned radiology practices in Auckland are weighing upon revenues in New Zealand.

The broker suspects the impact from these radiology practices will persist across A&NZ into FY23.

Of greater concern to the analyst, the operating earnings (EBITDA) margin fell by -600bps, due to negative fixed cost leverage, increased employee costs and an elevated consumables cost. The FY23 earnings forecast is considered to be at risk.

The Equal-weight rating and $3.51 target are retained. Industry view In-Line.

Target price is $3.51 Current Price is $2.84 Difference: $0.67
If IDX meets the Morgan Stanley target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.45, suggesting upside of 14.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.0

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

Credit Suisse rates IGO as Outperform (1) -

IGO reported June quarter results with production and costs coming in marginally better than FY22 guidance and in-line with Credit Suisse's expectations. 

The broker adjusts earnings estimates for FY23 with expectations of lower lithium prices as these operations continue to be impacted by the pricing differential between technical grade which achieves a lower price than chemical.

Base metals performed better than both Credit Suisse and consensus, beating the former by 33% on EBITDA.

With adjustments to the lithium price and production forecasts, earnings per share are adjusted by 4% in FY22 and -23.4% in FY23.

Outperform. The target price is reduced to $11.60 from $12.00.

Target price is $11.60 Current Price is $9.98 Difference: $1.62
If IGO meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates IGO as Outperform (1) -

IGO's June-quarter result outpaced Macquarie's forecasts thanks to big production beat at Greenbush and a good production and cost report from Nova.

Spodumene volume guidance outpaced.

Earnings forecasts fall -1% in FY22; rise 5% in FY23 to reflect spodumene guidance; and fall -2% in FY24-FY25 forecasts due to rising costs.

Outperform rating and $17 target price retained. 

Target price is $17.00 Current Price is $9.98 Difference: $7.02
If IGO meets the Macquarie target it will return approximately 70% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Morgan Stanley rates IGO as Underweight (5) -

Following 4Q results for IGO, Morgan Stanley highlights FY22 free cash flow was stronger than expected, driven by lower capex. However, FY23 guidance was weaker across the board with cost projections significantly higher than the analyst had forecast.

FY23 production guidance for Greenbushes was a -10% miss versus the broker's forecast, driven by a slower ramp-up of new projects. The latter leads to around 20% higher costs with sustaining and development capex also around 45% higher than expected.

The Underweight rating and $10.20 are unchanged. Industry View: Attractive.

Target price is $10.20 Current Price is $9.98 Difference: $0.22
If IGO meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

UBS rates IGO as Buy (1) -

UBS saw a strong June-quarter performance and has reiterated its Buy rating for IGO ahead of the analysts making a site visit to TLEA shortly. Target price remains $12.75.

On the nickel front, UBS saw a positive surprise from Nova but a miss from Forrestania.

All-in-all, EPS forecasts have gone up 16% for FY22, but down -10% for FY23 and -5% for FY24, predominantly on anticipation of higher costs.

Target price is $12.75 Current Price is $9.98 Difference: $2.77
If IGO meets the UBS target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $12.68, suggesting upside of 18.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

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

Macquarie rates MCR as Outperform (1) -

Mincor Resources' June-quarter production report appears to have satisfied Macquarie, but the broker tempers its FY23 ramp-up expectations, while believing progress is good.

CEO and managing director David South has resigned, effective August 12, and will be replace by Gabriell Iwanow in early November. Macquarie is surprised by the announcement but considers Iwanow to be a good replacement.

The broker appreciates the company's compelling FY23 free cash flow yield of 23%, strong balance sheet and attractive multiple.

EPS forecasts rise 5% in FY22 and fall -6% to -7% over FY23 and FY24.

Outperform rating retained. Target price is steady at $2.30.

Target price is $2.30 Current Price is $1.90 Difference: $0.4
If MCR meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

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

Macquarie rates MIN as Outperform (1) -

In an initial glance at 4Q results for Mineral Resources, Macquarie notes a "solid" set of numbers with strong iron-ore and spodumene production. Maiden lithium hydroxide output positively surprised, offset by -5% weaker realised prices than anticipated.

Iron ore production was a 16% beat versus the broker's forecast, reflecting stronger output at both Utah Point and Yilgarn. Mt Marion's spodumene production and shipments were beats of 2% and 13%, respectively.

Volumes for Mining Services were softer than the analyst had expected though management stated  cash costs are expected to be within guidance ranges for all operating assets. The Outperform rating and $82 target are retained.

Target price is $82.00 Current Price is $48.80 Difference: $33.2
If MIN meets the Macquarie target it will return approximately 68% (excluding dividends, fees and charges).

Current consensus price target is $72.94, suggesting upside of 36.9% (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 MQG as Neutral (3) -

At its AGM today, Macquarie Group cited favourable conditions that assisted net profit beating the comparable performance in 1Q22. UBS analysts also note softer trading conditions are expected for H2.

In an initial response, the broker believes the guidance provided is still better-than-anticipated. UBS lauds Macquarie's diversified operations, as well as its underlying resilience.

Price target $200. Neutral.

Target price is $200.00 Current Price is $173.73 Difference: $26.27
If MQG meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $195.00, suggesting upside of 8.7% (ex-dividends)

The company's fiscal year ends in March.

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 NTD as Hold (3) -

Preliminary FY22 guidance by National Tyre & Wheel missed Morgans profit (NPATA) forecast by -16%, due largely to higher-than-expected opex in the 2H. Margin assumptions are lowered and EPS forecasts downgraded by -22-33%.

The target falls to $1.03 from $1.54. While demand remains robust, the analyst awaits evidence of management execution and easing cost headwinds before raising the Hold rating.

Management noted supply chain issues and covid impacts (price inflation and a tight labour market) through FY22.

Target price is $1.03 Current Price is $0.93 Difference: $0.1
If NTD meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

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 ORI as Neutral (3) -

Orica's investor day pleased Citi after management outlined its pivot to future-facing (green) commodities.

The company now expects five-year global growth to be strongest in lithium, nickel, cobalt and zinc. Interestingly it only expects copper to grow at half the rate and notes demand for new products has been strong, in part due to customers seeking to meet carbon targets.

Management says Orica's plants are now sold out and the company is gaining higher prices as customers seek to secure supply and technical support and innovation; and Citi says the company is in the driving seat and walking from contracts that fail to hit profit targets.

The company is concentrating on offering high value digital services and management raises capital expenditure guidance.

Meanwhile, management spies a recovery in Latin American mining, driven by iron ore and gold.

Neutral rating retained. Target price rises to $17.15 from $16.20.

Target price is $17.15 Current Price is $16.80 Difference: $0.35
If ORI meets the Citi target it will return approximately 2% (excluding dividends, fees and charges).

Current consensus price target is $17.42, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

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

Credit Suisse rates ORI as Outperform (1) -

Credit Suisse considers the investor update from Orica as neutral to positive for investors with no changes to earnings guidance provided.

The company is increasing investment in low emissions technologies and highlighted a shift from targeting volume growth to a more focused approach on improving returns via pricing and margins.

Credit Suisse notes Orica has the potential to benefit from the decline in ammonia prices going into 4Q22 and all the plants are seemingly running at full capacity, with supply chains functioning.

The Outperform rating and target price of $17.71 are retained.

Target price is $17.71 Current Price is $16.80 Difference: $0.91
If ORI meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges).

Current consensus price target is $17.42, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

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 ORI as Neutral (3) -

Orica's investor update pleased Macquarie, management retaining guidance while noticing strong momentum in operations in the September half.

Management demonstrated a clear focus on increasing value and margins by focusing on future-facing commodities and high-margin propositions relating to technology adoption to help customers meet carbon targets.

Macquarie considers Orica's demand profile to be production-driven and fairly defensive. Working capital demands remain high with gearing at the top end of the company's target range.

EPS forecasts rise 1% in FY22; 3% in FY23 and 1% in FY24. Neutral rating retained. Target price rises to $17.45 from $16.95.

Target price is $17.45 Current Price is $16.80 Difference: $0.65
If ORI meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $17.42, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

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

Morgan Stanley rates ORI as Overweight (1) -

Morgan Stanley was impressed by the strategy outlined by Orica's management team at the company's investor day, and came away expecting strong earnings growth will be delivered over the next few years.

The Overweight rating and $19.70 target are unchanged. Industry view is In-Line.

The broker believes a focus on value over volume, and expansion on the non-coal facing businesses sets a positive path for the business. Tightness across the global nitrogen complex is expected to result in meaningful upside as multi-year contracts begin to roll.

Target price is $19.70 Current Price is $16.80 Difference: $2.9
If ORI meets the Morgan Stanley target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $17.42, suggesting upside of 5.2% (ex-dividends)

The company's fiscal year ends in September.

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

Citi rates RIO as Buy (1) -

On closer examination, Rio Tinto's June-half result fell -3% below consensus and -10% shy of Citi forecasts, with weaker earnings logged across all sectors.

The dividend payout is 50% compared with forecasts of 65% to 70%.

Costs were the culprit, thanks largely to covid, and lower demand hit revenues. Management also reports guidance risks around the Gudai-Darri and Robe Valley operations, and the weather. About -$600m goes to the tax office after a payment dispute.

The broker reduces earnings (EBIT) forecasts by -13% for 2022 and -14% for FY23.

Citi admires the strong balance sheet and notes FX movements are favourable. Buy rating retained. Target price is steady at $120.

Target price is $120.00 Current Price is $96.98 Difference: $23.02
If RIO meets the Citi target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $110.79, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Macquarie rates RIO as Outperform (1) -

Rio Tinto's June-half result met Macquarie's forecasts, aided by lower capital expenditure and higher-than-forecast free cash flow.

But the dividend ratio fell sharply to 50% - a -35% miss.

The broker says this reflects greater economic uncertainty and that the company is preparing for acquisitions.

Macquarie believes the challenging market will test Rio's counter-cyclical investment strategy and capital allocation.

Outperform rating and $120 target price retained.

Target price is $120.00 Current Price is $96.98 Difference: $23.02
If RIO meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $110.79, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Morgan Stanley rates RIO as Overweight (1) -

Due to a volatile outlook for commodities, Rio Tinto chose to preserve cash. As a result, the 1H dividend of US$2.67 was -17% and -21% below that expected by Morgan Stanley and consensus. Any special dividend payments will be deferred until the full year period.

Eearnings (EBITDA) were in-line with the broker's forecast, while cash generation was stronger than expected. All FY22 guidance metrics were left unchanged.

The Overweight rating and $115.5 target price are unchanged. Industry View: Attractive.

Target price is $115.50 Current Price is $96.98 Difference: $18.52
If RIO meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $110.79, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Morgans rates RIO as Add (1) -

Rio Tinto surprised Morgans by not paying a special dividend and reducing its dividend payout ratio to 50% from 75% in the previous corresponding period, despite posting a "reasonable" 1H result. This is not considered to signal the end of bumper earnings.

The board prefers to remain conservative on dividends during current market conditions and will await full year results before contemplating a special dividend, reports the broker.

While the 1H earnings (EBITDA) margin of 52% fell short of consensus expectations for 57%, it was above the analyst's expectation of 49%.

The $113 target is unchanged and the Add rating is retained as the broker considers the current share price is undervaluing substantial free cash flow.

Target price is $113.00 Current Price is $96.98 Difference: $16.02
If RIO meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges).

Current consensus price target is $110.79, suggesting upside of 13.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

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

Market Sentiment: 0.7

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

Credit Suisse rates SBM as Neutral (3) -

St. Barbara pre-released the June quarter trading results.

Credit Suisse highlights unit costs were in line with consensus but higher than its own expectation and production rose 40% to 280.7koz, in-line with guidance.

With uncertainty around the outlook for two assets Simberi (under review) and Atlantic (awaiting Canadian permits), St. Barbara proved gun shy in providing guidance for FY23.

The broker assesses the sale of Simberi, valued at $180m, could provide funds for reinvestment in the expansion of Leonora and Atlantic (permits forthcoming) which would be positive for the balance sheet.

St Barbara is rated Neutral. The price target is lowered to $0.90 from $1.00 on expectations for lower production and higher costs.

Target price is $0.90 Current Price is $0.93 Difference: minus $0.03 (current price is over target).
If SBM meets the Credit Suisse target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $1.14, suggesting upside of 10.4% (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 SBM as Outperform (1) -

St. Barbara's June-quarter production met Macquarie's forecast and all-in-sustaining costs proved a tiny beat.

Revised guidance also met the broker's expectations.

EPS forecasts see the company move to a slight profit from a slight loss.

Outperform rating and $1.10 target price retained.

Target price is $1.10 Current Price is $0.93 Difference: $0.17
If SBM meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $1.14, suggesting upside of 10.4% (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 SFR as Sell (5) -

Sandfire Resources' June-quarter release, upon first glance, seems to have missed Ord Minnett's forecasts for revenue and EBITDA, with the broker pointing towards provisional pricing impacts and higher costs.

In the same vein, copper output at Matsa was a positive surprise, but at a higher-than-forecast cost.

FY23 guidance is in-line with the broker's projections, but costs remain a negative surprise.

All-in-all, the analysts thinks consensus forecasts will reduce post today's release on higher costs. Sell.

Target price is $3.80 Current Price is $4.20 Difference: minus $0.4 (current price is over target).
If SFR meets the Ord Minnett target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $6.13, suggesting upside of 39.6% (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: 0.4

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

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

Macquarie assesses the growth drivers for Sonic Healthcare and downgrades the company to Underperform from Neutral.

The broker spies only slight organic growt and notes the company is relying on acquisitions to meet Macquarie's EPS forecasts, which are already below consensus. Consensus forecasts 6.8% EPS growth to FY26, compared with Macquarie's 4.4%.

Macquarie raises its EPS forecasts 3% for FY23 and 4% for FY24 to reflect covid-19 earnings and acquisition earnings.

Target price falls to $32 from $38.45 to reflect higher risk-free rates, and lower long-term growth assumptions.

Target price is $32.00 Current Price is $33.75 Difference: minus $1.75 (current price is over target).
If SHL meets the Macquarie target it will return approximately minus 5% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.88, suggesting upside of 9.9% (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 SLR as Outperform (1) -

Silver Lake Resources's FY22 June-quarter production outpaced Macquarie by 14% and all-in-sustaining costs and sales were in-line. Cash flow also proved a beat.

FY23 sales and cost guidance proved a slight miss after the company suspended mining at another Mt Monger under ground mine.

EPS forecasts for FY23 fall -48% accordingly and are cut -28% in FY24, -10% in FY25, and -5% in FY26 to reflect the weaker production position and likely rising costs.

Outperform rating retained. Target price falls -5% to $1.80 from $1.90.

Target price is $1.80 Current Price is $1.41 Difference: $0.39
If SLR meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $2.03, suggesting upside of 39.7% (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 - Cessation of coverage

Forecast for FY22:

Forecast for FY23:

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

Morgan Stanley rates WBC as Overweight (1) -

A market update by Westpac revealed the Customer Outcomes and Risk Excellence (CORE) program is "on track", with
the major remediation programs in "final stages".

The update supports Morgan Stanley's view the 'fix'agenda is well progressed and further cost reductions should ensue, along with a gradual improvement in franchise performance.

The Overweight rating and $22.30 target are maintained. Industry view: Attractive.

Target price is $22.30 Current Price is $21.41 Difference: $0.89
If WBC meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $24.50, suggesting upside of 14.2% (ex-dividends)

The company's fiscal year ends in September.

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 WGN as Downgrade to Hold from Add (3) -

Morgans sees potential for Wagners Holding Co to produce underwhelming FY22 results and notes uncertainty around growth prospects for the Composite Fibre Technologies (CFT) division and the EFC division's product.

As a result, the rating falls to Hold from Add, and the target to $1.45 from $2.20.

The broker likes the opportunity in Europe for the Earth Friendly Concrete-Low Carbon Technologies (EFC) division, though finds it hard to quantify.

Target price is $1.45 Current Price is $1.18 Difference: $0.27
If WGN meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $1.77, suggesting upside of 47.2% (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